Wednesday’s Futures Setups
The
Dow rose 51 to 7909, the Nasdaq
gained 6 to 1329, and the S&PÂ 500 rose 6 to 838.57; the minis (both S&P
and Nasdaq) reversed intraday and closed in a hammer on the daily. Cold temps
and falling inventories caused more buying in natural gas, although it closed
well off its highs. The two-week forecast indicates below-average temperatures
for most of the U.S.
Long
Candidates:
|
Contract |
Setup |
Direction |
Trigger |
| E-minis | hammer | up | pullbacks to 825.75, and above Tuesday’s high |
| E-mini Nasdaq |
hammer | up | pullbacks to 985, and above Tuesday’s high |
| Canadian Dollar ( CDH3 | Quote | Chart | News | PowerRating) |
new highs |
up | pullbacks to .6685, and above Tuesday’s high |
The Canadian dollar
(
CDH3 |
Quote |
Chart |
News |
PowerRating) made an inside day after making new
highs yesterday. The Canadian dollar is being viewed as a safe-haven.
Still watching Corn
(
CH3 |
Quote |
Chart |
News |
PowerRating) and possibly Wheat
(
WH3 |
Quote |
Chart |
News |
PowerRating).Â
Looking for a good long entry, and prepared to wait. Soybeans
(
SH3 |
Quote |
Chart |
News |
PowerRating) tried to break out from the triangle, but were turned back. The top of
the triangle now becomes support.
Coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating) broke under the level I mentioned yesterday, and
looks lower. Somewhere around 56-57, this might get more interesting as a long.
We’ll watch.
Short
Candidates:
|
Contract |
Setup |
Direction |
Trigger |
| Cocoa ( CCH3 | Quote | Chart | News | PowerRating) |
 wide range down bar |
down | below Tuesday’s low |
Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating) and 10-year notes
(
TYH3 |
Quote |
Chart |
News |
PowerRating)
were turned back after making new highs above a triangle. This breakout may
still happen, but based on today’s close, Wednesday looks down.
Cocoa
(
CCH3 |
Quote |
Chart |
News |
PowerRating) triggered, and I hope some of you got part of this one. It has
taken out its 50% retracement, and the stochastics are oversold. Could drop to a
.618 level — around 1946.
Natural Gas
(
NGH3 |
Quote |
Chart |
News |
PowerRating) spiked again, and the two-week
forecast is for continued cold. Today’s close was not as strong as Monday’s, so
we may be nearing some near-term reduced momentum. An orderly pullback of 2-3
days followed by a good close would be a buy signal.
As far as Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating), it may be best to wait for
a narrowing range to get a better set up. We’ll revisit this one in a few days.
Here are the intraday numbers for the E-minis (ESH3):
S2 809.8Â S1 824.66Â Pivot: 832.33Â R1
847.41Â R2
855
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.