Thursday’s Futures Setups
The
Dow fell
62 to 7847, the Nasdaq
dropped 14 to 1315, and the S&P 500 lost 6 to 832.58. Disappointing revenues
numbers from Hewlett-Packard, plus the ongoing war fears were the major themes.
Long
Candidates:
|
Contract |
Setup |
Direction |
Trigger |
| Bellies ( PBH3 | Quote | Chart | News | PowerRating) |
pullback from high | up | above Wednesday’s high |
| Canadian Dollar ( CDH3 | Quote | Chart | News | PowerRating) |
new highs |
up | above Wednesday’s high |
The Canadian dollar
(
CDH3 |
Quote |
Chart |
News |
PowerRating) has made an orderly, two-bar pullback,
and a rally out of this would be bullish. The big question is: will we have one
more pullback day before the trend resumes?
Pork Bellies
(
PBG3 |
Quote |
Chart |
News |
PowerRating) have pulled back from highs, and closed well
– they could go higher.
Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating) and 10-year notes
(
TYH3 |
Quote |
Chart |
News |
PowerRating)
are still trying to make new highs above a triangle.
Still watching Corn
(
CK3 |
Quote |
Chart |
News |
PowerRating) and possibly Wheat
(
WK3 |
Quote |
Chart |
News |
PowerRating).
Still looking for a good long entry, and prepared to wait. Wheat is
stalling at the .618 level. Soybeans
(
SK3 |
Quote |
Chart |
News |
PowerRating) are still trying to break out from the triangle. The top of
the triangle now becomes support.
Coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating) is slowing its downside momentum, closing in a doji. Somewhere around 56-57, this might get more interesting as a long.
We’ll watch.
Short
Candidates:
None.
Â
Cocoa
(
CCK3 |
Quote |
Chart |
News |
PowerRating) rallied, but still needs to rebuild before thinking about longs.
Draw a trendline connecting the 10/11/02 and 1/9/03 highs, and you’ll see how
this acted as support on the bounce. Now it should act as resistance.
Copper
(
HGH3 |
Quote |
Chart |
News |
PowerRating) is nearing the 2/3 highs, which will
be an important test.
The Yen
(
JYH3 |
Quote |
Chart |
News |
PowerRating) may top out here. Similar situation
as copper, above.
Lumber
(
LBH3 |
Quote |
Chart |
News |
PowerRating) looks like it may have one more down
day before a bounce. We’ll watch this one.
Buyers sure came in for Natural Gas
(
NGH3 |
Quote |
Chart |
News |
PowerRating), after
the sellers were done, that is. An inventory report will be released tomorrow
morning
Near-term resistance is at 49 for Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating),
which is also just below the 1/22 lows.
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. Be
advised that some futures contracts are prone to gaps.
Remember,
use stops on all your trades.