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Cannon Trading Co. Inc. Weekly Newsletter

August 30th, 2006 — Issue #342

 

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Labor Day Trading Schedule

Please note that the trading schedules change over Labor Day weekend, Friday September 1st — Monday September 4th.

Friday, Sep. 1

CBOT
Floor:
12:00 close: Financial contracts
Regular close: Equity and agricultural contracts

eCBOT
12:00 close: Dow-AIG commodity index contracts
12:30 close: Metals contracts
1:00 close: Financial contracts
Regular close: Equity and agricultural contracts

CME
Floor:
12:00 close: Commodity, foreign exchange, interest rate, and GSCI contracts
12:02 close: Commodity options
Regular close: Equity contracts

GLOBEX
12:00 close: E-Livestock and GSCI contracts
3:15 close: Foreign exchange and interest rate contracts
Regular close: Equity and NYMEX energy contracts

Nymex/Comex
11:00 close: Aluminum and palladium
11:05 close: Copper and silver
11:10 close: Platinum and gold
12:00 close: Energy products

NYBOT
12:00 close: Financial contracts
Regular close: Agricultural contracts

OneChicago
Regular close

Sunday, Sep. 3

CBOT
Floor:
Closed

eCBOT
Closed

CME
Floor:
Closed

GLOBEX
Regular evening opening

Nymex/Comex
Floor:
Closed

ACCESS/ClearPort
Closed

NYBOT
Closed

OneChicago
Closed

Monday, Sep. 4

CBOT
Floor:
Closed

eCBOT
Day session closed. Regular evening opening

CME
Floor:
Closed

GLOBEX
10:30 close: Equity contracts
12:00 close: Foreign exchange and interest rate contracts
12:30 close: NYMEX energy
Regular evening opening

NYMEX/COMEX
Floor:
Closed

ACCESS/ClearPort
Regular evening opening

NYBOT
Closed

OneChicago
Closed

*All times listed in Central Daylight Time

 

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Trader Mark Cook Reveals His Rules for Day-Trading Markets

by Jim Wyckoff

A day trader is a cross between an extrovert and an introvert, with both characteristics in balance, according to Mark Cook, a veteran trader from East Sparta, Ohio.

"The introvert aspect is depicted by the disciplined workaholic with a reclusive concentration. The extrovert aspect is depicted by an aggressive, competitive, self-motivated individual striving to be the best in a selective profession," said Cook.

Cook won the 1992 U.S. Investment Championship with a 563% return on his money. He is a featured speaker at the Telerate Seminars Technical Analysis Group (TAG 20) conference held here this weekend.

Each trading day, "I am a creature of habit, going through a daily ritual before the markets open. I outline in detail all three possible scenarios for that day: up, down or sideways. I assign a probability to that scenario and make a written strategy plan, which has been incorporated into a trading fax service that is devoted to teaching people how to trade. Thus, a disciplined trading plan is imposed on me."

Every day trader must be "flexible, alert and feisty," said Cook. The flexibility must be used to shift from being long to being short "literally within seconds." The alertness is used for observing price movements that are an aberration from the norm, he said. "Feistiness is the savvy aggressiveness to fight back with a vengeance to regain money you lost. I don't know how many times I've seen people lose money in the morning and quit. My most profitable days are when I lose money in the morning and stay in because I want to get it back."

For 12 years, Cook has kept a daily diary of trading patterns he has observed. He said the diary is "priceless" because price patterns occur much more frequently than most realize. Regarding keeping a diary, Cook uses the adage: "If you don't know history, you're doomed to repeat it."

The following are Cook's seven major rules for day trading:

1. DO NOT TRADE THE LAST HOUR OF THE DAY IN THE S&P 500 FUTURES MARKET. The probabilities of a successful trade diminish in this timeframe due to the impulsive and reckless buying and selling by institutions just because they didn't get their trading done earlier, said Cook.


