Tuesday’s Futures Setups
Stocks were mostly lower Monday.
The Dow lost 31 to 9317, the Nasdaq slid 1 to 1764,
and the SPX gained 0.65 to 993.71. Â Existing
home sales were up 5% from last month’s pace — the largest one-month gain since
1980. Cooler temps are forecast this week — and even a chance of rain — after
a warm weekend.
No real strong setups today, just these observations:
Gold
(
GCZ3 |
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PowerRating) continues in the triangle. Silver
{SIU3|SIU3] is also in a triangle, but right at the apex. When you get to the
apex on a triangle, the pattern is usually negated.
The Swiss is approaching a 50% retracement as well as a swing point on
this weekly chart.
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The Euro is at the 70.7% retracement on this weekly chart. Look for
momentum to break the trendline, though, before going long.
Short Candidates:
Cattle are showing some divergence and rolling stochastics.
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Pork Bellies
(
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Chart |
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PowerRating) hit a 127% extension and made a wide range bar
down.
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.