Wednesday’s Futures Setups
Â
The
Dow gained 52
to 8194, the Nasdaq
rose 8 to 1400, and the S&P 500 rose 3 to 866. Last night, President
Bush gave Saddam Hussein 48 hours to leave the country before war begins. The
Fed left interest rates unchanged at 1.25%.Â
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Copper ( HGK3 | Quote | Chart | News | PowerRating) |
wide-range bar |
up | above Tuesday’s high |
| Cocoa ( CCK3 | Quote | Chart | News | PowerRating) |
break from consolidation |
up | above Tuesday’s high |
| Pork Bellies ( PBK3 | Quote | Chart | News | PowerRating) |
top of consolidation |
up | above Tuesday’s high |
| Euro ( ECM3 | Quote | Chart | News | PowerRating) |
oversold pullback |
up | above Tuesday’s high |
Â
Copper
(
HGK3 |
Quote |
Chart |
News |
PowerRating) rested, but still may go higher if it can take out
Tuesday’s high.
Cotton
(
CTK3 |
Quote |
Chart |
News |
PowerRating) may pull back this week. It traded in a tweezers tops. Be careful, though, because it’s in a
pretty strong uptrend. Cocoa
(
CCK3 |
Quote |
Chart |
News |
PowerRating) broke out of a consolidation and looks higher.
Pork Bellies
(
PBK3 |
Quote |
Chart |
News |
PowerRating) are at the top of a range, and could break out.
The energies, ex natural gas, look due for a technical bounce.
Short
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Dollar ( DXM3 | Quote | Chart | News | PowerRating) |
overbought | down | below Tuesday’s lows |
The Dollar
(
DXM3 |
Quote |
Chart |
News |
PowerRating) may pull back slightly here, after
closing badly in overbought territory. Longer term, we’ve got good looking MACD
divergence, a strong bull case.
Obviously, with war imminent now, trading this week could be
especially volatile. Be careful.
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.