Thursday’s Futures Setups
Computer-related and financial
shares contributed more
than half the gain in the S&P 500 today. The Dec. Standard & Poor’s 500
futures rallied from the get go to end at 918.70, a gain of 20.39 or 2.27%.
Almost four companies in the S&P 500 reported higher-than-forecast profits for
every one that fell short in the quarter, according to Thomson First Call.
Earnings are expected to rise 16.5% this quarter, First Call said. That’s up
from 7.3% in the third quarter and 1.4% in the second quarter.
Semiconductor maker
Analog Devices
(
ADI |
Quote |
Chart |
News |
PowerRating) reported higher quarterly sales and profit,
triggering gains in computer-related shares such as Intel
(
INTC |
Quote |
Chart |
News |
PowerRating).
Many of the sectors that fall under the “High-Tech Umbrella” helped fuel the
Nasdaq 100 to positive gains. In today’s trading, the Dec. Nasdaq 100
(
NDZ2 |
Quote |
Chart |
News |
PowerRating) closed just below its resistance at 1080. NDZ2 closed up 44.50 or
4.31% to 1077. Technology shares may benefit from a revival in corporate profit
growth as companies upgrade or modernize equipment.
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In the chart above, March coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating) rallied up up 1.64 or 2.33% to 72.40, matching its contract high
close, as traders try to guess the impact of Brazil’s dry weather on next year’s
crop. The USDA will issue updated estimates of the coffee market on December
6th. The close at 72.40 is now slightly above the key resistance of 72.00. If
coffee can break further above this ascending triangle, the next resistance is
at the 75.00 level. KCH3 has an up trending
ADX of 29.
Possible
short candidates:
| Contract |
Setup |
Direction |
Trigger |
March cocoa ( CCH3 | Quote | Chart | News | PowerRating) |
Pull-back from the lows |
down |
break below 1723 |
Dec. dollar ( DXZ2 | Quote | Chart | News | PowerRating) |
Pull-back from the lows |
down | break below 105.00 |
| Dec. soymeal ( SMZ2 | Quote | Chart | News | PowerRating) |
Pull-back from the lows |
down |
break below 165.00 |
Possible
long candidates:
|
Contract |
Setup |
Direction |
Trigger |
| Feb pork bellies ( PBG3 | Quote | Chart | News | PowerRating) |
Pull-back from the high |
up | break above 82 |
Dec. lean hogs ( LHZ2 | Quote | Chart | News | PowerRating) |
Pull-back from the high |
up | break above 46 |
Dec. S&P 500 E-Mini ( ESZ2 | Quote | Chart | News | PowerRating) |
Pull-back from the high |
up | break above 915 |
Dec. bean oil ( BOZ2 | Quote | Chart | News | PowerRating) |
Pull-back from the high |
up | break above 22.79 |
| Dec. British pound ( BPZ2 | Quote | Chart | News | PowerRating) |
Pull-back from the high | up | break up above 1.5887 |
Today Feb. pork bellies and Dec. lean hogs broke above their trigger points.
After the close, the USDA said that there were 492.0 million pounds of total
pork in storage on October 31st, up from 430.6 million pounds a year ago. Frozen
bellies totaled 10.4 million pounds, down from 28.2 million pounds a year ago.
On this news and looking at the chart, we could see bellies rally to the 85
level. Lean hogs rose above the 45.67 level, which now serves as support.
Resistance is at 47.10.
Jan. soybeans
(
SF3 |
Quote |
Chart |
News |
PowerRating) which was on the Nightly Report the past
couple of nights continue to move up. The trigger was a break above
$5.70 a bushel. Yesterday, beans
broke and closed above the trigger point.
Today Jan. soybeans
rose .02 cents or to $5.7351/2 a bushel. On the daily chart,
Jan. beans
are forming a cup-and-handle
pattern. Today beans attempted to break the 5.76 resistance level.
We will be looking for further movement to the upside if beans can break the
5.76 level.
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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.