Trading levels and reports for Sept. 12th + how to judge a good trade entry
*To be removed, please reply with remove daytrading in subject line
Dear Trader,
Day Trading the Index Futures: How to Judge Good Entries
By Mike Reed
QUESTION: If the SP futures fall through support and go
straight down for another two points, and I want to get
short, should I a.) enter immediately, b.) two points below
support, or c.) should I wait for a pullback and then try to
get short?
straight down for another two points, and I want to get
short, should I a.) enter immediately, b.) two points below
support, or c.) should I wait for a pullback and then try to
get short?
You've got to be patient enough to wait for entries that
have two things: first - a high probability of immediate
gain, and second - a small potential for loss if the worst
happens and your hard stop gets hit. This principle applies
to all entries, and it's useful to think about it when
you're trying to decide whether to enter on a pullback or a
continuation of a move.
have two things: first - a high probability of immediate
gain, and second - a small potential for loss if the worst
happens and your hard stop gets hit. This principle applies
to all entries, and it's useful to think about it when
you're trying to decide whether to enter on a pullback or a
continuation of a move.
Entering on a pullback offers less dollar risk than chasing
the market because you can place your hard stop on the other
side of support or resistance and risk only a point or two.
(Of course, this doesn't mean you're going to hang around
and let the market hit your hard stop if things go wrong.)
the market because you can place your hard stop on the other
side of support or resistance and risk only a point or two.
(Of course, this doesn't mean you're going to hang around
and let the market hit your hard stop if things go wrong.)
Entering on a pullback also gives you a better chance of
gaining a point or so in the first 30 to 60 seconds of the
trade. This is important, though very few people seem to be
talking about it. perhaps it's a well kept secret.
gaining a point or so in the first 30 to 60 seconds of the
trade. This is important, though very few people seem to be
talking about it. perhaps it's a well kept secret.
I rarely (almost never) chase the market. Here's why.
Usually, if you chase the market for your entry, you'll get
filled about the same time the crowd's emotion is exhausted.
The market will pull back and you'll have to get out
immediately (if you're smart). On the other hand, if you're
stubborn and you don't get out immediately, you'll have to
suffer through the pullback and *hope* that the trend
continues before your stop is hit. If the market gets close
to your stop, you'll be tempted to move the stop away just a
little bit. Once you give in to the temptation, you've got
an expensive trading habit that may eventually take you out
of the business.
Usually, if you chase the market for your entry, you'll get
filled about the same time the crowd's emotion is exhausted.
The market will pull back and you'll have to get out
immediately (if you're smart). On the other hand, if you're
stubborn and you don't get out immediately, you'll have to
suffer through the pullback and *hope* that the trend
continues before your stop is hit. If the market gets close
to your stop, you'll be tempted to move the stop away just a
little bit. Once you give in to the temptation, you've got
an expensive trading habit that may eventually take you out
of the business.
Whenever you find yourself *hoping* that the market will
come back and get you out of a bad position, you really have
to head for the exits *now*. Don't even think about the
commission, or all the time you spent waiting for the setup.
just get out.
come back and get you out of a bad position, you really have
to head for the exits *now*. Don't even think about the
commission, or all the time you spent waiting for the setup.
just get out.
QUESTION: What if there is no pullback?
If the market breaks through support and keeps going down
without a pullback, you just have to be a pro and let it go.
All the lost opportunity in the world won't take your
account balance down, but chasing high-risk, low-probability
entries will cost you.
without a pullback, you just have to be a pro and let it go.
All the lost opportunity in the world won't take your
account balance down, but chasing high-risk, low-probability
entries will cost you.
Mike Reed is author of TradeStalker's RBI Trader's Updates.
