Friday’s Futures Setups
With news out on interest rates, election results and earnings, the futures pointed to a weaker
open, and it was all downhill from there. US stocks fell, sending indexes to
their steepest one-day loss in three weeks. Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating) said sales
may decline this quarter, triggering a slide in computer-related shares.
The news on CSCO, a Nasdaq 100 component,
controlled the negative bias on the Dec. Nasdaq 100 futures
(
NDZ2 |
Quote |
Chart |
News |
PowerRating)
causing it to close down 39.50 to 1029.50.
The Dec. S&P 500 futures
(
SPZ2 |
Quote |
Chart |
News |
PowerRating) were pressured lower by
Citigroup
(
C |
Quote |
Chart |
News |
PowerRating) as it led banks lower after Goldman, Sachs & Co.
(
GS |
Quote |
Chart |
News |
PowerRating)
said yesterday’s interest rate cut by the Federal Reserve may squeeze their
earnings. Costco Wholesale
(
COST |
Quote |
Chart |
News |
PowerRating) dropped as the largest U.S.
warehouse club cut its profit forecast. SPZ2 closed at 902.40 lost 23.30.
Coffee looks ready to resume
the uptrend after absorbing good weather in
this past week.
futures are already testing the October highs and may lead the market up to
new highs into late this month. Dec. coffee buying support moves up to 65 with
70.00 as the next upside objective. Coffee for Dec. closed at 66.29, up .15.
Possible
short candidates:
| Contract |
|
|
|
| Dec. euro ( ECZ2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Sell |
down |
break below .990 |
| ( LHZ2 | Quote | Chart | News | PowerRating)Dec. lean hogs |
Possible Turtle Soup Sell |
down |
break below 43.32 |
| Feb. pork bellies ( PBG3 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Sell |
|
|
| Mar. sugar ( SBH3 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Sell |
down |
|
Possible
long candidates:
|
|
|
|
|
|
Mar. cocoa |
|
up |
Trade above 1910 |
|
Dec coffee |
|
up |
Trade above 67.00 |
| Dec. wheat ( WZ2 | Quote | Chart | News | PowerRating) |
Inverted head and shoulders |
up |
break above 4.19 |
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.