Monday’s Futures Setups

On the last day of the trading week, US stocks rose, finishing a third straight
week of gains, as drug and computer-related shares climbed.

The futures opened the regular session slightly lower, but then kicked up a
notch before falling into a choppy trading session. Patient traders were treated to a
big bar break out above the key 890 intraday resistance zone. This move was good
for 5 to 8 points just before the close.

The Dec. S&P
500 futures




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rallied 2.04% to make a positive end in the regular session and grabbed 18
points, closing at 898.50, just below the resistance level of 900.00.

The Dec. Nasdaq 100

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futures were even more exciting, as it rallied 25.50 or 2.64% to 992.50. This
close is right above the 78.5% retracement level.


Possible
short candidates:



Contract



Setup



Direction



Trigger

Dec. bean oil
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Possible Turtle Soup Sell

down

break below
21.00

Dec. cotton
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Possible Turtle Soup Sell


down



break below 46.00

  Dec. crude oil
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Head and Shoulders


down

break below
28.00


Today Dec. crude oil broke below the neck line on the head and shoulders pattern
to close at 27.05. Support is at 26.00. Without war talk, realistically oil
should be at around $22-24 a barrel. With Iraq constantly playing games anything
could happen. Stay tuned.


Possible
long candidates:









Contract



Setup



Direction



Trigger


Dec cocoa
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Pullback from high

up

Trade above 2082.69

Dec coffee
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Pullback from high

up

Trade above 70.00

Mar. sugar

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Pullback from high


up

break above 7.2

Nov orange juice
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 Breakout from ascending triangle

up

break above 97.00

 Dec. Natural gas
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Pullback from high

up

break above 4.40

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.

Use stops on all your trades.