Thursday’s Futures Setups

March 2002 sugar
(
SBH2 |
Quote |
Chart |
News |
PowerRating)
closed at a six-week high and
confirmed on a closing basis into the Sept.17 gap. This market and setup lend
themselves well to a 10-90
Opening Entry
.


December cotton
(
CTZ1 |
Quote |
Chart |
News |
PowerRating)
also
closed on its high after selling off early, leaving a tail at a new high, a
potentially powerful setup. This contract has also been on the
Momentum-5
List
, making it eligible for an Off The Blocks
long.

Nearly one-half the torrid gain in coffee
(
KCZ1 |
Quote |
Chart |
News |
PowerRating)
today
came in the last 5-minutes, both triggering stop loss shorts and buy orders as
funds got long once this market hit a new 20-day high. This action suggests some
late-hour manipulation and the chance for a correction of the last-minute jolt.
One could test this theory on a move below 48.75, the trigger of Thursday’s Turtle Soup Plus One
Sell
setup.


December cocoa
(
CCZ1 |
Quote |
Chart |
News |
PowerRating)
overshot last night’s suggested “key
resistance” by 16 before closing down slightly on the session in a bearish
“doji” candlestick. Switching to the more active March 2002 contract
(
CCH2 |
Quote |
Chart |
News |
PowerRating)
, will stick with the notion that this contract will correct the
parabolic run and fill downside gaps. The 50% retracement comes at the high of
the close prior to the 11/9 gap, at 1112, the downside target. Consistent trades
above 1218 tomorrow works to nullify the prospect of a swift retracement.

December wheat
(
WZ1 |
Quote |
Chart |
News |
PowerRating)
traded an inside day without trading into
yesterday’s gap (see last night).

December crude oil
(
CLZ1 |
Quote |
Chart |
News |
PowerRating)

and

heating oil

(
HOZ1 |
Quote |
Chart |
News |
PowerRating)
(and unleaded) are demonstrating implosive
momentum. Look for further downside on opening range trades.





Contract

Setup
Direction

Trigger
Sugar
(
SBH2 |
Quote |
Chart |
News |
PowerRating)



Momentum

Up


10-90
Opening Entry




Cotton
(
CTZ1 |
Quote |
Chart |
News |
PowerRating)
Momentum-5
List


Up

Off The Blocks



Coffee
(
KCZ1 |
Quote |
Chart |
News |
PowerRating)



Turtle Soup Plus One
Sell


Down




48.75
Cocoa

(
CCZ1 |
Quote |
Chart |
News |
PowerRating)

Overbought,
topping action

Down


But
only below 1218

Wheat
(
WZ1 |
Quote |
Chart |
News |
PowerRating)

Technical
breakdown
Down



281


Crude oil
(
CLZ1 |
Quote |
Chart |
News |
PowerRating)

and

heating oil
[HOZ1|HOZ1

Implosive


Down


Off The Blocks



Define the risk before every trade and honor your stops.