January 3rd, 2020 - Issue #994
In This Issue
1. (Day)Trading Got You Frustrated? Take a look at a simpler Approach to trading futures
2. Hot Market Report: Crude Oil Volatility Jumps as US Attacks in Iraq
3. Economic Calendar
1. Trading Video: How I like to day-trade futures using either counter trend or trend following concepts ( or what I call a simpler approach to day trading)
In this 25 minutes video you will learn the following:
1. Possible advantages of using range bar charts over time charts for day trading2. Trade set ups using counter trend indicators
3. Trade set ups using trend following indicators
4. The concept of price confirmation
5. Tips and insights from Ilan's observations of different markets
6. You will be able to install the indicators/concepts mentioned and practice right away with your own demo!
View Video Instantly "simple approach to Day Trading"
Cannon Trading respects your privacy and will never give this information to a 3rd party.
2. Hot Market Report: Crude Oil Volatility Spikes
By Ilan Levy-Mayer, VPClick on image below to enlarge
This week’s highlighted Market is Crude Oil. Crude Oil is part of the energy sector along with "it's" brothers "RBOB - Unleaded gas" and heating oil and cousin, natural gas. All traded on the NYMEX/GLOBEX exchange.
Feb Crude oil was up by nearly four percent($64.09) after a US airstrike killed Iranian General Suleimani. Markets could be fearing that Iran may retaliate against the killing of the general by attacking the US, it's interests or a diplomat. This tension could affect worldwide oil supplies since Iran holds 10% of the world’s proven oil reserves. It is OPEC’s second largest exporter and the world’s fourth largest oil producer.
Market broke above the Sept. highs made after Saudi Oil fields were attacked. This level of $63.37 will play a crucial level and a close above it can trigger the next leg up. We believe volatility will remain higher than normal and as traders, we need to adjust our trading approach and settings to higher volatility.
To access a free trial to the ALGOS shown in the chart visit and sign up for a free trial for 21 days with real-time data.
On a different note, Crude Oil futures are fastly becoming one of the more popular contracts for day-trading as volatility, speed, price fluctuations are all there for the double edge sword, day-traders love.
Keep in mind that the GLOBEX/NYMEX also offers the mini Crude oil contract which is half the size and may be a good alternative for smaller/ begginer traders.MINI Crude Oil Futures Specs
Hours: 5:00 PM to 4:00 PM next day PM Central Time
Margins: $2062 initial, $1850 Maint. ( as of the date of this newsletter)
Point Value: full point = $500 ( Example: 62.80 to 63.80 ). Min fluctuation is 0.25 = $12.5 ( Example: 61.80 to 61.825)
Settlement: Cash Settled commodity one day prior to the Big Contract
Months: Monthly cycle, All Months
Crude Oil Futures Specs
Hours: 5:00 PM to 4:00 PM next day PM Central Time
Margins: $4125 initial, $3750 Maint. ( as of the date of this newsletter)
Point Value: full point = $1000 ( Example: 71.80 to 72.80 ). Min fluctuation is 0.1 = $10 ( Example: 71.80 to 71.81)
Settlement: Physical, deliverable commodity
Months: Monthly cycle, All Months
Weekly Options:YES
Crude Oil is one of my favorite markets for Day Trading because of the intraday voilatility and movements. Be careful, these factors can work against you or in your favor.
Some of the basic fundamentals to keep in mind when you are considering a trade in the crude oil as well as other energies:
1. Longer term view of current market prices
2. Dates and times of important reports. Namely, Tuesday afternoon report (API) and the DOE report on Wednesday mornings at 10:30 Am EST
3. Weather and Seasonality
4. Correlation to US Dollar prices
5. Inflationary prospects
6. Geopolitical Stability
7. U.S. Fiscal and Monetary Stability
Our brokers here at Cannon will be happy to chat about the crude olil market, other energies, 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 |
|---|---|---|
| 01/03 Fri |
7:30 AM CST - USDA Weekly Export Sales
9:00 AM CST - Construction Spending(Nov) 9:30 AM CST - EIA Natural Gas Report 1:00 PM CST - Auto & Truck Sales(Dec) |
FN: Jan RBOB & ULSD(NYM)
LT: Jan Canadian Dollar Options(CME) Jan Currencies Options(CME) Jan Mx Peso Options(CME) Jan US Dollar Index Options(ICE) Jan Live Cattle Options(CME) Feb Cocoa Options(ICE) |
| 01/06 Mon |
|
|
| 01/07 Tue |
7:30 AM CST - Adv Intl Trade In Goods(Nov)
7:30 AM CST - Adv Retail Inventories(Nov) 7:30 AM CST - Adv Wholesale Inventories(Nov) 7:30 AM CST - Trade Balance(Nov) 9:00 AM CST - Factory Orders(Nov) |
|
| 01/08 Wed |
6:00 AM CST - MBA Mortgage Index
7:15 AM CST - ADP Employment Change(Dec) 9:30 AM CST - EIA Petroleum Status Report 2:00 PM CST - Consumer Credit(Nov) 2:00 PM CST - Dairy Products Sales |
|
| 01/09 Thu |
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 |
|
| 01/10 Fri |
7:30 AM CST - Nonfarm Payrolls(Dec)
7:30 AM CST - Ave Workweek & Hourly Earnings(Dec) 7:30 AM CST - Unemployment Rate(Dec) 9:00 AM CST - Wholesale Inventories(Nov) 11:00 AM CST - WADSE Report & Crop Production(& Ann.) 11:00 AM CST - Winter Wheat Seedings 11:00 AM CST - Grains Stocks |
LT: Jan Orange Juice(ICE)
Jan Eurodollar Options(CME) Feb Coffee Options(ICE) |
| 01/13 Mon |
|
LT: Jan Eurodollar(CME)
Jan Mx Peso(CME) |
| 01/14 Tue |
7:30 AM CST - Core CPI & CPI(Dec)
3:30 PM CST - API Energy Stocks |
LT: Jan Canola(CBT)
Jan Rough Rice(CBT) Jan Soybeans,Soymeal,Soyoil(CBT) |
| 01/15 Wed |
6:00 AM CST - MBA Mortgage Index
7:30 AM CST - Core PPI & PPI(Dec) 7:30 AM CST - Empire State Manufacturing(Jan) 9:30 AM CST - EIA Petroleum Status Report 11:00 AM CST - NOPA Crush 2:00 PM CST - Dairy Products Sales |
LT: Jan Lumber(CME)
Feb Crude Lt Options(NYM) Feb Platinum & Palladium Options(NYM) Feb Sugar-11 Options(ICE) |
| 01/16 Thu |
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - Export(ex-ag) & Import(ex-oil) Prices(Dec) 7:30 AM CST - Retail Sales(Dec) 7:30 AM CST - Retail Sales Ex-Auto(Dec) 7:30 AM CST - Philadephia Fed Index(Jan) 9:00 AM CST - Business Inventories(Nov) 9:00 AM CST - NAHB Housing Market Index(Jan) 9:30 AM CST - EIA Natural Gas Report 2:00 PM CST - Net Long-Term TIC Flows(Nov) 3:30 PM CST - Money Supply |
FN: Jan Lumber(CME)
|
| FN=First Notice, OE=Option Expiration, LT=Last Trade | ||
* 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!
