Thursday’s Futures Setups
With a non robust economic report and a stock
market that has traders questioning an economic recovery, investors found
safety in Treasuries. Both the June ten year treasury note
(
TYM2 |
Quote |
Chart |
News |
PowerRating)
and the June 30-year bond
(
USM2 |
Quote |
Chart |
News |
PowerRating) gained some ground and each made
20-day new highs. The benchmark 10-year Treasury was up 1/8 point, or $1.25 per
$1,000 note, to 97 29/32. Its yield, which moves inversely to the price, fell to
5.144%. The 30-year Treasury jumped 1/4 to 96 5/32, yielding 5.644%. The TYM2
and USM2 are on the
TradingMarkets.comMomentum 5 List. Â
For a sixth day in a row, the June Nasdaq 100
futures
(
NDM2 |
Quote |
Chart |
News |
PowerRating) has closed negative. This is now a 20 day low for the Nasdaq 100 futures. The close is around its support line at
1300.00. A break below this level could spell big trouble for more declines.
The next support is at 1200. With most of the earnings coming in with
lukewarm results, this intensifies the pressure on the Nasdaq 100. One strategy when playing a 20-day new low
is the
“Turtle Soup Plus One Buy Setup.” The Nasdaq was very choppy today
and the fact that it shook off the positive “Beige Book” good news, makes for a
nervous market.
The June Nasdaq 100 lost 21.50 or 1.62% to end at 1308.50.
Like the Nasdaq 100 futures, the June
S&P 500 futures
(
SPM |
Quote |
Chart |
News |
PowerRating) has put in a similar pattern and is a possible
Turtle Soup Plus One buy setup. The June S&Ps broke the support level at 1100
and retreated to close near the lows of the day. The June S&Ps closed at 1091.79
down 11.50 or 1.04%. SPM2 could retrace back to its 1080 support level. If
there is a bounce in the SPM2, look for over head resistance at 1129.45 and
secondary resistance at 1147.70. Take a look at
Lewis Borsellino’s
comments on the S&Ps.
The June Euro currency futures
(
ECM2 |
Quote |
Chart |
News |
PowerRating)
has built a rally with momentum. On the daily chart, the euro defied a
longer-term downtrend line. In addition to that, the euro has created a nearly
three-month-old up-trending channel on the daily chart. If the euro can push
prices above the upper trend line of the channel there could be further movement
to the upside.
June euro is on the
TradingMarkets.comMomentum 5 List.Â
|
Contract |
|
|
|
| June live cattle ( LCM2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Plus One Buy Setup |
           UP | break above 63.80 |
| June gold ( GCM2 | Quote | Chart | News | PowerRating) |
Cup and Handle | Â Â Â Â Â Â Â Â Â Â Â UP | break above 305.00 |
| May pork bellies ( PBK2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Plus One Buy Setup | Â Â Â Â Â Â Â Â Â Â Â UP |
break above 70.00 |
| British pound ( BPM2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Plus One Sell Setup | Â Â Â Â Â Â Â Â Â Down | break below 1.4360 |
| June natural gas ( NGM2 | Quote | Chart | News | PowerRating) |
Pull Back Off High | Â Â Â Â Â Â Â Â Â Â Â UP | break above 3.500 |
| July cotton ( CTN2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Plus One Buy Setup | Â Â Â Â Â Â Â Â Â Â Â UP | break above 39.00 |
| July soybeans ( SN2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Plus One Buy Setup | Â Â Â Â Â Â Â Â Â Â Â UP | break above 464 |
| July wheat ( WN2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Plus One Buy Setup |
           UP |
break above 2.76 |
| June Canadian dollar ( CDM2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Plus One Sell Setup | Â Â Â Â Â Â Â Â Â Down |
break below .63200 |
Please note that
while there are strong trends in some commodities, 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.  Â
Â
Â
Â
Â