Tuesday’s Futures Setups
The
Dow gained 282
to 8141, the Nasdaq
rose 51 to 1391, and the S&P 500 rose 29 to 862.63. With a diplomatic
solution almost impossible, war is almost a certainty, as Saddam Hussein rejected Bush’s
demand that he go into exile. The market is banking on a repeat of the 1991
move, and rallied strongly. Gold, crude, and bonds retreated.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Copper ( HGH3 | Quote | Chart | News | PowerRating) |
wide-range bar |
up | above Monday’s high |
| Euro ( ECH3 | Quote | Chart | News | PowerRating) |
pullback | up | above Monday’s high |
The Canadian dollar
(
CDH3 |
Quote |
Chart |
News |
PowerRating) triggered, but closed weak.
Copper
(
HGH3 |
Quote |
Chart |
News |
PowerRating) bounced and looks higher.
Cotton
(
CTK3 |
Quote |
Chart |
News |
PowerRating) may pull back this week, if not tomorrow then
Wednesday. It traded in a tweezers tops. Be careful, though, because it’s in a
pretty strong uptrend. Cocoa
(
CCH3 |
Quote |
Chart |
News |
PowerRating) is still consolidating…we’ll see.
The Euro
(
ECH3 |
Quote |
Chart |
News |
PowerRating) may bounce here, just above its 50-day moving average.Â
Short
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Wheat ( WK3 | Quote | Chart | News | PowerRating) |
new lows |
down | below Monday’s lows |
| Corn ( WK3 | Quote | Chart | News | PowerRating) |
new lows |
down | below Monday’s lows |
| Soybeans ( SK3 | Quote | Chart | News | PowerRating) |
wide-range bar |
down | below Monday’s lows |
| Live Cattle ( LCJ3 | Quote | Chart | News | PowerRating) |
fall from counter-trend rally |
down | below Monday’s lows |
Wheat
(
WK3 |
Quote |
Chart |
News |
PowerRating) and Corn
(
WK3 |
Quote |
Chart |
News |
PowerRating) took out their lows and look
lower.Â
Feeder cattle
(
FCJ3 |
Quote |
Chart |
News |
PowerRating) triggered short, but closed
well. A tight trailing stop would have banked you a little here today. Live Cattle
(
LCJ3 |
Quote |
Chart |
News |
PowerRating) reversed back down.
Bellies pulled back.
Obviously, with war imminent now, trading this week could be
especially volatile. Be careful.
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.