Thursday’s Futures Setups
I’m experimenting a little with the format people,
so bear with me please. I think a picture is worth 1000 words, so I’m going with
more charts these days. I haven’t totally thrown out the tables, but I do
like the educational value of the charts. If I can teach you how to trade this
stuff — or at least what to look for — it’s a whole lot better than relying on
me, or anyone else, longer term, to give you the setups.
Gold broke out of a large triangle. Keep in mind, it may pull back and test the
line again, and also keep in mind that
the commercials are short.
Unleaded is running out of gas.
Yesterday I showed you the pitchfork on the weekly. Today, take a look at
these divergences on the daily. This is a pretty high-risk trade, as the ADX
(not pictured) is strong.
It might be time to eat your Wheaties. Here, we’re oversold at a .382
retracement, with a hammer on today’s bar.
Got some divergence here on the British pound as well.
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.