Thursday’s Futures Setups
The
Dow rallied
30 to 8515, the Nasdaq
jumped 15 to 1466, and the S&P 500 gained 7 to 919. The
Fed’s Beige Book mentioned a “lackluster” economy
the past six weeks, with five of the 12 districts reporting a weaker economy
since late February. June Bonds were up 2/64s to 112-04. Two hundred of the S&P
500 have reported earnings, which are up an average 9.2% from last year, says
Thomson Financial. Crude supplies increased 9
million barrels last week, more than expected.
Oil is now flowing in southern Iraq. June crude closed down .02 at 26.63.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Bean Oil ( BOK3 | Quote | Chart | News | PowerRating) |
rally from pullback | up | pullbacks to 21.60 and above Tuesday’s high |
| Corn ( CK3 | Quote | Chart | News | PowerRating) |
pullback to 20 day MA | up | above Tuesday’s high |
Corn
(
CK3 |
Quote |
Chart |
News |
PowerRating) is still trading in a rather elongated handle, and
bounced off its 20-day moving average. Wheat
(
WK3 |
Quote |
Chart |
News |
PowerRating) is rallying a little out of the consolidation area, which is now support.
Wheat may have to test the consolidation area before a meaningful move can
occur.
Short
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Silver ( SIK3 | Quote | Chart | News | PowerRating) |
stochastic divergence | down | above Tuesday’s high |
| Coffee ( KCN3 | Quote | Chart | News | PowerRating) |
bearish bar | down | below Tuesday’s low |
| Cotton ( CTN3 | Quote | Chart | News | PowerRating) |
bearish bar | down | rallies to 59.60, and below Tuesday’s low |
The energies, mentioned last night, all triggered
short.
Silver
(
SIK3 |
Quote |
Chart |
News |
PowerRating) looks parabolic and due
for a pullback. It’s possible we take out today’s highs before a drop.
The Yen
(
JYM3 |
Quote |
Chart |
News |
PowerRating) is trading in a
triangle and looks to make a move soon – play the breakout either way.
The SARS epidemic in China threatens industrial
demand and thus Copper
(
HGK3 |
Quote |
Chart |
News |
PowerRating). Copper triggered but closed in the
top of its range.
Coffee
(
KCN3 |
Quote |
Chart |
News |
PowerRating) looks lower, and Cotton
(
CTN3 |
Quote |
Chart |
News |
PowerRating) made a
pretty bearish bar.
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.