Friday’s Futures Setups
Stocks were higher Thursday.
The Dow gained 26 to 9423, the Nasdaq added 17 to 1777,
and the SPX +1 to 1003. Jobless claims fell
17,000 last week, to 386,000, the lowest in six months, and the Conference
Board’s index of leading indicators gained .4% in July, to 112.5. The
Philadelphia Fed rose for a third straight month. Unleaded gas had a huge day,
closing at 1.09. Japan and South Korea are buying wheat, and drought conditions
may be spreading East, with a hot and dry forecast.
No real strong setups today, just these observations:
The 1,2,3 in the British pound
(
BPU3 |
Quote |
Chart |
News |
PowerRating), mentioned yesterday, failed
today.
Gold
(
GCZ3 |
Quote |
Chart |
News |
PowerRating) is hitting the top of this triangle, but may be turned
back.
Short Candidates:
Beans
(
SU3 |
Quote |
Chart |
News |
PowerRating) are hitting a trendline but the RSI and momentum (not
pictured) are not diverging yet. We may pull back, but keep in mind the weather
forecast (hot).
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You can see that Soy meal has had some poor closes, but momentum is still
strong.
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We did an interview recently — part of it dealing with commodities — with
Jim Rogers. If you missed it,
click here.
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.