Thursday’s Futures Setups
US equity markets were down
a second day,
with the Dow down 86, the Nasdaq down 50, and the S&P down 12. A shortage of
white bread in Egypt is causing demand for an extra 120 tons of wheat per month
from that country. The border may now be open to beef imports, but the USDA says
it will be months before any Canadian cattle cross it into the USA.
I don’t have a lot of new stuff tonight folks; maybe
more tomorrow.
On Cattle, we’re basically at the 1.618 extension of 6/19 and 8/1. Today’s bar
is called a Hanging Man — bearish — and it follows yesterday’s Shooting Star,
also bearish. I know, it seems like I’m on a mission against cattle. Be careful,
as this trend is very strong.
Update on sugar. That’s a 20 MA on the 30-min chart.
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.