Tuesday’s Futures Setups
U.S. debt futures closed firmly higher Monday,
with the long bond advancing more than one full point on raised expectations that
the Federal Reserve may soon cut interest rates again.
At the Chicago Board of Trade, March Treasury bond
futures settled up more than a point, or 1-07, to 101-14, while March 10-year
notes ended higher, by 24.5 ticks, to 105-10. Having the most impact, however,
are comments by Fed officials, with the market interpreting an increased
chance of further easing when the Fed meets at the end of the month. The Fed
began trimming interest rates before the economy fell into a recession in March,
cutting its key interest rate 11 times by the end of 2001.
After hitting a new 10-day high on Friday, March
Silver
(
SIH2 |
Quote |
Chart |
News |
PowerRating) continued its rally today. March Silver is trying to
rally to its resistance level at 4.70.
March Wheat
(
WH2 |
Quote |
Chart |
News |
PowerRating) bounced off of its
support level at 304. It is important for Wheat to stay above this support level
to keep the rally intact.
March Soybeans
(
SH2 |
Quote |
Chart |
News |
PowerRating) broke and
closed out above their resistance from a down trend.
March Bean Oil
(
BOH2 |
Quote |
Chart |
News |
PowerRating) continued
a rally above its 10-day high. Bean Oil closed up .33 to 16.35.
|
Contract
|
Setup
|
Direction
|
Trigger
|
| March S&P 500 ( SPH2 | Quote | Chart | News | PowerRating) |
Ascending Triangle |
|
Break Above 1168 |
| March Dow Jones ( DJH2 | Quote | Chart | News | PowerRating) |
Ascending Triangle |
|
Hold above 10198 |
| March Sugar ( SBH2 | Quote | Chart | News | PowerRating) |
|
|
Break above 7.75 |
| March Cotton ( CTH2 | Quote | Chart | News | PowerRating) |
|
|
Break above 38.68 |
| March Cocoa ( CCH2 | Quote | Chart | News | PowerRating) |
New High
|
UP |
Hold above 1353 |
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.