Monday’s Futures Setups

• July 12, 2002
• TradingMarkets Editors

The Broader Index
Futures ended mixed today and down for the week. The September S&P
500 futures (SPU2),
suffering the worst, closed out the week lower than the September 2001 lows.
The Sept S&P 500 e-mini (ESU2)
pulled back in early trade on the negative University of Michigan Consumer
Sentiment Numbers. It then rallied up to form a 1-2-3 lower Double Top. The
break below the 930 point was an excellent opportunity for shorts and put
players. The ESU2 fell 15 points lower, then closed at 917.25, down 9.75.

The Nasdaq 100 futures for September (NDU2)
squeezed out a gain today. The good news on Dell Computer (DELL),
offering better numbers guidance overnight, gave Dell and other tech stocks some
breathing room, which helped the Nasdaq stay in the positive zone. Biotech
($BTK.X)
and the Semiconductors ($SOX.X)
also contributed to the gain. The Nasdaq 100 e-mini (NGU2)
closed at 1001.00 up 2.50.

Traders will be looking forward to next week when
earnings season will be at full strength. Over 300 companies are scheduled to
report their results. Equities were pretty weak-looking in June, known as a
period of negative pre-announcement.

Click Here for the TradingMarkets.com Market Bias Indicators

Yesterday in our report we said this: “September
cocoa
(
CCU2 |
Quote |
Chart |
News |
PowerRating) continues its impressive moves, but be warned, things that
rise fast could fall fast as well. Cocoa could fall victim to profit taking. A
break below the 1750 resistance level could send cocoa to the 1671 retracement
level.” Today cocoa fell to 1750 and closed just above this support level. We
could still see the test of 1671 next week and perhaps a move upward upon that
test. Cocoa is on the


TradingMarkets.com Momentum List.

Possible Turtle Soup Plus One Sell Setup.

Possible Turtle Soup Plus One
Buy Setup

Pullback From The High

Please note that
while there are strong trends in some commodities, 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.

Use stops on all your
trades.