Got a few trade set ups going into next week (though some of these may take longer to play out).
First is in Corn. We have a bit of an inverse head and shoulders formation, and you’ve got commercials opposed to speculators. Given the size of the formation i prefer the may contract as opposed to march. entry would be 673-683 depending on your desire to be in early or late. its a 80-100 point formation for targeting. You can check out the chart here
next up is GBP/USD. someone could play the futures market if they like, entry point is about the same. similar set up with divergence and commercial/spec divergence. buy point is 1.581 chart here
In the S&P: We have two down days in a row with 10 day %R below -20–this gives us a buy set up if monday trades above todays high. Larry williams found this to have over 90% accuracy. If monday opens lower then we can short that into the close with 85% accuracy via Jake Bernsteins research.
Finally, if we have a negative monday then we will have three down days in a row which gives us a short term buy till a profitable close. this set up should provide us with at least one highly accurate trade. We should note next week is the last week of the month which should, overall, provide upward bias.
Sadiq
January 27, 2012 at 10:45
Hey Ryan, good setups there!
Re. Corn: seemingly the Grains complex has similar setups across the board (illustrated well by JJG), do you see any differences (perhaps in the Comm/Spec scenario) for the other futs like ZS, ZW, ZL etc as opposed to Corn and are there any subtler differences chartwise that would lead you to prefer one over the other? Especially interested in Soybean Futs (have a score to settle lol)
Thanks man
ryanromero
January 28, 2012 at 10:45
The chart is a bit cleaner and corn is a liquid market. But wheat, soybeans, Soybean oil all set up the same way. Another nice formation that has built is heating oil–Been in a range for almost a year.
So yes, I think the grains all look poised to move, ZC just looked like the best overall to me