Wednesday’s Futures Setups
Stocks were higher Tuesday.
The Dow gained 23 to 9340, the Nasdaq gained 6 to 1770,
and the SPX gained 3 to 996.73. Consumer confidence was 81.3 in August, up from
77.0 and stronger than expected. Durable goods orders were up 1.0% in July, the
third consecutive increase. New home sales for July were down 2.9%.
The Congressional Budget Office said that the 2004 budget deficit will total
$480 billion.
Short Candidates:
Beans hit a trendline and made a wide range bar down. Also, the momentum
trendline may be broken soon
Soy meal hit a trendline and went South. Make sure you extend your
trendlines and you’ll see things like this.
How high can gas go? This pitchfork on the weekly says it may be time for a
turn.
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.