1. Trading Video: How I like to day-trade futures using either counter trend or trend following concepts ( or what I call simpler approach to day trading)
In this 25 minutes video you will learn the following:
1. Possible advantages of using range bar charts over time charts for day trading
2. Trade set ups using counter trend indicators
3. Trade set ups using trend following indicators
4. The concept of price confirmation
5. Tips and insights from Ilan's observations of different markets
6. You will be able to install the indicators/concepts mentioned and practice right away with your own demo!
View Video Instantly "simple approach to Day Trading"
Cannon Trading respects your privacy and will never give this information to a 3rd party.
2. Hot Market Report: Euro Currency Continues to Grind Lower
By John Thorpe, Senior Broker
Click on image below to enlarge
Hope, Fear, Confidence, Distrust, anticipation, these are all human qualities we can ascribe to our daily relationships with others and the environments around us.
These adjectives also describe the emotions that have a very large impact on the prices of any auction market traded and made sense of through technical analysis. The Eurocurrency prices (Euro’s from this point forward), as in any other auction market are subject to many different fundamental factors.
No factors are probably more important than European Central Bank Policy and the impact it may have on the price of the Euro relative to other world currency valuations.
So Let’s take a look at a main policy tool, the short term interest rate, and when and why bankers move rates.
Interest rate policy largely attempts to control financial system liquidity by making the “Cost of Money” cheaper or more expensive, the cheaper the cost of money, the more liquidity there is in the financial system whereas higher, more expensive interest rates would have the opposite desired result, reducing liquidity in the system and making the cost of funds
more expensive. When these shifts in policy are announced, the respective markets affected by such changes also change, reacting with fear, hope, distrust or anticipation.
Central Banks generally tend to raise short term rates: slowly applying the brakes to an Economy that is feared to be exhibiting Inflation.
Conversely, lowering interest rates to stimulate growth, easing the availability of capital.
You may be asking yourself what this has to do the price of the Euro? Quite a lot, you see, the market reacts to factors that MAY impact decisions the Central Bankers make, for instance, according to EC.Europa.EU/Eurostat says that Germany’s economy constituted 21.3% of the GDP of the entire EU while according to the same statistics, the United Kingdom represents 15.2% of the DGP of the Eurozone.
If the health of either of these economy’s comes under distress, conventional wisdom suggests the Central bankers will ease credit, provide more liquidity and make the “cost of money” cheaper to stimulate growth. Ultimately, these policies devalue the homelands currency and The Euro prices work lower over time.
This can be a self- fulfilling prophecy for the value of the Euro as, large entities shift investment decisions, sell Euro denominated assets and buy assets denominated in a currency whose interest rates are higher. Capital flows out of the Eurozone and into more profitable currencies, depressing the price of the Euro. Hope , Fear, confidence, distrust and anticipation drive prices based on economic dynamics in the currency world.
Daily chart of Euro Currency futures for your review from this morning ( February 15th 2019). Note we are trying to make another leg lower but trading between two major levels
Personally, I would much rather trade the currency futures than FOREX spot. Many beginning traders who start small will venture into the forex markets but it is my opinion that a primary market that is trading on one regulated and centralized exchange is much better than trading "against" your broker/forex dealer in a secondary market.
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.
Euro Currency Futures Specs Hours: 5:00 PM to 4:00 PM next day PM Central Time
Margins: $2530 initial, $2300 Maint. ( as of the date of this newsletter)
Point Value: full point = $1250.00 ( Example: 114.650 to 115.650 ). Min fluctuation is 1/2 = $6.25 ( Example: 114.650 to 114.655)
Settlement: Deliverable, FND is last business day preceding the contract month Months: March (H), May (K), July (N), September (U,) December(Z) Weekly Options:YES
Euro Currency futures are a good market for Day Trading in my opinion because of the intraday range 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 Euro Currency as well as other currencies:
1. When you are trading the Euro Currency or any other currency pair, you must be aware of Central Bank Risk, policy changes, Interest rate adjustments, Inflation expectations, prices of other commodities that may impact the health of a sovereign currency.
2. Dates and times of important reports for that specific country
3. Relationship with other currencies
4. Global Political situation
Our brokers here at Cannon will be happy to chat about the Euro Currency market, other currencies, other futures, options, futures spreads and much more!
Feel free to contact us at any time.
FN: Mar Cotton(NYM)
Mar Crude Lt(NYM)
LT: Feb Bitcoin(CME)
Mar 2,5,10 Year Notes Options(CBT)
Mar Bonds Options(CBT)
Mar Canola Options(CBT)
Mar Wheat Options(CBT)
Mar Corn Options(CBT)
Mar Oats Options(CBT)
Mar Rough Rice Options(CBT)
9:00 AM CST - Wholesale Inventories(Dec)
LT: Mar Copper Options(CMX)
Mar Gold Options(CMX)
Mar Silver Options(CMX)
Mar Natural Gas Options(NYM)
Mar RBOB & ULSD Options(NYM)
7:00 AM CST - S&P Case-Shiller Home Price Index(Dec)
8:00 AM CST - FHFA Housing Price Index(Dec)
9:00 AM CST - Consumer Confidence(Feb)
9:00 AM CST - New Home Sales(Jan)
3:30 PM CST - API Energy Stocks
6:00 AM CST - MBA Mortgage Index
7:30 AM CST - Durable Goods-Ex Transportation(Jan)
7:30 AM CST - Durable Orders(Jan)
9:00 AM CST - Fed Chair/Semi-Ann Monetary Policy Testimony(Feb)
9:00 AM CST - Pending Home Sales(Jan)
9:30 AM CST - EIA Petroleum Status Report
2:00 PM CST - Diary Products Sales
FN: Mar Natural Gas(NYM)
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly
7:30 AM CST - GDP-Adv(Q4)
7:30 AM CST - GDP-Deflator-Adv(Q4)
7:30 AM CST - Adv Int Trade In Goods(Jan)
7:30 AM CST - Adv Retail Inventories(Jan)
7:30 AM CST - Adv Wholesale Inventories(Jan)
7:30 AM CST - Chicago PMI(Feb)
9:30 AM CST - EIA Natural Gas Inventories
3:30 PM CST - Money Supply
FN: Mar 2,5,10 Year Notes(CBT)
Mar Rough Rice(CBT)
Mar Gold & Silver(CMX)
Mar Platinum & Palladium(NYM)
LT: Feb Fed Funds(CME)
Feb Live Cattle(CME)
Mar Black Sea Wheat(CME)
Mar RBOB & ULSD(NYM)
Feb Fed Funds Options(CME)
Mar Lumber Options(CME)
Disclaimer: This calendar is compiled from
sources believed to be reliable. Moore Research Center, Inc.
assumes no responsibility for any errors or omissions. It is meant
as an alert to events that may affect trading strategies and is not
necessarily complete. The release dates for certain economic
reports may have been rescheduled.
* 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!
RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.