Tuesday’s Futures Setups
After an opening gap and brief runup, the indices
were slammed by a weak ISM number and remained down for the session, although
the Nasdaq futures managed to hang onto a small gain at the close. December
S&Ps
(
SPZ2 |
Quote |
Chart |
News |
PowerRating) closed down less than a point at 935.30, and in a quasi
shooting star formation, and at the 87.5% retracement of the 8/22 highs to the
10/10 lows. The S&P e-minis
(
ESZ2 |
Quote |
Chart |
News |
PowerRating) lost a quarter point to close at
935.75, at the same retracement level; Nasdaq futures
(
NQZ2 |
Quote |
Chart |
News |
PowerRating), also ending
the day with topping tails, were up 9.5 at 1126.50. Today’s action suggests
downside continuation Tuesday.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| March sugar (SBH3) |
Shooting for recent high |
up | above Monday’s high |
| January Soymeal (SMF3) |
Inverted head and shoulders |
up | above Monday’s high |
| December 30-Year Bonds ( USZ2 | Quote | Chart | News | PowerRating) |
Bullish Engulfing bar |
up | above Monday’s high |
Soymeal
(
SMF3 |
Quote |
Chart |
News |
PowerRating)
broke above its 50-day moving average and out of an eight-day consolidation, as
well as a loose inverted head and shoulders pattern. Look for continuation.
The Canadian dollar
(
CDZ2 |
Quote |
Chart |
News |
PowerRating) is near the top of a channel. Be on the lookout for a potential
triple top here between 64.20 – 64.38. We’ll watch this one for a couple of
days.
March Sugar
(
SBH3 |
Quote |
Chart |
News |
PowerRating)
appears to be shooting for its 11/6 highs at 7.77. Watch for some resistance
there.
30-year bonds
(
USZ2 |
Quote |
Chart |
News |
PowerRating) are showing a massive bullish engulfing bar; look for a brief rally
here.
Short
Candidates:
| Contract |
Setup
|
Direction
|
Trigger
|
| March Corn (CH3) |
Below
|
down
|
below Monday’s low |
| December S&P 500 E-Mini (ESZ2) |
Bearish
|
down
|
below Monday’s low |
| December S&P ( SPZ2 | Quote | Chart | News | PowerRating) |
Bearish |
down |
below Monday’s low |
| US Dollar ( DXZ2 | Quote | Chart | News | PowerRating) |
Bearish Tails |
down | below Monday’s low |
| January Bean Oil (BOF3) |
Dark Cloud Cover |
down | below Monday’s low |
January Unleaded Gasoline
(
HUF3 |
Quote |
Chart |
News |
PowerRating) looks like it may pull back briefly here, at the confluence of its
50-day moving average and a .618 retracement. Let’s see if Crude Oil
(
CLF3 |
Quote |
Chart |
News |
PowerRating) can get by its 50-day moving average, where it closed today.
February Lean Hogs (LHG3)
have been on a tear of late, but with an ADX over 45 and a poor close today,
let’s watch and see what comes of the rising wedge formation. Be nimble here, as
new highs are a possibility as well.
Judging by the bearish tails at a .618
retracement, the Dollar
(
DXZ2 |
Quote |
Chart |
News |
PowerRating) looks poised to fall here.
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.
Remember,
use stops on all your trades.