May 15, 2015 Newsletter

Recognizing Chart patterns and possible sell signal for mini Russell 2000

May 15th, 2015 - Issue #787

In This Issue

1. Recognizing Chart Patterns
2. Sell Signal on Mini Russell?
3. Economic Calendar

1. Recognizing Chart Patterns

Before Your next Trade, learn to recognize charts and patterns!

Learning the different types of charts and patterns will be another arsenal in your Trading Tools!

Ascending Triangle Futures Trading Chart Pattern

What is an Ascending Triangle Futures Chart Pattern?

Ascending Triangles isolated An ascending triangle is a bullish futures pattern that can indicate a breakout in the upwards direction.

How do I Recognize an Ascending Triangle Futures Chart Pattern?

An ascending triangle is formed when resistance remains flat and support rises.

See the example below:

Ascending Triangles example

What Does a Ascending Triangle Chart Pattern Mean?

The price will rise and fall within the triangle until support and resistance converge. At that point, the apex, breakout occurs, usually upwards.

Broadening Top Futures Trading Chart Pattern

What is a Broadening Top Futures Chart Pattern?

Broadening Top isolated A broadening top is a futures chart pattern that can occur on an upwards trend. It is generally classified as a reversal pattern but some traders argue that there is approximately a 50/50 split between whether it tends to move upwards or downwards upon completion of the pattern. For this reason, it can often be avoided by traders. It can be viewed as the opposite of a symmetrical triangle.

How Do I Recognize a Broadening Top Futures Chart Pattern?

A broadening top is comprised of diverging support and resistance lines and resembles a megaphone. The rising resistance line and falling support line continue until the trend reverses.

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Recognizing Charts & Patterns

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2. Sell Signal on Mini Russell?

Our VP, Ilan Levy-Mayer as featured on Finance Magnates

Sell Signal on Mini Russell

Powerful Sell Signal on Russell 2000?

Usually when markets are range bound for an extended period of time, a breakout is on the horizon and the big question is which way.

Stocks have been trading in a very narrow range despite making new all-time highs (some of the indices). Usually when markets are range bound for an extended period of time, a breakout is on the horizon and the big question is which way.

Since the daily chart did not provide me with the clues I was looking for, I went over to the higher multiple time frame of the weekly chart and decided to analyze the mini Russell 2000 as I feel it has been somewhat of a leading indicator for the overall stock market.

What I see on the weekly mini Russell 2000 chart below is a major sell signal confirmed by two different methods I personally have confidence in. One of these is a proprietary indicator I developed, the other is Elliott Wave.
Read the rest of the article Finance Magnates

3. Economic Calendar

Source: Moore Research Center, Inc.

Date Reports Expiration & Notice Dates
9:00 AM CDT - NAHB Housing Market Index(May) FN: May Lumber(CME)
LT: May Eurodollar(CME)
May Coffee(ICE)
7:30 AM CDT - Building Permits & Housing Starts(Apr)
2:00 PM CDT - Milk Production
LT: Jun Crude Lt(NYM)
6:00 AM CDT - MBA Mortgage Purchase Index
9:30 AM CDT - API & DOE Energy Stats
1:00 PM CDT - FOMC Minutes
2:00 PM CDT - Dairy Products Sales
LT: Jun Platinum Options(NYM)
Jun Palladium Options(NYM)
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly
9:00 AM CDT - Existing Home Sales(Apr)
9:00 AM CDT - Leading Indicators(Apr)
9:00 AM CDT - Philadelphia Fed(May)
9:30 AM CDT - EIA Gas Storge
3:30 PM CDT - Money Supply
FN: Jun Crude Lt(NYM)
LT: May Feeder Cattle(CME)
May Feeder Cattle Options(CME)
7:30 AM CDT - Core CPI & CPI(Apr)
2:00 PM CDT - Cattle On Feed
2:00 PM CDT - Cold Storage
LT: Jun 2,5,10 Year Notes Options(CBT)
Jun Bonds Options(CBT)
Jun Canola Options(CBT)
Jun Corn Options(CBT)
Jun Wheat Options(CBT)
Jun Oats Options(CBT)
Jun Rough Rice Options(CBT)
Jun Soybeans,Soymeal,Soyoil Options(CBT)

* 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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