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On the first day of trading for a new week, US equity futures rose for a third day, the longest streak in more than a month, as some investors bet that last week's turnaround reflects the start of a potential sustained rally. The S&P 500 futures for Dec. (SPZ2) traded in a range between the 71% retracement (829) support level and the 62% retracement (846) resistance level. 846 remains resistance with 850 the secondary resistance point. SPZ2 closed at 842 up 3.50.
The Nasdaq 100 for Dec. (NDZ2) closed higher by 11.50 up 1.28% to 907.50. On the daily chart, a retracement line drawn from the July high to the recent Oct lows puts us just above the 38% retracement (897).
The Bond Markets were closed today in observance of Columbus Day. This caused volume to be on the lighter side in the equity indexes.
Dec. coffee futures (KCZ2 | Quote | Chart | News | PowerRating) shot higher
today due to concerns about hot weather in Brazil's coffee-growing regions
damaging the crop there. Prices popped to a four-week high, as trading in this
market has been volatile the past several weeks. On the technical side, a choppy uptrend is in place on the daily bar chart. (DMI) suggests
no strong trend is presently in place. It takes an ADX reading above 30 to
suggest a strong market trend. At present, the ADX line of the DMI is reading
24.115. Resistance is at 64.
Possible
short candidates:
| Contract | Setup | Direction | Trigger |
| Corn (CZ2 | Quote | Chart | News | PowerRating) |
Momentum continuation |
down | Trade below 246 1/2 |
| Soybeans (SX2 | Quote | Chart | News | PowerRating) | Counter trend rally | down | Trade below 528 |
| Soymeal (SMZ2 | Quote | Chart | News | PowerRating) | Counter trend rally | down | Trade below 166.30 |
| Canadian Dollar (CDZ2 | Quote | Chart | News | PowerRating) | Counter trend rally | down | Trade below .6276 |
| Dec. Lean Hogs (LHZ2 | Quote | Chart | News | PowerRating) | Possible Turtle Soup Sell | down | break below 40.00 |
| Contract | Setup | Direction | Trigger |
| Pork Bellies (PBG3 | Quote | Chart | News | PowerRating) | Continuation out of pullback to 20-day MA | up | Trade above 75.05 |
| Sugar (SBH3 | Quote | Chart | News | PowerRating) | Pullback from high | up | Trade above 6.85 |
| Dec. wheat (WZ2 | Quote | Chart | News | PowerRating) | Turtle soup plus one buy | up | break above 3.84 |
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.
Use stops on all your trades.
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