January 2nd, 2015 - Issue #768
In This Issue
1. Chart of the week - 2014 a Dismal Year for Raw Commodity Bulls
2. Your New Year Trading Resolution
3. Economic Calendar
1. Chart of the week - 2014 a Dismal Year for Raw Commodity Bulls
From our friend Jim Wyckoff
Jim has an excellent daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at www.jimwyckoff.com click on image below to enlarge
See on the daily bar chart for the Goldman Sachs Commodity Index (GSCI) that prices on the last day of the trading year will end at or very near the yearly low. It was an extremely bearish year for the raw commodity sector. That means 2015 is likely to be at least somewhat better for the raw commodity bulls. Remember that raw commodities are very cyclical. Boom times lead to bust times and bust time lead to boom times. The boom time is now on deck. By the way, if you need better methods to improve upon your selection of trades, and on entry and exit strategies? I have some educational tools that can help you out.
2. Your New Year Trading Resolution?
Trading futures is an alluring business that allows an individual a lifestyle filled with many freedoms not available to most working people. This business requires traders to posses a unique set of qualities. The most critical quality a trader needs to have is discipline. Discipline trumps knowledge. It trumps experience. In fact, without discipline very few traders survive to have enough experience to draw upon as an asset in their trading. The need for discipline is amplified by the very structure of futures trading. The leverage available in futures trading amplifies every decision that a trader makes. Every decision, Good or bad!
Everyday life requires us to constantly make decisions. Do I buy the chicken breasts at $4.95 a pound, or do I buy the hamburger at $3.95 a pound. These types of decisions are non-leveraged decisions, so the impact overall is minimal. We are not buying or selling 400,000 pounds of hamburger as we do when we trade 10 contracts of cattle, while "paying" only a fraction of its total value. In trading futures, one needs a trading plan...
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3. Economic Calendar
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 01/05 Mon |
1:00 PM CST - Auto & Truck Sales(Dec) |
FN: Jan RBOB & ULSD(NYM) |
| 01/06 Tues |
9:00 AM CST - Factory Orders(Nov) 9:00 AM CST - ISM Services(Dec) |
|
| 01/07 Wed |
6:00 AM CST - MBA Mortgage Purchase Index 7:15 AM CST - ADP Employment Change(Dec) 7:30 AM CST - Trade Balance(Nov) 9:30 AM CST - API & DOE Energy Stats 1:00 PM CST - FOMC Minutes 2:00 PM CST - Dairy Products Sales |
|
| 01/08 Thurs |
6:30 AM CST - Challenger Job Cuts(Dec) 7:30 AM CST - USDA Weekly Export Sales 7:30 AM CST - Initial Claims-Weekly 9:30 AM CST - EIA Gas Storage 1:00 PM CST - Consumer Credit(Nov) 3:30 PM CST - Money Supply |
|
| 01/09 Fri |
7:30 AM CST - Ave Workweek & Hourly Earnings(Dec) 7:30 AM CST - Nonfarm Payrolls(Dec) 7:30 AM CST - Unemployment Rate(Dec) 9:00 AM CST - Wholesale Inventories(Nov) |
LT: Jan Orange Juice(ICE) Jan Canadian Dollar Options(CME) Jan Currencies Options(CME) Jan US Dollar Index Options(ICE) Feb Coffee Options(ICE) |
| 01/12 Mon |
11:00 AM CST - WASDE Report & Crop Production 11:00 AM CST - Grain Stocks 11:00 AM CST - Winter Wheat Seedings |
* 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!
