Monday’s Setups
As mentioned in the Futures
Market Recap, energies (crude and unleaded) have taken a phenomenonal 30% hit
over the past month. Sure, demand is drying up with the unprecedented panics of the past weeks. But other interests have a stake in the price of
crude, especially OPEC. Their basket of crude
has fallen below the $22 price band for the requisite period of time that
initiates an output cut, specified in informal cartel agreements. This implies
today’s counter-trend bars, particularly in Nov.
unleaded gasoline
(
HUX1 |
Quote |
Chart |
News |
PowerRating), will test to
resistance.
Unleaded
closed at .5952. A very healthy band of resistance resides at the session’s high
at .6000. The next upside test comes at .6090 to .6110, a level to re-enter
short should the psychologically round .60 level break. If that level goes,
there are air pockets higher until .6235 and .6330, with the bigger picture
bearish case remaining intact until a break of .6410 through .6430.
Also in the energies,
natural gas
(
NGX1 |
Quote |
Chart |
News |
PowerRating)
did a Kings & Queens, turning around yesterday’s outside bar down with a
bar that essentially negates Thursday’s engulfing pattern and left the fuel that
heats over 50% of households at a one-month high close. This market sets up for
OTB longs and has the early traces of a runaway higher. The four-day rally of
the 10/1 low, test, and follow-up four-day rally; plus various laps, yesterday’s
tail, and today’s gap and expansion bar all suggest a break in the current down
trend.
December cotton
(
CTZ1 |
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PowerRating) closed
another dismal session after a failed early bounce higher to end at contract
lows and
at the bottom of a recent consolidation range. The dismal picture suggests
cotton will trade to levels that exceed even the multi-decade low it’s currently
trading at. A record-setting 20-million-bale U.S. crop is expected and lower
prices from foreign competitors is also pressuring. Cotton is also on the
Implosion-5 List. This makes it eligible for an Off The Blocks
(OTB) short. Alternately, very strong resistance resides at 31.35- 31.40,
if we get a morning pop Monday and you’re looking for a spot to enter on an
intraday pullback from the low.
From last night, note that the
British pound
(
BPZ1 |
Quote |
Chart |
News |
PowerRating) broke down out of the flag/pullback from lows
pattern described. And although they missed the 107 7/32 high by four ticks (and
the TS setup), T-bonds
(
USZ1 |
Quote |
Chart |
News |
PowerRating) still tumbled a full point from
high to low.
Finally, did you know that anthrax can be transmitted by
eating infected meat? Note
December lean hogs
(
LHZ1 |
Quote |
Chart |
News |
PowerRating) are in a Pullback
From Lows setup and closed just above what will be Monday’s trigger: today’s
low.
|
Contract
|
Symbol |
Setup |
Direction |
Trigger |
| ( CTZ1 | Quote | Chart | News | PowerRating) |
Implosion Market |
Down |
OTB short or at 31.35- 31.40 resistance |
|
Unleaded gasoline |
( HUX1 | Quote | Chart | News | PowerRating) |
Oversold |
Up |
Cover longs at below specified resistances. |
Natural gas |
( NGX1 | Quote | Chart | News | PowerRating) |
Reversal of a reversal, nascent momentum |
Up |
OTB |
| Lean hogs | ( LHZ1 | Quote | Chart | News | PowerRating) |
Pullback From Lows | Down | 50.000 |