Thursday’s Futures Setups
In the early part of trade, the futures
pointed towards a lower open, and that was confirmed, when the indices gapped
lower, then tried to rally and collapsed. Then towards the end of the trading
day, stocks steamed ahead, shaking off the earlier decline, as investors snatched
up companies like semi giant Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) on hopes for a sustainable
up turn in the market.
The futures languished in negative ground much
of the session before rallying late in the day. The futures were negative on
Tuesday after a dramatic turnaround in the past two weeks from a slump to 5-year
lows. Investors are debating whether the rise is a short-lived rally in a bear
market or the start of a new bull run.
Today was an exciting ride on the Dec. S&P
500 futures
(
SPZ2 |
Quote |
Chart |
News |
PowerRating). SPZ2 rallied to the end to make a positive end in
the regular session and grabbed 6.79 points to end at 898.29 just below the
resistance level of 900.00.
The Dec. Nasdaq 100
(
NDZ2 |
Quote |
Chart |
News |
PowerRating) futures
were even more exciting, as it rallied 19.00 or 1.95% to 992.50. This close is
right above the 78.5% retracement level.
Possible
short candidates:
| Contract |
Setup |
Direction |
Trigger |
| Dec. S&P 500 E-Mini ( ESZ2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Sell | down | break below 867.81 |
| Canadian Dollar ( CDZ2 | Quote | Chart | News | PowerRating) |
Counter trend rally |
down | Trade below .6276 |
| Dec. live cattle ( LCZ2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Sell | down | break below 71.40 |
Possible
long candidates:
| Contract |
Setup |
Direction |
Trigger |
| Pork Bellies ( PBG3 | Quote | Chart | News | PowerRating) |
Continuation out of pullback to 20-day MA |
up |
Trade above 75.05 |
| Sugar ( SBH3 | Quote | Chart | News | PowerRating) |
Pullback from high |
up |
Trade above 6.85 |
| Dec. wheat ( WZ2 | Quote | Chart | News | PowerRating) |
Turtle soup plus one buy | up |
break above 3.84 |
| Dec soymeal ( SMZ2 | Quote | Chart | News | PowerRating) |
Counter trend rally | up | break above 174.09 |
| Dec. Soybeans ( SX2 | Quote | Chart | News | PowerRating) |
Counter trend rally |
up | break above 5.52 |
| Dec. Lean Hogs ( LHZ2 | Quote | Chart | News | PowerRating) |
Pullback from high |
up |
break above 42 |
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.
Use stops on all your trades.