Wednesday’s Futures Setups
March 2002 sugar
(
SBH2 |
Quote |
Chart |
News |
PowerRating) rallied convincingly for a second
day to a
New 10-Day High. This sets it up for an Off The Blocks.
The
Japanese yen
(
JYZ1 |
Quote |
Chart |
News |
PowerRating) has come back to test the neckline of its Oct. 22
breakdown out of its head and shoulders top and has nearly filled the gap. The
gap, the neckline, and the 68% retracement of its swing down last month coincide
in the .8300 area – resistance – and a key area to re-test the short view.
Stock index futures’ powerful surge after the Fed’s 10th rate cut to 2% definitely
bolsters the bullish case here. Yesterday’s gap as well as recent gaps and
expansion bars over the past 30 days work to define the S&P futures
(
SPZ1 |
Quote |
Chart |
News |
PowerRating)
as a runaway market, a counter-intuitive proposition in light of still-dismal
economic and employment reports. The leadership that Nasdaq 100 futures
(
NDZ1 |
Quote |
Chart |
News |
PowerRating)
have provided demonstrates traders’ willingness to take positions in the more
speculative part of the market, another constructive sign. Look for the indexes
to digest some of today’s torrid, last-hour gains before continuing. For the
Spooz, 1008.20 to 1111.00 is support with the focus on the 1110.50 area. Naz futures
remain a Momentum-5
market.
From last night Lean hogs
(
LHZ1 |
Quote |
Chart |
News |
PowerRating)
got slaughtered, near-limit-down, compromising their momentum standing. Will see
how they behave at 50.500 support.
British pounds
(
BPZ1 |
Quote |
Chart |
News |
PowerRating) made good
on a 10-90
Open after a gap-down start. Positions initiated long on the open did not
get stopped out prior to the 90th percentile or eight ticks from the open to the
low tick before pounds turned and closed near the highs of the day. Pounds are
setup in a 1-2-3-4 Pullback From High, giving an edge to the view they will
trigger above 1.4584 on the open tomorrow.
Canadian dollar
(
CDZ1 |
Quote |
Chart |
News |
PowerRating) also
worked out of a 10-90
Open downside play until the .6260 area halted their decline for the third
day in a row. Support there is obviously tough, so expecting consolidation of
the developing bearish flag pattern before a resolution down out of the
pattern.
|
Contract
|
Setup |
Direction |
Trigger |
Sugar ( SBH2 | Quote | Chart | News | PowerRating) |
New 10-Day High |
Up |
Off The Blocks |
Japanese Yen ( JYZ1 | Quote | Chart | News | PowerRating) |
Key resistancee |
Down |
.8300 |
Hogs ( LHZ1 | Quote | Chart | News | PowerRating) |
Support |
Up |
50.500 |
| S&P Futures ( SPZ1 | Quote | Chart | News | PowerRating) |
Momentum, close above highs prior to 9/11 |
Up |
1110.50 in a pullback |
( BPZ1 | Quote | Chart | News | PowerRating) |
Pullback From Highs |
Up |
1.4584 |
| |
|
|
Don’t forget – protective stops on all trades.