Monday’s Futures Setups
The major indices gapped down on the open as the
unemployment rate — announced at 8:30 AM ET — dropped from 6.2% to 6.1% in
July. Non-farm payrolls were down 93,000, the biggest job loss in six months.
Bonds were up smartly today, with the 2-year note making the biggest move in a
year. The U.S. and Canada reached an
agreement allowing Canadian beef back into the U.S.
Cattle have made quite a run, which is now symmetrical.
And speaking of symmetry, Sugar made an AB=CD as well.
Bonds continued to improve from the double bottom. I used basically the same
chart from yesterday on this.
If the stock market selloff continues Monday, Gold should rise.
The grains may turn — here’s corn.
Bean oil may turn. Don’t forget to bring your charts down to the 30 minutes and
even lower.
Beans look like they’re set up in a
1,2,3.
Also, look at the currencies: the Euro, the pound, and the franc, not
specifically for Monday entry but because they look like they’re turning.
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.