Friday’s Futures Setups
Treasury’s pulled back
Thursday as stock prices rallied higher right at the opening bell. In
addition there were several economic reports that appeared to show signs of a
growing chance of a nearby U.S. recovery. Cooler weather and a sharp drop in
construction of apartment buildings pushed home-building activity down in
December, but the sector continued to show signs that it is still strong.
Another report showed that, initial jobless
claims dropped unexpectedly last week, but the decline was just an adjustment
rather than an improvement in the labor market.
The news moved bond-market investors who have
been anticipating a cut in interest rates at the FOMC meeting later this month.
In late-morning trading, the benchmark 10-year Treasury lost 14/32 point, or
$4.375 per $1,000 note, to 100 25/32. The 30-year Treasury dropped 19/32 to 99
26/32, its yield up to 5.385%
The March 30-Year T-Bond
(
USH2 |
Quote |
Chart |
News |
PowerRating)
ended down by .780 to 102.969. The 30 year has pulled back and is trading just
above its 50-day EMA.
The March 10 YR Note
(
TYH2 |
Quote |
Chart |
News |
PowerRating)
lost .660 to close at 106.297. The 10 year note has pulled back from its
previous highs, and is slightly above its 50-day EMA.
U.S. stocks rose as better than expected profit
reports and a drop in jobless claims encouraged investors who are anticipating
an economic rebound in the first half of this year. The market reacted in a
positive way, and at one point during the day the March S&P’s, Dow, and Nasdaq
futures were all trading past their R1 points. The March
S&P 500 Futures
(
SPH2 |
Quote |
Chart |
News |
PowerRating) closed higher by 8.20 to
1134.20.
The March Dow Jones Futures
(
DJH2 |
Quote |
Chart |
News |
PowerRating) rallied 125.00 to
9815.00. While the March Nasdaq Index Futures
(
NDH2 |
Quote |
Chart |
News |
PowerRating) gained
30.00 to 1593.00.
The March Japanese yen
(
JYH2 |
Quote |
Chart |
News |
PowerRating) is
trying to pull back off of its lows.
The yen pulled back by .000032 to .007574.The March
yen has a high
ADX number.
The March
US dollar Index
(
DXH2 |
Quote |
Chart |
News |
PowerRating)
closed at 118.19 up .24. The U.S. dollar index is hitting a
10-day high.
Feb
gold
(
GCG2 |
Quote |
Chart |
News |
PowerRating) lost 3.0 to close at 284.60. Feb. Gold is on
pull back from its high.
Feb natural gas
(
NGG2 |
Quote |
Chart |
News |
PowerRating)
was lower by .14 to 2.254. Feb natural gas is
pulling back from its lows.
March oats
(
OH2 |
Quote |
Chart |
News |
PowerRating)
rallied up 2.25 to 192.25. The March oats contract has formed a Double Top pattern and had
broken below its Valley (192). The rule when it comes to the double top pattern
is to exit a long or short a security when it falls 5% below the valley. Sine
Oats closed very close to the resistance line, we will wait and see tomorrow
where it will go.
March soybeans
(
SH2 |
Quote |
Chart |
News |
PowerRating) lost
.75 to close at 451.75.
The March bean contract is on the Trading
Markets.com Momentum 5 List.
March soybean meal
(
SMH2 |
Quote |
Chart |
News |
PowerRating)
dropped .80 to 161.90. The March bean meal contract is on the
Trading
Markets.com Momentum 5 List.
Feb live hogs
(
LHG2 |
Quote |
Chart |
News |
PowerRating) added
.10 to close higher at 56.325. Feb. live hogs are hitting a
10-day high.
Feb live cattle
(
LCG2 |
Quote |
Chart |
News |
PowerRating)
pulled back to test its support at 71.00. Feb live cattle
lost .05 to close at 71.075.
|
Contract
|
Setup
|
Direction
|
Trigger
|
March copper ( HGH2 | Quote | Chart | News | PowerRating) |
Flag Pattern |
UP | Break above 71.75 |
March Lumber ( LBH2 | Quote | Chart | News | PowerRating) |
Cup-and-Handle | UP |
Break above 276.50 |
March Sugar ( SBH2 | Quote | Chart | News | PowerRating) |
Inverted Head-and-Shoulders | UP |
Break above 8.00 |
March Coffee ( KCH2 | Quote | Chart | News | PowerRating) |
Cup-and-Handle | UP |
Break above 51.30 |
March Cotton ( CTH2 | Quote | Chart | News | PowerRating) |
Cup-and-Handle | UP |
Break above 38.45 |
Have A Great trading Day!
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.