Wednesday’s Futures Setups
Stocks were higher Monday,
with the Dow +61 to 9158, the Nasdaq +25
to 1706, and the SPX +9 to 998. Bonds were up slightly and closed in a hammer.
Both Saddam Hussein’s sons were killed in a firefight in Iraq.
Long Candidates:
|
|
|
|
|
| Bonds ( USU3 | Quote | Chart | News | PowerRating) |
positive momentum | up | 1,2,3 above Tuesday’s low |
| 10-year Notes ( TYU3 | Quote | Chart | News | PowerRating) |
positive momentum | up | 1,2,3 above Tuesday’s low |
Corn
(
CU3 |
Quote |
Chart |
News |
PowerRating) triggered long at 209 1/2. Keep your stops
in.
Bonds and Notes could rally a little here; they’ve
really gotten hammered recently.
Soybeans
(
SQ3 |
Quote |
Chart |
News |
PowerRating) bounced almost exactly off a trendline
on the weekly chart. Let’s see if it holds; I’m looking for a reversal setup
bouncing off that line again.
Short Candidates:
|
|
|
|
|
| Cattle ( LCQ3 | Quote | Chart | News | PowerRating) |
2 Fib extensions | down | below Tuesday’s close |
Cattle
(
LCQ3 |
Quote |
Chart |
News |
PowerRating) hit 2 Fib extensions and may be ready to pull back. We
also have negative momentum divergence.
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.