Friday’s Futures Setups
The S&P cash again closed below its 50-day moving average and right at a
.382 retracement, and in an ominous head and shoulders formation, while both
crude and gold made new highs.
Long
Candidates:
|
Contract |
Setup |
Direction |
Trigger |
| Cocoa ( CCH3 | Quote | Chart | News | PowerRating) |
Rally out of Pullback |
up |
above Thursday’s high |
| Cotton ( CTH3 | Quote | Chart | News | PowerRating) |
Rally from Triangle |
up |
above Thursday’s high |
Another tail in February Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating), but with this strength and
five year highs, it’s been impossible to call a pullback on this one. The new
trend most definitely is up.
The Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) has had weak closes the past two days; we’ll
step aside until we get a better setup. The trend, though is down.
March Cocoa
(
CCH3 |
Quote |
Chart |
News |
PowerRating) is trading in a pennant just above a .50
retracement.
No follow through so far on March Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating), which made an
inside day. It rallied out of a triangle on Wednesday.
March Copper
(
HGH3 |
Quote |
Chart |
News |
PowerRating) is near the confluence of its 50-day MA, a
.50 Fib retracement, and 9/11/02 support, with pretty oversold stochastics.
Copper looks like it’s setting up long soon.
Short
Candidates:
| Contract |
Setup |
Direction |
Trigger |
| Coffee ( KCH3 | Quote | Chart | News | PowerRating) |
Pullback From Lows |
down | Below Thursday’s low |
The Yen
(
JYH3 |
Quote |
Chart |
News |
PowerRating) closed
well and took out its trendline, so it comes off the short list.
Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating) barely
took out the down trendline I spoke about last night. Let’s see what happens
Friday; we may get turned back.
Watching bellies
(
PBG3 |
Quote |
Chart |
News |
PowerRating)
for a possible double top, but too early to take action here.
March Coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating)
triggered. Now it’s a pullback from lows, and looks like the next large move may
be back down.
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.
Remember,
use stops on all your trades.