Tuesday’s Futures Setups
The
Dow rose 56 to
8109, the Nasdaq
rose 3
to 1324, and the S&P 500 gained 5 to 860.32. Construction spending
came in strong this morning, and the ISM number in-line, but geopolitical news
seems to be the driving force. On Wednesday, Colin Powell promises proof that
Iraq is hiding banned weapons. Bonds were down slightly.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Canadian Dollar ( CDH3 | Quote | Chart | News | PowerRating) |
rally from pullback |
up | pullbacks to .6574-.6576, or above Monday’s high |
| Cotton ( CTH3 | Quote | Chart | News | PowerRating) |
inside day near breakout |
up | above Monday’s high |
| Live Cattle ( LCG3 | Quote | Chart | News | PowerRating) |
wide range bar |
up | above Monday’s high |
The Canadian Dollar
(
CDH3 |
Quote |
Chart |
News |
PowerRating) triggered, stopping just short of its
life-of-contract high.
Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) is still trading in a flag, and today’s close looks
better than Friday’s. Copper
(
HGH3 |
Quote |
Chart |
News |
PowerRating) may see some resistance in the form of a downtrend line on the
weekly.
Live
Cattle
(
LCG3 |
Quote |
Chart |
News |
PowerRating) barely took out its life-of-contract highs…again, but has also been up
five straight days. Getting a little overbought; if you’re short term long, I
wouldn’t overstay my welcome, because if this is a valid breakout, there should
be more later, after a pullback.    Â
Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating) still looks ready to break out.
Wheat
(
WH3 |
Quote |
Chart |
News |
PowerRating) is trying, having closed above its 10-day moving average twice.
Still not really overbought, either.
Short
Candidates:
| Contract |
Setup
|
Direction
|
Trigger
|
| Dollar ( DXH3 | Quote | Chart | News | PowerRating) |
pullback from lows |
down | below Monday’s low |
| Feeder Cattle ( FCH3 | Quote | Chart | News | PowerRating) |
tweezers tops |
down | rallies to 79.70 |
Feeders
(
FCH3 |
Quote |
Chart |
News |
PowerRating) triggered, and closed below its
10-day MA.Â
The Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) closed poorly, in a pullback from lows.
Here are the intraday numbers for the E-minis (ESH3):
S2 848.83Â Â S1
853.66Â Â Pivot: Â 858.83Â R1
863.66Â Â R2 868.83 Â Â Â Â
High 864Â Â Low 854
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.