Monday’s Futures Setups
The S&P cash rallied back up to its 50-day moving average from the
lows of its recent consolidation, while gold finally pulled back.
Long
Candidates:
|
Contract |
Setup |
Direction |
Trigger |
| Cocoa ( CCH3 | Quote | Chart | News | PowerRating) |
Pennant | up |
above Friday’s high |
| Bonds ( USH3 | Quote | Chart | News | PowerRating) |
Break Above Trendline |
up | above Friday’s high |
| Cotton ( CTH3 | Quote | Chart | News | PowerRating) |
Rally from Triangle |
up |
above Friday’s high |
February Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) finally pulled back. Possibly another
pullback day Monday, but the new
trend most definitely is up.
The Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) has had weak closes the past two days; we’ll
step aside until we get a better setup. The trend, though is down.
March Cocoa
(
CCH3 |
Quote |
Chart |
News |
PowerRating) is still trading in a pennant just above a .50
retracement.
March Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating) triggered, and may shoot for the 11/15
highs here.
Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating) barely
took out the down trendline,
but I like this setup because it’s the fourth time hitting it.
Â
Short
Candidates:
| Contract |
Setup |
Direction |
Trigger |
| Gold ( GCG3 | Quote | Chart | News | PowerRating) |
Bearish Bar |
down | Below Friday’s Low |
| Pork Bellies ( PBG3 | Quote | Chart | News | PowerRating) |
Possible Double Top |
down | Below Friday’s Low |
| Coffee ( KCH3 | Quote | Chart | News | PowerRating) |
Pullback From Lows |
down | Â Below Friday’s low |
Â
March Copper
(
HGH3 |
Quote |
Chart |
News |
PowerRating) broke below its 50-day MA. We’ll revisit this
one later.
Still watching bellies
(
PBG3 |
Quote |
Chart |
News |
PowerRating)
for a possible double top.
March Coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating)
triggered. Now it’s a pullback from lows, and looks like the next large move may
be back down.
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.
Remember,
use stops on all your trades.