Wednesday’s Futures Setups
The
Dow rallied
156 to 8485, the Nasdaq
jumped 27 to 1451, and the S&P 500 gained 19 to 911. The Nasdaq made a
three-month high, while the Dow went to a two-week high. Bush supported another
term for Greenspan, who had prostate surgery today. Beige Book data comes out
tomorrow, and bonds were down 1 to 112-02. Crude fell on expectations that
supply reports will show an inventory rise. China now has 2100 reported SARS
cases; fears of reduced Chinese demand sent copper down .0075 to .7215.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Canadian dollar ( CDM3 | Quote | Chart | News | PowerRating) |
consolidation near highs | up | above Monday’s high |
| Corn ( CK3 | Quote | Chart | News | PowerRating) |
pullback from highs | up | above Monday’s high |
The Canadian dollar
(
CDM3 |
Quote |
Chart |
News |
PowerRating) triggered but closed poorly.
Corn
(
CK3 |
Quote |
Chart |
News |
PowerRating) is trading in a rather elongated handle. Wheat
(
WK3 |
Quote |
Chart |
News |
PowerRating) triggered but closed poorly. The consolidation area is now support.
Short
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Crude ( CLK3 | Quote | Chart | News | PowerRating) |
low level double top | down | below Tuesday’s low |
| Heating oil ( HOK3 | Quote | Chart | News | PowerRating) |
low level double top | down | below Tuesday’s low |
| Copper ( HGK3 | Quote | Chart | News | PowerRating) |
SARS scare | down | below Tuesday’s low |
| Natural Gas ( NGK3 | Quote | Chart | News | PowerRating) |
doji at .382 Fib level | down | below Tuesday’s low |
Crude
(
CLK3 |
Quote |
Chart |
News |
PowerRating) and Heating oil
(
HUK3 |
Quote |
Chart |
News |
PowerRating) may fall from this low level double top. Natural gas
(
NGK3 |
Quote |
Chart |
News |
PowerRating) may pull back here
at a .382 Fib level and overbought stochs.
The Yen
(
JYM3 |
Quote |
Chart |
News |
PowerRating) is trading in a
triangle and looks to make a move soon – play the breakout either way.
The SARS epidemic in China threatens industrial
demand and thus Copper
(
HGK3 |
Quote |
Chart |
News |
PowerRating). A test of the 4/4 or 12/31 lows is
possible, if not much lower.
Coffee
(
KCK3 |
Quote |
Chart |
News |
PowerRating) went just above the 50% retracement I spoke of on
Monday. A move up to the .618 is possible, but I expect a pullback here
sometime soon.
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.