Tuesday’s Futures Setups
Stocks rose Monday,
with the Dow +26 to 9217, the Nasdaq +17
to 1661, and the SPX +3 to 980. The Fed funds rate is expected to remain the
same after the FOMC meeting Tuesday. OPEC’s July production was roughly the same
as June, and is expected to be at about these levels for August and September.
Because of concern over genetic modification, China may be slowing down soybean
imports.
Long Candidates:
The Canadian dollar
(
CDU3 |
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Chart |
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PowerRating) triggered long; stay with
it.
Natural gas
(
NGU3 |
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PowerRating) may break out of this flag.
Also watching Cocoa
(
CCU3 |
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Chart |
News |
PowerRating) here, as it looks ready
to break a trendline and there is some positive divergence happening.
Wouldn’t you know it — despite the positive momentum, at the
last minute Friday, I decided not to include Beans and Soymeal on
our long list — I thought I’d give it one more day. C’est la vie. Still,
may not be too late here.
Short Candidates:
None tonight.
Bonds and 10-year notes triggered short; stay with them.
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.