Thursday’s Futures Setups
Beige Book indicated the economy improved this summer — activity improved in
eleven of twelve districts in July and August. Iraq is now exporting 900,000
barrels per day now and that number is expected to be similar in September
— look for Department of Energy numbers tomorrow.
Natural Gas may be trying to make a bottom here. Watch it Thursday, especially
for a double bottom or
1,2,3.
This divergence in bonds looks interesting, especially with the double bottom.
Here’s a look at bonds on the daily.
When you see a breakout of a triangle, a pullback to the top line fairly common.
Gold closed in a doji today (indecision) and just may be headed back down. We’re
overbought, too.
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.