Wednesday’s Futures Setups

February Live Cattle
(
LCG3 |
Quote |
Chart |
News |
PowerRating) still look good, and may challenge the recent highs.

February Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) looks like it may pull back on Wednesday,
judging by the long upper tail it left. The longer-term trend still looks up,
though.

The Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) is at a 127% Fib extension, as well as oversold
on the stochastics. A little scary, but I think we bounce in the next few days.

March Cocoa
(
CCH3 |
Quote |
Chart |
News |
PowerRating) still looks ready to continue its
rally from a pullback.

Short
Candidates:

March Corn
(
CH3 |
Quote |
Chart |
News |
PowerRating) is a
pullback from lows, bouncing off its 20-day moving average.

The Yen
(
JYH3 |
Quote |
Chart |
News |
PowerRating) is hitting
a down trendline from July, and should go lower here.

Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating) are still in pullback mode,
but with today’s doji, we have some indecision.

March Coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating)
triggered. Look for maybe another rally day here, but don’t overstay your
welcome — it’ll be a pullback from lows soon.

Please
note that while there are strong trends, one bar or a series of bars
forming a setup can sometimes indicate a contra move for the next day.
This contra move may not be long-lasting — maybe only for a day or
two. Trading with the main trend is always the highest probability
trade.