November 2nd, 2018 - Issue #942
In This Issue
1. Trading 102: Videos on Support/Resistance, Trading Techniques and more
2. Hot Market Report: Crude Oil Approaching Major Support
3. Economic Calendar
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1. Trading 102: Educational Trading Videos
by: Cannon Trading Brokers
Cannon Trading is happy to share with you a few videos focusing on trading techniques, ideas and tools you can add to your trading arsenal. In this week's newsletter we are sharing the following 3 videos, about 5 minutes each, ready for immediate viewing on the following topics:
1. Identifying Support And Resistance Using A Line Chart.
2. Finding Levels of Support Resistance
3. Day Trading crude oil futures using fear and greed....
To view videos instantly, please fill out the form below.
View VideosTrading 102: Videos
Cannon Trading respects your privacy and will never give this information to a 3rd party.
2. Hot Market Report: Crude Oil Approaching Major Support
By Ilan Levy-Mayer, VPClick on image below to enlarge
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.
Daily chart from this morning, (Nov. 2nd 2018). As of the time I am typing this newsletter, crude oil broke lower again, approaching major support at 62.10. Note the RED DIAMOND we got on Oct. 3rd which happened to signal the current top.
This chart was prepared using CQG Q Trader software, which you can demo for 14 days with realtime data.
To access a free trial to the ALGOS shown in the chart ( DIAMONDS included) along with other tools, visit and sign up for a free trial for 21 days with real-time data.
From the fundamental perspective, the situation with Saudi Arabia along with Trump and OPEC butting heads helps volatility and makes this market a bit "jumpy". If you are a longer term trader, try to avoid the intraday noise. While driving season is over and we are now entering the "heating season", which is more applicable for heating oil, the overall energy sector is currently volatile.
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: $1705 initial, $1550 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: $3410 initial, $3100 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 |
|---|---|---|
| 11/02 Fri |
7:30 AM CDT - Ave Workweek & Hourly Earnings(Oct)
7:30 AM CDT - Nonfarm Payrolls(Oct) 7:30 AM CDT - Trade Balance(Sep) 7:30 AM CDT - Unemployment Rate(Oct) 9:00 AM CDT - Factory Orders(Sep) |
FN: Nov RBOB & ULSD(NYM)
LT: Nov Live Cattle Options(CME) Dec Cocoa Options(ICE) |
| 11/05 Mon |
9:00 AM CST - ISM Services(Oct)
|
|
| 11/06 Tue |
9:00 AM CST - JOLTS-Job Openings(Sep)
3:30 PM CST - API Energy Stocks |
|
| 11/07 Wed |
6:00 AM CST - MBA Mortgage Index
9:30 AM CST - API Petroleum Status Report 2:00 PM CST - Consumer Credit(Sep) 2:00 PM CST - Dairy Products Sales |
|
| 11/08 Thu |
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly 9:30 AM CST - EIA Natural Gas Report 11:00 AM CST - WASDE Report & Crop Production 1:00 PM CST - FOMC Rate Decision(Nov) 3:30 PM CST - Money Supply |
|
| 11/09 Fri |
7:30 AM CST - Core PPI & PPI(Oct)
9:00 AM CST - Mich Sentiment-Prelim(Nov) 9:00 AM CST - Wholesale Inventories(Sep) |
LT: Nov Orange Juice(ICE)
Nov Canadian Dollar Options(CME) Nov Currencies Options(CME) Nov Mx Peso Options(CME) Nov US Dollar Index Options(ICE) Dec Cotton Options(NYM) Dec Coffee Options(ICE) |
| 11/12 Mon |
VETERANS DAY
|
|
| 11/13 Tue |
1:00 PM CST - Treasury Budget(Oct)
|
|
| 11/14 Wed |
7:30 AM CST - Core CPI & CPI(Oct)
3:30 PM CST - API Energy Stocks |
LT: Nov Canola(CBT)
Nov Rough Rice(CBT) Nov Soybeans(CBT) Dec Crude Lt Options(NYM) |
| 11/15 Thu |
7:30 AM CST - Initial Claims-Weekly
7:30 AM CST - Retail Sales(Oct) 7:30 AM CST - Retail Sales Ex-Auto(Oct) 7:30 AM CST - Philadelphia Fed(Nov) 7:30 AM CST - Import(ex-oil) & Export(ex-ag)(Oct) 7:30 AM CST - Empire Manufacturing(Nov) 9:00 AM CST - Business Inventories(Sep) 9:30 AM CST - EIA Natural Gas Report 10:00 AM CST - EIA Petroleum Status Report 11:00 AM CST - NOPA Crush 2:00 PM CST - Dairy Products Sales 3:30 PM CST - Money Supply |
LT: Nov Feeder Cattle(CME)
Nov Lumber(CME) Nov Feeder Cattle Options(CME) Dec Sugar-11 Options(ICE) |
| 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!
