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July 10th, 2020 Newsletter

The Small Exchange is here and big things are happening. Learn about the standardized products, smaller contract size, easy to understand pricing and more. We are also sharing a mini Dow possible short term short trade.

July 10th, 2020 - Issue #1013

In This Issue

1. Trading Updates: Big Things at the Small Exchange
2. Hot Market Report: Divergence between Dow and NASDAQ
3. Economic Calendar

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1. Trading Updates: Big Things at the Small Exchange

Small Exchange

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Small US Dollar | SFX

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2. Hot Market Report: Divergence between Dow and NASDAQ

Source: Dave Register of ExitPoints.com

Click on image below to enlarge

YM futures;

Dow ends 360 points lower but Nasdaq notches 26th record of 2020 as investors find safety in tech - That was the headline July 9th and you can read the full article here.

Dave's short-term indicators are bearish for the September Dow Jones 30 E-mini (YMU20). Expect lower prices over the next 3 to 8 days.
Here is Dave's suggestion for trading this signal:
• Place a sell stop order on 7/10/2020 at 25600. This is the three-day average daily low price.
• If filled, place a trailing buy stop loss order at the three-day average high price. The buy stop for 7/10/2020 is at 26103. You will, of course, need to ratchet the stop loss price each day. If you are not filled then my indicators were wrong and you never entered the trade.
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.


Mini Dow Jones is one of my favorite markets for Day Trading because of the intraday range and movements. Be careful, these factors can work against you or in your favor.

The MICRO YM can be a great tool to use if you have a smaller account, just starting etc. The MICRO YM symbol is MYM and it is exactly one tenth the size of the YM for value, tick size, margins etc.


Mini Dow Jones Futures Specs
Hours: 5:00 PM to 4:00 PM next day PM Central Time
Margins: $11770 initial, 10700 Maint. ( as of the date of this newsletter)
MICROS Margins: $1177 initial, $1070 Maint. ( as of the date of this newsletter)
Point Value: full point = $5 ( Example: 25665 to 25666 ). Min fluctuation is 1 = $5 (Example: 25665 to 25666) Settlement: Cash on the open of the third Friday of each QUARTER ( June, Sep, Dec, March )
Months: Quarterly cycle, June, Sep, Dec, March. M,U,Z,H
Weekly Options:YES
Some of the basic fundamentals to keep in mind when you are considering trading the YM or other indices for this matter:
1. Longer term view of current market prices
2. Dates and times of important reports. CPI, Housing, employment, FOMC are just some of the reports you need to watch for
3. Earning reports
4. U.S. Fiscal and Monetary Stability

Our brokers here at Cannon will be happy to chat about the MINI Dow Jones market, other indices, 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
07/10
Fri
7:30 AM CDT - Core PPI & PPI(Jun)
11:00 AM CDT - WASDE Report & Crop Production
 
 
LT: Jul Eurodollar Options(CME)
Aug Coffee Options(ICE)

 
07/13
Mon
3:00 PM CDT - Crop Progress
 
 
 
LT: Jul Eurodollar(CME)
Jul Mx Peso(CME)
Jul Orange Juice(ICE)
07/14
Tue
7:30 AM CDT - Core CPI & CPI(Jun)
3:30 PM CDT - API Energy Stocks

 
LT: Jul Canola(CBT)
Jul Wheat(CBT)
Jul Corn(CBT)
Jul Oats(CBT)
Jul Rough Rice(CBT)
Jul Soybeans,Soymeal,Soyoil(CBT)

07/15
Wed
6:00 AM CDT - MBA Mortgage Index
7:30 AM CDT - Empire State Manufacturing(Jul)
7:30 AM CDT - Export(ex-ag) & Import(ex-oil) Prices(Jun)
8:15 AM CDT - Industrial Prod & Capacity Util(Jun)
9:30 AM CDT - EIA Petroleum Status Report
11:00 AM CDT - NOPA Crush
2:00 PM CDT - Dairy Products Sales
LT: Jul Lean Hogs(CME)
Jul Lumber(CME)
Jul Lean Hogs Options(CME)
Aug Platinum & Palladium Options(NYM)
Aug Sugar-11 Options(ICE)
07/16
Thu
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly
7:30 AM CDT - Retail Sales(Jun)
7:30 AM CDT - Retail Sales Ex-Auto(Jun)
7:30 AM CDT - Philadelphia Fed Index(Jul)
9:00 AM CDT - NAHB Housing Market Index(Jul)
9:00 AM CDT - Business Inventories(May)
9:30 AM CDT - EIA Natural Gas Report
2:00 PM CDT - Net Long-Term TIC Flows
3:30 PM CDT - Money Supply
FN: Jul Lumber(CME)
LT: Jul Cocoa(ICE)
Aug Crude Lt Options(NYM)
07/17
Fri
7:30 AM CDT - Building Permits & Housing Starts(Jun)
9:00 AM CDT - Univ of Mich Consumer Sentiment-Prelim
 
 
LT: Jul Nikkei Options(CME)
Aug Orange Juice Options(ICE)

 
07/20
Mon
3:00 PM CDT - Crop Progress
 
 
 

 
 
 
07/21
Tue
2:00 PM CDT - Catfish Production
2:00 PM CDT - Milk Production
3:30 PM CDT - API Energy Stocks
 
LT: Jul Coffee(ICE)
Aug Crude Lt(NYM)
Aug Canola Options(CBT)
07/22
Wed
6:00 AM CDT - MBA Mortgage Index
8:00 AM CDT - FHFA Housing Price Index(Jul)
9:00 AM CDT - Existing Home Sales(Jun)
9:30 AM CDT - EIA Petroleum Status Report
2:00 PM CDT - Cold Storage
2:00 PM CDT - Dairy Products Sales

 
 
 
07/23
Thu
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly
9:30 AM CDT - EIA Natural Gas Report
3:30 PM CDT - Money Supply
FN: Aug 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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