January 4th, 2019 - Issue #948
In This Issue
1. Trading 102: Options on Futures In Depth Information
2. Hot Market Report: Gold Futures Quietly Touching the $1300 Mark
3. Economic Calendar
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1. Trading 102: Options on Futures In Depth Information
A comprehensive resource for information on options on futures
In this section you will read and learn about the following:
*Options Basics
*Options Strategies for Bullish set ups
*Options Strategies for Bearish set ups
*Options Strategies for Neutral set ups
*Selling Options Premium - an overview
And much more!
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2. Hot Market Report: Gold, the yellow metal is shinning a bit brighter...
By Mark O'Brien, Senior BrokerClick on image below to enlarge
Gold is on the move! As of this typing the Feb. futures contract traded above $1,300 per ounce for the first time in over six months – up from its mid-August lows in the $1,170’s, including a ±$60 rise since Dec. 14, the date of the last Fed. meeting. That recent move suggests traders are betting against the hawkish assessment of the U.S. economy laid out by Chairman Powell back then – and that the tone will soften going into the early part of 2019. In line with the seeming “flight-to-quality” environment, treasury prices, as reflected in 10-year yields reached highs not seen since Jan. 2018; its corresponding interest rate slid to 2.56%. Additionally, U.S. Dollar strength, long viewed as a counter-measure to potential gold price movement – and up almost 10% this calendar year – while seeing 30-month highs in mid-December, generally stalled the entire last quarter of 2018. This is all against the backdrop of the “big picture” that gold traders are seeing in the headline-garnering events of late: the U.S. stock market’s volatility and overall weakness, concerns over slowing global economic growth, the China-U.S. trade war, Brexit tensions, the effects of the waning QE, the third year of Mr. Trump’s presidency with a newly-shaped congress. All those have added a collective degree of uncertainty that gold historically reacts to with higher prices. On to 2019!
Daily chart from this morning, (Jan. 4th 2019).Notice the market touched the psycholigical $1300 mark overnight before backing off about $20. On the chart you can see we got a slanted blue arrow in the begining of Dec. This is a tool/ ALGO I use that tries to predict begining of trends.
You can also see I am using the parabolic study as a "trailing stop" along with the FIB lines for possible targets and stops.
This chart was prepared using CQG Q Trader software, which you can demo for 14 days with real time data.To access a free trial to the ALGOS shown in the chart ( "early trend identifier" included) along with other tools, visit and sign up for a free trial for 21 days with real time data.
GOLD Futures Specs
Hours: 05:00 PM previous day to 4:00 PM Central Time
Margins: $3460 initial, $3100 Maint. ( as of the date of this newsletter)
Point Value: full point = $100 ( Example: 1285.0 to 1286.0 ). Min fluctuation is 0.1 = $10 ( Example: 1285.5 to 1285.6) Settlement: Physical Delivery
Months: February, April, June, August, October,December. G,J,M,Q,V,Z
Weekly Options:YES
Some of the basic fundamentals to keep in mind when you are considering trading gold futures for this matter:
1. Research supply side in major producing countries.
2. Follow both the jewelry demand and investment demand for silver
3. Focus in macroeconomics not microeconomics
4. Correlation to silver and platinum
5. Correlation to US Dollar prices
6. Inflationary prospects
7. Geopolitical Stability
8. U.S. Fiscal and Monetary Stability
Our brokers here at Cannon will be happy to chat about the gold market, other metals, 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 |
|---|---|---|
| 01/04 Fri |
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Ave Workweek & Hourly Earnings(Dec) 7:30 AM CST - Nonfarm Payrolls(Dec) 7:30 AM CST - Unemployment Rate(Dec) 9:30 AM CST - EIA Natural Gas Report 10:00 AM CST - EIA Petroleum Status Report |
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) |
| 01/07 Mon |
9:00 AM CST - ISM Non-Manufacturing Index(Dec)
|
|
| 01/08 Tue |
7:30 AM CST - Trade Balance(Nov)
3:30 PM CST - API Energy Stocks |
|
| 01/09 Wed |
6:00 AM CST - MBA Mortgage Index
9:30 AM CST - EIA Petroleum Status Report 2:00 PM CST - Dairy Products Sales |
|
| 01/10 Thu |
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly 9:00 AM CST - Wholesale Inventories(Nov) 9:30 AM CST - EIA Natural Gas Report 3:30 PM CST - Money Supply |
LT: Jan Orange Juice(ICE)
|
| 01/11 Fri |
7:30 AM CST - Core CPI & CPI(Dec)
11:00 AM CST - WASDE Report & Crop Production(& Annual) 11:00 AM CST - Winter Wheat Seedings 11:00 AM CST - Grain Stocks |
LT: Jan Eurodollar Options(CME)
Feb Coffee Options(ICE) |
| 01/14 Mon |
|
|
| 01/15 Tue |
7:30 AM CST - Core PPI & PPI(Dec)
11:00 AM CST - NOPA Crush 3:30 PM CST - API Energy Stocks |
|
| 01/16 Wed |
6:00 AM CST - MBA Mortgage Index
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) 9:00 AM CST - Business Inventories(Nov) 9:30 AM CST - EIA Petroleum Status Report 1:00 PM CST - Fed's Beige Book(Jan) 2:00 PM CST - Dairy Products Sales 3:00 PM CST - Net Long-Term TIC Flows(Nov) |
|
| 01/17 Thu |
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - Building Permits & Housing Starts(Dec) 7:30 AM CST - Philadelphia Fed Index(Jan) 9:30 AM CST - EIA Natural Gas Report 3:30 PM CST - Money Supply |
|
| 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!
