Trading levels and reports for Oct. 18th +5 Day Trading Tips
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Dear Trader,
" 5 Day Trading Tips for Success "
By Mike Reed
If someone tells you that you can get rich quick day
trading...run for the hills! There are no overnight
successes, unless you are very lucky! Day Trading isn't
easy, but with experience, dedication, self- control and
hard work, you *can* become a successful day trader.
trading...run for the hills! There are no overnight
successes, unless you are very lucky! Day Trading isn't
easy, but with experience, dedication, self- control and
hard work, you *can* become a successful day trader.
1. How to Treat Gap Openings
A gap up or gap down open is an emotional move, and it often
will reverse course and turn in to "trap open". Gaps that
are less than 4 points on the SP Future tend to get filled
in the same day, especially Tuesday through Thursday. Turns
will occur within 20 to 40 minutes after the open. A trader
must be on the lookout for a reversal as soon as early
momentum is lost. A gap into a good support /resistance zone
is almost always a good "fade" - with stops no more than 1
point on other side of the support /resistance zone. (A
"fade" is simply entering a position opposite of the
direction of the gap. If the market gapped down, a "fade"
would be entering a long position (buying) in to the
selloff.)
will reverse course and turn in to "trap open". Gaps that
are less than 4 points on the SP Future tend to get filled
in the same day, especially Tuesday through Thursday. Turns
will occur within 20 to 40 minutes after the open. A trader
must be on the lookout for a reversal as soon as early
momentum is lost. A gap into a good support /resistance zone
is almost always a good "fade" - with stops no more than 1
point on other side of the support /resistance zone. (A
"fade" is simply entering a position opposite of the
direction of the gap. If the market gapped down, a "fade"
would be entering a long position (buying) in to the
selloff.)
2. When the Market Moves Against You, When Do You Exit a
Trade?
Trade?
The way I trade, I exit as quickly as possible. There's no
sense in waiting around for your "stop-loss" to get
triggered when the perceived edge is gone. I like to stay in
control of my trades, and if the market doesn’t do as
anticipated, I don't wait for my stop to get hit. When there
is no longer a high probability situation, exit and take a
second look.
sense in waiting around for your "stop-loss" to get
triggered when the perceived edge is gone. I like to stay in
control of my trades, and if the market doesn’t do as
anticipated, I don't wait for my stop to get hit. When there
is no longer a high probability situation, exit and take a
second look.
3. When Are The Best Times of the Day to be Trading?
For me, the best times of the day for trading are the first
hour and the last 2 hours. Here's an old rule of thumb (and
this used to work like clockwork in the "old days", and
although it has diminished a bit, it still happens):
hour and the last 2 hours. Here's an old rule of thumb (and
this used to work like clockwork in the "old days", and
although it has diminished a bit, it still happens):
"Minor Time of Day"-If the Market opens higher, then there
tends to be a pullback within the first 20 to 40 minutes. If
the pullback is weak, there will probably be a continuation
of rally into the early afternoon. But, if the pullback is
sharp, then you've likely seen the high for the day and
you'll want to be selling the bounces.
tends to be a pullback within the first 20 to 40 minutes. If
the pullback is weak, there will probably be a continuation
of rally into the early afternoon. But, if the pullback is
sharp, then you've likely seen the high for the day and
you'll want to be selling the bounces.
"Major Time of Day"-
Around the 2:20pm to 2:40pm time frame, we'll often see
moves reverse or gather steam in that timeframe. People that
have been holding positions all day long become a bit
"antsy" - they have to do something with them before the
Market closes for the day. When people holding losing
positions into late into the day see the time until the
close is near, that can cause the market to make some sharp
turns in the last 90 minutes. The program gang also likes to
get active that time of day.
Around the 2:20pm to 2:40pm time frame, we'll often see
moves reverse or gather steam in that timeframe. People that
have been holding positions all day long become a bit
"antsy" - they have to do something with them before the
Market closes for the day. When people holding losing
positions into late into the day see the time until the
close is near, that can cause the market to make some sharp
turns in the last 90 minutes. The program gang also likes to
get active that time of day.
4. How Can Anyone Trade a Choppy Market?
I take a number of scalps in choppy markets. I time entries
with Tick extremes, especially when price pops into previous
high areas of congestion, or other intraday support and
resistance. Moving averages are not good during choppy
days.(Scalps : small profit, "hit and run" type of trades)
with Tick extremes, especially when price pops into previous
high areas of congestion, or other intraday support and
resistance. Moving averages are not good during choppy
days.(Scalps : small profit, "hit and run" type of trades)
5. How Do You Measure Pullbacks
In a trend move, I like to see shallow pullbacks to a
steeply sloped moving average on one of the 3 time frames I
follow. (more time frames, the better) Pullbacks to symmetry
in a persistent trend are useful when present. Example:
Rally, dip 2.00 points – Another run up, then a dip of 2.25
points – A another push higher, then a dip 1.75 points. Note
continued dips of 1.75-2.25 points repeatedly hold. A
pattern has developed, and you want to be buying those
shallow pullbacks. This works great used in conjunction with
a steep slope of the 20 ema on the 5 minutes charts, or
slightly bigger picture, the 60 ema on the 5 minute chart.
steeply sloped moving average on one of the 3 time frames I
follow. (more time frames, the better) Pullbacks to symmetry
in a persistent trend are useful when present. Example:
Rally, dip 2.00 points – Another run up, then a dip of 2.25
points – A another push higher, then a dip 1.75 points. Note
continued dips of 1.75-2.25 points repeatedly hold. A
pattern has developed, and you want to be buying those
shallow pullbacks. This works great used in conjunction with
a steep slope of the 20 ema on the 5 minutes charts, or
slightly bigger picture, the 60 ema on the 5 minute chart.
