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February 24th, 2017 Newsletter

Create Trading Rules to Help you with your trading and gold futures hit major resistance

February 24th, 2017 - Issue #865

In This Issue

1. Futures Trading 202: Creating Trading Rules can help eliminate some of the emotions from trading
2. Hot Market: Gold Trending Higher, Bulls In Technical Control
3. Economic Calendar

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1. Futures Trading 202: Creating Trading Rules can help eliminate some of the emotions from trading

When speaking of trading rules, I think there are two levels of the subject. One is in terms of general rules such as:
  • Only use risk capital
  • Do not over trade
  • Do not be greedy and many more of this nature
The other set of trading rules relate more to trading strategy perhaps even trade systems. In my opinion, the following are important trading rules when it comes to a trading strategy:

  1. Know which markets you are trading
  2. Know how many markets you are trading at any one give time
  3. Know the time frame for your trading, i.e. Are you day trading or swing trading?
Once you answer the questions above you can get into even more specific rules. For the sake of educational purposes let's assume the following:

  • We will focus on trading crude oil, mini Russell 200 and gold futures.
  • We cannot be in more than 2 markets at any one given time.
  • We are approaching trading as an intraday activity, so we will be in and out within the primary trading sessions that starts at 8:30 AM EST and ends at 4 PM EST

Now that we know the answers for the first more general set of rules you need to decide and answer the questions below to create the following trading rules:

  1. When do we enter a trade?
  2. Quantity of contracts we will trade?
  3. Decide when to exit a trade when a trade is losing
  4. Decide rules for taking profits or exit targets.

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2. Hot Market: Gold Trending Higher, Bulls In Technical Control

Click on image below to enlarge

gold futures; "The trend is your friend." Gold bulls are enjoying a price uptrend in the yellow metal. Gold prices are higher and hit a 3.5-month high Friday on more safe-have demand. Weaker world stock markets and a lower U.S. dollar index today are helping out the precious metals market bulls. Note that as of writing this newsletter, gold high at 1261.2 is EXACTLY the on major Fibonacci level.

3. Economic Calendar

Source: Moore Research Center, Inc.

Date Reports Expiration & Notice Dates
02/24
Fri
7:30 AM CST - USDA Weekly Export Sales
9:00 AM CST - New Home Sales(Jan)
9:00 AM CST - Michigan Sentiment-Final(Feb)
2:00 PM CST - Cattle On Feed
LT: Feb Copper(CMX)
Feb Gold(CMX)
Feb Silver(CMX)
Feb Palladium(NYM)
Feb Platinum(NYM)
Mar Natural Gas(NYM)
Mar 2,5,10 Year Notes Options(CBT)
Mar Bonds Options(CBT)
Mar Canola Options(CBT)
Mar Wheat Options(CBT)
Mar Corn Options(CBT)
Mar Oats Options(CBT)
Mar Rough Rice Options(CBT)
Mar Soybeans,Soymeal,Soyoil Options(CBT)
02/27
Mon
7:30 AM CST - Durable Orders(Jan)
7:30 AM CST - Durable Goods Ex-Transportation(Jan)
9:00 AM CST - Pending Home Sales(Jan)
2:00 PM CST - Trout Production
FN: Mar Natural Gas(NYM)
 
 
 
02/28
Tue
7:30 AM CST - GDP-Second Estimate(Q4)
7:30 AM CST - GDP Deflator-Second Estimate(Q4)
8:45 AM CST - Chicago PMI(Feb)
9:00 AM CST - Consumer Confidence(Feb)
3:30 PM CST - API Energy Stocks
FN: Mar 2,5,10 Year Notes(CBT)
Mar Bonds(CBT)
Mar Copper(CMX)
Mar Gold & Silver(CMX)
Mar Platinum & Palladium(NYM)
Mar Canola(CBT)
Mar Wheat(CBT)
Mar Oats(CBT)
Mar Corn(CBT)
Mar Rough Rice(CBT)
Mar Soybeans,Soymeal,Soyoil(CBT)
LT: Feb Butter(CME)
Feb Milk(CME)
Feb Fed Funds(CME)
Feb Live Cattle(CME)
Mar RBOB & ULSD(NYM)
Mar Sugar-11(ICE)
Feb Butter Options(CME)
Feb Milk Options(CME)
Feb Fed Funds Options(CME)
Mar Lumber Options(CME)

03/01
Wed
6:00 AM CST - MBA Mortgage Applications Index
7:30 AM CST - Personal Income & Spending(Jan)
7:30 AM CST - PCE Prices-Core(Jan)
9:00 AM CST - Construction Spending(Jan)
9:00 AM CST - ISM Index(Feb)
9:30 AM CST - EIA Petroleum Status Report
1:00 PM CST - Auto & Truck Sales(Feb)
1:00 PM CST - Fed's Beige Book(Mar)
2:00 PM CST - Cotton Systems(& Annual)
2:00 PM CST - Fats & Oils(& Annual)
2:00 PM CST - Grain Crushings(& Annual)
2:00 PM CST - Dairy Products Sales
FN: Mar Orange Juice(ICE)
Mar Sugar-11(ICE)

 
03/02
Thu
6:30 AM CST - Challenger Job Cuts(Feb)
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly
9:30 AM CST - EIA Natural Gas Report
3:30 PM CST - Money Supply
FN: Mar RBOB & ULSD(NYM)
 
 
 
03/03
Fri
9:00 AM CST - ISM Services(Feb)
 
 
 
LT: Mar Canadian Dollar Options(CME)
Mar Currencies Options(CME)
Mar MX Peso Options(CME)
Mar US Dollar Options(ICE)
Mar Live Cattle Options(CME)
Apr Cocoa Options(ICE)
03/06
Mon
9:00 AM CST - Factory Orders(Jan)
 
 
 

 
 
 
03/07
Tue
7:30 AM CST - Trade Balance(Jan)
2:00 PM CST - Consumer Credit(Jan)
3:30 PM CST - API Energy Stocks
 

 
 
 
03/08
Wed
6:00 AM CST - MBA Mortgage Purchase Index
7:15 AM CST - ADP Employment Change(Feb)
7:30 AM CST - Productivity-Rev(Q4)
9:00 AM CST - Wholesale Inventories(Jan)
9:30 AM CST - EIA Petroleum Status Report
2:00 PM CST - Dairy Products Sales

 
 
 
03/09
Thu
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly
7:30 AM CST - Export Prices(ex-ag) & Import Prices(ex-oil)(Feb)
9:30 AM CST - EIA Natural Gas Report
11:00 AM CST - WASDE Report & Crop Production
3:30 PM CST - Money Supply
LT: Mar Nikkei(CME)
Mar Cotton(NYM)
Mar Nikkei Options(CME)
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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