Tuesday’s Futures Setups
The
Dow fell 172 to 7568, the Nasdaq
dropped 27 to 1278, and the S&P 500 fell 21 to 807. Today was the
three-year anniversary of the all-time high for the Nasdaq. NYSE decliners beat
gainers by a three-to-one margin, with the down volume 14 times the up volume.
OPEC is meeting in Vienna to discuss oil prices and production quotas.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| E-Minis | overcooked TRIN |
up | 1,2,3 at vol band |
| Wheat | hammer | up | above Monday’s high |
| Soybeans | bounce off 50 MA |
up | above Monday’s high |
The NYSE TRIN closed at 6.13, a level I have not seen in quite some time.
This indicates a deeply oversold condition. Oversold, as you know, can become
more oversold, but when we had a very high TRIN the week of 4/9/00, we rallied
for several days out of it. The war issue obviously overrides everything, as we
are in a news-driven market. There is a decent possibility of a bounce, though.
Watching Corn
(
CK3 |
Quote |
Chart |
News |
PowerRating)
here, but looking for a good long entry. The double bottom looks good, so far,
and a couple of more days of pullback might set up a long. We may even have a
triple bottom. The close on Wheat
(
WK3 |
Quote |
Chart |
News |
PowerRating) looks pretty good, as does
the close on Soybeans
(
SK3 |
Quote |
Chart |
News |
PowerRating). Beans could run to 570-571, which is the
50% retracement of the last down move
Short
Candidates:
None.
Here are the intraday numbers for the E-minis (ESH3):
R2
830.25
R1 819
Pivot: 812.25
S1
801
S2 794.25
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.