Mike Reed is author of TradeStalker's RBI Trader's Updates.
Mike has been trading the Market for 24 years. When he got
his start as a trader, Mike was plotting prices on paper
tape as the internet had not yet been "born" as we know it
today. Years of experience have really given him a feel for
the Market action. His support and resistance numbers have
been published on the internet since 1996. He has a wide
readership that includes day traders, floor traders, locals
and hedge fund managers. His 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
Disclaimer: The financial markets are risky. Investing is
risky. Past performance does not guarantee future
performance. The foregoing has been prepared solely for
informational purposes and is not a solicitation, or an
offer to buy or sell any security. Opinions are based on
historical research and data believed reliable, but there is
no guarantee that future results will be profitable.
risky. Past performance does not guarantee future
performance. The foregoing has been prepared solely for
informational purposes and is not a solicitation, or an
offer to buy or sell any security. Opinions are based on
historical research and data believed reliable, but there is
no guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker's RBI Updates specify a manner
in which you could trade. We occasionally mention the SP500
and Nasdaq futures markets because it is extremely liquid
and tends to lead the other markets. This is not an
endorsement or recommendation of the SP500 and Nasdaq
futures markets. The risk of loss in futures is substantial.
You can lose more than your original investment. We are not
Registered Investment Advisors or Commodity Trading
Advisors.
contracts in the TradeStalker's RBI Updates specify a manner
in which you could trade. We occasionally mention the SP500
and Nasdaq futures markets because it is extremely liquid
and tends to lead the other markets. This is not an
endorsement or recommendation of the SP500 and Nasdaq
futures markets. The risk of loss in futures is substantial.
You can lose more than your original investment. We are not
Registered Investment Advisors or Commodity Trading
Advisors.
LEVELS:
| Contract (Dec.. 2006) | SP500 (big & Mini) | Nasdaq100 (big & Mini) | Dow Jones (big & Mini) | Mini Russell |
| Resistance 3 | 1385.90 | 1749.17 | 12137.33 | 781.83 |
| Resistance 2 | 1380.10 | 1739.83 | 12083.67 | 776.97 |
| Resistance 1 | 1375.70 | 1731.17 | 12044.33 | 773.23 |
| Pivot | 1369.90 | 1721.83 | 11990.67 | 768.37 |
| Support 1 | 1365.50 | 1713.17 | 11951.33 | 764.63 |
| Support 2 | 1359.70 | 1703.83 | 11897.67 | 759.77 |
| Support 3 | 1355.30 | 1695.17 | 11858.33 | 756.03 |
| Contract (Dec. 2006) | Dec. Gold | Euro | Dec. Ten Years | Dec. US Bonds |
| Resistance 3 | 610.0000 | 1.2672 | 107 24/32 | 111 23/32 |
| Resistance 2 | 604.9000 | 1.2640 | 107 19/32 | 111 15/32 |
| Resistance 1 | 599.2000 | 1.2613 | 107 11/32 | 111 1/32 |
| Pivot | 594.1000 | 1.2581 | 107 6/32 | 110 25/32 |
| Support 1 | 588.4000 | 1.2554 | 106 30/32 | 110 11/32 |
| Support 2 | 583.3000 | 1.2522 | 106 25/32 | 110 3/32 |
| Support 3 | 577.6000 | 1.2495 | 106 17/32 | 109 21/32 |
REPORTS (EST): Provided by www.tradethenews.com audio news and interactive research directly from the pits
Wednesday, Oct 18th, 2006
Economic
08:30am Sep Consumer Price Index (last 0.2%), CPI Ex Food & Energy (last 0.2%), CPI NSA (last 203.9), Housing Starts (last 1.67M), Building Permits (last 1.73M)
10:30am Crude Oil/Gasoline/Distillate Inventories
Events
MBA Mortgage Applications (7:00, last –5.5%). Clinical Pharmacology Subcommittee of the Advisory Committee for Pharmaceutical Science meets at 8:30am through 10/19. DB Fall Energy Symposium in Newport through 10/20. ECLP, MAA analyst meetings.
Earnings
Before the Open: ABT APH AMR BSX CDWC CIT CBSS DTLK FCFS GD GPC ITW JPM KEA LOGI LUFK MEL NTRS NCS JNC OXY PH PJC SEIC SON STJ SYNT UNF WIT. During Trading Hours: SHLM SNV. After the Close: AMD ALB ADS ALL AMLN AAPL ATR AZR BCR COF CTXS CSX CBST CYBS ET EBAY FHN GILD RX ISIL IFIN JNPR KMI KMP MOGN MGI NVEC PLXT PLCM RDN RLRN RYL SSTI STLD TER WM WDFC WSTL.
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 1:07 PM
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