Tuesday’s Futures Setups
Two
GIANTS dropped the markets today. Both
Microsoft (MSFT)
and IBM (IBM)
doled out disappointing earnings reports, which led investors to
believe that a recovery in the U.S. economy has not arrived. Stocks have rallied
from Sept. 21 through the end of last year on expectations the economy would
emerge from recession. Companies showing better corporate profits are supposed
to help with this, but earnings news from technology companies, in particular,
have failed to show evidence of a rebound.
The Nasdaq Composite Index ($COMPQ)
suffered its biggest weekly drop since September. March
Nasdaq futures (NDH2)
dropped below their S1 level and settled just above their S2 level (1552.67) to
end at 1554.50.
March S&P 500 futures
(SPH2)
fell below their S1 level (91130.47) closing at 1129.10 down 5.10,
and
the
March Dow futures
(DJH2)
dropped 37.0 to 9772.0,
The March 30-Year T-Bond (USH2)
rose .59 to 103.562. The March 30 year is trading just above its 50-day EMA.
The March 10 YR Note (TYH2)
touched its support line and then rallied to close near its high to end the
session at 106.625 up .33.
The 10 year note has pulled back from its previous highs and is slightly above
its 50-day EMA.
The March Japanese yen (JYH2)
is forming a Turtle
Soup Setup; look for follow through on Tuesday to confirm. The
March Japanese yen (JYH2)
dropped again today losing .000013 to end at .00756.
The March yen has a high ADX
number.
The March US dollar index (DXH2)
closed at 117.86, down .33 and near its low point of the day. The dollar has
been trending higher above its 10-day MA.
Feb gold (GCG2)
lost 1.3 to end at 283.4. Feb. Gold is on a pullback
off its high.
Feb natural gas (NGG2)
closed lower by .02 to 2.236. Feb natural gas is pulling
back off its lows.
March oats (OH2)
closed down .25 to 192. The
March oats contract has formed a Double Top pattern and is at the bottom of its
valley. The rule when it comes to the double top pattern is to exit a long or
short a security when it falls 5% below the valley.
Soybean futures tumbled Friday midday on the
Chicago Board of Trade. The drop was caused by wet weather forecasts for
South America. The drop in soybean futures came when weather meteorologists’
called for more rainfall than previously expected over the coming days in prime
growing areas of Brazil and Argentina. These growing areas had been extremely
dry and investors were looking for smaller crops to be harvested.
March soybeans (SH2)
fell 5.25 to 445.50. The March bean
contract is on the Trading
Markets.com Momentum 5 List.
March soybean meal (SMH2)
dropped 4.1 to end at 157.7. The March bean meal contract is also on the Trading
Markets.com Momentum 5 List.
Feb live hogs (LHG2)
closed at 56.30 down .025.added. Feb. live hogs have pulled back from their
10-day high.
Feb live cattle (LCG2)
after pulling back yesterday to test its support at 71.00. Feb
live cattle rallied today and closed at 71.55 near its high.
|
Contract
|
Setup
|
Direction
|
Trigger
|
| March copper (HGH2) |
Flag Pattern
|
UP | Break above 71.75 |
| March Lumber (LBH2) |
Cup-and-Handle | UP | Break above 276.50 |
| March Sugar (SBH2) |
Inverted Head-and-Shoulders |
UP | Break above 8.00 |
| March Coffee (KCH2) |
Cup-and-Handle | UP | Break above 51.30 |
| March Cotton (CTH2) |
Cup-and-Handle | UP | Break above 38.45 |
Exchanges will be closed
Monday for the Martin Luther King holiday. Trading resumes Tuesday. Enjoy your
Weekend!
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.