Friday’s Futures Setups
Stocks were lower Thursday,
with the Dow -82 to 9112, the Nasdaq -17
to 1701, and the SPX -7 to 981. Jobless claims fell to the lowest in five
months, down 29,000 to 386,000. Bonds look
like they will re-test their lows.
Long Candidates:
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| Hogs ( LHQ3 | Quote | Chart | News | PowerRating) |
oversold bounce/short covering rally | up | dips to 57.45 and above Thursday’s high |
Hogs
(
LHQ3 |
Quote |
Chart |
News |
PowerRating) made a pretty bullish bar, albeit in a
nasty downtrend.
Soybeans
(
SQ3 |
Quote |
Chart |
News |
PowerRating) bounced almost exactly off a trendline
on the weekly chart. Let’s see if it holds; I’m looking for a reversal setup
bouncing off that line again.
Short Candidates:
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| Cattle ( LCQ3 | Quote | Chart | News | PowerRating) |
negative momentum at Fib retracement | down | below Thursday’s low |
Cattle
(
LCQ3 |
Quote |
Chart |
News |
PowerRating) hit 2 Fib extensions and may be ready to pull back. We
also have negative momentum divergence.
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.