Monday’s Futures Setups

  • December 27, 2002
  • Brice Wightman

Long
Candidates:


Contract

Setup

Direction

Trigger
Euro

(
ECH3 |
Quote |
Chart |
News |
PowerRating)		 Breakout up

above Friday’s high
Copper

(
HGH3 |
Quote |
Chart |
News |
PowerRating)		 Bounce up

above Friday’s high
Bonds

(
USH3 |
Quote |
Chart |
News |
PowerRating)		 Breakout up

above Friday’s high

February Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) closed
in a doji, which signifies indecision. The trend for the month of December, by
contrast, has been very decisive.

March Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating) is just a slight pullback from highs, which
often act as a magnet for price.

Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating) triggered
again for a nice day, and look as if they may challenge the recent highs.

Finally an up-day for
March Copper
(
HGH3 |
Quote |
Chart |
News |
PowerRating)! We may see a continuation pullback-from-lows move
on Monday. 

We’ll revisit
March Cocoa
(
CCH3 |
Quote |
Chart |
News |
PowerRating) soon.

Short
Candidates:

Contract

Setup

Direction

Trigger
Canadian
Dollar
(
CDH3 |
Quote |
Chart |
News |
PowerRating)		 Gap
Down		 down below
Friday’s low
Dollar

(
DXH3 |
Quote |
Chart |
News |
PowerRating)		 New
Low		 down below
Friday’s low
Wheat

(
WH3 |
Quote |
Chart |
News |
PowerRating)		 New
Low		 down below
Friday’s low
Live
Cattle
(
LCG3 |
Quote |
Chart |
News |
PowerRating)		 Stochastic
Divergence		 down below
Friday’s low
Coffee

(
KCH3 |
Quote |
Chart |
News |
PowerRating)		 Pullback
From Lows		 down

below
Friday’s low

New lows
again for the Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating), which is in a pretty strong downtrend.
The Canadian dollar
(
CDH3 |
Quote |
Chart |
News |
PowerRating) gapped down sharply.

February
Live Cattle
(
LCG3 |
Quote |
Chart |
News |
PowerRating) closed poorly, and may be setting up a double top,
with stochastic divergence. Look for lower prices Monday.

We’ve see some whipsaw, fake-out
action in March Coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating) the past couple of days. I has bounced
twice at its 200-day moving average, so look for this to be significant in the
future.

March Wheat
(
WH3 |
Quote |
Chart |
News |
PowerRating)
triggered again to make a new low.

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.

Brice