Trading levels and reports for Oct 5th
Trading 101: Understanding the environment you are trading in.
Many clients have asked me in the past what I think is the key to day-trading the e-minis (mini SP, mini Dow, Mini NASDAQ, mini Russell) successfully. While I don’t think you can pinpoint one major factor and trading is a combination of many factors, ranging from capital, skills, emotional capacity, training, experience and more, I think that recognizing the type of trading day I shaping in front of you is one of the biggest keys.
I would say you can categorize the “day-trades environment” into 3:
- Choppy, directionless day.
- Strong trending day
- Volatile day with actions on both sides.
If we knew the answer to what day this is going to be before the market started, our chances of trading well would increase significantly, however, I have yet to find a way to predict that in advance. There are times that the first hour of trading combined with other factors can help you though. I will touch on that a bit more after explaining the type of strategies I believe are suitable for each of the trading days types mentioned above.
2. Strong trending day – Days like this, are fun if you are in the right direction…I use different indicators such as oscillators and stochs to limit my self to either attacking only from the buy side or only from the sell side. In case of an up-trending day I will use pull backs to re-enter the market only from the buy side and I will use cross of fast moving average or stochastics on lower time frames to re-enter the market. Biggest mistakes traders do on days like that is trying to predict bottoms or tops.
| Contract (Dec.. 2006) | SP500 (big & Mini) | Nasdaq100 (big & Mini) | Dow Jones (big & Mini) | Mini Russell |
| Resistance 3 | 1384.00 | 1744.17 | 12107.00 | 764.17 |
| Resistance 2 | 1371.50 | 1720.33 | 12011.00 | 751.63 |
| Resistance 1 | 1364.80 | 1695.67 | 11958.00 | 745.07 |
| Pivot | 1352.30 | 1671.83 | 11862.00 | 732.53 |
| Support 1 | 1345.60 | 1647.17 | 11809.00 | 725.97 |
| Support 2 | 1333.10 | 1623.33 | 11713.00 | 713.43 |
| Support 3 | 1326.40 | 1598.67 | 11660.00 | 706.87 |
| Contract (Dec. 2006) | Dec. Gold | Euro | Dec. Ten Years | Dec. US Bonds |
| Resistance 3 | 602.6333 | 1.2870 | 109 3/32 | 113 24/32 |
| Resistance 2 | 594.1667 | 1.2831 | 108 28/32 | 113 14/32 |
| Resistance 1 | 580.4333 | 1.2798 | 108 23/32 | 113 7/32 |
| Pivot | 571.9667 | 1.2759 | 108 16/32 | 112 29/32 |
| Support 1 | 558.2333 | 1.2726 | 108 11/32 | 112 22/32 |
| Support 2 | 549.7667 | 1.2687 | 108 4/32 | 112 12/32 |
| Support 3 | 536.0333 | 1.2654 | 107 31/32 | 112 5/32 |
Thursday, Oct 5th, 2006
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
posted by Cannon Trading at 1:20 PM
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