Wednesday’s Futures Setups
In the Dec. S&P 500 futures
(
SPZ2 |
Quote |
Chart |
News |
PowerRating)
and Dec. Nasdaq 100
(
NDZ2 |
Quote |
Chart |
News |
PowerRating) it was a nice close to a boring day. The
futures pointed to a lower open, and that they did. Profit-takers stepped in
after Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating) warned after the close yesterday. The
Dec. Nasdaq 100 futures did not close above its opening levels, but put in a
rally in the last half hour of trade. NDZ2 closed at 973 down 6.00.
The Dec. S&P 500 futures closed at 891.50 down
7.09. The action today suggests that the underlying tone is still slightly
bullish and that individual stocks could still benefit simply by reporting
as-expected earnings. The profit-taking today isn’t unexpected given the run the
past few days.
As of the high Monday, copper
was effectively 500 points off the October low which leaves the market
overbought. However, as long as the stock market provides surprisingly positive
action copper will be supported. Reports of Chinese selling overnight show signs
that the near term rally might have run its course and that the Chinese are
unwilling to pay such high prices at this stage in the global recovery.
Dec copper
(
HGZ2 |
Quote |
Chart |
News |
PowerRating) dropped .69 to 69.75 a pound.Â
Possible
short candidates:
| Contract |
Setup |
Direction |
Trigger |
| Dec. S&P 500 E-Mini ( ESZ2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Sell | down | break below 867.81 |
| Canadian Dollar ( CDZ2 | Quote | Chart | News | PowerRating) |
Counter trend rally |
down | Trade below .6276 |
| Dec. Lean Hogs ( LHZ2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Sell | down | break below 40.00 |
Possible
long candidates:
| Contract |
Setup |
Direction |
Trigger |
| Pork Bellies ( PBG3 | Quote | Chart | News | PowerRating) |
Continuation out of pullback to 20-day MA |
up |
Trade above 75.05 |
| Sugar ( SBH3 | Quote | Chart | News | PowerRating) |
Pullback from high |
up |
Trade above 6.85 |
| Dec. wheat ( WZ2 | Quote | Chart | News | PowerRating) |
Turtle soup plus one buy | up |
break above 3.84 |
| Dec soymeal ( SMZ2 | Quote | Chart | News | PowerRating) |
Counter trend rally | up | break above 174.09 |
| Dec. Soybeans ( SX2 | Quote | Chart | News | PowerRating) |
Counter trend rally |
up | break above 5.52 |
The WZ2 move above 3.84 was key and now a break above the 4.16 level could
signal a new rally to the upside.
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.
Use stops on all your trades.