Wednesday’s Futures Setups

  • August 5, 2003
  • Brice Wightman

Stocks fell Tuesday,
with the Dow -150 to 9036, the Nasdaq -40
to 1673, and the SPX -17 to 965. The ISM number came in at 65.1 in July, the
highest reading on record. The major indices all closed below their 50-day
moving averages, a bearish sign. Bonds fell to 105 9/32.



Long Candidates:

None tonight.

 



Short Candidates:






Contract



Setup



Direction



Trigger
E-Minis
(
ESU3 |
Quote |
Chart |
News |
PowerRating)		 bounce down rallies to 966
Nasdaq Minis
(
NDU3 |
Quote |
Chart |
News |
PowerRating)		 bounce down rallies to 1232

Today’s action in the indices looks foreboding, with the lows in the E-minis
taking out the 7/1 low. Rallies here are suspect, and should be shorted. Cisco’s
weak operating cash flow numbers should create a lower opening Wednesday. Keep
in mind though, that a rally here can be expected, as the TRIN went out at 2.36.
The best shorts are on a

1,2,3 pattern.


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