Thursday’s Futures Setups

March S&Ps
(
SPH2 |
Quote |
Chart |
News |
PowerRating)
bounced off the 50%
retracement of their most recent move up, and closed just above their 20-day
moving average. The March Naz futures
(
NDH2 |
Quote |
Chart |
News |
PowerRating)
bounced off their 70.7%
retracement. This, combined with the CVR
1buy signal
generated Wednesday, should give Thursday a bullish bias.

The Euro
(
ECH2 |
Quote |
Chart |
News |
PowerRating)
gapped up in its debut,
taking out the 12/17 highs before pulling back slightly. The yen
(
JYH2 |
Quote |
Chart |
News |
PowerRating)

remains in a strong downtrend.

The soybean complex continues to be weak. For the
brave, soybeans
(
SH2 |
Quote |
Chart |
News |
PowerRating)
bounced off the 161.8% retracement of the 10/22-11/19
move, so a pullback may be in store. Otherwise, the trend is most
definitely down. Soybean oil
(
BOH2 |
Quote |
Chart |
News |
PowerRating)
matched their 10/22 lows before pulling
back slightly.

With the exception of the 12/17 spike low, both
bonds
(
USH2 |
Quote |
Chart |
News |
PowerRating)
and notes
(
TYH2 |
Quote |
Chart |
News |
PowerRating)
are range-bound. We need more direction
from these two.

Cocoa
(
CCH2 |
Quote |
Chart |
News |
PowerRating)
is trading in a triangle
beginning 11/30, and closed just above its 20-day moving average.

Feeder cattle
(
FCF2 |
Quote |
Chart |
News |
PowerRating)
faked higher and went
lower; look for continuation Thursday. Live cattle
(
LCG2 |
Quote |
Chart |
News |
PowerRating)
dropped on a
Turtle Soup setup; further downside is possible.

Unleaded gas
(
HUF2 |
Quote |
Chart |
News |
PowerRating)
traded off its .382
retracement; there is a possibility of an uptrend continuation here. Heating oil
(
HOF2 |
Quote |
Chart |
News |
PowerRating)
bounced off its 50% retracement; this is also a good place to look
for a resumption of the trend.

Contract

Setup

Direction

Trigger

Feeder
cattle
(
FCF2 |
Quote |
Chart |
News |
PowerRating)

broke support

down

below Wednesday’s low

Live
cattle
(
LCG2 |
Quote |
Chart |
News |
PowerRating)

Turtle
Soup – continuation

down

below Wednesday’s low

Euro

(
ECH2 |
Quote |
Chart |
News |
PowerRating)

continuation

up

above
Wednesday’s high
Soybean
oil (BOH2)

resumption
of trend

down

below Wednesday’s low

Soybeans
(SH2)

new
lows

down below
Wednes
day’s close
Heating
Oil (HOF2)

bounce
off .50 retracement

up above
Wednesday’s high
Unleaded
Gas (HUF2)

bounce
off .382 retracement

up above
Wednesday’s high

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.