Wednesday’s Futures Setups
In today’s trading, February gold fell below its
S1 (285.07) and settled just above its S2 (284.43).
Feb gold
(
GCG2 |
Quote |
Chart |
News |
PowerRating) lost 1.0 to end at 284.70. Feb gold is on
the Trading
Markets.com Momentum 5 List.
March silver
(
SIH2 |
Quote |
Chart |
News |
PowerRating)
gained .04 to end higher at 4.555.
March silver is on the Trading
Markets.com Momentum 5 List.
The Federal Reserve’s Beige Book report will be
released Wednesday. This report is on economic conditions
here in the U.S. and is used at the FOMC meetings. The next FOMC meeting will be
held on January 29. FOMC meetings are when the Fed sets interest
rate policy. These meetings occur about every six weeks and can have significant
impact on the markets. Analysts and investors speculate in advance about the
possibility of an interest rate change that could be announced at the end of
these meetings. Since the Beige Book is released two weeks before each FOMC
meeting, investors can see for themselves at least one of the many indicators
which Fed officials will use to help determine interest rate policy. Lower
equity prices can impact treasury prices higher as investors shift money from
stocks to bonds. This demand can help boost prices higher and push yields lower.
Currently the 30-year bond is yielding 5.36%.
The March 30-Year T-Bond
(
USH2 |
Quote |
Chart |
News |
PowerRating)
closed higher ’20 to 103’29. The March 30 year is on the
TradingMarkets.com New 10-Day High List
March 10 YR Note
(
TYH2 |
Quote |
Chart |
News |
PowerRating) The March 10 YR Note is on the
Trading
Markets.com Momentum 5 List
The March 5-year T-note tried to break above its
107.00 resistance level. At one point during the session it did, but ended the
day just below it. The
March 5-Year T-Note
(
FVH2 |
Quote |
Chart |
News |
PowerRating) closed out 106’310 up 015. This is
a 10-day high for the March 5 year note.
March oats
(
OH2 |
Quote |
Chart |
News |
PowerRating) continue to fall
below the valley from the double top formation. A 5% break below its valley at
192 signals a downturn. March oats closed below the 192 level toda, down
.75 to 189.75.
March soybeans
(
SH2 |
Quote |
Chart |
News |
PowerRating) gave
back some of their recent gains; the
March soybean contract lost .75 to end at 446.
The March bean contract is on the Trading
Markets.com Momentum 5 List.
March soybean meal
(
SMH2 |
Quote |
Chart |
News |
PowerRating)
traded lower as well, but is still above its S1 level (155.80). March bean meal
slid .30 to 157.90. March soybean meal is on the
Trading
Markets.com Momentum 5 List.
Expectations of tighter cattle supplies helped
Chicago Mercantile Exchange live cattle futures rally to a two-and-a-half-month
top Tuesday in heavy volume. Traders helped fuel the rally, anticipating
Friday’s U.S. Department of Agriculture monthly Cattle-On-Feed report. The
report is expected to reveal the first significant reduction from previous-year
levels in the U.S. cattle feedlot population in almost three years. The survey
also is expected to show that December was the fifth straight month of
year-over-year declines in cattle placed, or moved, into feedyards, which should
limit supplies of slaughter-ready cattle going forward, according to analysts. Feb live cattle
(
LCG2 |
Quote |
Chart |
News |
PowerRating) gained .975 to 71.65 and March feeder
cattle
(
FCH2 |
Quote |
Chart |
News |
PowerRating) rose .250 to 84.325.
|
Contract
|
Setup
|
Direction
|
Trigger
|
March copper ( HGH2 | Quote | Chart | News | PowerRating) |
Flag Pattern |
UP |
Break above 71.75 |
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.