Thursday’s Futures Setups
The S&P futures
closed near the .618 retracement of the 12/6-12/13 move; the Dow
managed to take out its 70.7% retracement. With the VIX moving higher, look for a pullback soon.
Bonds
(
USH2 |
Quote |
Chart |
News |
PowerRating) and notes
(
TYH2 |
Quote |
Chart |
News |
PowerRating) continued
their rally, with bonds stopping at their downtrend line, and notes halting just
below their 20-day moving average. If bonds can break through their trendline,
it’s bullish. While notes are further away from their trendline, the 20-day
moving average lies in the 105.095 area, and could provide resistance.
In a wide range-bar, soybean oil
(
BOH2 |
Quote |
Chart |
News |
PowerRating)
rallied. Soybean meal
(
SMH2 |
Quote |
Chart |
News |
PowerRating) triggered a Turtle Soup Plus One; look for
continuation Thursday.
Sugar
(
SBH2 |
Quote |
Chart |
News |
PowerRating) continued its fall, and may be
headed to its .618 retracement at the 6.77 level.
After yesterday’s blast off, feeders
(
FCF2 |
Quote |
Chart |
News |
PowerRating)
marked time, closing in a doji at their 50-day moving average after bouncing off
their .618 retracement. Live cattle
(
LCG2 |
Quote |
Chart |
News |
PowerRating) didn’t quite make it to this
retracement level. After these wide-range bars, normally one would look for a
continuation Thursday, but looking at the Fib levels, you can make the case for
a pullback here as well.
Copper
(
HGH2 |
Quote |
Chart |
News |
PowerRating) again appears to have reversed
itself and looks like a head and shoulders pattern. A break below Wednesday’s
low implies downside continuation.
Gold
(
GCG2 |
Quote |
Chart |
News |
PowerRating) and silver
(
SIH2 |
Quote |
Chart |
News |
PowerRating) both
reversed in wide-range bars, with gold closing at the confluence of the 200-day
moving average and a former uptrend line.
Crude
(
CLF2 |
Quote |
Chart |
News |
PowerRating) closed above its downtrend line
and above its 20-day moving average. This looks bullish for Thursday.
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Copper (HGH2) |
head and shoulders
|
down
|
below Wednesday’s low |
| 30-year bonds (USH2) |
continuation
|
up
|
above Wednesday’s high |
| 10-year notes (TYH2) |
continuation
|
up
|
above Wednesday’s high |
| Wheat ( WH2 | Quote | Chart | News | PowerRating) |
continuation
|
up
|
above Wednesday’s high |
| Sugar ( SBH2 | Quote | Chart | News | PowerRating) |
continuation
|
down
|
below Wednesday’s low |
| Soybean oil ( BOH2 | Quote | Chart | News | PowerRating) |
Turtle Soup Plus One –
|
up
|
above Wednesday’s high |
Use stops on all your
trades.