Wednesday’s Futures Setups

Beans broke the line; a rally back up to it is a short. Bring your time frames
down to the 30, 15 and even 5 min when you see a potential entry.

 

On the weekly, Bean Oil looks to be at a crossroads.

 

There’s some positive divergence on Natural Gas…

…but I’d like to see the line broken, and the 20-MA flatter before entry.

 

Bonds are about to break the line more definitively. A pullback to the line from
above might look interesting.

 

There was an analyst on CNBC today talking about cattle. As you can see, it’s
made a nice run up — which isn’t to say it can’t run more, but I just found it
interesting that this was the topic today…people eating more meat, etc. Maybe
so, but I’m looking at the momentum divergence here as well as the fact that in
the past when price is more than 4% away from the 20-MA it tends to pull back.
Currently it’s 5.5% ahead of the MA. Don’t just arbitrarily short it here, watch
it for a blow off top.

 

On the 30-min chart, it should break the line before any shorts are considered.

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.