Thursday’s Futures Setups
Crude oil and petrol products futures at the
New York Mercantile Exchange closed lower Wednesday following weakness in the
previous session. Russia seems to not be cutting back its production as it
had originally agreed. OPEC has called on Russia to extend its agreement until
the end of June. Analysts said the expiration of the March crude contract could
add volatility to the market, but short covering appeared to have been exhausted
after Tuesday’s correction from last week’s run-up in prices. April crude oil
(
CLJ2 |
Quote |
Chart |
News |
PowerRating) closed below its 20.50 support line at 20.43 down 69.
A reversal of fortune hit the markets in later
trading today pushing the March futures to close near the highs of the day.
Stocks gained steam late in Wednesday’s session, with the Dow more than
reclaiming the steep losses it suffered during the previous session when
investors feared the worst about magic accounting tricks.
In late-afternoon trading, at about 1:00 PM EST the March S&P 500 futures
(
SPH2 |
Quote |
Chart |
News |
PowerRating) followed-through and didn’t look back posting robust gains to
close at 1101.000 up 17.300. The March Dow futures
(
DJH2 |
Quote |
Chart |
News |
PowerRating) rallied
just the same closing at the highs of the day. The Dow powered through both of
its Resistance Pivot Points to close at 9974.00 up 236.00. The March Nasdaq 100
(
NDH2 |
Quote |
Chart |
News |
PowerRating) closed at 1412.00 up 17.500.
March soybean oil
(
BOH2 |
Quote |
Chart |
News |
PowerRating)
closed up 1.14% just above its resistance level of 15.927. Soybean oil now has
an initial resistance at 16.06 and secondary resistance at 16.18. Soybean oil
for March closed at 15.95 up .18.
March wheat
(
WH2 |
Quote |
Chart |
News |
PowerRating) is setting up a
potential false rally off of the lows. March wheat closed at 280.000 up 2.25.
April gold
(
GCJ2 |
Quote |
Chart |
News |
PowerRating) prices slumped
Wednesday, extending the weakness seen late Tuesday when prices dropped on dip
buying and trade short covering. Selling was also sparked Tuesday by a statement
from German Central Bank officials that they might liquidate some gold reserves
and move cash into income producing financial instruments. April gold pulled
back to its 50% retracement level and closed at 292.300 down 1.300. Gold has
initial support at these levels and secondary support at 286.60.
March sugar
(
SBH2 |
Quote |
Chart |
News |
PowerRating) is setting up a
potential false rally from the lows. Sugar has support at 6.50 with over head
resistance at 6.50. Sugar for March delivery closed at 6.40 up .12
May coffee
(
KCK2 |
Quote |
Chart |
News |
PowerRating) is setting up a
potential false rally. Coffee has support at 46.00 and resistance is at 50.00.
March coffee closed at 48.70 up 2.10.
More cold weather in early March might lend some
support in the short-term to heating oil, but analysts agree the heating oil
season is pretty much finished. Heating oil inventories could see a slight draw on inventories on last week’s
cold weather in the Northeast U.S. March heating oil
(
HOH2 |
Quote |
Chart |
News |
PowerRating) broke below its 54 support level and closed
at 33.090 down 1.31. March unleaded gasoline
(
HUH2 |
Quote |
Chart |
News |
PowerRating) fell below its
support level of 58 and closed at 57.440 down 1.81.
In yesterday’s Nightly Futures traders Report March pork bellies
(
PBH2 |
Quote |
Chart |
News |
PowerRating)
broke out higher and the new resistance level was at 77.00. Today bellies moved
higher by .68 to close at 77.525 above the 77 resistance. Support is right around the 50% retracement line
of 75 and resistance is at around 79.00.
|
Contract
|
Setup
|
Direction
|
Trigger
|
| March U.S. dollar ( DXH2 | Quote | Chart | News | PowerRating) |
Pull Back From Highs | Â Â Â Â Â Â Â Â Â Â Â Â UP |
break above 121.00 |
| March 30 YR Treasury ( USH2 | Quote | Chart | News | PowerRating) |
Inverted Head and Shoulders | Â Â Â Â Â Â Â Â Â Â Â Â UP |
    break above 104 |
| March 10 YR Treasury ( TYH2 | Quote | Chart | News | PowerRating) |
Inverted Head and Shoulders | Â Â Â Â Â Â Â Â Â Â Â Â UP |
    break above 107 |
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