Tuesday’s Futures Setups
The
Dow fell 307
to 8214, the Nasdaq
dropped 52 to 1369, and the S&PÂ 500 lost 31 to 864. Prospects for a short
war dimmed as Saddam appeared on TV and rising coalition casualties are
reported. Year to date, after its worst day in 2003, the Dow is back in negative
territory. Crude, gold and bonds closed up.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Crude oil ( CLK3 | Quote | Chart | News | PowerRating) |
oversold bounce |
up | above Monday’s high |
Crude oil
(
CLK3 |
Quote |
Chart |
News |
PowerRating) looks like it may bounce here, and reports coming in
from Nigeria don’t look good. Chevron Texaco evacuated their employees after
fighting increased. Nigeria’s oil production has dropped by one third, down from
2 million barrels per day. U.S. refineries prefer Nigerian oil because it yields
more gasoline than other grades.
Cotton
(
CTK3 |
Quote |
Chart |
News |
PowerRating) fell out of a pretty good-looking pullback, and closed
below its 20-day moving average.Â
Pork bellies
(
PBK3 |
Quote |
Chart |
News |
PowerRating) fell below their consolidation.
Short
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Dollar ( DXM | Quote | Chart | News | PowerRating) |
overbought | down | below Monday’s low |
| Bean Oil ( BOK3 | Quote | Chart | News | PowerRating) |
wide range bar |
down | rallies to 21.38 and below Monday’s low |
| Soy Meal ( SMK3 | Quote | Chart | News | PowerRating) |
broke consolidation |
down | below Monday’s low |
The Dollar
(
DXM3 |
Quote |
Chart |
News |
PowerRating) may fall from this consolidation, especially if we
get more bad news overnight and tomorrow.
Bean oil
(
BOK3 |
Quote |
Chart |
News |
PowerRating) made a wide range bar after getting pretty close to
a .786 Fib level. The .50 of the recent move is 21.02 and the .618 is 20.82.
Soy meal
(
SMK3 |
Quote |
Chart |
News |
PowerRating) fell from the neckline of a head and shoulders and
is now below the 50-day moving average.
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.
PS
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