Friday’s Futures Setups
The
Dow fell 166
to 7945, the Nasdaq
dropped 36
to 1322, and the S&P 500 lost 20 to 844.61. Fourth quarter GDP rose a
meager .7%. AOL was most active, falling 14% after posting a 2002 net loss of
nearly $100 billion — the largest in U.S. corporate history. U.S. jobless
claims rose 14,000 to 383,000 last week, and the March 10 year T-notes gained
11/32nds at 114-03.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Gold ( GCG3 | Quote | Chart | News | PowerRating) |
flag | up | above Thursday’s high |
| Lumber ( LBH3 | Quote | Chart | News | PowerRating) |
wide range bar |
up | above Thursday’s high |
| Copper ( HGH3 | Quote | Chart | News | PowerRating) |
wide range bar |
up | above Thursday’s high |
| Live Cattle ( LCG3 | Quote | Chart | News | PowerRating) |
wide range bar |
up | above Thursday’s high |
| Bellies ( PBG3 | Quote | Chart | News | PowerRating) |
wide range bar |
up | above Thursday’s high |
Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) is trading in a flag, and looks higher. Copper
(
HGH3 |
Quote |
Chart |
News |
PowerRating) rallied out of a pullback.
Lumber
(
lBH3 |
Quote |
Chart |
News |
PowerRating) broke out of one of my favorite patterns — angular
triple tops — 10/17, 12/9, and 1/10. I probably should have caught it
yesterday, though. Caveat: it’s overbought here, for sure, and if it does happen
to pull back, it’s one to watch still.
Feeders
(
FCH3 |
Quote |
Chart |
News |
PowerRating) triggered, but closed badly. Stand aside. Live
Cattle
(
LCH3 |
Quote |
Chart |
News |
PowerRating) made life of contract highs, so they’re either going for
it or we’ll have a double top. Getting a little overbought, though.
Soy Meal
(
SMH3 |
Quote |
Chart |
News |
PowerRating) is trying to make up its mind, with yet another
wide range reversal bar. Hmmm…
Looking for a Trap
Door in the indices tomorrow morning, and bonds may be rallying. The close
on both the 30- and 10-year looks decent.
Let’s watch
Corn
(
CH3 |
Quote |
Chart |
News |
PowerRating) and Wheat
(
WH3 |
Quote |
Chart |
News |
PowerRating) for some clues. Wheat is still just
above the .875 life of contract retracement, trading sideways.
Short
Candidates:
| Contract |
Setup
|
Direction
|
Trigger
|
| Dollar ( DXH3 | Quote | Chart | News | PowerRating) |
persistent downtrend, poor close |
down | below Thursday’s low |
| Bean Oil ( BOH3 | Quote | Chart | News | PowerRating) |
pullback from lows |
down | below Thursday’s low |
Â
Coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating) bounced at a .618, and looks rather
oversold.
Bean Oil
(
BOH3 |
Quote |
Chart |
News |
PowerRating) made an inside day, bouncing off its 200-day MA, and
still may test 1/16 lows.
Here are the intraday numbers for the E-minis (ESH3):
Pivot: Â 848.83Â Â R1 857.91Â Â S1
830.91Â Â Â Â
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.