Thursday’s Futures Setups
Today at the Coffee, Sugar & Cocoa Exchange, sugar futures collapsed to
three-month lows. The reason speculation that there will be a
huge Brazilian harvest starting in May. Brazil is the world’s top producer and
exporter of raw sugar. Yesterday, consultants for the sugar crop from Brazil
put the nation’s 2002-03 harvest at 314 million metric tons, 12% above the
year-earlier crop. High levels of replanting and favorable weather will boost
output, the consultants reported. After forming a double top formation in the
March sugar contract
(
SBH2 |
Quote |
Chart |
News |
PowerRating), we have been looking for a break below
the valley. The 6.95 support level was broken yesterday. When looking at a
double-top pattern on a chart, an ideal place to short is a 5% break below the
valley. That came yesterday. Today the March sugar contract closed at 6.57, down
.18.
March cocoa
(
CCH2 |
Quote |
Chart |
News |
PowerRating)
was featured in last night’s Futures Report and our trigger was a break
above 1350. At today’s opening, March cocoa shot up above 1350 and opened at 1359
and rallied to 1367, a 24.00 point move to the upside.Â
April live cattle
(
LCJ2 |
Quote |
Chart |
News |
PowerRating)
rallied with strong volume to break above its resistance line yesterday. Today
it continued to move higher above its trendline with strong volume. April live
cattle is on the
TradingMarkets.com Momentum 5 List. March
feeder cattle
(
FCH2 |
Quote |
Chart |
News |
PowerRating) continued its move higher above its resistance
line as well with with stronger volume.
|
Contract
|
Setup
|
Direction
|
Trigger
|
April Live Hogs ( LHJ2 | Quote | Chart | News | PowerRating) |
Pullback From Highs |
|
break above 61.425 |
March Soybeans ( SH2 | Quote | Chart | News | PowerRating) |
Pullback From Highs |
|
break above 432.098 |
March Soybean meal ( SMH2 | Quote | Chart | News | PowerRating) |
|
|
break above 150.44 |
March unleaded gas ( HUH2 | Quote | Chart | News | PowerRating) |
|
|
5% break below 55.00
|
March crude oil ( CLH2 | Quote | Chart | News | PowerRating) |
Head and Shoulders Top
|
|
5% break below 18.63 |
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.