Wednesday’s Futures Setups
Stocks were up Tuesday.
The Dow gained +16 to 9428, the Nasdaq +22
to 1761, and the SPX +2 at 1002.
Building Permits in July
came in at an annualized rate of 1.780M, or below estimates of 1.803M. Housing
Starts in July came in at 1.872M or higher than estimates of 1.790M, this was
the highest level since April of 1986. Lastly, the University of Michigan
Sentiment Index for Aug came in at 90.2 or below estimates of 91.5.
Beans and corn fell on rain in the Midwest — this coming on the heels of high
temperatures that drove prices up.
Long Candidates:
Bonds
(
USU3 |
Quote |
Chart |
News |
PowerRating) and 10-year notes
(
TYU3 |
Quote |
Chart |
News |
PowerRating)
gained again; keep your stops in.
Both Corn
(
CU3 |
Quote |
Chart |
News |
PowerRating) and Soybeans
(
SU3 |
Quote |
Chart |
News |
PowerRating) pulled back.Â
Natural Gas
(
NGU3 |
Quote |
Chart |
News |
PowerRating) triggered long.
Yes, I saw this yesterday, but figured I’ve tried picking too many tops with
poor results, so I didn’t mention this. If I ever miss a doji like this again,
especially with negative momentum divergence, please call and wake me up!Â
888.484.8220 x242.
Â
Short Candidates:
|
|
|
|
|
| Cattle ( LCV3 | Quote | Chart | News | PowerRating) |
Shooting Star | down | below Tuesday’s close |
Cattle
(
LCV3 |
Quote |
Chart |
News |
PowerRating) closed in a shooting star, with negative momentum.
Looks lower. Feeders
(
FCU3 |
Quote |
Chart |
News |
PowerRating) are in the same pattern/setup.
Â
We did an interview recently — part of it dealing with commodities — with
Jim Rogers. If you missed it,
click here.
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.