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August 21st, 2015 Newsletter

Dow Jones Cash Index Bearish Signals. Futures Spreads trading Article.

August 21st, 2015 - Issue #798

In This Issue

1. Hot Market Chart: Dow Jones Index
2. Trading Futures Spreads - Basic But Important Strategy
3. Economic Calendar

1. Hot Market Chart: Dow Jones Index

Big Drop on Dow Jones

bearish patterns in Dow Jones; I posted the following on FinanceMagnates.com back on August 5th about Dow Jones making lower highs and lower lows. Feel free to read that analysis at: FinanceMagnates.com

Here you see my updated chart of the same Dow Jones Cash Index, except that this time it is a weekly chart. Note we just broke major weekly support level ( 17035). Next week can be very important, can the Dow hold 16535? Can the bulls defend this level? My speculation is that the answer lies within the Federal Reserve and how much buying it will inject into the market. For now, plan your trade, trade your plan!

2. Trading Futures Spreads - Basic But Important Strategy

 


"A basic and important strategy for commodities traders using spread trading."

By: Mark O'Brien, Cannon Trading Commodities Broker

Over my 20+ year career as a commodities broker, I have studied and traded a wide range of approaches to trading the futures markets.  From candlestick formations to the commodity channel index, from condors to turtle trading, there’s an enormous catalog of tools and methods available for traders to consider.

One method I have noticed is surprisingly underrepresented among retail traders is futures spread trading, where a single position in the market consists of the simultaneous purchase of one futures contract and sale of a related futures contract as a unit.  I call it surprising because some of the most invested players in futures trading – and arguably the most sophisticated – include large speculators and commercial firms who regularly employ spreads.  This includes traders in the markets who often actually buy and sell the physical commodities we trade.  Farmers, ranchers and other food growers along with food producers, petroleum companies who either drill for oil or natural gas or refine these products – or both, financial institutions with enormous holdings in treasuries, equities or currencies, mining interests and their buyers – all these areas of production and distribution employ spreads from time to time as an important aspect of their businesses.  Indeed, spread trading is a fundamental and essential part of the commodities futures markets.

At the same time, despite the remarkable increase in interest and in the growth in the volume of the futures markets over the years, spread trading is typically dismissed by most other traders in search of a trading strategy.  With so much attention focused on other approaches related to straightforward directional trading (and within that category, day-trading) it’s not difficult to see how spread trading can be overlooked.

 


To read the remaining article on Trading Futures Spreads please fill out this form.

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3. Economic Calendar

Source: Moore Research Center, Inc.

  
Date Reports Expiration & Notice Dates
08/24
Mon
   FN: Sep Crude Lt(NYM)

  
08/25
Tues

  
8:00 AM CDT - Case-Shiller 20-City Index(Jun)
8:00 AM CDT - FHFA Housing Price Index(Jun)
9:00 AM CDT - Consumer Confidence(Aug)
9:00 AM CDT - New Home Sales(Jul)
 
08/26
Wed
6:00 AM CDT - MBA Mortgage Purchase Index
7:30 AM CDT - Durable Goods-Ex Transportation(Jul)
7:30 AM CDT - Durable Orders(Jul)
9:30 AM CDT - API & DOE Energy Stats
2:00 PM CDT - Dairy Products Sales
 
08/27
Thurs
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly
7:30 AM CDT - GDP-Second Estimate(Q2)
7:30 AM CDT - GDP Deflator-Second Estimate(Q2)
9:00 AM CDT - Pending Homes Sales(Jul)
9:30 AM CDT - EIA Gas Storage
3:30 PM CDT - Money Supply
LT: Aug Copper(CMX)
Aug Gold(CMX)
Aug Silver(CMX)
Aug Platinum(NYM)
Aug Palladium(NYM)
Aug Feeder Cattle(CME)
Sep Natural Gas(NYM)
Aug Feeder Cattle Options(CME)  
  
08/28
Fri
7:30 AM CDT - PCE Prices-Core(Jul)
7:30 AM CDT - Personal Income & Spending(Jul)
9:00 AM CDT - Michigan Sentiment-Final(Aug)
 
 
FN: Sep Natural Gas(NYM)
 
08/31
Mon
8:45 AM CDT - Chicago PMI(Aug)
  
FN: Sep 2,5,10 Year Notes(CBT)
Sep Bonds(CBT)
Sep Copper(CMX)
Sep Gold & Silver(CMX)
Sep Platinum & Palladium(NYM)
Sep Wheat(CBT)
Sep Corn(CBT)
Sep Oats(CBT)
Sep Rough Rice(CBT)
Sep Soybeans,Soymeal,Soyoil(CBT)
LT: Aug Fed Funds(CME)
Aug Live Cattle(CME)
Sep RBOB & ULSD(NYM)
Aug Fed Funds Options(CME)
Sep Lumber Options(CME)

  

* 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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