Tuesday’s Futures Setups
The equity markets got
hammered on last night’s G7 meeting news. Traders sold the dollar,
and they’re probably not done yet. Retail sales in Canada were up .8% in July,
to C$26.6 billion. Canadian Finance Minister John Manley indicated he is
concerned about the Canadian dollar’s rapid rise.
I was looking for a drop Monday, but did not expect this gap-down. Strong
rallies on Tuesday are shorts, IMO.
On this 15-minute chart, Crude is flattening out and could bounce.
For Gasoline, pretty much the same.
Ditto Sugar.
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.
Be advised that some futures contracts are prone to gaps.
Remember, use stops on all your trades.