Tuesday’s Futures Setups
US Treasuries rose after weaker-than-expected
government and industry reports on personal income, spending and manufacturing,
putting the benchmark 10-year note at its best month in 22 years.
Bonds climbed as stocks fell on
concern a war with Iraq will further slow the economy’s rebound from recession.
The Dec.10-year Treasury-note
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1989, returning 11.6% including reinvested interest. The ten-year note closed at
115.92, up .64. The 30-year bond for Dec.
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close at 114.28.
The
S&P 500 index fell to the 800 level, which was the -2.0 Volatility Band.
From there it formed a 1,2,3 bottom and began to rally. Savvy traders who are
Kevin Haggerty students, probably pulled at least 10 points out of the move on
the futures
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down 9.89 or 1.19%.
Possible
short candidates:
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Dec. cocoa |
possible turtle soup plus |
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Down
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Dec. cotton |
Pullback off of the |
Down |
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Dec. Nov. crude oil |
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Down |
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Dec. gold |
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Down |
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Oct. heating oil |
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Down |
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Possible long candidates:
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Dec. wheat |
Pullback from high |
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Dec. corn |
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Nov. frozen orange juice |
Pullback from high |
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Oct. live cattle |
Bullish Flag Pattern |
UP |
break above 70.20 |
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Oct. feeder cattle |
Saucer Pattern |
UP |
break up above 81.60 |
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.
Use stops on all your trades.