Friday’s Futures Setups
The
Dow gained
78 to 7885, the Nasdaq
rose 20 to 1324 and the S&P 500 added 10 to 837.28. A strong durable goods
report plus a reduction of the threat level. New home purchases fell, casting
doubt on the strength of the housing market.
Long
Candidates:
|
Contract |
Setup |
Direction |
Trigger |
| Bellies ( PBH3 | Quote | Chart | News | PowerRating) |
pullback from high | up | above Thursday’s high |
| Canadian Dollar ( CDH3 | Quote | Chart | News | PowerRating) |
flag near highs | up | above Thursday’s high |
The Canadian dollar
(
CDH3 |
Quote |
Chart |
News |
PowerRating) is trading in a flag just off its
highs. A breakout of this consolidation is bullish.
Pork Bellies
(
PBG3 |
Quote |
Chart |
News |
PowerRating) made an inside day. Yesterday it looked as if
it would rally from its pullback.
Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating) and 10-year notes
(
TYH3 |
Quote |
Chart |
News |
PowerRating)
are still trying to make new highs above a triangle.
Corn
(
CK3 |
Quote |
Chart |
News |
PowerRating) is back at its January lows, as is Wheat
(
WK3 |
Quote |
Chart |
News |
PowerRating).
Still looking for a good long entry, and prepared to wait. A break below these
levels would definitely not be bullish.
Coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating) is slowing its downside momentum, and made a low of 57.30,
which I said was in the neighborhood. We may start a brief pullback from lows
here, but I’d like to see a 1,2,3 before a serious long.
Short
Candidates:
|
Contract |
Setup |
Direction |
Trigger |
| Copper ( HGH3 | Quote | Chart | News | PowerRating) |
double top | down | below Thursday’s low |
Cocoa
(
CCK3 |
Quote |
Chart |
News |
PowerRating) rallied, but still needs to rebuild before thinking about longs.
Draw a trendline connecting the 10/11/02 and 1/9/03 highs, and you’ll see how
this acted as support on the bounce. Now it should act as resistance.
Copper
(
HGH3 |
Quote |
Chart |
News |
PowerRating) may be making a double top from its
2/3 highs.
Lumber
(
LBH3 |
Quote |
Chart |
News |
PowerRating) is oversold, both from a stochastics
standpoint and the fact that it’s been down four straight days, so a bounce is
possible…but it’s also a risky trade here. Use your best discretion. I do like
the fact that on a weekly chart, this level is the same as the 9/15 and 11/10
lows.
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. Be
advised that some futures contracts are prone to gaps.
Remember,
use stops on all your trades.