Wednesday’s Futures Setups

On the very last
trading day of the year, the
March Dow futures
(
DJH2 |
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closed slightly below its 200-day moving average
with lower volume. March Dow futures closed at down 140.00 at 9970.00.
On
a weekly chart, it is showing a strong uptrend.
March S&P 500 Futures
(
SPH2 |
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closed out at 1149.20 down 10.00.

SPH2 is trading slightly above its 40-day moving average.
While the March Nasdaq Index
(
NDH2 |
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was unchanged at 1583.50. All indexes had

lower
volume due to the holidays.

The
March US Dollar Index
(
DXH2 |
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was lower at 117.21 down 0.61. Last
week
, the dollar broke down and closed below its
support line with weak volume. Today this pull-back tested the
117 level before moving back
upwards. The March
Japanese yen

(
JYH2 |
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gave back its
gains from last Friday.
It is
hanging in at .007629.

January Copper
(
HGF2 |
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has formed a head and shoulders pattern (bearish). Today it broke below its
neckline and closed at .6530 down .0180.

March feeder cattle
(
FCH2 |
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closed at 84.95 and Jan. feeder cattle
(
FCF2 |
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closed at 86.25.
Both contracts have formed an inverted head-and-shoulders
(bullish) and are trading above the neckline.

April platinum
(
PLJ2 |
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tacked on another 5.00 points to close at 485. This is a high for April
platinum.

Contract

Setup

Direction

Trigger

Lean
Hogs
(
LHG2 |
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PowerRating)

Hanging Man


down

below Monday’s close

Pork
Bellies
(
PBG2 |
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PowerRating)

cup-with-handle


up

above 80.00

Silver

(
SIH2 |
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PowerRating)


TM Momentum 5 List


up

above
Monday’s
close

Soybean
oil
(
BOH2 |
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PowerRating)

resumption of trend

down

below
Thursday’s low

Soybeans


(
SH2 |
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PowerRating)

new
lows


down


below

Friday’s close

Heating
Oil
(
HOF2 |
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PowerRating)

double bottom


up

above Monday’s close
Unleaded
Gas
(
HUF2 |
Quote |
Chart |
News |
PowerRating)

double bottom


up

above
Friday’s
close

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.