Thursday’s Futures Setups
The futures took traders for a roller coaster
ride today as U.S. stocks fell for a third day in four. This was due to
Dow Chemical
(
DOW |
Quote |
Chart |
News |
PowerRating), which stated that third-quarter profit lagged
forecasts and a UBS Warburg analyst lowered earnings estimates on Cisco
Systems
(
CSCO |
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News |
PowerRating). In addition Schering-Plough
(
SGP |
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News |
PowerRating)
tumbled on speculation the drug maker will say tomorrow that third-quarter
profits will fall short of estimates and Comerica
(
CMA |
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News |
PowerRating) dropped after
Michigan’s biggest bank cut its second- and third-quarter earnings.
The Dec. S&P 500 futures
(
SPZ2 |
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News |
PowerRating) fell
below the 840 level, which is now the over head resistance level. SPZ2 closed at
830 down 24.10 or 2.82%. Support is at 820 and secondary support is at 810.
The Nasdaq 100 for Dec.
(
NDZ2 |
Quote |
Chart |
News |
PowerRating) managed to stay above its support at
850, but the losses took there toll on the Nasdaq 100 futures. NDZ2 closed at
857 down 29.50 or 3.33%.
Tight producer holding coupled
with a much stronger than normal basis for harvest has helped to support
the corn market near the psychological support level of 2.50 for
December corn
(
CZ2 |
Quote |
Chart |
News |
PowerRating). The export sales number this week might
improve from recent levels due to sharp break in futures which could add
to the support near the 2.50 level. Support for December corn is at the
key 50% retracement level of 2.55. Initial resistance is at 2.58 with 2.64
as the secondary resistance. Corn for Dec delivery closed at $2.57 a
bushel up 1 1/4 cent.
Possible
short candidates:
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Dec. cocoa |
possible turtle soup plus |
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Down
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Dec. Nov. crude oil |
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Down |
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Dec. gold |
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Down |
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Nov. heating oil |
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Down |
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Possible long candidates:
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Dec. wheat |
Pullback from high |
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Dec. corn |
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Nov. frozen orange juice |
Pullback from high |
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Oct. live cattle |
Bullish Flag Pattern |
UP |
break above 70.20 |
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Oct. feeder cattle |
Saucer Pattern |
UP |
break up above 81.60 |
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Mar sugar |
Pullback from high |
UP |
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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.
Use stops on all your trades.