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February 7th, 2020 Newsletter

we’ll take a look at what makes a good trading setup, then we’ll look at Peter's top 7 trading setups. Treasury yields hold ground as coronavirus jitters cool

February 7th, 2020 - Issue #999

In This Issue

1. Trading Webinar: 7 Most Effective Trading Setups
2. Hot Market Report: Treasury yields hold ground as coronavirus jitters cool
3. Economic Calendar

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1. Trading Webinar: 7 Most Effective Trading Setups

Tuesday, Feb 11th 10:00 AM - 11:00 AM PST

In this session, we’ll take a look at what makes a good trading setup, then we’ll look at Peter's top 7 trading setups.
SPACE is LIMITED, so reserve your space now!
For each trading setup, we’ll consider the following
- What the setup is
- Which market conditions it works best in
- Why the setup works
- Who is on the wrong and right side of the trade if it works out
- How to identify it’s working out
- How to identify if it’s not working out
- Typical Risk:Reward
What you will see is that although the setups are different, there’s lots of things in common with them. Instead of learning 7 different skills, we are taking a few skills and applying them in different scenarios. With these 7 setups, you would certainly expect to find multiple trades per day on most market, but patience is still key because we want to get in when conditions are just right. For those looking for new setups or those looking to improve the way they confirm/manage their existing setups – this webinar is for you. SPACE is LIMITED, so reserve your space now!

2. Hot Market Report: "Treasury yields hold ground as coronavirus jitters cool"

Source: Dave Register of ExitPoints.com

Click on image below to enlarge

ZB futures;

The US 30 year treasury bond market belongs to the "interest rate family" 10 year, 5 year, 2 year notes, the "Ultra bond" and others. All traded on the CBOT exchange.

The March 30-year T-bond made a price high on 2/3/2020 and sharply declined for a couple of days. My swing trade indicators are indicating the “hammer” candle on 2/6/2020 is a swing trade low. Look for a rally in the March 30-year T-bond over the next week or so.


Daily chart of T-Bond Futures for your review from this morning ( February 7th 2020). Bonds are a very liquid market with a relatively LARGE tick size of $31.25. Bonds also have some of the LOWEST exchange fees in the futures markets which make the total cost of trading it cheaper than the mini SP or crude oil for example. This market offers different type of day-trading vehicle. Different behavior and personality. I like to look for set ups in this market and the 10 year notes in different ways. One is trying to "SCALP" the large tick size and the other, which I prefer is to look for "longer day trades " using the 15, 30 and 60 minutes charts. If you are a day-trader, you may want to watch this market, get a feel for the different type of trading it offers versus Indices or crude oil for example and see if it is a "worthy" market to add to your day-trading markets list. It goes without saying that bonds are an excellent market for options, swing trading and long term trading as well with 23 hours trading, strong volume and excellent liquidity. This chart was prepared using our FREE E-Futures Int'l software, which you can demo for 28 days with real time data.
To access a free trial to the ALGOS shown in the chart ( "early trend identifier" included) along with other tools, visit and sign up for a free trial for 21 days with real time data.


30 yr Treasury Bond Futures Specs
Hours: 05:00 PM previous day to 4:00 PM Central Time
Margins: $3080 initial, $2800 Maint. ( as of the date of this newsletter)
Point Value: full point = $1000 ( Example: 144.16 to 145.16 ). Min fluctuation is 0.01 = $31.25 ( Example: 144.16-144.17) Settlement: Physical Delivery
Months: Quarterly (March,June,Sep,Dec) Weekly Options:YES

Some of the basic fundamentals to keep in mind when you are considering trading the U.S.30yr Treasury Bonds for this matter:
1. Interest Rates.
2. FOMC Rate decisions and Language
3. Focus in macroeconomics
4. Bond Prices have an inverse relationship to Interest rates
5. Correlation to US Dollar prices
6. Inflationary prospects
7. Geopolitical Stability
8. U.S. Fiscal and Monetary Stability

Our brokers here at Cannon will be happy to chat about the Bond market, other interest rate products, other futures, options, futures spreads and much more! Feel free to contact us at any time.

