Friday’s Futures Setups

  • September 12, 2002
  • TradingMarkets Editors


Today was the first day
that we focused on the Dec. contract for the broader future indexes.
They were down. One of the major reasons for the decline was Fed Chairman Alan
Greenspan saying that we are not out of the woods yet and that certain
depressing factors are still straining the US economy. The rally for the S&P 500
that looked like it may be taking shape was broken and the Dec. S&P 500
(
SPZ2 |
Quote |
Chart |
News |
PowerRating) broke below the 50-day moving average (903.50) to close at 889.50, a
loss of 16.80 or 1.85%.

The Dec. Nasdaq 100
(
NDZ2 |
Quote |
Chart |
News |
PowerRating) had no
help from the techs today, the semi
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) and chip equipment in
particular. Before trading commenced, Lehman Brothers cut the 2003 chip
equipment revenue growth forecast to 10% from roughly 27%. NDU2 dropped 2.53% or
24.00 to end at 923.



In the meats today, March 2003 pork bellies
(
PBG3 |
Quote |
Chart |
News |
PowerRating),
Nov. feeder cattle
(
FCV2 |
Quote |
Chart |
News |
PowerRating) and Nov. live cattle
(
LCV2 |
Quote |
Chart |
News |
PowerRating)
all made 20-day new highs. In the chart above Nov. live cattle continued its
push above the 68% retracement line (drawn from the contract high to low. The
next resistance level will be 70.00 with support at 69.00.


Possible
short candidates:






Contract


Setup


Direction


Trigger

Dec wheat
(
WZ2 |
Quote |
Chart |
News |
PowerRating)

possible
turtle soup plus one sell

Down

break below 3.84

Oct.
unleaded gasoline
(
HUV2 |
Quote |
Chart |
News |
PowerRating)


possible
turtle soup plus one sell

Down


break below .8000



Nov.
frozen OJ
(
JOX2 |
Quote |
Chart |
News |
PowerRating)

Breakdown from head and shoulders

Down



break
below 101.15


Dec. 30-year bond
(
USZ2 |
Quote |
Chart |
News |
PowerRating)

possible turtle soup plus one sell

Down


break below 112^00

Sept 10-year note
(
TYZ2 |
Quote |
Chart |
News |
PowerRating)



possible turtle soup plus one sell

Down



break below 114



Possible long candidates:

















Contract


Setup


Direction


Trigger



Dec Copper
(
HGZ2 |
Quote |
Chart |
News |
PowerRating)

Possible Turtle Soup Buy Candidate


Up



break
above .69

Heating
Oil
(
HOV2 |
Quote |
Chart |
News |
PowerRating)

Triangle
at high

Up

break
above .7670


Soybean Meal
(
SMZ2 |
Quote |
Chart |
News |
PowerRating)


Pullback from high


Up


break above 171.10


Soybeans
(
SX2 |
Quote |
Chart |
News |
PowerRating)


Pullback from high


Up

break
above 545 1/2

Dec. coffee
(
KCZ2 |
Quote |
Chart |
News |
PowerRating)


Pullback from high

Up

break
above 60.00



Oct. crude oil
(
CLV2 |
Quote |
Chart |
News |
PowerRating)



Pullback




from high




Up

break
above 29.00


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.