Thursday’s Futures Setups

  • December 5, 2001
  • TradingMarkets Editors

The
major indices were the top news today, with significant upside action
across the board. All three indices (SPZ1),
(DJZ1),
and (NDZ1),
closed in Turtle
Soup setups;
the
trigger points are well below today’s levels.

The strong stock market caused
treasuries to dip, with 30-year bonds falling to below their 200-day
moving average before pulling back,
and setup as a Turtle Soup. Ten-year
notes (TYZ1)
making a six-day low before pulling back. Yesterday’s high was the 50%
retracement of the Nov. 1 – Nov 27 move. 

Russia agreed to cut back crude oil
production by 150,000 bpd; the focus now goes to Norway, who OPEC is
pressuring for cuts. Norway is the world’s third largest exporter of
oil. Heating oil (HOF2)
looks poised to test its Nov. 19 lows.

Lumber (LBF2)
jumped 3% as traders perceived yesterday’s failure to make a new
contract low as a bullish sign.  Lumber prices are considered a
bellwether for the economy. Another important economic indicator,
copper (HGH2),
fell .15, and is now trading in a three-day pullback after a powerful
November rally. Today’s action also has copper in a hammer
candlestick, a bullish pattern.

The British pound (BPZ1),
mentioned last night, continues its pullback from lows. After making
contract lows, Japanese yen (JYZ1)
pulled back slightly.
The yen is setup in a Turtle Soup pattern.

Soy meal (SMZ1),
mentioned recently, took out its Oct. 22 support and is trading at
levels not seen since June 28.

Sugar (SBH2)
is the only contract currently on the Volatility
Explosions –  Multiple Days Readings list.

Japanese beef prices fell to a 10-year
low after a third reported case of Mad Cow disease. Feeder cattle (FCF2)
are on the Pullbacks
Off Highs list. Lean hogs (LHZ1)
appear ready to test their Oct. 25 lows after taking out Nov. 12, 14,
and 16 support levels.

Contract

 Setup Direction Trigger
British
Pound (BPZ1)

Pullback
from low

 down 5-10
ticks below today’s low of 1.413
Copper
(HGH2)

Pullback
from high

 up 5-10
ticks above today’s high of .7050
Cotton
(CTH2)

Pullback
from high

 up 5-10
ticks above today’s high of 37.15
Heating
oil (HOF2)

Pullback
from lows

 down 5-10
ticks below
today’s low of .5300
Pork
bellies (PBG2)

Confluence
of indicators

 up 5-10
ticks above today’s high of 75.725

Always use
stops in your trading.