Monday’s Futures Setups
We add a CVR VI sell to the CVR I sell from Thursday, look for downside
action from the indices (SPH2),
(NDH2),
and (DJH2).
Soybeans
(
SH2 |
Quote |
Chart |
News |
PowerRating) and soy meal
(
SMH2 |
Quote |
Chart |
News |
PowerRating) both look like pullbacks from
lows here.
The U.S.Dollar Index
(
DXH2 |
Quote |
Chart |
News |
PowerRating) surprised with a wide-range bar that makes a
bullish continuation likely. The pound
(
BPH2 |
Quote |
Chart |
News |
PowerRating), Swiss franc
(
SFH2 |
Quote |
Chart |
News |
PowerRating), and
Euro
(
ECH2 |
Quote |
Chart |
News |
PowerRating), which move contra the dollar, all look set up for downside
continuation.
In a fake-out move, coffee
(
KCH2 |
Quote |
Chart |
News |
PowerRating) opened higher but tanked. This move is
more in line with its long-standing downtrend.
Copper
(
HGH2 |
Quote |
Chart |
News |
PowerRating) looks like it is ready to make a move…one way or the
other. It’s now trading in a small triangle, above the neckline of a head and
shoulders pattern.
Live cattle
(
LCG2 |
Quote |
Chart |
News |
PowerRating) and feeders
(
FCF2 |
Quote |
Chart |
News |
PowerRating) look like rallies from
pullbacks. Both are trading above their 50-day moving average. Entry above
Friday’s high.
Sugar (SBH2)
still looks like a pullback here, and could go lower.
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Copper (HGH2) |
head and shoulders
|
down
|
below
|
| US dollar index (DXH2) |
continuation
|
up
|
above Friday’s high |
| Live cattle ( LCG2 | Quote | Chart | News | PowerRating) |
rally out of pullback
|
up
|
above Friday’s high |
| Feeder cattle ( FCF2 | Quote | Chart | News | PowerRating) |
rally
|
up
|
above Friday’s high |
| Coffee (KCH2) |
resumption of downtrend
|
down
|
below Friday’s low |
| Soybeans ( SH2 | Quote | Chart | News | PowerRating) |
triangle |
down
|
below
|
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.