Tuesday’s Futures Setups
The S&P 500 Index futures, and
Nasdaq 100 futures rose as US stocks rallied, driving benchmark indexes to their
highest level in more than five weeks. Philip Morris
(
MO |
Quote |
Chart |
News |
PowerRating) and
Coca-Cola
(
KO |
Quote |
Chart |
News |
PowerRating) helped lead the advance after analysts recommended
investors buy their shares. The gains extended a two-week rebound sparked by
better-than-expected quarterly profits. The rally began as the loss in the
S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) from its March 2000 peak passed the 48.6% decline in
the 1973-74 bear market. The Dec. S&P 500
(
SPZ2 |
Quote |
Chart |
News |
PowerRating) was close to
breaking above resistance at 900 before closing at 898.10, up 14.90 or 1.69%.
The Nasdaq 100 for Dec.
(
NDZ2 |
Quote |
Chart |
News |
PowerRating) rose 19.50 or 2.03% to 980.00.
Treasuries held support with
modest losses today. The Dec. 30-year bond
(
USZ2 |
Quote |
Chart |
News |
PowerRating) touched the 108
support level before ending at 108.06 down 1.50 or 1.41% and the Dec. 10-year
note
(
TYZ2 |
Quote |
Chart |
News |
PowerRating) found support at 108 closing at 108.06 down 1.50.
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Soybean futures prices and soymeal futures moved to
the upside by dry and hot weather in Brazilian soybean-growing regions.
Meanwhile, weather that is too wet is hampering soybean planting progress in
regions of Argentina. Dec. soymeal
(
SMZ2 |
Quote |
Chart |
News |
PowerRating) is on an up trend rally,
staying above the support level of 170.00. Key resistance is at the 50-day
moving average and the 38% retracement level (174.09) drawn from the Sept high
to the recent Oct. low. SMZ2 closed at 172.40 up 1.70. Soybeans for November
(
SX2 |
Quote |
Chart |
News |
PowerRating) gained 4
1/2 cents to close at $5.50 1/2 a bushel. It does appear that with the recent
price strength, the harvest lows are in place for the soybean futures complex.
World soybean stocks are tighter and early growing conditions in South
America are less than ideal, so volatility is likely to remain higher during the
coming weeks and months.
Possible
short candidates:
| Contract |
Setup |
Direction |
Trigger |
| Dec. S&P 500 E-Mini ( ESZ2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Sell | down | break below 867.81 |
| Canadian Dollar ( CDZ2 | Quote | Chart | News | PowerRating) |
Counter trend rally |
down | Trade below .6276 |
| Dec. Lean Hogs ( LHZ2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Sell | down | break below 40.00 |
Possible
long candidates:
| Contract |
Setup |
Direction |
Trigger |
| Pork Bellies ( PBG3 | Quote | Chart | News | PowerRating) |
Continuation out of pullback to 20-day MA |
up |
Trade above 75.05 |
| Sugar ( SBH3 | Quote | Chart | News | PowerRating) |
Pullback from high |
up |
Trade above 6.85 |
| Dec. wheat ( WZ2 | Quote | Chart | News | PowerRating) |
Turtle soup plus one buy | up |
break above 3.84 |
| Dec soymeal ( SMZ2 | Quote | Chart | News | PowerRating) |
Counter trend rally | up | break above 174.09 |
| Dec. Soybeans ( SX2 | Quote | Chart | News | PowerRating) |
Counter trend rally |
up | break above 5.52 |
The WZ2 move above 3.84 was key and now a break above the 4.16 level could
signal a new rally to the upside.
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.
Use stops on all your trades.