Thursday’s Futures Setups
In a surprise move,
OPEC is cutting the production quota by 900 million bpd as of November 1.
This was not anticipated by analysts, who widely anticipated no change in policy
today. OPEC is worried about Iraqi production, which is currently at 1.8 million
bpd and is targeting 2.8 million bpd by March 2004. Also, US crude supplies are
at high levels.
This was posted yesterday on the E-minis:
On this 60-minute chart of the minis, you can see some confluence of resistance.
We sold off today. Here are some levels to look at tomorrow.
Gasoline worked pretty well. The OPEC news helped, obviously.
The Spinning Top in feeders signifies indecision — and possibly a trend change.
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.