Friday’s Futures Setups
Economic reports came in mixed today and the
news left futures mixed too. Better-than-expected data on the factory and
services sectors offset by a rise in jobless claims caused them to chop and
zigzag for most of the session before settling at lower levels. This type of
behavior is not so surprising the day ahead of a jobs report to be released
tomorrow morning.
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With the
better-than-expected ISM report, the Dec. S&P 500 futures
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SPZ2 |
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PowerRating)
broke above the key 71% retracement, then pulled back below it. The SPZ2 never
did challenge this level again. The SPZ2 dropped 10.00 or 1.20% to close at
820.500.
The Nasdaq 100 futures for Dec.
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NDZ2 |
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PowerRating) dropped 22.00 or 2.56 to 836.50.
Possible
short candidates:
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Dec. cocoa |
possible turtle soup plus |
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Down
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Dec. Nov. crude oil |
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Down |
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Dec. gold |
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Down |
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Nov. heating oil |
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Down |
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Possible long candidates:
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Dec. wheat |
Pullback from high |
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Dec. corn |
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Nov. frozen orange juice |
Pullback from high |
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Oct. live cattle |
Bullish Flag Pattern |
UP |
break above 70.20 |
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Oct. feeder cattle |
Saucer Pattern |
UP |
break up above 81.60 |
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Mar sugar |
Pullback from high |
UP |
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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.
Use stops on all your trades.