Different markets for day trading + Support & Resistance Levels 8.8.2018
Posted By:- Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
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Each market has a different personality, different behavior along with different times of the day when it is most active. If you are finding that the ES (mini SP) is not giving you enough risk/opportunities then start monitoring a couple of other markets and perhaps explore them in demo / simulated mode.
I think that there are more than a few markets that are suitable for day-trading. Below you will find some observations, tips along with what are unique about these markets, personality and most active trading hours (interest rates, mostly the ten year and 30 year).
In most platforms, the symbols are ZB for 30 year bonds and ZN for 10 year notes.
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Product Symbol
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ZB
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Contract Size
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The unit of trading shall be U.S. Treasury Bonds having a face value at maturity of one hundred thousand dollars ($100,000) or multiples thereof
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Price Quotation
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Points ($1,000) and 1/32 of a point. For example, 134-16 represents 134 16/32. Par is on the basis of 100 points.
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Product Symbol
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ZN
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Underlying Unit
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One U.S. Treasury note having a face value at maturity of $100,000.
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Deliverable Grades
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U.S. Treasury notes with a remaining term to maturity of at least six and a half years, but not more than 10 years, from the first day of the delivery month. The invoice price equals the futures settlement price times a conversion factor, plus accrued interest. The conversion factor is the price of the delivered note ($1 par value) to yield 6 percent.
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Price Quote
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Points ($1,000) and halves of 1/32 of a point. For example, 126-16 represents 126 16/32 and 126-165 represents 126 16.5/32. Par is on the basis of 100 points.
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Tick Size
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One-half of one thirty-second (1/32) of one point ($15.625, rounded up to the nearest cent per contract), except for intermonth spreads, where the minimum price fluctuation shall be one-quarter of one thirty-second of one point ($7.8125 per contract).
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Contract Months
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The first five consecutive contracts in the March, June, September, and December quarterly cycle.
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These contracts are often affected by many of the economic reports that come out at 8:30 AM Eastern and there is very active volume between the hours of 8 AM EST and 3 PM EST
Volume on both contracts is very good. Ten years will often have 1 million contracts traded per day (might be the second most active US futures market after the mini SP 500) and the bonds will avg. around 300,000 contracts.
These markets can experience very volatile movements during and right after different reports but then will often trade smooth or in an intraday trend the rest of the day.
Currency Futures Markets
I personally prefer currency futures over FOREX any day. For more than a few reasons but the main ones are: currency futures trade a regulated main exchange (CME) while FOREX trades through different interbanks and other means of transactions that are not necessarily regulated. FOREX are “commission free” but in reality there is a spread built in that dealer marks up each time you buy or sell which makes FOREX more expensive to trade than futures.
The main ones I like to follow are:
The Euro , The Yen, The British Pound, The Australian. All are paired versus the US$.
Each market will have different times of higher volume which can allow for traders in all time zones to pick their market. Simply open an hourly chart and add the volume indicator to observe what times the market has the most action.
1 Euro tick is $6.25
1 Yen tick is $6.25
1 Aussie tick is $10
1 British tick is $6.25
Currency futures will often trend better than other segments and will experience different levels of volatility during economic reports in the different parts of the world.
If you plan on following any currencies, start in demo mode, know what reports are coming that affect the specific currency you are trading, take a look at the daily, weekly charts to get a feel and monitor the action for a while.
Crude Oil and Gold Futures.
More than a few similarities between the two markets.
They are both volatile and can move VERY fast. I have seen some very large moves happen in matter of minutes if not seconds. The “fear & greed” factor really plays a role in these specific two markets.
Both have active trading hours starting with Far East trading around 10 PM EST all the way to the next morning until about 3 PM EST. Good volume generally speaking but not close to the mini SP or Ten Year notes. So you may see some slippage on stops but the volume is more than enough to trade size.
Each tick in Gold is $10, so every dollar move =$100 against you or in your favor. Crude is similar, each tick = $10. One full $1 move = $1000.
I like using overbought/ oversold indicators on the two markets as well as using range / Renko charts.
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| practice first_ |
Good Trading
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
Futures Trading Levels
08-08-2018
| Contract September 2018 | SP500 #ES_F | Nasdaq100 #NQ_F | Dow Jones #YM_F | Mini Russell #RTY_F | BitCoin Index #XBT_F |
| Resistance 3 | 2881.92 | 7542.75 | 25895 | 1707.77 | 7451.35 |
| Resistance 2 | 2872.83 | 7514.75 | 25778 | 1702.53 | 7301.56 |
| Resistance 1 | 2866.42 | 7496.25 | 25694 | 1696.47 | 7139.08 |
| Pivot | 2857.33 | 7468.25 | 25577 | 1691.23 | 6989.29 |
| Support 1 | 2850.92 | 7449.75 | 25493 | 1685.17 | 6826.81 |
| Support 2 | 2841.83 | 7421.75 | 25376 | 1679.93 | 6677.02 |
| Support 3 | 2835.42 | 7403.25 | 25292 | 1673.87 | 6514.54 |
| Contract | December Gold #GC_F | Sept. Silver #SI-F | Sept. Crude Oil #CL-F | Sept. Bonds #ZB_F | Sept. Euro #6E_F |
| Resistance 3 | 1231.9 | 15.69 | 70.65 | 143 28/32 | 1.1713 |
| Resistance 2 | 1228.1 | 15.60 | 70.24 | 143 18/32 | 1.1678 |
| Resistance 1 | 1223.2 | 15.49 | 69.63 | 143 2/32 | 1.1655 |
| Pivot | 1219.4 | 15.40 | 69.22 | 142 24/32 | 1.1620 |
| Support 1 | 1214.5 | 15.29 | 68.61 | 142 8/32 | 1.1598 |
| Support 2 | 1210.7 | 15.20 | 68.20 | 141 30/32 | 1.1563 |
| Support 3 | 1205.8 | 15.09 | 67.59 | 141 14/32 | 1.1540 |
| Contract | Dec. Corn #ZC_F | Sept. Wheat #ZW_F | Nov. Beans #ZS_F | Dec. SoyMeal #ZM_F | Sept. Nat Gas #NG_F |
| Resistance 3 | 389.5 | 592.3 | 921.00 | 338.97 | 2.95 |
| Resistance 2 | 388.0 | 585.8 | 914.75 | 336.73 | 2.93 |
| Resistance 1 | 386.3 | 577.0 | 910.25 | 334.67 | 2.91 |
| Pivot | 384.8 | 570.5 | 904.00 | 332.43 | 2.88 |
| Support 1 | 383.0 | 561.8 | 899.5 | 330.4 | 2.9 |
| Support 2 | 381.5 | 555.3 | 893.25 | 328.13 | 2.84 |
| Support 3 | 379.8 | 546.5 | 888.75 | 326.07 | 2.83 |
Economic Reports, source:
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 here in 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 judgement in trading.
