Wednesday’s Futures Report

The Dow
gained 4 to 9323, the Nasdaq rose 2 to 1668, and the S&P 500 added 1 to 1011.
Consumer prices in May rose unexpectedly and eased
the market’s worries about deflation. The core rate, up 0.3% in May, saw the
biggest jump since August 2002. Housing starts jumped by a larger-than-expected
6.1 percent in May. Bonds traded lower on the economic data, which casts
some doubt about an interest rate cut later this month.

Long Candidates:

Cocoa
(
CCU3 |
Quote |
Chart |
News |
PowerRating) could pop here.

Cattle
(
LCQ3 |
Quote |
Chart |
News |
PowerRating) triggered below Monday’s low. Keep your stops in.

Copper
(
HGN3 |
Quote |
Chart |
News |
PowerRating) bounced. Did you get in? I didn’t  : (

Short Candidates:

None tonight.

Bonds
(
USU3 |
Quote |
Chart |
News |
PowerRating) fell as anticipated, but missed my trigger. Again, I
try to be conservative on these entries; use your good judgment if you see a
decent entry — in this case it was below Monday’s low.

The British Pound
(
BPU3 |
Quote |
Chart |
News |
PowerRating) triggered and took out yesterday’s high to
boot, which should have stopped you out.

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.

Brice