Will Oil Continue Up?

So far, the call on December
S&Ps
(
SPZ2 |
Quote |
Chart |
News |
PowerRating)
from last night has yielded good results. The Spoos gapped down
and remained down all session. Today’s action suggests some downside continuation
Tuesday, although the 20-day moving average at 913 and a Fib level at 914-915
may offer some support on Wednesday. Pretty much the same scenario goes for the
noodles (NQZ2|NQZ2]. Fib support here at 1072 and 20-day MA at 1068.

Long
Candidates:


Contract

Setup

Direction

Trigger

January
Bean Oil
(
BOF3 |
Quote |
Chart |
News |
PowerRating)
Turtle
Soup
up above
Tuesday’s high
December
30-Year Bonds
(
USZ2 |
Quote |
Chart |
News |
PowerRating)
Bullish
Engulfing bar
up above
Tuesday’s high

 

March Sugar
(
SBH3 |
Quote |
Chart |
News |
PowerRating)
managed to take out its recent highs by a small margin; let’s see if
it continues tomorrow.

30-year bonds
(
USZ2 |
Quote |
Chart |
News |
PowerRating)
did manage to take out Monday’s
high, thus triggering a buy, but then proceeded to pull back.

Soymeal
(
SMF3 |
Quote |
Chart |
News |
PowerRating)

staged a reversal of a reversal, and now look bearish. What a difference a day
makes.

The Canadian dollar
(
CDZ2 |
Quote |
Chart |
News |
PowerRating)
is near the top of a channel, and may be forming a triple top. Take
a look at the recent highs; we’re in this zone right now. We’ll watch this one for a couple of
days.

Short
Candidates:

Contract

Setup

Direction

Trigger

March
Corn (CH3)

Below
50 and 200 MAs

down

below
Tuesday’s low
December
S&P 500 E-Mini (ESZ2)

Continued
Pullback

down

below
Tuesday’s low
December
S&P
(
SPZ2 |
Quote |
Chart |
News |
PowerRating)

Continued
Pullback

down

below
Tuesday’s low
January
Soymeal (SMF3)
Reversal
of reversal
down below
Tuesday’s low
Lean
Hogs
(
LHG3 |
Quote |
Chart |
News |
PowerRating)
Doji down below
Tuesday’s low

Corn
(
CH3 |
Quote |
Chart |
News |
PowerRating)
closed below
its 11/11 low. Stochastics are oversold here, but no real support, either.

January Unleaded
Gasoline

(
HUF3 |
Quote |
Chart |
News |
PowerRating)
closed in a Hanging Man formation, just above a .618 retracement. Crude Oil
(
CLF3 |
Quote |
Chart |
News |
PowerRating)
closed below its 50-day moving average.

February Lean Hogs (LHG3)
closed in an undecided doji formation. As pointed out last night, hogs are
trading with a high ADX and in a wedge pattern, not to mention a low
6/100 reading.

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.

Remember,
use stops on all your trades.

Brice