Tuesday’s Futures Setups

The Dow
rallied 202 to 9318, the Nasdaq gained 40 to 1666, and the S&P 500
rose 22 to 1010. In economic news, the Empire State
Index for June came in at a reading of 26.8, besting expectations. This much
better-than-expected reading could also point to a higher Philly Fed index, due
Thursday. Bonds and 10-year notes backed off slightly. Friday is the next
USDA quarterly hogs and pigs report

Long Candidates:

 

Cattle
(
LCQ3 |
Quote |
Chart |
News |
PowerRating) may bounce, but please watch for some reversal
activity before blindly entering.

Watching Soybeans
(
SN3 |
Quote |
Chart |
News |
PowerRating) here, as well as Natural Gas
(
NGN3 |
Quote |
Chart |
News |
PowerRating). No real strong feelings at this point.

Finally, Copper
(
HGN3 |
Quote |
Chart |
News |
PowerRating) has a chance of a bounce. Connect the 2/19
and 3/14 lows and you’ll see some support here.

Short Candidates:

I still think Bonds
(
USU3 |
Quote |
Chart |
News |
PowerRating) are due for a pullback, but you know how
that can go. Today’s bar has me thinking that we may finally see it. Be careful,
though.

The British Pound
(
BPU3 |
Quote |
Chart |
News |
PowerRating) closed in what could be a reversal bar.
Still watching the Canadian dollar
(
CDU3 |
Quote |
Chart |
News |
PowerRating), which is looking
suspiciously like Three Little Indians, plus we’ve got some negative momentum
divergence happening here still.

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.

Brice