Monday’s Futures Setups
The concerns over Iraq
continue, and the two commodities that benefited today on continued
uncertainty were gold and oil. Crude oil rose higher this week with increasing
tensions between Iraq and the U.S. In addition OPEC may restrain production and
this is also supporting prices. Jan. crude oil
(
CLF3 |
Quote |
Chart |
News |
PowerRating)
rose .42 or 1.59% to $26.76 a
barrel.
The World Gold Council said that gold demand was
down 7% in the third quarter from a year ago and was down 12% so far this year.
This is actually an improvement from being down 14% in the first half of the
year. In Japan, consumer demand for gold is up 42% from 2001.
Dec. gold
(
GCZ2 |
Quote |
Chart |
News |
PowerRating)
attempted to break the 321.00 resistance level,
but ended just below this key resistance level at $320.89 a troy ounce, a gain
of $3.29.Today’s rally was sparked by
concerns about Iraq.
With
most of the U.S. facing below average temperatures in the upcoming week, heating
oil has rallied and broken its 50% retracement line. Jan. heating oil has a
little ways to rise to meet its resistance at .8000. Jan. heating oil
(
HOF3 |
Quote |
Chart |
News |
PowerRating) climbed 1.81 cents or 2.43% 76.29 cents a gallon.
Possible
short candidates:
| Contract |
Setup |
Direction |
Trigger |
March cocoa ( CCH3 | Quote | Chart | News | PowerRating) |
Pull-back from the lows |
down |
break below 1723 |
Dec. dollar ( DXZ2 | Quote | Chart | News | PowerRating) |
Pull-back from the lows |
down | break below 106.00 |
| Dec. soymeal ( SMZ2 | Quote | Chart | News | PowerRating) |
Pull-back from the lows |
down |
break below 165.00 |
| Jan. crude oil ( CLF3 | Quote | Chart | News | PowerRating) |
Pull-back from the lows |
down |
break below 26.00 |
| March corn ( CH3 | Quote | Chart | News | PowerRating) |
Pull-back from the lows |
down |
break below 2.44 3/4 |
| Dec. Canadian dollar ( CDZ2 | Quote | Chart | News | PowerRating) |
Pull-back from the lows |
down |
break below 63.00 |
Possible
long candidates:
|
Contract |
Setup |
Direction |
Trigger |
March sugar ( SBH3 | Quote | Chart | News | PowerRating) |
Pull-back from the high |
up | break above 7.50 |
Dec. euro ( ECZ2 | Quote | Chart | News | PowerRating) |
Pull-back from the high |
up | break above 1.00790 |
Dec. S&P 500 E-Mini ( ESZ2 | Quote | Chart | News | PowerRating) |
Pull-back from the high |
up | break above 915 |
Dec. bean oil ( BOZ2 | Quote | Chart | News | PowerRating) |
Pull-back from the high |
up | break above 22.79 |
| Dec. British pound ( BPZ2 | Quote | Chart | News | PowerRating) |
Pull-back from the high | up | break up above 1.5887 |
Today on the S&P 500 E-Mini
(
ESZ2 |
Quote |
Chart |
News |
PowerRating), we pulled back by a small
margin. Short-term resistance remains at at the 84.1% line 934.31. This line was drawn from the Aug
high to the Oct low. A further move up from this level, will have the ESZ2 challenging the 940
area then after that the 950 area.
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.