Monday’s Futures Setups
The
Dow gained 37
to 8277, the Nasdaq
lost 13 to 1383, and the S&P 500 rose 2 to 878. The U.S. unemployment rate in
March was flat at 5.8%; this data was shrugged off by the market. May crude oil
ended down .35 at $28.62; ChevronTexaco said that employees are returning to the
Western Niger Delta. Oil flow disruption in Iraq is estimated at 1.9 million
barrels per day.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Canadian Dollar ( CDM3 | Quote | Chart | News | PowerRating) |
pullback from highs |
up | above Friday’s high |
| Cotton ( CTK3 | Quote | Chart | News | PowerRating) |
bull flag |
up | above Friday’s high |
| Soybeans ( SK3 | Quote | Chart | News | PowerRating) |
breakout | up | pullbacks to 583 3/4, and above Friday’s high |
The Canadian Dollar
(
CDM3 |
Quote |
Chart |
News |
PowerRating) is in a pullback from highs, and the 3/27 and 3/7 highs
are the next resistance.
Cotton
(
CTK3 |
Quote |
Chart |
News |
PowerRating) has pulled back four days; it’s trading above its rising 50-day moving average, so further rally is
possible.
Corn
(
CK3 |
Quote |
Chart |
News |
PowerRating) is acting well, but again, if this is the start of a
large move, there is plenty of time to get in.
Soybeans
(
SK3 |
Quote |
Chart |
News |
PowerRating) took out the 9/11/02 high of 588, and then pulled
back. A dip to the 2/27 highs may be a good long entry.
Short
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Copper ( HGK3 | Quote | Chart | News | PowerRating) |
bear flag |
down | rallies to 72, and below Friday’s low |
Copper
(
HGK3 |
Quote |
Chart |
News |
PowerRating) traded
sideways in a bear flag; the next support is at the 12/31 lows.
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.