Wednesday’s Futures Setups
The
Dow gained 67
to 8281, the Nasdaq
rose 21 to 1391, and the S&P 500 rose 10 to 875. Reports of an
anti-Hussein uprising in Basra held the market up today, although later in the
day, the reports became more confusing as to what was actually happening in that
city. Nigerian oil production has fallen to 1.3 million bpd, down from 2.2
million.
Long
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Heating Oil ( HOK3 | Quote | Chart | News | PowerRating) |
double bottom |
up | just below Friday’s low |
| Corn ( CK3 | Quote | Chart | News | PowerRating) |
Turtle Soup |
up | above 230 3/4 |
Heating Oil
(
HOK3 |
Quote |
Chart |
News |
PowerRating) may have made a double bottom, but there are a
lot of stops right under Friday’s lows, I imagine. If these are taken out, look
for a long setup.
Corn
(
CK3 |
Quote |
Chart |
News |
PowerRating) closed in the middle of its range, and in a Turtle Soup
setup.
Pork bellies
(
PBK3 |
Quote |
Chart |
News |
PowerRating) fell from their consolidation near highs, and
the lows of that consolidation are now resistance.
Short
Candidates:
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Cattle ( LCJ3 | Quote | Chart | News | PowerRating) |
overbought rally |
down | below Tuesday’s lows |
| Coffee ( KCK3 | Quote | Chart | News | PowerRating) |
wide range bar |
down | below Tuesday’s lows |
| Soy Meal ( SMK3 | Quote | Chart | News | PowerRating) |
rally to H&S neckline |
down | rally to 171.1 |
Cattle
(
LCJ3 |
Quote |
Chart |
News |
PowerRating) looks overbought, but keep in mind it closed well
today. I would say we’ll have a turn, if not tomorrow, then in the next couple
of days here.
Soy Meal
(
SMK3 |
Quote |
Chart |
News |
PowerRating) made a wide range bar (actually a
Haggerty Kings and Queens) near the .618 retracement, but closed at the neckline
of a head and shoulders pattern. We’ve actually got both bullish and bearish
signals here, so be careful.
Cocoa
(
CCK3 |
Quote |
Chart |
News |
PowerRating) continues to trade in a consolidation near the .618
retracement of its last rally. Today it closed near the bottom of this area, and
a break below it is bearish. I’ve been confounded by this one recently.
Coffee
(
KCK3 |
Quote |
Chart |
News |
PowerRating) may test its recent lows – we’ve got downtrending 20 and
50 moving averages
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.