Monday’s Futures Setups
The
Dow rose 108
to 8053, the Nasdaq
dropped 1.44
to 1321, and the S&P 500 gained 11 to 855.70. Stocks closed out with
their second straight monthly loss, and if the January barometer holds true, we
may be in for a down year.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Canadian Dollar ( CDH3 | Quote | Chart | News | PowerRating) |
rally from pullback |
up | above Friday’s high |
| Cotton ( CTH3 | Quote | Chart | News | PowerRating) |
near breakout |
up | above Friday’s high |
| Copper ( HGH3 | Quote | Chart | News | PowerRating) |
wide-range bar | up | above Friday’s high |
| Live Cattle ( LCG3 | Quote | Chart | News | PowerRating) |
wide-range bar | up | above Friday’s high |
The Canadian Dollar
(
CDH3 |
Quote |
Chart |
News |
PowerRating) is rallying from a pullback and looks
pretty good.
Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) is still trading in a flag, although today’s close
doesn’t look particularly bullish. Copper
(
HGH3 |
Quote |
Chart |
News |
PowerRating) triggered again. The 6/2/02 high is .807.
Live
Cattle
(
LCH3 |
Quote |
Chart |
News |
PowerRating) made life-of-contract highs…again, but has also been up
five straight days. Getting a little overbought; if you’re short term long, I
wouldn’t overstay my welcome because if this is a valid breakout, there should
be more later, after a pullback.
Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating) looks ready to break out.
Soy Meal
(
SMH3 |
Quote |
Chart |
News |
PowerRating) stopped exactly at a downtrend line from 9/11/02
and 1/6/02. I tend to respect these.
Let’s watch
Corn
(
CH3 |
Quote |
Chart |
News |
PowerRating) and Wheat
(
WH3 |
Quote |
Chart |
News |
PowerRating) for some clues. Wheat is still just
above the .875 life-of-contract retracement, trading sideways.
Short
Candidates:
| Contract |
Setup
|
Direction
|
Trigger
|
| Dollar ( DXH3 | Quote | Chart | News | PowerRating) |
pullback from lows |
down | below Friday’s low |
| Feeder Cattle ( FCH3 | Quote | Chart | News | PowerRating) |
tweezers tops |
down | below Friday’s low |
Feeders
(
FCH3 |
Quote |
Chart |
News |
PowerRating) closed in a tweezers top at their
200-day moving average, signifying a pause. Whether this will be a significant
pullback or not remains to be seen.
The Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) was turned back at a down trendline and looks lower.
Here are the intraday numbers for the E-minis (ESH3):
Pivot: 849.66 R1 862.83 S1
841.58
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. Be
advised that some futures contracts are prone to gaps.
Remember,
use stops on all your trades.