Wednesday’s Futures Setups
The
Dow fell 97 to 8103
to
8109, the Nasdaq
dropped 18 to 1306, and the S&P 500 fell 12 to 848. Factory orders
rose 0.4 percent in December but retail sales eased 0.7 percent in the latest
week, and job cuts remained high. Insurer AIG took a massive $1.8B 4Q charge and
guided lower. Tomorrow, Colin Powell promises proof that
Iraq is hiding banned weapons. Bonds were up slightly.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| 30-year ( USH3 | Quote | Chart | News | PowerRating) |
rally from pullback |
up | above Tuesday’s high |
| 10-year ( TYH3 | Quote | Chart | News | PowerRating) |
rally from pullback |
up | above Tuesday’s high |
| Cotton ( CTH3 | Quote | Chart | News | PowerRating) |
flag near high |
up | above Tuesday’s high |
| Live Cattle ( LCG3 | Quote | Chart | News | PowerRating) |
wide range bar |
up | above Tuesday’s high |
The Canadian Dollar
(
CDH3 |
Quote |
Chart |
News |
PowerRating) closed just short of its
life-of-contract high in a spinning top pattern. It’ll have to either take out
the highs Wednesday, or a pullback is likely.
Live
Cattle
(
LCG3 |
Quote |
Chart |
News |
PowerRating) triggered, pulled back, and may pull back a few more
days here. Â
Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating) still looks ready to break out.
Wheat
(
WH3 |
Quote |
Chart |
News |
PowerRating) is trying, having closed above its 10-day moving average..
Getting overbought now, though.
Short
Candidates:
| Contract |
Setup
|
Direction
|
Trigger
|
| Dollar ( DXH3 | Quote | Chart | News | PowerRating) |
persistent trend |
down | below Tuesday’s low |
| Feeder Cattle ( FCH3 | Quote | Chart | News | PowerRating) |
tweezers tops |
down | below Tuesday’s low |
Feeders
(
FCH3 |
Quote |
Chart |
News |
PowerRating) may test 1/29 lows.Â
The Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) closed poorly – again – and looks like it will re-test
lows.
Here are the intraday numbers for the E-minis (ESH3):
S2 831.58Â Â S1
840.41Â Â Pivot: Â 847Â R1 856 Â Â R2
862.58 Â Â Â Â
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.