Monday’s Futures Setups

Trading at the NYMEX where energy futures are
traded became a focal point for traders as crude oil, heating oil and
unleaded gasoline all rallied higher due to comments made by a top Iraqi
official. Iraqi Deputy Prime Minister Tariq Aziz said in an interview in Baghdad
broadcast Friday that Iraq opposes the return of U.N. weapons inspectors, saying
that inspections of Iraq will not resolve anything. After this was reported in
early trading, the October crude oil contract
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PowerRating) rallied higher
to close at $29.82 a barrel, a gain of .97, or 3.36%. This is just below the
closely watched number of $30 a barrel. October heating oil
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PowerRating)
rolled higher by 2.12 cents, or 2.77%, to 78.70 a gallon. October unleaded
gasoline
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PowerRating) closed at 80.70 a gallon, up 2.16 cents, or 2.75%, and
October natural gas
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A mixed reading on the overall economic outlook
put the markets on shaky ground with volume still below normal levels (the 20th
straight day with below-average volume). The negative feeling in the economy
caused the University of Michigan consumer confidence numbers to come in weaker
than expected. This sent the markets lower, but by the end of trading, the
Dec. S&P 500
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SPZ2 |
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891.50. In the chart above, the S&P 500 futures look weak, and it is possible
that SPZ2 could retest the 50% retracement level (869.20) drawn from the July to
August rally.

The Dec. Nasdaq 100 futures
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NDZ2 |
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stayed positive most of the day, closing at 927, up 8.50. This puts support at
the 914.00 level.

Possible long candidates: