Tuesday’s Futures Setups
The Dow and the S&P rose for the first time
in a week, while the Nasdaq fell for a fourth day. Venezeula’s Oil Minister said
that the country will be producing 2 million barrels/day by the end of January,
although analysts are skeptical. OPEC will increase production if crude stays
above $28 for 20 consecutive days.
Long
Candidates:
|
Contract |
Setup |
Direction |
Trigger |
| Euro ( ECH3 | Quote | Chart | News | PowerRating) |
Breakout | up |
above Monday’s high |
| Yen ( JYH3 | Quote | Chart | News | PowerRating) |
Gap Up |
up | above Monday’s high |
| Cotton ( CTH3 | Quote | Chart | News | PowerRating) |
Pullback from high |
up | above Monday’s high |
| Bonds ( USH3 | Quote | Chart | News | PowerRating) |
Breakout | up |
above Monday’s high |
It looks like a few stops were taken out in March Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating),
so a rally to the previous high is paved.
Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating) triggered
again for a nice day, and look as if they may challenge the recent highs.
The Yen
(
JYH3 |
Quote |
Chart |
News |
PowerRating) gapped up decisively.
Short
Candidates:
| Contract |
Setup |
Direction |
Trigger |
| Canadian Dollar ( CDH3 | Quote | Chart | News | PowerRating) |
Gap Down |
down | below Monday’s low |
| Dollar ( DXH3 | Quote | Chart | News | PowerRating) |
New Low |
down | below Monday’s low |
| Wheat ( WH3 | Quote | Chart | News | PowerRating) |
New Low |
down | below Monday’s low |
| Crude ( CLG3 | Quote | Chart | News | PowerRating) |
Dark Cloud Cover |
down | below Monday’s low |
| Gold ( GCG3 | Quote | Chart | News | PowerRating) |
Wide Range Bar |
down | below Monday’s low |
| Live Cattle ( LCG3 | Quote | Chart | News | PowerRating) |
Stochastic Divergence |
down | below Monday’s low |
New lows
again for the Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating), which is in a pretty strong downtrend.
The Canadian dollar
(
CDH3 |
Quote |
Chart |
News |
PowerRating) triggered on a sharp down gap.
Venezuela
said it hopes to double oil production by next week, and February Crude
(
CLG3 |
Quote |
Chart |
News |
PowerRating)
had a wide range bar down…the start of a possible pullback?
Friday’s
doji in February Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) foretold a pullback in the metal
today.
Still looking at that stochastic divergence in February
Live Cattle
(
LCG3 |
Quote |
Chart |
News |
PowerRating).
March Wheat
(
WH3 |
Quote |
Chart |
News |
PowerRating)
triggered again to make a new low. Today’s close is slightly better than
Friday’s, though.
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.