Thursday’s Futures Setups
The Dow and the S&P rose for the second time
in a week, while the Nasdaq fell for a fifth day. The Dow closed at 8341.63, the
Nasdaq at 1335.50, and the S&P at 879.82. Thus ends the worst year for the
stock market since 1977. Rumor has it that OPEC may increase production without
calling a meeting, if prices stay above $28/bbl for another ten days.
Strikers in Venezuela vowed to continue to disrupt the flow of oil, even
as the country’s energy minister said production would be back to normal in a
month.
Long
Candidates:
|
Contract |
Setup |
Direction |
Trigger |
| Euro ( ECH3 | Quote | Chart | News | PowerRating) |
Breakout | up |
above Tuesday’s high |
| Yen ( JYH3 | Quote | Chart | News | PowerRating) |
Gap Up |
up |
above Tuesday’s high |
| Cotton ( CTH3 | Quote | Chart | News | PowerRating) |
Pullback from high |
up |
above Tuesday’s high |
The Euro
(
ECH3 |
Quote |
Chart |
News |
PowerRating) motors on.
March Cotton [CTH3|CTH3 is a pullback form highs. Today’s close is
poor, though.
The Yen
(
JYH3 |
Quote |
Chart |
News |
PowerRating) made an inside day…a pullback from highs at this point.
Short
Candidates:
| Contract |
Setup |
Direction |
Trigger |
| Canadian Dollar ( CDH3 | Quote | Chart | News | PowerRating) |
Gap Down |
down | below Tuesday’s low |
| Dollar ( DXH3 | Quote | Chart | News | PowerRating) |
New Low |
down | below Tuesday’s low |
| Crude ( CLG3 | Quote | Chart | News | PowerRating) |
Pullback | down | below Tuesday’s low |
| Live Cattle ( LCG3 | Quote | Chart | News | PowerRating) |
Stochastic Divergence |
down | below Tuesday’s low |
New lows
again for the Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating), which is in a pretty strong downtrend.
When will it end? The Canadian dollar
(
CDH3 |
Quote |
Chart |
News |
PowerRating) managed to take out
Monday’s lows before rallying.
Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating) triggered, but closed poorly, and may pull back Thursday.
February Crude
(
CLG3 |
Quote |
Chart |
News |
PowerRating)
pulled back, almost matching Monday’s lows. It’s more a matter of when
oil goes back up, not if it goes back up. An analyst on Bloomberg TV today said
he saw $40-$50 oil soon, which is not necessarily to say it will, but
considering the climate, it sure looks possible. This is simply a pullback from
highs, in my opinion.
February Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating)
is trading in a bull flag.
February
Live Cattle
(
LCG3 |
Quote |
Chart |
News |
PowerRating) were strong today, but could not surpass the 12/27 high. We’ll
see.
March Wheat
(
WH3 |
Quote |
Chart |
News |
PowerRating) is
trading at a .786 retracement of the contract low-high. It’s obviously in a
strong downtrend, but may pause near this area.
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.
Happy
New Year!