Wednesday’s Futures Setups
The
Dow fell 45 to 7523, the Nasdaq
dropped 7 to 1271, and the S&P 500 fell 7 to 800.50. The U.N. vote on
the new resolution on Iraq will be delayed and long-term interest rates fell to
45-year lows. Warmer temperatures are forecast for the U.S.; natural gas traded
lower.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Wheat | hammer | up | above Tuesday’s high |
| Soybeans | bounce off 50 MA |
up | above Tuesday’s high |
Â
Corn
(
CK3 |
Quote |
Chart |
News |
PowerRating) is getting closer to a turn here, and may in
fact rally Tuesday. Odds are, however, that we have another down day, though. The double bottom looks good, so far,
and a couple of more days of pullback might set up a long. We may even have a
triple bottom. The close on Wheat
(
WK3 |
Quote |
Chart |
News |
PowerRating) is trying to turn here, and Soybeans
(
SK3 |
Quote |
Chart |
News |
PowerRating) triggered for a gain — right to the 50% retracement of the last move
down move. We may go for the .618 retracement, which is the 573 3/4 – 574 level.
Bean Oil
(
BOH3 |
Quote |
Chart |
News |
PowerRating) may be making a head and shoulders bottom here.
Â
Short
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Canadian Dollar ( CDH3 | Quote | Chart | News | PowerRating) |
wide range bar |
down | rallies to .6811 |
| Coffee ( KCK3 | Quote | Chart | News | PowerRating) |
fall from counter-trend rally |
down | rallies to 60.35 |
The E-minis took out the 2/13 lows, and the next support appears to be the
October lows at 769. So much for the massively overcooked TRIN from yesterday.
The Canadian dollar
(
CDH3 |
Quote |
Chart |
News |
PowerRating) may have turned, and if
so could pull back here.Â
Coffee
(
KCK3 |
Quote |
Chart |
News |
PowerRating) fell out of a counter-trend rally and looks
lower.Â
Cocoa
(
CCK3 |
Quote |
Chart |
News |
PowerRating) is consolidating, and the move from
this area could be large. In this case, play the move in the direction of the
breakout.
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.
Â