Thursday’s Futures Setups

• March 20, 2002
• TradingMarkets Editors

Arabica coffee futures on the Coffee, Sugar &
Cocoa Exchange rallied to some strong gains today.

After being highlighted as a possible move to
the up side in the Nightly Report for the last couple sessions, May
coffee futures
(
KCK2 |
Quote |
Chart |
News |
PowerRating) settled at 56.00 cents. It’s the second highest
settlement since Sept.10, following the March 12’s settlement of 56.75 cents per
pound. The May contract unexpectedly changed direction after testing a low of
50.50 cents per pound. The upward move Wednesday was primarily motivated by the
strength on the London International Financial Futures and Options, which
continues to benefit from the lack of selling pressure from Vietnam, the world’s
second-largest coffee producer. May coffee settled at 56.00 2.65. Support is at
around 54.45 to 53.52. Resistance is at 57.83 and secondary resistance is at
59.00.

The weekly chart for the June S&P 500 futures
(
SPM2 |
Quote |
Chart |
News |
PowerRating)
shows an inverted head-and-shoulders bottom reversal pattern developing.
Initial support is at around 1085 and secondary support is at 1049. Resistance
is at 1178.0. The June S&P 500 futures
(
SPM2 |
Quote |
Chart |
News |
PowerRating) had no chance of
recovery today. The S&Ps opened at 1174.10, saw a high point at 1175.20 and then
pulled back and broke below its S1 Pivot Point at 1169.47. It then fell further
to drop below its S2 pivot point of 1164.73. The SPM2 ended at 1152.300 down
21.90.

Crude-oil gushed higher at the midday trading
session, boosted by bullish supply data.

April crude-oil futures
(
CLJ2 |
Quote |
Chart |
News |
PowerRating) Traded as high as 25.62 before settling
at $24.90 a barrel on the New York Mercantile Exchange, a gain of .02 cents.
April heating oil
(
HOJ2 |
Quote |
Chart |
News |
PowerRating) rocketed up 2.23 cents to 68.35 cents a gallon
and then pulled back to 66.57 cents a gallon, and April unleaded gasoline
(
HUJ2 |
Quote |
Chart |
News |
PowerRating) dropped 1.24 cent to 81.92 cents a gallon. April Natural gas
(
NGJ2 |
Quote |
Chart |
News |
PowerRating) dropped .15 cent to $3.111 per million British thermal units. April crude oil, April heating
oil, April unleaded gasoline and April natural gas are all on the


TradingMarkets.com Momentum 5 List.  

April live cattle
(
LCJ2 |
Quote |
Chart |
News |
PowerRating)
has been
on the Nightly Report for several sessions now and it was sighted that
LCJ2 was pulling back from the lows. A break below 75 would possibly mean
further lows. On Wednesday 03-15-2002, April live cattle closed below 75 and today the contract continued lower to
70.95. LCJ2 had support at around 71.20. Initial support is now
at 70.70 and secondary support at 70.00. April live cattle is on the

TradingMarkets.com Implosion 5 List.

Contract	Setup	Direction	Trigger
May cocoa ( CCK2 | Quote | Chart | News | PowerRating)	Pullback from the high	            UP	     break above 1520
May corn ( CK2 | Quote | Chart | News | PowerRating)	Pullback from lows	           down	     break below 206
April copper ( HGK2 | Quote | Chart | News | PowerRating)	Pull Back From the High	            UP	     break above .7500
May silver ( SIK2 | Quote | Chart | News | PowerRating)	Pull Back From the High	            UP	     break above 4.60
May wheat ( WK2 | Quote | Chart | News | PowerRating)	Pullback from lows	          down	    break below 276
May orange juice ( JOK2 | Quote | Chart | News | PowerRating)	Pullback Off Highs	            UP	    break above 92
May sugar #11 ( SBK2 | Quote | Chart | News | PowerRating)	Pullback Off the High	            UP	    break above 6.3

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.