Thursday’s Futures Setups

The Dow
gained 116 to 9038, the Nasdaq rose 31 to 1634, and the S&P 500 added
15 to 986. Yields on 2-year notes are now below the Fed funds rate. Every time
this has happened in the past 14 years (5), the Fed has eased. Currently, the
Fed funds are pricing in an 90% chance of a rate cut. Consensus is that the
European Central Bank will cut rates when it meets on Thursday.

Long Candidates:

None tonight.

If you got into Cotton
(
CTN3 |
Quote |
Chart |
News |
PowerRating) , congrats. We may have another day
or two before a pullback. Keep your stops in.

Corn
(
CN3 |
Quote |
Chart |
News |
PowerRating) didn’t trigger, and took out the 5/27 low. We’ll come
back to it.

Short Candidates:

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.

Brice