Tuesday’s Futures Setups
Light holiday trading had the Dow losing and the Nasdaq gaining today. The
Nasdaq rallied back up over its 50-day moving average, while the S&P was
practically unchanged at +1.62.
Long
Candidates:
|
Contract |
Setup |
Direction |
Trigger |
| Cocoa ( CCH3 | Quote | Chart | News | PowerRating) |
Pennant | up |
above Monday’s high |
| Bonds ( USH3 | Quote | Chart | News | PowerRating) |
Break Above Trendline |
up | above Monday’s high |
| Copper ( HGH3 | Quote | Chart | News | PowerRating) |
Fib retracement |
up | above Monday’s high |
| Cotton ( CTH3 | Quote | Chart | News | PowerRating) |
Breakout | up |
above Monday’s high |
February Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) gained again,
to close at 345.60. Do we have a one-day pullback here?
The Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating)
has put in a possible mini double bottom. The trend, though, is down.
March Cocoa
(
CCH3 |
Quote |
Chart |
News |
PowerRating) is still trading in a pennant just above a .50
retracement.
March Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating) broke out, although it may be getting a
little overbought.
Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating) although
down, closed again above
the trendline. I like this setup because it’s the fourth time hitting it.
March Copper
(
HGH3 |
Quote |
Chart |
News |
PowerRating)
bis attempting to rally at the .50 retracement. We may see a day or two
continuation here.
February Pork Bellies
(
PBG3 |
Quote |
Chart |
News |
PowerRating)
staged a clean gap up breakout.
Short
Candidates:
| Contract |
Setup |
Direction |
Trigger |
| Coffee ( KCH3 | Quote | Chart | News | PowerRating) |
Pullback From Lows |
down | Below Monday’s low |
March Coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating)
triggered. Now it’s a pullback from lows, and looks like the next large move may
be back down.
March Wheat
(
WH3 |
Quote |
Chart |
News |
PowerRating) may
rally another day here, but it’s still a pullback from lows with this close.
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.