Friday’s Futures Setups
The
Dow fell 55 to 7929, the Nasdaq
gained .23 to 1301.73, and the S&P 500 fell 5 to 838.15; the Dow and
the S&P are now at 2003 lows. Volume was below average. The Bank of England
unexpectedly cut rates by 1/4%; the ECB didn’t follow suit. Worker productivity
fell in the first decline since Spring .01, although last year was the most
efficient in over 50 years. Jobless claims fell, the third decline in five
weeks.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Sugar ( SBH3 | Quote | Chart | News | PowerRating) |
break out |
up | pullbacks to 8.755, and above Thursday’s high |
Sugar
(
SBH3 |
Quote |
Chart |
News |
PowerRating) broke out. It closed above the 127% extension
life-of-contract high/low.
Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating) is now starting to pull back.
Short
Candidates:
| Contract |
Setup
|
Direction
|
Trigger
|
| Cocoa ( CCH3 | Quote | Chart | News | PowerRating) |
double top |
down | below Thursday’s low |
Sure enough, Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) pulled back, which is
probably a temporary situation.
Feeders
(
FCH3 |
Quote |
Chart |
News |
PowerRating) are in free fall, but are getting
oversold, too. This gets tricky; they could easily drop below Thursday’s low,
take you out and rally them.
The Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) made an inside bar. We have a very tiny 1,2,3 here,
and there is a chance of a small rally, but it is still
a pullback from lows.
Here are the intraday numbers for the E-minis (ESH3):
S2 825.83 S1
833.16 Pivot: 839.33 R1 846.66 R2
852.83
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.