Thursday’s Futures Setups
The
Dow rallied 215
to 8285, the Nasdaq
rose 48 to 1396, and the S&P 500 rose 22 to 881. News that coalition troops are
closing in on Baghdad and that the war may come to and end soon is giving the
bulls reason to celebrate. Crude supplies were up a more-than-expected 6.8
barrels last week. April crude was down 1.22 to close at 29.78.Unleaded supplies
were up also. April gold fell 4.70 to 329.60.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Canadian Dollar ( CDM3 | Quote | Chart | News | PowerRating) |
pullback from highs |
up | above Wednesday’s high |
| Dollar ( DXM3 | Quote | Chart | News | PowerRating) |
wide range bar |
up | dips to 100.40, and above Wednesday’s high |
The Dollar
(
DXM3 |
Quote |
Chart |
News |
PowerRating) made a wide range bar up on the news that
Republican Guard divisions were taken out. If the war continues to go well
Thursday, we should see more strength. The Canadian Dollar
(
CDM3 |
Quote |
Chart |
News |
PowerRating)
may be trying to rally from a pullback from highs, and the 3/27 and 3/7 highs
are the next resistance.
Corn
(
CK3 |
Quote |
Chart |
News |
PowerRating) may pull back, but if this is the start of a large
move, we’ll have lots of time to get long.
Soybeans
(
SK3 |
Quote |
Chart |
News |
PowerRating) hit the 9/11/02 high of 588 before pulling back.
This level obviously represents some resistance. If we can take it out tomorrow,
it’s bullish.
Short
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| 10-year notes ( TYM3 | Quote | Chart | News | PowerRating) |
continuation | down | rallies to 114-105, and below Wednesday’s low |
| Bonds ( USM3 | Quote | Chart | News | PowerRating) |
continuation | down | rallies to 112-01, and below Wednesday’s low |
Bonds
(
USM3 |
Quote |
Chart |
News |
PowerRating)
triggered, and could go lower.
Crude Oil
(
CLK3 |
Quote |
Chart |
News |
PowerRating) bounced off the .618 retracement of its last up-move.
We may bounce a day or so here, but longer term, we could drop further.
Please
note that while there are strong trends, 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. Be
advised that some futures contracts are prone to gaps.
Remember,
use stops on all your trades.