Wednesday’s Futures Setups
Stocks rose again on Tuesday,
with the Dow +6 to 9223, the Nasdaq up 26 to 1746, and the
SPX up 3 to 1008. Dow component Alcoa beat second quarter earnings estimates by
.03, the first Dow stock to report. The oil strike in Nigeria is over after
parties agreed to reduce the price of oil. August crude rose .13 to 30.26. In
their Short Term Outlook, the Dept. Of Energy said they expect crude prices to
hover near the $30 level the rest of the year. Corn rose on warmer weather on
the way.
Long Candidates:
None tonight.
We didn’t exactly have a 1,2,3 in
Corn
(
CU3 |
Quote |
Chart |
News |
PowerRating), but it made an island on the 30-min chart, which could
signify a longer-term reversal.
Short Candidates:
|
|
|
|
|
| Unleaded ( HUQ3 | Quote | Chart | News | PowerRating) |
double top | down | 1,2,3 below Monday’s high on 10-minute chart |
Unleaded gas
(
HUQ3 |
Quote |
Chart |
News |
PowerRating) may be making a double top;
look for a
1,2,3 pattern on a 10-minute chart.
I’ve mentioned this 1,2,3 pattern several times recently
for good reason — it works fairly well. Yes, you still need to use proper money
management, but try it and see. And if you need to learn it, click the link
above — I think it’ll be worth your while.
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.
Be advised that some futures contracts are prone to gaps.
Remember, use stops on all your trades.