Oct. 26, 2012 - Issue #658
In This Issue
1. Trader's Resource Corner - Crude Oil Report by Elliott Wave
2. Hot Market Review - Euro Currency
3. Economic Calendar
1. Traders Resource Corner - Crude Oil Report by Elliott Wave
In July 2008, when crude oil prices were at $148 a barrel and "peak oil" bulls were forecasting a rise to $200, even $300 a barrel, contrarian technical analyst Robert Prechter took the opposite stance: "One of the greatest commodity tops of all time is due very soon," he wrote in his June 2008 Elliott Wave Theorist. By December 2008, a barrel of oil cost just $32. In recent months, the "peak oil" bulls are back to their same old forecasts from 2008: T. Boone Pickens: Oil Could Hit $148 Per Barrel - CNBC, April 3, 2012 Are such forecasts more valid now than they were then? You can now read Prechter's big-picture outlook on the oil markets in a newly released report. Follow this link to download Prechter's 26-page oil report now -- it's free for a limited time.
2. Hot Market Review: Euro Currency
From our friends at Weissman Signals
Richard L. Weissman is a professional trader with over twenty years' experience. He has provided private consultations and training to traders and risk managers for over fifteen years. He currently serves as a Senior Associate with the Energy Management Institute (www.emi.org), where he teaches trading and risk courses, which are co-sponsored by CME Group and the IntercontinentalExchange. In addition, he is editor-in-chief of Weissman Signals Inc. (www.weissmansignals.com), a newsletter covering the ETF, futures, and cash foreign exchange markets. Weissman's first book, Mechanical Trading Systems: Pairing Trader Psychology with Technical Analysis, was published by John Wiley & Sons in 2004. His second book, Trade Like a Casino: Find Your Edge, Manage Risk and Win Like the House, was selected as a Finalist for the Technical Analyst 2012 Book of the Year Award.
click on image below to enlarge
December 2012 CME Group Euro-US Dollar futures are displaying low volatility as defined by its ten-day ADX reading, which is currently below fifteen. In addition, the market has carved out well-defined horizontal support and resistance levels around 1.3150 and 1.2825, respectively. These indicators suggest that bracketing the market with buy stops around 1.3150 and sell stops around 1.2825 could enable participation in a significant breakout from this low-volatility environment.
Whichever order is executed, the other acts as an initial catastrophic stop-loss. That stated, once the market achieves a statistically significant unrealized gain, as defined by its ten-day Average True Range (ATR) that is currently around eighty-seven points, we could take partial profits and move stops to break even on the remainder of the position.
Weissman Signals is a daily newsletter offering short-term (two to ten day) trend-following and counter-trend trading recommendations to the institutional and retail speculative trading communities. We provide trading signals in exchange traded funds, foreign exchange, exchange-traded futures markets. The newsletter is updated at least once a day via e-mail at 6 PM EST. For 2 week FREE trial, please fill out the short form below
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3. Economic Calendar
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 10/29 Mon |
7:30 AM CDT - Personal Income & Spending(Sep)
7:30 AM CST - PCE Prices-Core(Sep) |
LT: Oct Copper(CMX)
Oct Gold(CMX) Oct Silver(CMX) Oct Platinum(NYM) Oct Palladium(NYM) Nov Natural Gas(NYM) |
| 10/30 Tues |
8:00 AM CDT - Case-Shiller 20-City Index(Aug)
9:00 AM CDT - Consumer Confidence(Oct) |
FN: Nov Natural Gas(NYM) |
| 10/31 Wed |
6:00 AM CDT - MBA Mortgage Purchase Index
7:15 AM CDT - ADP Employment Change(Oct) 7:30 AM CDT - Dairy Products Prices 7:30 AM CDT - Employment Cost Index(Q3) 8:45 AM CDT - Chicago PMI(Oct) 9:30 AM CDT - API & DOE Energy Stats |
FN: Nov Copper(CMX)
Nov Gold(CMX) Nov Silver(CMX) Nov Platinum(NYM) Nov Palladium(NYM) Nov Rough Rice(CBT) Nov Soybeans(CBT) LT: Oct Fed Funds(CME) Oct Live Cattle(CME) Nov Heating Oil(NYM) Nov RBOB Gasoline(NYM) Oct Fed Funds Options(CME) Nov Lumber Options(CME) |
| 11/01 Thurs |
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) 7:30 AM CST - Unit Labor Costs(Q3) 9:00 AM CDT - Construction Spending(Sep) 9:00 AM CDT - ISM Index(Oct) 9:30 AM CDT - EIA Gas Storage 1:00 PM CDT - Auto & Truck Sales(Oct) 3:30 PM CDT - Money Supply |
FN: Nov Orange Juice(ICE)
LT: Oct Butter(CME) Oct Milk(CME) Oct Butter Options(CME) Oct Mikl Options(CME) |
| 11/02 Fri |
7:30 AM CDT - Ave Workweek & Hourly Earnings(Oct)
7:30 AM CDT - Nonfarm Payrolls(Oct) 7:30 AM CDT - Unemployment Rate(Oct) 9:00 AM CDT - Factory Orders(Sep) |
FN: Nov Heating Oil(NYM)
Nov RBOB Gasoline(NYM) LT: Nov Live Cattle Options(CME) Dec Cocoa Options(ICE) |
| 11/05 Mon |
9:00 AM CST - ISM Services(Oct) |
* 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!
