Friday’s Futures Setups
Five
days later, Dec. gold
(
GCZ1 |
Quote |
Chart |
News |
PowerRating) is confirming its bearish engulfing
bar, with a gap down close below the bar and the neckline and the setup here
suggests gold will test to $5 below contract lows.
Imploding T-bonds
(
USZ1 |
Quote |
Chart |
News |
PowerRating) are down for a fifth straight day. We
pointed out the pattern that alerted you to this move a week ago in Friday’s
Futures Setups. While stepping in front of falling knives is dangerous, this
market held at support as it continued trading in the electronic market after
Chicago closed. Support at 105 26/32. Failing that, this market has been trading
geometrically so the 50% retracement of the rally from May comes just below that
at 105 5/32.
From the Momentum-5
List, December cotton
(
CTZ1 |
Quote |
Chart |
News |
PowerRating) held the 33.25-33.50 area. Any
tests of this area set up defined-risk entry for a possible resumption of the up
move.
See if March cocoa
(
CCH2 |
Quote |
Chart |
News |
PowerRating) holds at the 1245, eight-month high
tomorrow — for a third day. We closed at 1232, and this market is parabolically
overbought, meaning we’re testing the theory of the market holding 1245
resistance.
As suggested in last night’s Futures
Setups, the jolt in the last five minutes in December coffee
(
KCZ1 |
Quote |
Chart |
News |
PowerRating)
“suggests some late-hour manipulation and the
chance for a correction,” a theory which could be “tested below
48.75, the trigger of Thursday’s Turtle
Soup Plus One Sell setup.” Coffee gave entry on the
“Soup” and retraced over half of yesterday’s 10% range today. Late gyrations
today suggested another attempt at tape painting today. But this type of
volatility can also be a sign of the confirmation of a trend reversal (meaning
up). Look for the March contract
(
KCH2 |
Quote |
Chart |
News |
PowerRating)
to track higher to retest the area of the two-month high at 54-55. Opening range
longs.
|
Contract
|
Setup |
Direction |
Trigger |
( GCZ1 | Quote | Chart | News | PowerRating) |
Confirming previous down signals, and new 10-Day Low |
Down |
Off The Blocks will help keep you out of the “Turtle Soup” here |
| T-bonds ( USZ1 | Quote | Chart | News | PowerRating) |
Key support |
Up |
105 26/32 then 105 5/32. |
Cotton
|
Momentum-5 held pullback |
Up |
Above 33.25-33.50 |
| Cocoa ( CCH2 | Quote | Chart | News | PowerRating) |
Parabolically over bought |
Down |
Below 1245 |
Coffee
|
Test lower and recovery adds credence to yesterday’s suspect late rally and daily expansion bar. |
Up |
Opening range longs |
Define the risk before every trade and honor your stops.