Thursday’s Futures Setups

What looked like a day where the The Dow Jones Industrial Average was
going to close at its best levels of 2002, it was not to be. Chairman Alan
Greenspan seemed to have chosen the right words to share with Congress. The
markets were doing well for most of the trading session. Then in the final hour
of the trading session, the market averages finished with little to show for the
day’s events. 

The March Dow futures
(
DJH2 |
Quote |
Chart |
News |
PowerRating)
did close in positive
territory at 10140.000 up 40.00, but at one point were trading at 10254.00 the
high of the day. The March S&P 500 futures
(
SPH2 |
Quote |
Chart |
News |
PowerRating)
broke above their
R2 Pivot Point in early trade, but that was it, the S&P’s retraced down to
1111.400 a gain of 3.500 on the day. The March Nasdaq 100
(
NDH2 |
Quote |
Chart |
News |
PowerRating)

ended negative on the day trading at 1383.500 down 19.50.

May cocoa
(
CCK2 |
Quote |
Chart |
News |
PowerRating)
had been on the

TradingMarkets.com Momentum 5 List
, but today May cocoa gapped down at the
opening. Cocoa tried making a come back, but dropped in the last 10 minutes of
trade to close at 1445.

April frozen orange juice
(
FCOJ |
Quote |
Chart |
News |
PowerRating)
is
trading in a symetrical triangle. FCOJ is on the

TradingMarkets.com Momentum 5 List

Rumors that a possible political shake-up could be forthcoming in Argentina
sent May soymeal
(
SMK2 |
Quote |
Chart |
News |
PowerRating)
futures up several levels of technical
resistance to close at 153.600, the highest since Jan. 22.


Contract

Setup

Direction

Trigger

March U.S. dollar
(
DXH2 |
Quote |
Chart |
News |
PowerRating)
Pull Back From Highs

UP

break above 120.00

March 30 YR Treasury
(
USH2 |
Quote |
Chart |
News |
PowerRating)
Inverted Head and Shoulders
UP
break above 104
March 10 YR Treasury
(
TYH2 |
Quote |
Chart |
News |
PowerRating)
Inverted Head and Shoulders
UP
break above 107
April copper
(
HGJ2 |
Quote |
Chart |
News |
PowerRating)
Pull Back From the High
UP
break above 1114.73
April crude oil
(
CLJ2 |
Quote |
Chart |
News |
PowerRating)
Pull Back From the High
UP
break above 21.57

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.