Monday’s Futures Setups
On the first day of November trading,
the futures put on a surprise performance. US stocks rose as investors
anticipated the Federal Reserve will cut interest rates next week, stealing the
show from Treasuries. Computer-related shares such as Intel
(
INTC |
Quote |
Chart |
News |
PowerRating).
and Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating) led the advance on the tech-heavy Nasdaq
100. The Dec. Nasdaq 100
(
NDZ2 |
Quote |
Chart |
News |
PowerRating) pushed to close above the 1000 level, which
ended an impressive week. NDZ2 closed at 1020.50 up 28.50 a 2.87% gain.
Not to be outdone, the Dec.
S&P 500 futures
(
SPZ2 |
Quote |
Chart |
News |
PowerRating) were just as resilient this week, attempting to
break above the 900 level. In today’s trade, the 900 level was broken, but SPZ2
ended just below 900 at 898.50, up 13.59, a 1.54% rise.
The Dec. 10-year note
(
TYZ2 |
Quote |
Chart |
News |
PowerRating) pulled back today, losing – 150. TYZ2 closed at 114 080. The Dec.
30-year bond
(
USZ2 |
Quote |
Chart |
News |
PowerRating) was as low as 109 ’11 on the day before coming back
to close at 110 ’11. USZ2 lost – ’10 on the day.
The December U.S. Dollar futures
(
DXZ2 |
Quote |
Chart |
News |
PowerRating) broke down this week, as prices dropped sharply and fell below a
3.5-month-old uptrend line on the daily bar chart. Prices this week dropped
below the September low and it looks as if the July low will be challenged.
The dollar fell for an
eighth day against the yen, its longest drop in three years. Reports showing
consumer confidence slid to its lowest level since 1993 and the economy grew
less than expected in the third quarter have driven the dollar down more than 2% against the euro and yen in the past two weeks. The Dec. dollar
(
DXZ2 |
Quote |
Chart |
News |
PowerRating) fell -0.56 to close at 106.25.
Possible
short candidates:
| Contract |
|
|
|
| Dec. euro ( ECZ2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Sell |
down |
break below .990 |
| Jan. feeder cattle ( FCF3 | Quote | Chart | News | PowerRating) |
|
|
break below 81.0 |
| Dec. lean hogs ( LHZ2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Sell |
|
break below |
| Feb. pork bellies ( PBG3 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Sell |
down |
break below 74 |
| Mar. sugar ( SBH3 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Sell |
down |
break below |
Possible
long candidates:
|
|
|
|
|
|
Mar. cocoa |
|
up |
Trade above 2000 |
|
Dec coffee |
|
up |
Trade above 70.00 |
| Dec S&P 500 ( SPZ2 | Quote | Chart | News | PowerRating) |
Sideways channel | up | Trade above 900 |
| Dec. Nasdaq 100 ( NDZ2 | Quote | Chart | News | PowerRating) |
New 10-day high | up | Trade above 1040 |
| Dec. cotton ( CTZ2 | Quote | Chart | News | PowerRating) |
Sideways channel | up | Trade above 47.00 |
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.