Monday’s Futures Setups
U.S. stocks rose for a third day as financial
shares rallied on optimism a rebound in investment banking and trading will lift
brokerage profits. Citigroup
(
C |
Quote |
Chart |
News |
PowerRating) and Morgan Stanley Dean Witter
(
MWD |
Quote |
Chart |
News |
PowerRating)
gained.
Alcoa
(
AA |
Quote |
Chart |
News |
PowerRating), Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), and other companies
expected to benefit most from an economic recovery boosted the Standard &
Poor’s 500 Index
(
$SPX.X |
Quote |
Chart |
News |
PowerRating), helped by a government report that showed job losses are
slowing. Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating) and Johnson & Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating) fell, limiting the index’s
advance.
With stronger volume, the March S&Ps
(
SPH2 |
Quote |
Chart |
News |
PowerRating) added 8.90 to close at 1175.30. The March S&P’s pivot point
is 1172.43, R1 is 1181.16, R2 is 1187.03, S1 is 1166.56 and S2 is 1026.43.
The March Nasdaq futures
(
NDH2 |
Quote |
Chart |
News |
PowerRating) gained
6.5 to 1679.00. The pivot point is 1678.00. The R1 is 1707.00, R2 IS
1734.00, S1 is 1651.00 and S2 is 1026.43.
With strong volume, the March Dow futures
(
DJH2 |
Quote |
Chart |
News |
PowerRating) advanced 89.00 to close at 10269.0,
and above
its resistance level with strong volume. DJH2’s pivot is 10239.67; R1 is
10309.34; R2 is 10349.67; S1 is 10199.34 and S2 is 10129.67.
Copper
(
HGH2 |
Quote |
Chart |
News |
PowerRating) has bounced off of its
support ledge below its 50-day moving average, right at its .618 retracement.
Coffee
(
KCH2 |
Quote |
Chart |
News |
PowerRating) is trading in a triple
bottom, and today rallied up 1.05 to 48.55. Arabica coffee futures ended at
two-week highs. Cold weather in Mexico influenced buyers. The Mexican crop is
coming in smaller than last year’s, as some beans go unpicked.
WHEAT BREAKS HIGHER! Based
on the March contract, wheat pushed to its highest level in three years,
posting
its highest close since March 1998. The $3.04 area looked like it could cap the
current rally on a short-term basis. But a pause between $3.04 and $2.97,
followed by a close above $3.04 is ideal to complete a secondary breakout —
which tends to be very reliable in producing bigger moves. Today, wheat broke
out and closed above 3.04. March Wheat
(
WH2 |
Quote |
Chart |
News |
PowerRating) closed up 7 to 307 on
strong volume.
|
Contract
|
Setup
|
Direction
|
Trigger
|
|
Soybean meal |
pullback from lows |
up |
above Friday’s high |
| Copper ( HGH2 | Quote | Chart | News | PowerRating) |
bear flag, at .618 |
up | above Friday’s high |
|
Soybean meal |
pullback from lows |
up |
above Friday’s high |
| Soybean oil ( BOH2 | Quote | Chart | News | PowerRating) |
pullback
|
up
|
above Friday’s high
|
| Soybeans ( SOH2 | Quote | Chart | News | PowerRating) |
pullback |
up | above Friday’s high |
| Heating Oil ( HOF2 | Quote | Chart | News | PowerRating) |
bounce
|
up | above Friday’s high |
| Unleaded Gas ( HUF2 | Quote | Chart | News | PowerRating) |
bounce
|
up | above Friday’s 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.