Wednesday’s Futures Setups

The Dow
gained 25 to 8922, the Nasdaq rose 13 to 1603, and the S&P 500 added
5 to 971. OPEC will likely not cut production until Iraq is up to 2.5million
shares/day in production. This according to Bloomberg quoting OPEC President al-Attiyah.
Greenspan said he sees signs a stabilizing economy and possibly a pickup in the
second half of ’03.

Long Candidates:

Cotton
(
CTM3 |
Quote |
Chart |
News |
PowerRating) has been in a pretty serious downtrend, and is very
close to a 127% extension level (5/7 hi – 5/19 low). This may mean bounce time.
Notice I said may. There is positive momentum divergence as we approach
this level, and we’re really oversold. Does that mean it has to go up? No, but
I’m thinking bounce, either Wednesday or Thursday. Don’t just arbitrarily take
the trade at the number– watch for a reversal setup. And don’t take the trade
in the first 10-15 minutes of trading. And seriously, be careful with this
one…this thing is in a downtrend.

Corn
(
CN3 |
Quote |
Chart |
News |
PowerRating) looks like it’s setting up in a 1,2,3 at its 50-day
moving average. The 5/27 low is support for now.

Short Candidates:

None today.

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

PS I apologize for the gap in writing these past few weeks. I’ve been involved
in some new projects here at TM recently, which has taken much of my time. It
looks like I’ll be away through next Monday, returning Tuesday, but hey, I’m
back.

PPS  Hope some of you got that 1,2,3 on Corn at the end of April!