Monday’s Futures Setups
Today’s report was written by Brice Wightman.
The NYMEX was closed
today, and all markets had a shortened session.
Russia announced a 50,000 bpd cut in
crude production; this includes the 30,000 bpd cut it previously
announced, so the net reduction is only 20,000 bpd. In the past
two months, oil prices have fallen 30%, and today fell as much as 3%
today. Russia is now the world’s second largest oil producer.
T-bonds (USZ1)
and ten-year notes (TYZ1)
both fell to two-month lows, as economic recovery signals lessen the
chances for another Fed rate cut.
Both contracts are on the Implosion-5
list.
Swiss francs (SFZ1)
made good on its Pullback
From Lows, falling .39. The contract looks as if it may follow
through again on Monday.
Momentum-5
leader coffee (CCH2)
continues in its flag. On the same list, the dollar (DXZ1)
reached 3 1/2 month highs against the yen before pulling back
slightly.
Sugar (SBH2),
on the 10-Day
High list, made a nine week high
on Wednesday, fueled by both technical buying and fears that Cuba’s
production may have been hurt by hurricane Michelle.
Cotton
(CTH2),
also closed today, stays
on the Momentum
List, and was
added
Wednesday
to the Pullback
From Highs list.
Cotton appears
to be digesting some of its recent gains
of 20-year lows.
In a rally that started Oct. 26, cotton now is trading above its
50-day moving average, and has demonstrated support at the 35.00
level.
Soybean Oil
(BOZ1),
mentioned Wednesday, did indeed rally out of a cup and handle, pulling
back at its 200-day moving average.
| Contract | Setup | Direction | Trigger |
| Silver (SIZ1) |
Follow-through from descending triangle |
down |
below 40.15 |
Swiss |
Pullback From Lows |
down |
below 59.70 |
| Soybean oil (BOZ1) |
Breakout From Cup and Handle |
up |
above 16.61 |
| Crude Oil (CLZ1) |
Flag at lows |
down |
below 16.70 |
Cotton |
Pullback From Highs |
up |
above 36.60 |
It’s
important to use stops on every trade.