Friday’s Futures Setups

Crude-oil futures were in and out of the
positive zone for most of the trading day.
Investors are all ears as the
Bush administration appears to be nearing a decision on when and how to topple
Saddam Hussein. President Bush warned that he hasn’t ruled out military action
against Iraq. The thought of a war with Iraq is making oil investors a little
edgy.

On the New York Mercantile Exchange, Crude oil for March [CLH2|CLH2]
delivery put in a modest gain of .04 cents to close at 21.22. Crude oil is on
the

New 10 Day Highs List.

April gold
(
GCJ2 |
Quote |
Chart |
News |
PowerRating)
closed right at its support level of $300 an ounce. April Gold
closed at 300.200 up .20.
April gold is on the

TradingMarkets.com Momentum 5 List
. Watch for weakness in gold. Gold
has a tendency to pull back after a large fast movement. As we said before, another

reason for a possible pull-back is that the holidays across Asia will limit
liquidity in the markets.

March silver
(
SIH2 |
Quote |
Chart |
News |
PowerRating)
closed higher
today up 2.500 to close at 453.00. March silver is on the

New 10 Day Highs List
.

March cocoa
(
CCH2 |
Quote |
Chart |
News |
PowerRating)
is pulling back from
its high.
Today cocoa for March delivery pulled back to 1450 down 16.00.
Prices have been
soaring amid worries about quality in top producers West Africa and Brazil.
Cocoa is on the

TradingMarkets.com Momentum 5 List

March coffee
(
KCH2 |
Quote |
Chart |
News |
PowerRating)
is rallying from
a short-term bottom, closing at 43.75 up .35. March coffee is on th
e

TradingMarkets.com Implosion 5 List

March pork bellies
(
PBH2 |
Quote |
Chart |
News |
PowerRating)

continues to trade right around the 50% retracement line. Today bellies dropped
1.63 to 74.425. Bellies have overhead
resistance at 77.

Stuck in a bear market for much of this year, March
corn
(
CH2 |
Quote |
Chart |
News |
PowerRating)
had been setting up a potential false rally. This morning
corn for March delivery rallied out of the gate and then dropped and closed down
by 2.oo to 206.750. March corn is on the

Pull Backs off Lows List.


March natural gas
(
NGH2 |
Quote |
Chart |
News |
PowerRating)
has been
on the Nightly Futures Report as a Potential False Rally and the trigger was a
break below 2.20. Today natural gas broke below 2.20 to close at 2.186.


March Swiss franc
(
SFH2 |
Quote |
Chart |
News |
PowerRating)
has been
on the Nightly Futures Report as a Potential False Rally and the trigger was a
break below 59.00. The 59.00 point was broken yesterday
and today the franc closed at 58.90 up .06.



Contract


Setup


Direction


Trigger

March U.S. dollar
(
DXH2 |
Quote |
Chart |
News |
PowerRating)
Pull Back From Highs

UP

break above 121.00



March Cotton
(
CTH2 |
Quote |
Chart |
News |
PowerRating)

Channel

UP

break above 38

March Wheat
(
WH2 |
Quote |
Chart |
News |
PowerRating)
Triple Bottom


UP

break above 299

March 30 YR Treasury
(
USH2 |
Quote |
Chart |
News |
PowerRating)
Inverted Head and Shoulders


UP

break above 104

March 10 YR Treasury
(
TYH2 |
Quote |
Chart |
News |
PowerRating)
Inverted Head and Shoulders


UP

break above 107

Please note that while
there are strong trends in some commodities, 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.