Monday’s Futures Setups

  • January 3, 2003
  • Brice Wightman

After an exciting first day of the New Year,
today’s action in the indices was fairly mild, ending in a mixed day. The Dow
was down 5.83, the Nasdaq was up 2.17, and the S&P was down .43. Gold and
Crude appear to be shooting for their highs, and the Dollar may be shooting for
new lows.

Long
Candidates:


Contract

Setup

Direction

Trigger
Soybeans

(
SH3 |
Quote |
Chart |
News |
PowerRating)		 Pullback
from high		 up above
Friday’s high

Wheat
(
WH3 |
Quote |
Chart |
News |
PowerRating)

Rally
at Fib level

 up

above
Friday’s high
Gold

(
GCG3 |
Quote |
Chart |
News |
PowerRating)		 Rally
out of pennant		 up

above
Friday’s high

Cotton
(CTH3)		 Consolidation
near highs		 up

above
Friday’s high


Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) looks like it’s shooting for its highs, as does Crude
(
CLG3 |
Quote |
Chart |
News |
PowerRating).

The
Euro (ECH3]
and Yen
(
JYH3 |
Quote |
Chart |
News |
PowerRating) made inside days, and are pullbacks from highs now.

March Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating) is still attempting to take out its recent
highs.

March Wheat (WH3)
followed
through on its bounce
at
the
.786
retracement of the contract low-high.
We may see another couple of days of bounce, but this is a pullback from lows.

Short
Candidates:


Contract

Setup

Direction

Trigger
Copper 

(
HGH3 |
Quote |
Chart |
News |
PowerRating)		 Fib
level		 down below
Friday’s high 
Dollar

(
DXH3 |
Quote |
Chart |
News |
PowerRating)		 Pullback
from lows		 down below
Friday’s lows

Bonds (USH3)
rallied at
their 50-day moving average, but also broke a trendline yesterday, so the
situation isn’t quite clear. The .618 retracement of the recent rally is
109.30,a nd we may go here.

It looks
like the Dollar (DXH3)
may only have a one-day pullback from lows.

Copper

(
HGH3 |
Quote |
Chart |
News |
PowerRating) stopped at its 200-day moving average/.50 retracement level.
Look for a pullback. 

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.

Have
a good weekend!


Brice

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