Monday’s Futures Setups
February gold on the Comex division of the New
York Mercantile Exchange was trading 80 cents lower at $286.60, having bounced
back from an earlier low of $285.70 a troy ounce.
Feb gold
(
GCG2 |
Quote |
Chart |
News |
PowerRating) gained 0.3 to close at 287.70. Feb gold is on
the Trading
Markets.com Momentum 5 List.
March silver was struggling to hold at $4.68 an
ounce, 2 cents lower than Thursday.
March silver
(
SIH2 |
Quote |
Chart |
News |
PowerRating) ended the session at 4.698, and is on the Trading
Markets.com Momentum 5 List.
March oats
(
OH2 |
Quote |
Chart |
News |
PowerRating) is forming a double
top formation. A 5% break below its valley at 192, could signal a down turn. At
one point during today’s session the oats were below 192.
Federal Reserve Chairman Alan Greenspan delivered
a speech to the Bay Area Council Conference in San Francisco today, and commented that the economic recovery that’s just
beginning may not have enough strength to endure. Some investors and economists
are trying to read into this. Their feeling is that the Fed remains open
to cutting interest rates for the 12th time in 13 months. Treasury prices moved
higher on Friday after Greenspan’s comments and an earlier government report
that showed a drop in producer prices.
March U.S. Treasury Bonds
(
USH2 |
Quote |
Chart |
News |
PowerRating)
gained .66 to close at 103.46
slightly above its R1. This is a new 10-day high.
March 10 YR Note
(
TYH2 |
Quote |
Chart |
News |
PowerRating)
gained .610 to close at 106.64, above its R1. This is a also a new 10-day high.
March 5 YR Note
(
FVH2 |
Quote |
Chart |
News |
PowerRating)
rose 160 to 106.86. The five year note broke above 105.50, its resistance level.
March wheat
(
WH2 |
Quote |
Chart |
News |
PowerRating)
gained 4.75 to 308.25. March wheat was in a flag pattern and broke out above the
304 resistance level. March wheat is on the Trading
Markets.com Momentum 5 List.
The U.S. Department of Agriculture reduced its
estimate of the 2001-02 U.S. soybean crop to 2.89 billion bushels, down from
2.92 billion. It also projected higher U.S. exports of 1.01 billion and a larger
soybean demand than was originally anticipated. The end result is a lower supply
of soybeans.
March soybeans
(
SH2 |
Quote |
Chart |
News |
PowerRating) rallied
higher to close up 10.5 to 443. Today’s rally pushed beans above their R2 level
(439.82).
March soybean meal
(
SMH2 |
Quote |
Chart |
News |
PowerRating)
rallied 7.09 to end the session at 154.4. March bean meal surpassed its R2 at
(148.70).
|
Contract
|
Setup
|
Direction
|
Trigger
|
| March cocoa ( CCH2 | Quote | Chart | News | PowerRating) |
Flag Pattern |
UP |
Break above 1400 |
March copper ( HGH2 | Quote | Chart | News | PowerRating) |
Flag Pattern | UP |
Break above 71.75 |
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.