Friday’s Futures Setups
The
Dow gained
23 to 8221, the Nasdaq
rose 9 to 1365, and the S&P 500 added 5 to 871. Lower than expected unemployment
claims sent the bond market down. A Bloomberg survey indicates that 73% of the
firms that trade with the Federal Reserve predict no rise in rates until at
least the first quarter 2003.
Crude oil had its biggest
decline since the Iraq war started, with the May contract closing down 1.39 to
27.46. Vice President Cheney said yesterday that Iraq could produce 3 million
barrels per day by year end, generating $20 billion a year in dales.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Canadian Dollar ( CDM3 | Quote | Chart | News | PowerRating) |
breakout | up | above Thursday’s high |
The Canadian
dollar
(
CDM3 |
Quote |
Chart |
News |
PowerRating) broke out and looks higher.
Short
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Corn ( CK3 | Quote | Chart | News | PowerRating) |
dark cloud cover |
down | below Thursday’s low |
| Soybeans ( SK3 | Quote | Chart | News | PowerRating) |
dark cloud cover |
down | below Thursday’s low |
| Cattle ( LCJ3 | Quote | Chart | News | PowerRating) |
Evening Star | down | below Thursday’s low |
| Bonds [USM3}USM3] | trendline resistance | down | below Thursday’s low |
Soybeans
(
SK3 |
Quote |
Chart |
News |
PowerRating) closed in dark cloud cover and look lower.
Live Cattle
(
LCJ3 |
Quote |
Chart |
News |
PowerRating) closed in an Evening Star, and look lower for a
few days.
Pork bellies
(
PBK3 |
Quote |
Chart |
News |
PowerRating) are in free fall; next support is 79.45, but a
bounce somewhere in here is likely at this point.
Bonds
(
USM3 |
Quote |
Chart |
News |
PowerRating) couldn’t
get past trendline resistance and may drop Friday.
Crude oil
(
CLK3 |
Quote |
Chart |
News |
PowerRating) and Unleaded
(
HUK3 |
Quote |
Chart |
News |
PowerRating) made a Kings and
Queens to the downside.
I’m looking for a possible 1,2,3 in
Corn
(
CK3 |
Quote |
Chart |
News |
PowerRating) soon, with the 1 being on 3/28 and the 2 being on 4/8.
For now, it looks like another day or so down. We’ll see.
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.