Thursday’s Futures Setups…
Today the Federal
Reserve released its so-called “Beige Book Report”. In the report, it
showed that the U.S. economy remained weak through early January, and though
there are scattered signs of improvement, the timing and strength of a recovery
are still uncertain.
In its latest regional survey of regional
economies, the Fed found conditions from late November ranging any where from a
continued decline to, at best, a growing recovery. Five of the Fed’s 12 districts
reported slow or weak economic activity, and three told of further slowing or an
economic trough. Three others gave mixed reports, while New York alone saw clear
signs of a rebound. Many districts indicated that their contacts believe a
recovery will begin by mid-year, but the timing and strength are uncertain. The
March 30-Year T-Bond, 10-Year Note and 5-Year Note had opened the session higher
following the weak opening for stocks on Wall Street. But a possibility that
things will get better sooner than later sent the Treasuries lower.
The March 30-Year T-Bond
(
USH2 |
Quote |
Chart |
News |
PowerRating)
lost .220 to close at 103.688. The March 30-Year T-Bond is on the
Trading
Markets.com Momentum 5 List.
The March 10-Year Note
(
TYH2 |
Quote |
Chart |
News |
PowerRating)
lost .090 to close at 106.922. The March 10-Year
Note is on the
Trading
Markets.com Momentum 5 List.
The Dow industrials suffered a triple-digit loss
Wednesday after the number one chip maker
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) issued a lukewarm
outlook and JP Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating)
came out with weak quarterly results. It was all
downhill from there. The March S&P 500
futures
(
SPH2 |
Quote |
Chart |
News |
PowerRating) closed
out the session lower by 23 to end at 1126 and below its S2 (1132.33).
The March Dow Jones futures
(
DJH2 |
Quote |
Chart |
News |
PowerRating) fell down 242.00 to 9685,
well below its S2 (9796), while the March Nasdaq index
(
NDH2 |
Quote |
Chart |
News |
PowerRating) lost
62 to end at 1563, below its S2 (1574.33).
Feb gold
(
GCG2 |
Quote |
Chart |
News |
PowerRating) rallied today and closed above its R2 (286.63).
Feb gold added 2.9 to end at 287.6. Feb gold is on a
pullback from its high.
Feb natural gas
(
NGG2 |
Quote |
Chart |
News |
PowerRating)
closed at 2.39, up .10. Feb natural gas is
pulling back from its lows.
March oats
(
OH2 |
Quote |
Chart |
News |
PowerRating) closed higher today,
up .25 to 190. The March oats contract has formed a Double Top pattern and has
broken below its Valley (192). The rule when it comes to the double top pattern
is to exit a long or short a security when it falls 5% below the valley.
March soybeans
(
SH2 |
Quote |
Chart |
News |
PowerRating) had
a nice little rally today and took out its R1, settling just below its R2
(452.83). The beans ended stronger, up 6.5 to 452.50.
The March bean contract is on the Trading
Markets.com Momentum 5 List.
March soybean meal
(
SMH2 |
Quote |
Chart |
News |
PowerRating)
closed up by 4.8 to end the session at 162.70. March bean meal surpassed its R2
level (160.23). March soybean meal is on the
Trading
Markets.com Momentum 5 List.
The March Japanese yen
(
JYH2 |
Quote |
Chart |
News |
PowerRating) is
trying to pull back off of its lows. Yesterday, the head of China’s central bank
said the weak yen, which gives Japan an edge in trade, could spark competitive
devaluations. This would mean that trade rivals of Japan would try to devalue
their own currencies to make their exports cheaper. The March yen has an
ADX of 49.
|
Contract
|
Setup
|
Direction
|
Trigger
|
March copper ( HGH2 | Quote | Chart | News | PowerRating) |
Flag Pattern |
UP | Break above 71.75 |
March Lumber ( LBH2 | Quote | Chart | News | PowerRating) |
Cup-and-Handle | UP |
Break above 276.50 |
March Sugar ( SBH2 | Quote | Chart | News | PowerRating) |
Inverted Head-and-Shoulders | UP |
Break above 8.00 |
March Coffee ( KCH2 | Quote | Chart | News | PowerRating) |
Cup-and-Handle | UP |
Break above 51.30 |
March Cotton ( CTH2 | Quote | Chart | News | PowerRating) |
Cup-and-Handle | UP |
Break above 38.45 |
Have A Great trading Day!
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.