Tuesday’s Futures Setups
At the beginning of trade,
the S&P 500 futures futures on the Globex pointed to a positive open. The Dec.
S&P 500 futures
(
SPZ2 |
Quote |
Chart |
News |
PowerRating)
were positive most of the early part of the session, then pulled back. Another
rally to the upside had traders covering their shorts. After a little chop, a
head-and-shoulders pattern formed with a neckline at 897. The break below 897
was a great opportunity for shorts to make some money on the downside. The SPZ2
ended at 891.79 down 6.20.
Dec. Nasdaq 100
(
NDZ2 |
Quote |
Chart |
News |
PowerRating),
closed at 987 down 6.50.
US Treasuries rose,
sending the two-year note yield to a two-week low, on speculation the Federal
Reserve will lower interest rates as soon as next week to bolster the economy.
The FOMC meeting is next Tuesday. The Dec. 10-year note
(
TYZ2 |
Quote |
Chart |
News |
PowerRating)
climbed .23 to 113.37 and the Dec. 30 year bond
(
USZ2 |
Quote |
Chart |
News |
PowerRating)
closed unchanged at 109.00.
Possible
short candidates:
| Contract |
|
|
|
|
Dec. bean oil |
Possible Turtle Soup Sell |
down |
break below 21.00 |
|
Dec. cotton |
|
|
break below 46.00 |
|
Dec. crude oil |
Head and Shoulders |
|
break below |
Possible
long candidates:
|
|
|
|
|
|
|
|
up |
Trade above 2082.69 |
|
Dec coffee |
|
up |
Trade above 70.00 |
|
Mar. sugar |
|
|
break above 7.2 |
|
Nov orange juice |
Breakout from ascending triangle |
up |
break above 97.00 |
|
Dec. Natural gas |
|
up |
break above 4.40 |
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.