Tuesday’s Setups
T-bonds
(
USZ1 |
Quote |
Chart |
News |
PowerRating)Â could continue to see
downside action out of their double top formation. Of course, additional upside
is possible, but the downside argument remains plausible below 106 21/32 through
106 24/32.
Today’s upside action in March 2002 sugar
(
SBH2 |
Quote |
Chart |
News |
PowerRating),
although resembling a short-term topping bar, may not spell the end to the
corrective rally in the sweetener. For although sugar was capped by the 38.2%
retracement of its September high to October low decline today, the contract
over shot, and probed to a two-week high despite resistance levels which should
have capped today’s advance sooner. Sugar also has left two gaps (off the 10/10
low) and two expansion bars and has shown no sign triggering out of a Pullback
From Lows, all constructive. Further, the contract has completed a measured move
(see Defining
Reward/Risk Ratios With Chart Setups) out of its H&S top, suggesting an
end to selling. While this contract may not setup tomorrow, higher tests include
7.00, then 7.15, before a closing of the gap at 7.36.
November orange
juice
(
OJX1 |
Quote |
Chart |
News |
PowerRating), from the Momentum-5
List, tested several of last week’s (lower) closes to end at its best close
in eight months. This makes it eligible for an Off The Blocks
long test. Juice is only trading for 100 minutes a day, between 3:30 and
4:55 PM ET, due to the exchange’s proximity to the WTC.Â
Soybean meal
(
SMZ1 |
Quote |
Chart |
News |
PowerRating) has some catching up to
do with soybeans (trading at contract lows). Meal broke down out of its
consolidation-on-high pattern. A move to 154.2 fills the downside gap and 148.0
is the measured move objective from its peak-and-valley consolidation. Now at a
three-month low, this contract is eligible for an Off The Blocks
short.Â
|
Contract
|
Symbol |
Setup |
Direction |
Trigger |
 ( USZ1 | Quote | Chart | News | PowerRating) |
 Double Tops |
Down |
 Below 106 21/32 through 106 24/32. |
|
 Sugar |
 ( SBH2 | Quote | Chart | News | PowerRating) |
 Nascent momentum, completion of measured move |
Up (within a few days to potentially fill gap) |
 Intraday pullbacks |
 Orange juice |
 ( OJX1 | Quote | Chart | News | PowerRating) |
Momentum-5 List |
Up |
Off The Blocks |
Soybean meal |
( SMZ1 | Quote | Chart | News | PowerRating) |
Fell out of bed |
 Down |
 OTB |