Tuesday’s Futures Setups

Cocoa Moves To A Three-Year High

Last
Thursday we reported that March cocoa
(
CCH2 |
Quote |
Chart |
News |
PowerRating)
broke out of an
ascending triangle and is trading above its support level. In today’s trade, March cocoa leapt 25.00 to 1479.000
a ton, a
three-year high. Prices have been soaring amid worries about quality in top
producers West Africa and Brazil. March cocoa is on the

TradingMarkets.com New Ten Day High List


April gold
(
GCJ2 |
Quote |
Chart |
News |
PowerRating)
closed just above its support level of $300.00 an ounce. April
Gold closed at 300.70 down 3.70.
April gold is on the

TradingMarkets.com Momentum 5 List
. Watch for weakness in gold. Gold
has a tendency to pull back after a large, fast movement. Another
reason for a possible pull-back is that the holidays across Asia will limit
liquidity in the markets.

April live cattle
(
LCJ2 |
Quote |
Chart |
News |
PowerRating)
continued to
stay above its ascending triangle. April
live cattle is on the

TradingMarkets.com Momentum 5 List
.

March pork bellies
(
PBH2 |
Quote |
Chart |
News |
PowerRating)

closed right around the 50% retracement line at 75.10 down 1.12. Bellies have overhead
resistance at 77.

March coffee
(
KCH2 |
Quote |
Chart |
News |
PowerRating)
faded to a new
contract low today closing at 43.00 down 1.55. From the looks of the chart coffee
looks very bearish. March coffee is on the

Volatility Explosions – Low Multiple Days Readings list.

Contract

Setup

Direction

Trigger


March U.S. dollar
(
DXH2 |
Quote |
Chart |
News |
PowerRating)
Pull Back From Highs

UP

break above 121.00


March Cotton
(
CTH2 |
Quote |
Chart |
News |
PowerRating)


Channel


UP

break above 38

March Wheat
(
WH2 |
Quote |
Chart |
News |
PowerRating)
Triple Bottom
UP
break above 299
March Swiss franc
(
SFH2 |
Quote |
Chart |
News |
PowerRating)
Potential false rally
DOWN
break below 58.8
March Natural Gas
(
NGH2 |
Quote |
Chart |
News |
PowerRating)
Potential False Rally
DOWN
break below 2.0
March 30 YR Treasury
(
USH2 |
Quote |
Chart |
News |
PowerRating)
Inverted Head and Shoulders
UP
break above 104
March 10 YR Treasury
(
TYH2 |
Quote |
Chart |
News |
PowerRating)
Inverted Head and Shoulders
UP
break above 107

Please note that while
there are strong trends in some commodities, 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.

Use stops on all your
trades.