Thursday’s Futures Setups


Light holiday trading had the indices losing today, while
bonds continued their breakout.  Many contracts didn’t trade today,
Christmas Eve. We’ll pick up again on Thursday. 

Long
Candidates:


Contract

Setup

Direction

Trigger

Cocoa
(
CCH3 |
Quote |
Chart |
News |
PowerRating)
Pennant up

above Monday’s high

Bonds

(
USH3 |
Quote |
Chart |
News |
PowerRating)
Breakout up

above Tuesday’s high

Cotton

(
CTH3 |
Quote |
Chart |
News |
PowerRating)
Breakout up

above Monday’s high

February Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating)
gained
again,
to close at 345.60. Do we have a one-day pullback here?

The Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating)

has put in a possible mini double bottom. The trend, though, is down.

March Cocoa
(
CCH3 |
Quote |
Chart |
News |
PowerRating)
is still trading in a pennant just above a .50
retracement. 

March Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating)
broke out, although it may be getting a
little overbought. 

Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating)
although
down, closed again above

the trendline
. I like this setup because it’s the fourth time hitting it.

March Copper
(
HGH3 |
Quote |
Chart |
News |
PowerRating)

fell to a .618 retracement. 

February Pork Bellies
(
PBG3 |
Quote |
Chart |
News |
PowerRating)

staged a clean gap up breakout.

Short
Candidates:

Contract

Setup

Direction

Trigger

Coffee

(
KCH3 |
Quote |
Chart |
News |
PowerRating)
Pullback
From Lows
down


Below

Monday’s low

March Coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating)

triggered. Now it’s a pullback from lows, and looks like the next large move may
be back down.

March Wheat
(
WH3 |
Quote |
Chart |
News |
PowerRating)
may
rally another day here, but it’s still a pullback from lows with this close.

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.

Remember,
use stops on all your trades.

Merry Christmas!

Brice