Tuesday’s Futures Setups
Foot and mouth disease
was discovered in Venezuela, but officials there say the affected farms have
been quarantined. Crude oil prices are expected to remain between $28-$30 for
the rest of the weak, says the Department of Energy. Oil production in Iraq is
currently 1.3 million barrels per day. Rain is expected in the western half of
the Midwest; the area has been very dry recently.
Bonds reversed mid-day to close poorly.
Corn pulled back more today.
Coffee took off; dry weather in Brazil.
As did Bellies. Don’t chase; wait for pullbacks on both of these.
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.