Thursday’s Futures Setups

T-bonds
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had another big day,
closing over a point higher. Bonds rallied late in the session and are
continuing higher in the electronic A/C/E session. Bonds have figured
prominently on the Momentum-5
List
for weeks. Consider another Off The Blocks
in this market.

S&P futures
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failed to clear
Fibonacci retracements from their June and mid-July highs, something Kevin
Haggerty and Duke Heberlein pointed out in their commentaries today for the
S&P cash. The S&Ps registered a
Turtle Soup Plus One
Sell
signal for today. We have seen these signals play out on the day
following
in many markets in Turtle Soup Plus Two setups. Resistance
here is at 1125.26.

The Euro FX futures
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closed poorly after a Pullback From
Lows setup two days ago. The market has repeatedly attempted to come back (or
has failed) from the opening prints of the past seven sessions, suggesting a
short-term capitulation — by the bullish longs — may be in the cards. Consider
getting short on opening range entries. The market has also, arguably, made the
right shoulder of a head and shoulders pattern.

December Lean Hogs
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broke below, but managed to rally
back to close above the 50.500 level, suggesting another up day and possible
test of the high and bottom of the summer’s consolidation range (in the 53.000
area).


January Soybeans’
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nearly 10-cent comeback from the
trade lower yesterday which left them at the bottom of a handle of a cup and
handle, keeps the view positive that beans will continue into the overhead gap.
This is a short-term reversal of a reversal.

A contract highlight by Larry Connors recently, December
Cotton
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,
surged to continue its two-week run. Look for intraday pullbacks long in this
nascent-momentum contract. This contract exploded after the opening bell.
Contracts
which register on the
New 10-Day Highs List
like cotton did last night are eligible for Off The Blocks
longs, which cotton made good on today.




Contract

Setup
Direction

Trigger
T-bonds
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Persistent Momentum
Up

Off The Blocks



S&P futures
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Turtle Soup Plus One
Sell


(Second day)


Down

1112.50


Euro FX futures
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Consistent
sell offs resulting in poor closes
Down

Short
the open if it doesn’t gap down

Lean
Hogs

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Held


50.500



Up
Above
50.5000

Soybeans


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Reversal of a reversal with a C&H pattern
Up


Above
440 1/4

Cotton


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Nascent momentum


Up


On
a Pullback

Use stops on every trade!