Tuesday’s Futures Setups

  • November 12, 2001
  • TradingMarkets Editors

Stock indexes recovered to close mixed despite a horrible air crash in New
York. The capacity to recover in light of the tragic event, demonstrates
confidence and resolve in stocks and equity index futures. This is a positive
indication for continued bullishness in stock index futures and is bearish for
safe-haven plays such as gold, silver, and the Swiss franc. While not a
safe-haven play, an expected decline in the demand for stateside energy as
well as Russia’s acquiescience to cut back just a paltry 30,000 barrels a day, shifts
the view to bearish in crude oil and products.

December

copper
(
HGZ1 |
Quote |
Chart |
News |
PowerRating) held a key
support level and closed five ticks off the high to score a second straight New 10-Day
High. This sets it up for an Off The Blocks
long. 

Rampant bearishness in livestock has
resulted in a second straight limit-down day in cattle. There were still
unfilled sell orders on the close. Look for livestock contracts —
December
live cattle
(
LCZ1 |
Quote |
Chart |
News |
PowerRating) and January feeder cattle

(
FCF2 |
Quote |
Chart |
News |
PowerRating) — to sell off on the open, to
retrace 50% of the distance from Monday’s close to Tuesday’s low (whatever that
level is), before resistance at the 50% level provides another place to get
short..

January soybeans
(
SF2 |
Quote |
Chart |
News |
PowerRating) continue
proving themselves as they make headway into the overhead gap. This is the
second consecutive New 10-Day highs setup, and makes them eligible for Off The
Blocks longs. 

 



Contract

 Setup
 Direction

 Trigger
Copper

(
HGZ1 |
Quote |
Chart |
News |
PowerRating)
 Momentum,
New 10-Day
High 		 Up

 Off The Blocks

 December
live cattle
(
LCZ1 |
Quote |
Chart |
News |
PowerRating) and January feeder cattle

(
FCF2 |
Quote |
Chart |
News |
PowerRating)		 Implosive
momentum 
 		 Down

 Opening
range shorts. Re-short at 50% retrace of Mon. close to Tues low.  
Soybeans

(
SF2 |
Quote |
Chart |
News |
PowerRating) 
 New 10-Day
High. 		  


Up
   
Off The Blocks

 

Define the risk before every trade and honor your stops.Â