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
|
down
|
below Tuesday’s low |
| December S&P 500 E-Mini (ESZ2) |
Continued
|
down
|
below Tuesday’s low |
| December S&P ( SPZ2 | Quote | Chart | News | PowerRating) |
Continued |
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.