Monday’s Futures Setups
The
Dow fell 64 to 7865, the Nasdaq
dropped 18 to 1283, and the S&P 500 fell 8 to 829.75 in a fourth
straight week of declines. Short-lived euphoria over a good January jobs report
was quickly replaced by ongoing geopolitical fears. The Justice Department
raised the national terror alert to orange from yellow, indicating a higher risk
of terrorist attack. Natural gas and heating oil hit two-year highs on cold
weather and tightening supplies
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Unleaded ( HUH3 | Quote | Chart | News | PowerRating) |
persistent trend |
up | pullbacks to 1.051, and above Friday’s high |
| Sugar ( SBH3 | Quote | Chart | News | PowerRating) |
break out |
up | pullbacks to 8.84, and above Friday’s high |
Sugar
(
SBH3 |
Quote |
Chart |
News |
PowerRating) broke out. It closed above the 127% extension
life-of-contract high/low.
Short
Candidates:
| Contract |
Setup
|
Direction
|
Trigger
|
| Cotton ( CTH3 | Quote | Chart | News | PowerRating) |
wide-range bar |
down | below Friday’s low |
| Bellies ( PBG3 | Quote | Chart | News | PowerRating) |
Fib level |
down | below Friday’s low |
| Cocoa ( CCH3 | Quote | Chart | News | PowerRating) |
double top |
down | below Friday’s low |
Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating) is now starting to pull back, making a wide-range bar
today.
Feeders
(
FCH3 |
Quote |
Chart |
News |
PowerRating) are still in free fall, and are even
more oversold now. This gets tricky; keep a close eye on stops, as reversals can
happen quickly.
Bellies
(
PBG3 |
Quote |
Chart |
News |
PowerRating) may pull back here, at a .618 Fib level. Stochs
overbought, too.
Here are the intraday numbers for the E-minis (ESH3):
S2 810.83 S1
820.66 Pivot: 835 R1 845 R2
859.33
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.