3. Economic Calendar

Source: Moore Research Center, Inc.

Date Reports Expiration & Notice Dates
02/07
Fri
7:30 AM CST - Nonfarm Payrolls(Jan)
7:30 AM CST - Ave Workweek & Hourly Earnings(Jan)
7:30 AM CST - Unemployment Rate(Jan)
9:00 AM CST - Wholesale Inventories(Dec)
2:00 PM CST - Consumer Credit(Dec)
2:00 PM CST - Catfish Production
LT: Feb Canadian Dollar Options(CME)
Feb Currencies Options(CME)
Feb Mx Peso Options(CME)
Feb US Dollar Index Options(ICE)
Feb Live Cattle Options(CME)
Mar Cocoa Options(ICE)
Mar Cotton Options(NYM)
02/10
Mon

 
 
 
FN: Feb Live Cattle(CME)
LT: Mar Sugar-16(ICE)

 
02/11
Tue
11:00 AM CST - WASDE Report & Crop Production
3:30 PM CST - API Energy Stocks
 
 
FN: Mar Sugar-16(ICE)
 
 
 
02/12
Wed
6:00 AM CST - MBA Mortgage Index
9:30 AM CST - EIA Petroleum Status Report
2:00 PM CST - Dairy Products Sales
 
LT: Mar Coffee Options(ICE)
 
 
 
02/13
Thu
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly
7:30 AM CST - Core CPI & CPI(Jan)
9:30 AM CST - EIA Natural Gas Report
3:30 PM CST - Money Supply

 
 
 
02/14
Fri
7:30 AM CST - Export(ex-ag) & Import(ex-oil) Prices(Jan)
7:30 AM CST - Retail Sales(Jan)
7:30 AM CST - Retail Sales Ex-Auto(Jan)
8:15 AM CST - Industrial Prod & Capacity Util(Jan)
9:00 AM CST - Business Inventories(Dec)
9:00 AM CST - Univ of Michigan Consumer Sentiment-Prelim(Feb)
FN: Mar Cocoa(ICE)
LT: Feb Lean Hogs(CME)
Feb Mx Peso(CME)
Feb Eurodollar Options(CME)
Feb Lean Hogs Options(CME)
Mar Crude Lt Options(NYM)
02/17
Mon
PRESIDENT'S DAY
 
 
 
LT: Feb Eurodollar(CME)
 
 
 
02/18
Tue
7:30 AM CST - Empire State Manufacturing(Feb)
9:00 AM CST - NAHB Housing Market Index(Feb)
11:00 AM CST - NOPA Crush
3:00 PM CST - Net Long-Term TIC Flows(Dec)
LT: Mar Sugar-11 Options(ICE)
 
 
 
02/19
Wed
6:00 AM CST - MBA Mortgage Index
7:30 AM CST - Core PPI & PPI(Jan)
7:30 AM CST - Housing Starts & Building Permits(Jan)
3:30 PM CST - API Energy Stocks
LT: Mar Platinum & Palladium Options(NYM)
 
 
 
02/20
Thu
7:30 AM CST - Intial Claims-Weekly
7:30 AM CST - Philadelphia Fed Index(Feb)
9:30 AM CST - EIA Natural Gas Report
10:00 AM CST - EIA Petroleum Status Report
2:00 PM CST - Milk Production
2:00 PM CST - Dairy Product Sales
3:30 PM CST - Money Supply
FN: Mar Coffee(ICE)
LT: Mar Crude Lt(NYM)
 
 
FN=First Notice, OE=Option Expiration, LT=Last Trade

Disclaimer: This calendar is compiled from sources believed to be reliable. Moore Research Center, Inc. assumes no responsibility for any errors or omissions. It is meant as an alert to events that may affect trading strategies and is not necessarily complete. The release dates for certain economic reports may have been rescheduled.

* 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 exercise their own judgment in trading!

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