January 10th, 2020 - Issue #995
In This Issue
1. Are You Trading the Best Way for YOU?
2. Hot Market Report: Crude Oil Volatility Continues!
3. Economic Calendar
1. Trading 102: Are You Trading the Best Way for YOU?
Too many clients are fixated with daytrading the stock index futures....There is so much more to trading and one should have an honest evaluation as to which vehicle, trading method or combination are most suitable for them based on their life style, personality, risk capital, time available and more!
Day-trading, swing trading, spreads, options, scalping, selling options, auto trading are just a few of the trading options available for traders out there...
This is a reprint of an article Ilan Levy-Mayer, VP of Cannon wrote for SFO magazine a few years back. Valuable information which we wanted to share with you:
What's Your Trading blood type?
Perhaps the greatest luxury I have in this business is the ability to observe
the experiences of many traders with different personalities, life
schedules and risk capital, each trading in a variety of markets. What
most astute brokers realize is that, over time, as some individuals prematurely
exit winners while others desperately cling to losers, it becomes
quite possible to match different "blood types" of those traders
with their correct "trading diets." Clearly, we're not talking the
medical blood type here, but in the figurative sense it makes the right
point. With practice, it's not too hard to determine blood types (type
of trading best suited to the individual) based on the personality of the
trader, and then prescribe a diet based on that individual trader's capital,
experience, risk profile and schedule.
Please fill out the form below to read the remaining article.
Trading Blood Type
Cannon Trading respects your privacy and will never give this information to a 3rd party.
2. Hot Market Report: Crude Oil Volatility Continues!
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 after a US airstrike killed Iranian General Suleimani last week. 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.
The market failed pretty hard once it could not close above the previous highs and also once the Iranian response was not as powerful as many feared.....
The market has shown "respect" so far to support and resistance levels and the heightened volatility creates some interesting opition spreads possibilities ( and risks). 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 |
|---|---|---|
| 01/10 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 - Philadelphia 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)
|
| 01/17 Fri |
7:30 AM CST - Housing Start & Building Permits(Dec)
8:15 AM CST - Industrial Prod & Capacity Util(Dec) 9:00 AM CST - Univ of Michigan Consumer Sentiment-Prelim(Jan) |
LT: Jan Nikkei Options(CME)
Feb Orange Juice Options(ICE) |
| 01/20 Mon |
MARTIN LUTHER KING, JR DAY
|
|
| 01/21 Tue |
|
|
| 01/22 Wed |
6:00 AM CST - MBA Mortgage Index
8:00 AM CST - FHFA Housing Price Index(Jan) 9:00 AM CST - Existing Home Sales(Dec) 2:00 PM CST - Cold Storage 3:30 PM CST - API Energy Stocks |
|
| 01/23 Thu |
7:30 AM CST - Initial Claims-Weekly
9:30 AM CST - EIA Gas Storage 10:00 AM CST - EIA Petroleum Status Report 2:00 PM CST - Dairy Products Sales 2:00 PM CST - Milk Production 3:30 PM CST - Money Supply |
FN: Feb Crude Lt(NYM)
|
| 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!