He has been trading the Market for 24 years. His support and
resistance numbers have been published on the internet since
1996. Mike's nightly support and resistance zones are
specific and incredibly accurate. He offers an unlimited
free trial of his nightly TradeStalker RBI Trader's Updates.
http://www.TradeStalker.com Copyright 2006 Mike Reed
He has been trading the Market for 24 years. His support and
resistance numbers have been published on the internet since
1996. Mike's nightly support and resistance zones are
specific and incredibly accurate. He offers an unlimited
free trial of his nightly TradeStalker RBI Trader's Updates.
http://www.TradeStalker.com Copyright 2006 Mike Reed
LEVELS:
| Contract (Dec.. 2006) | SP500 (big & Mini) | Nasdaq100 (big & Mini) | Dow Jones (big & Mini) | Mini Russell |
| Resistance 3 | 1328.73 | 1652.33 | 11608.67 | 731.50 |
| Resistance 2 | 1321.67 | 1632.42 | 11559.33 | 724.50 |
| Resistance 1 | 1316.83 | 1617.83 | 11523.67 | 719.75 |
| Pivot | 1309.77 | 1597.92 | 11474.33 | 712.75 |
| Support 1 | 1304.93 | 1583.33 | 11438.67 | 708.00 |
| Support 2 | 1297.87 | 1563.42 | 11389.33 | 701.00 |
| Support 3 | 1293.03 | 1548.83 | 11353.67 | 696.25 |
| Contract (Dec. 2006) | Dec. Gold | Euro | Dec. Ten Years | Dec. US Bonds |
| Resistance 3 | 620.4000 | 1.2842 | 107 16/32 | 111 4/32 |
| Resistance 2 | 612.7000 | 1.2794 | 107 11/32 | 110 28/32 |
| Resistance 1 | 605.0000 | 1.2750 | 107 5/32 | 110 19/32 |
| Pivot | 597.3000 | 1.2702 | 107 | 110 11/32 |
| Support 1 | 589.6000 | 1.2658 | 106 26/32 | 110 2/32 |
| Support 2 | 581.9000 | 1.2610 | 106 21/32 | 109 26/32 |
| Support 3 | 574.2000 | 1.2566 | 106 15/32 | 109 17/32 |
REPORTS (EST): Provided by www.tradethenews.com audio news and interactive research directly from the pits
Tuesday, Sep 12th, 2006
Economic
08:30am Jul Trade Balance (last -$64.8B)
10:00am Sep IBD/TIPP Economic Optimism
01:00pm Treasury's 10-year Note auction results
Events
ICSC/UBSW Chain Store Sales (7:45, last 3.7%). Redbook Retail Sales (8:55, last 3.9%). Anti-infective Drugs Advisory Committee meeting at 8am. AAPL invitation-only event. Fed's Yellen speaks on Economic Outlook in Emeryville, CA at 3:35pm. ABC Consumer Confidence (last -15). CS Homebuilding conference in NYC through 9/12. Jefferies Communications conference in NYC through 9/12. Bear Stearns Healthcare conference in NYC through 9/12. Oppenheimer Beauty/Lifestyle/Leisure conference in NYC through 9/13. ThinkEquity Growth conference in SF through 9/14. Lehman Financial Services conference in NYC through 9/14. Merrill Lynch Media & Entertainment conference in Pasadena, CA through 9/14.
Earnings
Before the Open: BBY GS IDR KR. After the Close: ENER PLL.
Note all time are EST. ANY AND ALL TIMES AND DATES ARE SUBJECT TO CHANGE WITHOUT NOTICE. INFORMATION HAS BEEN TAKEN FROM SOURCES DEEMED TO BE RELIABLE, BUT NO ASSURANCES CAN BE MADE TO THE ACCURACY OF ANY OF THIS INFORMATION.
This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!
Sincerely,
Ilan Levy-Mayer, M.B.A
Vice President
Cannon Trading Co Inc.
http://www.cannontrading.com
http://www.E-Futures.com
ilan@cannoncapital.com
Yahoo IM ilanlevy1970
310-859-9572
800-454-9572
Fax 310-859-0547
9301 Wilshire Blvd. Suite #614
Beverly Hills, Ca 90210
The finest compliment I can receive is a referral from a trusted client.
* Important Please Note:
Trading commodity futures and options involves substantial risk of loss.
The recommendations contained in this letter is of opinion only and does not guarantee any profits.
These are risky markets and only risk capital should be used.
Past performances are not necessarily indicative of future results.
posted by Cannon Trading at 1:17 PM
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