October 21st 2016 Newsletter

Crude oil bulls are in control. Which Futures market should you be trading

October 21st, 2016 - Issue #849

In This Issue

1. Trading 102: Which market is Right for You?
2. Hot Market Report: Nymex Crude Oil Bulls are in Control
3. Economic Calendar

1. Which Market is Right for you?

by: Ilan Levy-Mayer VP Cannon Trading

So you got a taste of the markets and trading and now you are getting more involved, excited and looking to progress. Many questions ahead for you as a trader and as time progresses you will evolve and find out if trading is suitable for you and if so what type of trading, what type of risk capital and other questions that will come up. Many of these will appear as you progress and your knowledge increase. Some of these questions need to be answered before you start trading.

1. How much risk capital do I have?

2. What markets do I want to trade?

3. What style of trading do I want to employ?

The answer to question 1 will vary for each trader based on their financial situation but the bottom line is, make sure you trade with money you can afford to lose.

The answer to question 2 has a few levels: First is what asset class are you looking to trade? Stocks/ equities? perhaps FOREX or maybe futures? Since my area of expertise is futures, commodities and future options I would like to expand on this asset class.

The answer to question 3 deserves a post of it's own....

Trading futures offers many advantages as well as some drawbacks. For many traders who prefer to day trade ( you enter and exit the position during the same session and avoid holding positions from one day to another), trading futures is a great alternative to day trading stocks. In stocks you need to have minimum of $25,000 to day-trade. In futures you only need $2500. The build in leverage in the futures market, intensified by the even more so reduced day trading margins, creates a double edge sword: Small moves can translate into big wins in your pocket BUT small moves against you will also translate into big losses in your account....

 

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2. Hot Market Report - Nymex Crude Oil Rebounds on OPEC News, But Doubters Abound


From our friend Jim Wyckoff

Jim has an excellent daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at www.jimwyckoff.com click on image below to enlarge

crude oil Futures

The Nymex crude oil futures market hit a three-month high this week and the bulls have upside near-term technical momentum. The next upside target for the energized bulls is solid chart resistance at the summertime high of $53.62. Multiple closes back below $50.00 a barrel would give the bears good technical strength to suggest a market top is in place. The resurgent crude oil market is a bullish element for the raw commodity sector. As goes crude oil, so, too, will likely go many other raw commodity futures markets. Stay tuned!

3. Economic Calendar

Source: Moore Research Center, Inc.

Date Reports Expiration & Notice Dates
10/21
Fri
2:00 PM CDT - Cattle On Feed
2:00 PM CDT - Cold Storage
 
 
LT: Oct Nikkei Options(CME)
Oct E-Mini Dow Options(CME)
Oct E-Mini S&P 500 Options(CME)
Oct E-Mini NASDAQ Options(CME)
Oct Russell Options(CME)
Oct S&P 500 Options(CME)
Nov 2,5,10 Year Notes Options(CBT)
Nov Bonds Options(CBT)
Nov Canola Options(CBT)
Nov Wheat Options(CBT)
Nov Corn Options(CBT)
Nov Cotton Options(CBT)
Nov Oats Options(CBT)
Nov Rough Rice Options(CBT)
Nov Soybeans,Soymeal,Soyoil Options(CBT)
Nov Orange Juice Options(ICE)

10/24
Mon

 
 
 
FN: Nov Crude Lt(NYM)
 
 
 
10/25
Tue
8:00 AM CDT - Case-Shiller 20-City Index(Aug)
8:00 AM CDT - FHFA Housing Price Index(Aug)
9:00 AM CDT - Consumer Confidence(Oct)
3:30 PM CDT - API Energy Stocks

 
 
 
10/26
Wed
6:00 AM CDT - MBA Mortgage Index
9:00 AM CDT - New Home Sales(Sep)
9:30 AM CDT - EIA Petroleum Status Report
2:00 PM CDT - Dairy Products Sales
LT: Nov Copper Options(CMX)
Nov Gold Options(CMX)
Nov Silver Options(CMX)
Nov Natural Gas Options(NYM)
Nov RBOB & ULSD Options(NYM)
10/27
Thu
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly
7:30 AM CDT - Durable Orders(Sep)
7:30 AM CDT - Durable Orders Ex-Transportation(Sep)
9:00 AM CDT - Pending Home Sales(Sep)
9:30 AM CDT - EIA Natural Gas Report
3:30 PM CDT - Money Supply
LT: Oct Copper(CMX)
Oct Gold(CMX)
Oct Silver(CMX)
Oct Platinum(NYM)
Oct Palladium(NYM)
Oct Feeder Cattle(CME)
Oct Feeder Cattle Options(CME)
10/28
Fri
7:30 AM CDT - Chain Deflator-Adv(Q3)
7:30 AM CDT - Employment Cost Index(Q3)
7:30 AM CDT - GDP-Adv(Q3)
7:30 AM CDT - GDP Deflator(Q3)
9:00 AM CDT - Michigan Sentiment-Final(Oct)
FN: Nov Natural Gas(NYM)
 
 
 
10/31
Mon
7:30 AM CDT - PCE Prices(Sep)
7:30 AM CDT - Personal Income & Spending(Sep)
8:45 AM CDT - Chicago PMI(Oct)
 
FN: Nov Copper(CMX)
Nov Gold & Silver(CMX)
Nov Platinum & Palladium(NYM)
Nov Canola(CBT)
Nov Rough Rice(CBT)
Nov Soybeans(CBT)
LT: Oct Fed Funds(CME)
Oct Live Cattle(CME)
Nov RBOB & ULSD(NYM)
Oct Fed Funds Options(CME)
Nov Lumber Options(CME)
11/01
Tue
9:00 AM CDT - Construction Spending(Sep)
9:00 AM CDT - ISM Index(Oct)
1:00 PM CDT - Auto & Truck Sales(Oct)
2:00 PM CDT - Fat & Oils
2:00 PM CDT - Grain Crushings
3:30 PM CDT - API Energy Stocks
FN: Nov Orange Juice(ICE)
LT: Oct Butter(CME)
Oct Milk(CME)
Oct Butter Options(CME)
Oct Milk Options(CME)
11/02
Wed
6:00 AM CDT - MBA Mortgage Index
7:15 AM CDT - ADP Employment Change(Oct)
9:30 AM CDT - EIA Petroleum Status Report
1:00 PM CDT - FOMC Rate Decision
2:00 PM CDT - Dairy Products Sales
FN: Nov RBOB & ULSD(NYM)
 
 
 
11/03
Thu
6:30 AM CDT - Challenger Job Cuts(Oct)
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly
7:30 AM CDT - Productivity-Prel(Q3)
9:00 AM CDT - Facotry Orders(Sep)
9:00 AM CDT - ISM Services(Oct)
9:30 AM CDT - EIA Natural Gas Report
3:30 PM CDT - Money Supply

 
 
 
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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