Wednesday’s Futures Setups
There were four reasons why the S&P 500 and
Nasdaq 100 futures rallied today.
1. The “buzz” that a possible Fed Rate Cut may
take place at next Tuesday’s (Aug. 13) FOMC meeting.
2. There was no major economic news or earnings
news that was hampering the market at the open or during today’s trading.
3. The rising dollar. Today the Sept. dollar
(
DXU2 |
Quote |
Chart |
News |
PowerRating) broke out above the 108 resistance level and closed very strong
to 108.98, a 1.39 increase. The increase was spurred by investors expecting the
U.S. to be in a better position to handle the uncertain global economic
situation better than Europe or Japan.
4. Traders dropped Treasuries for equities. The
Sept. 30-yr. U.S. bond
(
USU2 |
Quote |
Chart |
News |
PowerRating), which was making strong moves to the
upside, lost 1′ 03 to close at 106 ’27. The Sept. 10-yr. U.S. note
(
TYU2 |
Quote |
Chart |
News |
PowerRating), hitting newer highs almost daily, gave back some of its gains to
end at 111 120 down 1 005.
The Sept S&P 500 futures
(
SPU2 |
Quote |
Chart |
News |
PowerRating)
gapped higher at the opening and raced for the intraday highs (875) and pretty
much traded in a 10-point range throughout the regular session. Near the close,
some profit takers stepped in to bring the market down. The SPU2 closed at
861.50 up 27.50 or 3.30%.
As for the Sept Nasdaq 100
(
NDU2 |
Quote |
Chart |
News |
PowerRating), it
also rallied nicely, being pushed by all of the tech sectors. It enjoyed a high
of 928, before pulling back to close at 907 up 42 or 4.86%.
In the chart above, the Sept. dollar rallied out of an
inverted head and shoulder pattern and broke above the neckline to a two-month
high.                                    Â
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Possible Turtle Soup Plus One Sell Setup.
Contract |
Setup |
Direction |
Trigger |
Sept wheat ( WU2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Plus One Sell Setup |
Down |
break below 3.20 |
Sept 30-yr bond ( USU2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Plus One Sell Setup |
Down |
break below 106 |
Sept 10-yr note ( TYU2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Plus One Sell Setup |
Down |
break below 111 000 |
Possible Turtle Soup Plus One
Buy Setup
Contract |
Setup |
Direction |
Trigger |
Aug pork bellies ( PBQ2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Plus one Buy Setup | UP | break above 65 |
Sept coffee ( KCU2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Plus one Buy Setup |
UP |
break above 48.00 |
Sept silver ( SIU2 | Quote | Chart | News | PowerRating) |
Possible Turtle Soup Plus one Buy Setup |
UP |
break above 4.70 |
Pullback From The High
Contract |
Setup |
Direction |
Trigger |
Sept cocoa ( CCU2 | Quote | Chart | News | PowerRating) |
Pullback from the high |
UP | break above 18.35 |
Sept frozen orange juice ( JOU2 | Quote | Chart | News | PowerRating) |
Pullback from the high |
UP |
break above 101 |
Aug bean oil ( BOQ2 | Quote | Chart | News | PowerRating) |
Pullback from the high |
UP |
break above 20.00 |
Dec cotton ( CTZ2 | Quote | Chart | News | PowerRating) |
Pullback from the high |
UP | break above 49 |
Sept 10-yr note ( TYU2 | Quote | Chart | News | PowerRating) |
Pullback from the high |
UP | break above 111 000 |
Please note that
while there are strong trends in some commodities, 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.