2. IF YOU DON'T LIKE THE TRADE YOU'RE HOLDING, GET OUT.


3. AFTER TWO HOURS OF TRADING, ASK YOURSELF: "DO I FEEL GOOD ABOUT MY TRADING TODAY?" Once two hours have passed, Cook says a day trader should have made at least two, or perhaps more, trades, "but enough to reviewuate what you have done." If the trader feels good about the day's trading, continue. If not, stop trading that day.


4. ALL CYLINDERS OF THE ENGINE MUST BE RUNNING EFFICIENTLY. "Day-trading is a job, and your paycheck is determined by your ability. You can only maximize your ability if you have all the information you need to make trading decisions. "If a piece of equipment that one uses for trading is not working, stop trading.


5. HAVE COMPLETE FAITH IN YOUR INDICATORS. "This is a must for success," said Cook. "Many times your indicators give you a buy or sell signal, and you don't follow it because you don't have the confidence the signal is right this time. Successful day traders believe in their indicators, but also are aware that nothing is 100% foolproof."


6. TO ANYONE WHO ASPIRES TO BECOME A DAY TRADER, OBSERVE THOSE WHO ARE SUCCESSFUL. "Any information you can procure on the trading philosophies, mechanics and techniques is well worth your while."


7. DAY-TRADING IS A LONG-TERM COMMITMENT. "I fervently believe it takes several years to become a true professional," said Cook.

Jim has an EXCELLENT daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at JimWyckoff.com

Disclaimer: There is a risk of financial loss in futures and options trading. Futures trading is neither easy nor an easy way to make money. It takes hard work to have success. Please use sound money management when trading futures. Past performance is not necessarily indicative of future results. Nothing in this newsletter is intended to be a trading recommendation for you to buy or sell futures or options. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed. Readers are solely responsible for how they use the information in this newsletter.

 

 

Economic Reports and Expiration Notices

Source: Moore Research Center, Inc.

Date	Reports	Expiration & Notice Dates
08/31 Thu	7:30 AM CDT - Personal Income & Spending(Jul) 7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Initial Claims-Weekly 9:00 AM CDT - Chicago PMI(Aug) 9:00 AM CDT - Factory Orders(Jul) 9:00 AM CDT - Help-Wanted Index(Jul) 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply	FN: Sep Silver(CMX) Sep Copper(CMX) Sep Palladium(NYM) LT: Aug Live Cattle(CME) Aug Feeder Cattle(CME) Aug Fed Funds(CBT) Sep Heating Oil(NYM) Sep Unleaded Gas(NYM) Aug Feeder Cattle Options(CME) Sep Lumber Options(CME)
09/01 Fri	7:30 AM CDT - Nonfarm Payrolls & Unempoy Rate(Aug) 7:30 AM CDT - Ave Workweek & Hourly Earnings(Aug) 8:50 AM CDT - Michigan Sentiment-Rev(Aug) 9:00 AM CDT - Construction Spending(Jul) 9:00 AM CDT - ISM Index(Aug) 2:00 PM CDT - Dairy Products Prices Auto & Truck Sales	FN: Sep Orange Juice(NYBOT)
09/04 Mon	Labor Day Holiday
09/05 Tue		FN: Sep Heating Oil(NYM) Sep Unleaded Gas(NYM)
09/06 Wed	7:30 AM CDT - Productivity-Rev(Q2) 9:00 AM CDT - ISM Services(Aug) 9:30 AM CDT - API & DOE Energy Stats 1:00 PM CDT - Fed's Beige Book
09/07 Thu	7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Initial Claims-Weekly 9:00 AM CDT - Wholesale Inventories(Jul) 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply	LT: Sep Nikkei 225(CME)

 

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* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.

** The material 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.

*** 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 exercisetheir own judgment in trading!

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© Copyright 1996-2008 Cannon Trading Co. Inc. All Rights Reserved.

Cannon Trading Co. Inc. is registered with the Commodity Futures Trading Commission and a member of the National Futures Association.

Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Questions? Please contact us at 800-454-9572 or online using our contact form.

Cannon Trading Co. Inc.
9301 Wilshire Blvd, Suite 515
Beverly Hills, CA 90210