Tuesday’s Futures Setups
The stock indices were all up nicely today, with the
Dow up 172 (up 2%), the Nasdaq up 34 (up 2.45%), and the S&P cash up 20 (up
2.25%). Bonds were up slightly.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
|
Wheat |
Rally |
up |
above |
| Yen ( JYH3 | Quote | Chart | News | PowerRating) |
Rally from pullback |
up |
above |
| Coffee ( KCH3 | Quote | Chart | News | PowerRating) |
Rally from moving average |
up |
above |
| Euro ( ECH3 | Quote | Chart | News | PowerRating) |
Rally from pullback |
up |
above |
Â
The
Euro (ECH3]
and Yen
(
JYH3 |
Quote |
Chart |
News |
PowerRating) made inside days, and are pullbacks from highs now.
Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating) look like they are trying to find some support at their
50-day moving average. Start looking for longs, but we may be a day or so early
here. Same with notes
(
TYH3 |
Quote |
Chart |
News |
PowerRating).
March Wheat (WH3)
followed
through again.
We may see another couple of days of bounce, but this is a pullback from lows —
now three bars up — so we would expect a return to the main trend soon.
Short
Candidates:
| Contract |
Setup
|
Direction
|
Trigger
|
| Gold ( GCG3 | Quote | Chart | News | PowerRating) |
Stochastic divergence |
down | below Monday’s lows |
| Dollar ( DXH3 | Quote | Chart | News | PowerRating) |
Pullback from lows |
down | below Monday’s lows |
The Dollar (DXH3)
only managed a one-day pullback from lows, and looks lower.
Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) may pull back on Tuesday, based on today’s bar and the stochastic
divergence.
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.
Have
a good weekend!