Tuesday’s Futures Setups
The SPX and NDX rallied off their 50-day moving averages, and were strong into
the close. Gold and natural gas continue making highs, as is unleaded gas.
Venezuela announced it would begin importing unleaded gas because of the
three-week old labor strike.
Long
Candidates:
|
Contract |
Setup |
Direction |
Trigger |
| S&P ( SPH3 | Quote | Chart | News | PowerRating) |
Bullish Engulfing bar |
up | above Monday’s high |
| S&P E-Mini ( ESH3 | Quote | Chart | News | PowerRating) |
Bullish Engulfing bar |
up | above Monday’s high |
| Nasdaq ( NQH3 | Quote | Chart | News | PowerRating) |
Bullish Engulfing bar |
up | above Monday’s high |
| Live Cattle ( LCG3 | Quote | Chart | News | PowerRating) |
Continuation | up |
above Monday’s high |
| Cocoa ( CCH3 | Quote | Chart | News | PowerRating) |
Rally out of Pullback |
up |
above Monday’s high |
| Feeder Cattle ( FCF3 | Quote | Chart | News | PowerRating) |
Pullback From Highs |
up |
above Monday’s high |
February Live Cattle
(
LCG3 |
Quote |
Chart |
News |
PowerRating) triggered for a nice gain, and looks
like it may challenge the recent highs. Feeders closed better today than Friday,
and a rally here is possible.
February Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) continued its pop out of a long-term triangle,
and the longer-term trend looks
up.
March Cocoa
(
CCH3 |
Quote |
Chart |
News |
PowerRating) still looks ready to continue its
rally from a pullback.
Short
Candidates:
| Contract |
Setup |
Direction |
Trigger |
| 30-yr Bonds ( USH3 | Quote | Chart | News | PowerRating) |
Continuation | down | Below Monday’s low |
| Corn ( CH3 | Quote | Chart | News | PowerRating) |
Pullback From Low |
down | Below Monday’s low |
| 10-year Notes ( TYH3 | Quote | Chart | News | PowerRating) |
Continuation |
down | Below Monday’s low |
March Corn
(
CH3 |
Quote |
Chart |
News |
PowerRating) is a
pullback from lows, bouncing off its 20-day moving average.
Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating) Fib levels
are: .50 at 108.78 and .618 at 108.213. We’re still in pullback mode on this
one.
March Coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating)
still looks pretty oversold, and even managed to pop off its 200-day moving
average. Look for another rally day here, but don’t overstay your welcome.
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.