Monday’s Futures Setups
The
March Dow futures
(
DJH2 |
Quote |
Chart |
News |
PowerRating)
closed lower today with lower
volume. On a daily
chart, the March futures are forming an ascending triangle. On
a weekly chart, it is showing a strong uptrend. If DJH2 can break out above
10,200 (its resistance level) with strong volume, the rally could continue. March
S&P 500 futures
(
SPH2 |
Quote |
Chart |
News |
PowerRating)
closed at 1159.30, unchanged. SPH2 has continued its trend with stronger
volume. It is trading slightly below its 40-day moving average. While the March NDH2
(
NDH2 |
Quote |
Chart |
News |
PowerRating)
closed at 1624.00. On the daily chart, the
March Nasdaq is hanging on right above its support line at 1600 with volume due to the holidays.
The
March US dollar index
(
DXH2 |
Quote |
Chart |
News |
PowerRating) closed down -0.26 at 117.82. It broke down and closed below its
support line with weak volume. With this pullback, it looks as if it is trying to retest the
117 level before moving back upward. The March Japanese yen
(
JYH2 |
Quote |
Chart |
News |
PowerRating)
halted its decline,
closing at 76.56.
Arabica coffee futures
on the Coffee, Sugar & Cocoa Exchange settled slightly lower Friday after
prices channeled between the plus and minus column ahead of the four-day
weekend. Both the New York and London markets will be closed for business Monday
and Tuesday for the New Year’s holiday. The market is in a consolidation pattern
and still within Friday’s range. After moving to the upside in the early
part of the session, March Coffee
(
KCH2 |
Quote |
Chart |
News |
PowerRating) closing at 46.20 and is at a key technical level of 46.00
cents, or Friday’s low.
March Corn
(
CH2 |
Quote |
Chart |
News |
PowerRating)
closed up 0.750 to 209.50.
Yesterday, CH2 broke below its support line (210.00) with
weaker volume.
Today it formed an
umbrella line, which would be a “hammer,” a (bullish) short-term
pattern.
March Feeder Cattle
(
FCH2 |
Quote |
Chart |
News |
PowerRating)
closed at 84.97, and the Jan Feeder Cattle
(
FCF2 |
Quote |
Chart |
News |
PowerRating) closed at 86.00.
Both contracts have formed an inverted-head-and-shoulders
(bullish) and are trading above the neckline.
April platinum
(
PLJ2 |
Quote |
Chart |
News |
PowerRating)
closed at 480, unchanged with increasing volume. This is a high for April
platinum.
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Lean Hogs ( LHG2 | Quote | Chart | News | PowerRating) |
Hanging Man |
down |
below Friday’s Open |
| Pork Bellies ( PBG2 | Quote | Chart | News | PowerRating) |
cup-with-handle |
up |
above 80.00 |
| Canadian dollar |
s/t trend reversal
|
up
|
above Thursday’s
|
| Soybean oil |
resumption of trend
|
down
|
below Thursday’s low
|
| Soybeans |
new
|
|
Friday’s close
|
| Heating Oil |
double bottom
|
|
|
| Unleaded Gas |
double bottom
|
|
|
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 — it may be only for a day or two. Trading with the main trend is
always the highest probability trade.
Use stops on all your
trades.