Wednesday’s Futures Setups

Traders will look for
more volatility this week, ahead of some more important economic
reports.

According to the Wall Street Journal,
traders’ attention is now mainly focused on the Middle East as speculation grows
that the U.S. is preparing to launch an attack on Iraq. The market also waited
for clarification following a report Tuesday that Iraq was gathering troops at
the Kuwaiti border, and that Kuwait was in a state of heightened alert.

In the early going part of trading, the Sept. S&P 500-stock index futures
(SPU2)
pulled back, due to some profit-taking and a worse-than-expected consumer
confidence number. Then, by the mid point of trading, the SPU2 shook off the bad
news and rallied into positive territory.

Traders familiar with the Kevin Haggerty reversal
strategies could have made some nice trades today. Even though Kevin is on
vacation in the Grand Canyon, I’m sure he was able to pull some trades off. The
SPU2 ended positive up 11.50 points or 1.29% to 905.50.

The Nasdaq 100 for September (NDU2)
gained 19.00 or 2.03% to close at 980.50. Some of the sectors that helped push
the index were semiconductors, semi equipment, PCs, utilities, wireless,
biotech, and cable.

 

There are positive signs of more upward
movement in the S&Ps. For positive indicators look at the TradingMarkets.com
Market Bias Indicators


Click Here