Friday’s Futures Setups

  • October 24, 2002
  • TradingMarkets Editors

The Dec. S&P 500 futures
(
SPZ2 |
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News |
PowerRating)
pulled back to the -1.28 Volatility Band Zone (877) around 877.50 — also the
50-day moving average on the daily chart.
US stocks fell for the second day
in three, amid concern that the past two weeks’ gains have driven prices higher
than justified by the outlook for corporate profit growth. 

Stocks extended declines during the afternoon after a West Virginia jury found
Dow Chemical Co.’s
(
DOW |
Quote |
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PowerRating) Union Carbide unit responsible in thousands
of asbestos-related deaths and illnesses. Other companies with potential
asbestos liability such as 3M
(
MMM |
Quote |
Chart |
News |
PowerRating) and Georgia-Pacific
(
GP |
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PowerRating)
also fell. SPZ2 fell to 880 down 18.30 or 2.04%

The Dec.
Nasdaq 100 futures
(
NDZ2 |
Quote |
Chart |
News |
PowerRating) hit the 1000 level, which is the 78.6%
retracement level drawn from the August high to the October low. The support
level is at 957, the 61.8% retracement level. The NDZ2 closed at 968 down 24.50
or 2.47%.

In the Treasuries, the Dec. 10-year note
(
TYZ2 |
Quote |
Chart |
News |
PowerRating) went positive as some traders exited equities and took advantage of
the positive move in the Treasuries. TYZ2 closed at 112.73 up .60. The Dec.
30-year bond
(
USZ2 |
Quote |
Chart |
News |
PowerRating) closed at 108.45, up .81.

 


High-grade copper futures finished higher Thursday after getting a lift from
fund short covering, sources said. The Dec contract
(
HGZ2 |
Quote |
Chart |
News |
PowerRating) settled
with a gain of 85 points to 70.30 cents, while the Mar futures rose 90 points to
71.10 cents. “There has been a lot of fund buying, mostly on short covering,”
said one floor contact. 71.40 could be the next target.


Possible
short candidates:



Contract

Setup

Direction

Trigger

Dec. S&P 500 E-Mini
(
ESZ2 |
Quote |
Chart |
News |
PowerRating)		 Possible Turtle Soup Sell
down
break below 867.81
Canadian Dollar
(
CDZ2 |
Quote |
Chart |
News |
PowerRating)
Counter trend rally		 down Trade below .6276
Dec. live cattle
(
LCZ2 |
Quote |
Chart |
News |
PowerRating)		 Possible Turtle Soup Sell down
break below 71.40


Possible
long candidates:







Contract
Setup

Direction
Trigger

Pork Bellies
(
PBG3 |
Quote |
Chart |
News |
PowerRating)
Continuation out of pullback to 20-day MA
up
Trade above 75.05

Sugar
(
SBH3 |
Quote |
Chart |
News |
PowerRating)
Pullback from high
up
Trade above 6.85
Dec. wheat
(
WZ2 |
Quote |
Chart |
News |
PowerRating)		 Turtle soup plus one buy
up		 break above 3.84
Dec soymeal
(
SMZ2 |
Quote |
Chart |
News |
PowerRating)		 Counter trend rally up break above 174.09
Dec. Soybeans
(
SX2 |
Quote |
Chart |
News |
PowerRating)
Counter trend rally		 up break above 5.52
Dec. Lean Hogs
(
LHZ2 |
Quote |
Chart |
News |
PowerRating)
Pullback from high
up		 break above 42

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.