Gold Shines, Dollar Loses Its Luster
The Euro popped today on traders’ concerns that Treasury Secretary Snow
may favor a weaker dollar. The Yen was also up, as was Gold, which made a
multi-month high. Natural gas spiked after supplies were reduced.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Live Cattle ( LCG3 | Quote | Chart | News | PowerRating) |
Pullback From Highs |
up |
above Thursday’s high |
| Feeder Cattle ( FCF3 | Quote | Chart | News | PowerRating) |
Pullback From Highs |
up |
above Thursday’s high |
| Gold (GCG3) |
Breakout | up | above Thursday’s high |
February Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) popped out of a long-term triangle, and
while we may have a reaction day Friday, the longer-term trend looks up. Note:
Gold can also be a Turtle Soup sell setup, with entry below 329.
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Short
Candidates:
| Contract |
Setup
|
Direction
|
Trigger
|
| Euro ( ECH3 | Quote | Chart | News | PowerRating) |
Turtle Soup |
down | below 1.0085 |
| Corn (CH3) |
Pullback From Low |
down | below Thursday’s low |
The Euro gapped up today. I
have it listed as a Turtle Soup sell, but be advised that a break above
Thursday’s high is bullish.
March Corn (CH3)
is pulling back from lows, hitting a down trend line, and looks ready to
continue its downtrend. I got a call from someone on this one last night; the reason I called corn down was the trendline from 10/17 to 11/21.
Contracts can get stopped cold when they hit these. The close today actually
isn’t bad, so be careful here.
March Coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating)
looks pretty oversold, but keep in mind any trade here is like trying to catch a
falling knife. It’s trading right above its 200-day moving average.
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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.
Remember,
use stops on all your trades.