Monday’s Futures Setups

The Dow
fell 79 to 9117, the Nasdaq lost 27 to 1626, and the S&P 500 sank 10 to 988.
The University of Michigan consumer sentiment index fell to 87.2 in May, with
U.S. producer prices down .3%, with the core rate up .1%. The USDA said the
2003-2004 world coffee crop will be down 15 million bags from last year. Copper
fell on the disappointing sentiment number.

Long Candidates:

Keep your stops in on Coffee
(
KCN3 |
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Chart |
News |
PowerRating).

Cotton
(
CTZ3 |
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PowerRating) may pull back, based on the last two days bars.

Silver
(
SIN3 |
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PowerRating) may have some potential here.

Short Candidates:

Sugar
(
SBV3 |
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PowerRating) triggered short; watch your stops here – today’s bar is
slightly troubling for shorts.

We missed the posted trigger on Unleaded
(
HUN3 |
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PowerRating) and Crude
(
CLN3 |
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PowerRating) unfortunately. I try to account for reaction rallies on those wide
range bars, but sometimes we don’t see them.

Gold
(
GCQ3 |
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News |
PowerRating) is showing a little too much life for our short at
357.65; manage your position.

The Canadian dollar
(
CDU3 |
Quote |
Chart |
News |
PowerRating) is looking suspiciously like Three Little
Indians, plus we’ve got some negative momentum divergence happening here. We’ll
watch it.

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.

Brice