Friday’s Futures Setups
Fifteen years. It’s been that long since we’ve
had this good of a first trading day of the new year. A better-than-expected ISM
number sent the indices skyrocketing. The Dow rose 3.19%, the Nasdaq
gained 3.69%, and the S&P gained 3.32% Bonds, however, didn’t like the ISM
number and fell by the largest amount in a year. The dollar had its biggest gain
vs. the Euro since August 6.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Dollar ( DXH3 | Quote | Chart | News | PowerRating) |
Pullback from lows |
up | above Thursday’s high |
| Soybeans ( SH3 | Quote | Chart | News | PowerRating) |
Wide range bar |
up | above Thursday’s high |
|
Wheat |
Rally |
up |
above |
| E-Minis [ESH3|ESH3 |
Big first day! |
up |
above |
| Cotton (CTH3) |
Rally out of pullback |
up |
above Thursday’s
|
Finally the Dollar (DXH3)
rallies. Look for more Friday, but remember, it’s a pullback from lows here, so
don’t get carried away. I see resistance at the 20-day moving average. The Canadian
dollar (CDH3)
bounced off a trendline to rally today, and stopped right at a prior downtrend
line.
March Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating) is still attempting to take out its recent
highs.
March Wheat (WH3)
bounced at its .786
retracement of the contract low-high.
Short
Candidates:
| Contract |
Setup
|
Direction
|
Trigger
|
| Euro ( ECH3 | Quote | Chart | News | PowerRating) |
Gap down |
down | below Thursday’s low |
| Yen ( JYH3 | Quote | Chart | News | PowerRating) |
Gap down |
down | below Thursday’s low |
| Bonds ( USH3 | Quote | Chart | News | PowerRating) |
Wide range bar down |
down | below Thursday’s low |
Bonds (USH3)
fell and
closed right at a prior downtrend line. We may have a reaction move in the
opposite direction Friday, but it looks like the trend may have changed,
Tuesday’s high being a double top.
The
Euro (ECH3]
pulled back, and may drop back to its 20-day moving average. The
Yen
(
JYH3 |
Quote |
Chart |
News |
PowerRating)
gapped down on a wide range bar. Longer-term, the breakout on the Yen
looks pretty good.
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.
Happy
New Year!
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