Monday’s Futures Setups

Treasuries
(
USH2 |
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denied their Turtle Soups,
and plunged lower. Bonds are now trading at the 161.8% extension of the
11/27-12/4 move, so a reaction may be due. The 127.2% extension of the 9/20-11/1
move lies at 98.8446.

Soybean oil
(
BOH2 |
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is making a cup and
handle just above its rising 20-day moving average. A break above Friday’s high
indicates higher prices, but the 200-day moving average looms just above, at
16.598.

From the New
10-Day Highs list
, British pounds
(
BPZ1 |
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are rallying out of a first
pullback from lows, and closed at their 200-day moving average.

Canadian dollars
(
CDZ1 |
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, on the Momentum
5
list, are trading in a cup and handle above their 50-day moving average

On Thursday, cotton
(
CTH2 |
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attempted to
rally out of its pullback, but Friday’s action has it somewhat suspect. A move
above Friday’s high signals entry.

Gold’s
(
GCG2 |
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attempt to break its downtrend
line seems to have been thwarted, and it has been forced back below its 200-day
moving average for two straight days. Right now, it looks like a pullback from
lows, and the trend is down.

Copper’s
(
HGH2 |
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pullback has lasted five
days now, and has broken the .382 retracement, and closed below the 20-day
moving average, indicating a .50 or even .618 retracement may be its target.

Unleaded gas
(
HUF2 |
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Chart |
News |
PowerRating)
has twice closed at the
.618 retracement of the 11/15 low to the 12/4 high, signaling it may attempt a
rally here. The predominant trend, however, is down. 

Pork bellies
(
PBG2 |
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thus far have respected
the uptrend line on their pullback, and are still trading above their 20-day
moving average. Bellies remain on the Pullbacks
Off Highs
list.

Japanese yen
(
JYZ1 |
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remain in a strong
downtrend, having failed the Turtle Soup setup earlier in the week. Volume today
was the highest of the week.

Soybeans
(
SH2 |
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Chart |
News |
PowerRating)
are trading in a triangle, and
could break in either direction. Today’s close has beans at their 20-day moving
average.

 

Contract

Setup

Direction

Trigger
Soybeans

(
SH2 |
Quote |
Chart |
News |
PowerRating)

Triangle

go
with the break

above/below
Friday’s high/low,
depending
Canadian
dollar
(
CDZ1 |
Quote |
Chart |
News |
PowerRating)

Cup
and handle

up

above
Friday’s
high of
.63640
Heating
oil (HOF2)

Turtle
Soup Plus One

up

just
above 11/19 low
British
pound

(
BPZ1 |
Quote |
Chart |
News |
PowerRating)

rally
out of first pullback

up

above
Friday’s high of 1.4332
Pork
bellies (PBG2)

Confluence
of indicators – pullback, trendline and above 20-day moving average

up

above
7
6.100

Use stops on every trade.