Wednesday’s Futures Setups
The futures were negative going into the open
and negative going out of it. The Dec. Nasdaq 100
(
NDZ2 |
Quote |
Chart |
News |
PowerRating) was
positive off and on throughout the session, with the Phlx Semiconductor
sector
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) contributing some of the positive bias. But it wasn’t
enough to give it the final thrust to the upside. NDZ2 closed at 849, down .50.
The Dec. S&P 500
(
SPZ2 |
Quote |
Chart |
News |
PowerRating) was choppy most of the day. In the last
half-hour of trade the S&Ps tried to stage a rally from the -1.0 volatility
band, but time ran out and the futures ended lower once again at 820.79 down
13.40 or 1.61%.
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At the Chicago Board of Trade (CBOT) where grains
and beans trade, there were rallies from key support zones. Dec. corn
(
CZ2 |
Quote |
Chart |
News |
PowerRating) rallied from its 50% retracement (2.55) drawn from the April low to
the Sept. high. Corn closed at $2.59 3/4 a bushel up 5 1/2 cents or 2.16%.
Possible
short candidates:
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Dec. cocoa |
possible turtle soup plus |
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Down
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Dec. cotton |
Pullback off of the |
Down |
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Dec. Nov. crude oil |
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Down |
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Dec. gold |
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Down |
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Oct. heating oil |
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Down |
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Possible long candidates:
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Dec. wheat |
Pullback from high |
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Dec. corn |
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Nov. frozen orange juice |
Pullback from high |
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Oct. live cattle |
Bullish Flag Pattern |
UP |
break above 70.20 |
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Oct. feeder cattle |
Saucer Pattern |
UP |
break up above 81.60 |
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.