Monday’s Futures Setups
The
Dow gained 229
to 8516, the Nasdaq
rose 18 to 1421, and the S&P 500 rose 19 to 895. The Pentagon
delivered on their promise to show “shock and awe” to Iraq. The Dow
went green for the first time this year in its best week of the year also. We
closed up for the 8th straight day, something that hasn’t happened since 1996.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Corn ( CTK3 | Quote | Chart | News | PowerRating) |
pull back |
up | above Friday’s high |
| Pork Bellies ( PBK3 | Quote | Chart | News | PowerRating) |
consolidation near highs |
up | above Friday’s high |
Bonds
(
USM3 |
Quote |
Chart |
News |
PowerRating) and Notes
(
TYM3 |
Quote |
Chart |
News |
PowerRating) triggered for a loss.
Cotton
(
CTK3 |
Quote |
Chart |
News |
PowerRating) is still pulling back, getting close to its 20-period
moving average.
Pork bellies
(
PBK3 |
Quote |
Chart |
News |
PowerRating) are still in a consolidation near their
highs.
Short
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| E-minis | 9 days up? |
down | setup at vol band; 1,2,3 for instance |
The E-minis
(
ESM3 |
Quote |
Chart |
News |
PowerRating) have gone up for eight straight days, something
that we haven’t seen since 1996. We’re obviously in a news-driven market, and
anything can happen, but at some point on Monday I’d expect at least the
beginning of a pullback. Sure, if we capture Saddam or we confirm he’s been
killed, we’ll have a strong surge, but after that I’d expect a pull back.
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.