Monday’s Futures Setups
The
Dow lost 56 to
8145, the Nasdaq
fell 15 to 1369, and the S&PÂ 500 dropped 5 to 863. This makes the indices
down four of the past five days, but still just above their 50-day moving
averages. Monday is the last trading day in the quarter. U.S. consumer
confidence fell to the lowest in more than nine years, and American Airlines
said it may file for bankruptcy next week. Gold producer Newmont Mining said its
fourth-quarter earnings shot up four-fold on higher gold prices.
Long
Candidates:
None.
The dip to 29.90 got you in Crude Oil
(
CLK3 |
Quote |
Chart |
News |
PowerRating). At this point, make
sure you have your stops in, as this wartime trading, especially in this
contract, is highly unpredictable.
Short
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Cattle (LCJ3) |
overbought rally |
down | below Friday’s low |
Cattle (LCJ3)
looks overbought, and may have made a mini double top at a .618 retracement.
The Dollar
(
DXM3 |
Quote |
Chart |
News |
PowerRating) may pull back a little more here, but looking for
some firming very soon. What I see is a possible — note possible — head
and shoulders forming, which might present a good long opportunity, but we’ll
have to wait and see. The Canadian dollar
(
CDM3 |
Quote |
Chart |
News |
PowerRating) pulled back before
reaching its 3/7 high, and even though it didn’t exactly hit this level, could
still be considered a double top.
Bonds
(
USM3 |
Quote |
Chart |
News |
PowerRating) and 10-year notes
(
TYM3 |
Quote |
Chart |
News |
PowerRating) both are pullbacks
from lows. I’d like to see these both a little more overbought before shorting,
but they’re getting close.
Gold
(
GCJ3 |
Quote |
Chart |
News |
PowerRating) continues in its consolidation; a break in either direction here
could be large.
Please
note that while there are strong trends, 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. Be
advised that some futures contracts are prone to gaps.
Remember,
use stops on all your trades.