October 26th, 2018 - Issue #941
In This Issue
1. WEBINAR: Journalytix - The next step in trader evolution
2. Hot Market Report: Unleaded Gasoline following crude oil or leading the way?
3. Economic Calendar
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1. WEBINAR this Monday: Journalytix - The next step in trader evolution
Mon, Oct 29, 2018 1:00 PM - 2:00 PM PDT
SPACE is LIMITED, so reserve your space now!
In this webinar, we take a look at some innovative new trader development tools from Jigsaw Trading. Journalytix, an affordable cloud-based trade analytics and journaling system helps you implement a "feedback loop" in your trading, so you can discover and react to 'messages' buried in your trading data that you'd normally overlook.
• How proprietary trading firms develop their traders• The importance of understanding the way news impacts your performance
• The Journalytix Real Time Trade Assistant
• Automated, voice activated trade journaling
• Review Calendars & trade analytics dashboards
In the end, we hope to have opened your eyes to new processes that can help you get the most from your methods.
Free demo will be available.SPACE is LIMITED, so reserve your space now!
Risk: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time
2. Hot Market Report: Unleaded Gasoline following crude oil or leading the way?
By Ilan Levy-Mayer, VPClick on image below to enlarge
Unleaded Gasoline is part of the energy sector along with "it's" brothers crude oil and heating oil and cousin, natural gas. All traded on the NYMEX/GLOBEX exchange.
Daily chart from this morning, (Oct. 26th 2018). Note we broke major support at 177.98. A red, slanted arrow from a few days ago, suggests we may have another leg down in a lower trending market.
Elliot Wave counts marks possible next waves both if we contniue lower (-3-)or if the market experience profit taking (-4-)
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 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.
Unleaded Gasoline Specs
Hours ( Central Time): 5:00 PM previous day to 4:00 PM next day.
Margins: ( as of the date of this newsletter) $3100 initial, $2800 Maint.
Contract Size: 42,000 galons
Point Value: full point = $420 ( Example: 218.80 to 219.80 ). Min fluctuation is 0.01 = $4.2 ( Example: 218.80 to 218.81) Settlement: Deliverable, FND is last business day preceding the contract month
Months: Monthly, every month
Weekly Options: YES
Some of the basic fundamentals to keep in mind when you are considering a trade in the Unleaded Gasoline as well as other energies:
1. Primary driver of Unleaded prices is the price of Crude Oil
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. Number of Refineries operating and any major outages of refineries
5. US and Global supply and demand picture
Our brokers here at Cannon will be happy to chat about the Unleaded 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 |
|---|---|---|
| 10/26 Fri |
7:30 AM CDT - GDP-Adv(Q3)
7:30 AM CDT - GDP Deflator(Q3) 9:00 AM CDT - Michigan Sentiment-Final(Oct) |
LT: Nov 2,5,10 Year Notes Options(CBT)
Nov Bonds Options(CBT) Nov Canola Options(CBT) Nov Wheat Options(CBT) Nov Corn Options(CBT) Nov Oats Options(CBT) Nov Rough Rice Options(CBT) Nov Soybeans,Soymeal,Soyoil Options(CBT) Nov Natural Gas Options(NYM) Nov RBOB & ULSD Options(NYM) |
| 10/29 Mon |
7:30 AM CDT - PCE Prices & Core(Sep)
7:30 AM CDT - Personal Income & Spending(Sep) |
LT: Oct Copper(CMX)
Oct Gold(CMX) Oct Silver(CMX) Oct Platinum(NYM) Oct Palladium(NYM) Nov Natural Gas(NYM) |
| 10/30 Tue |
8:00 AM CDT - Case-Shiller 20-City Index(Aug)
9:00 AM CDT - Consumer Confidence(Oct) 3:30 PM CDT - API Energy Stocks |
FN: Nov Natural Gas(NYM)
LT: Oct Butter(CME) Oct Milk(CME) Oct Butter Options(CME) Oct Milk Options(CME) |
| 10/31 Wed |
6:00 AM CDT - MBA Mortgage Index
7:15 AM CDT - ADP Employment Change(Oct) 7:30 AM CDT - Employment Cost Index(Q3) 9:30 AM CDT - EIA Petroleum Status Report 2:00 PM CDT - Dairy Products Sales |
FN: Nov Gold & Silver(CMX)
Nov Platinum & Palladium(NYM) Nov Canola(CBT) Nov Rough Rice(CBT) Nov Soybeans(CBT) LT: Oct Fed Funds(CME) Oct Live Cattle(CME) Nov RBOB & ULSD(NYM) Oct Fed Funds Options(CME) Nov Lumber Options(CME) |
| 11/01 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - Productivity-Prel(Q3) 7:30 AM CDT - Unit Labor Costs-Prelim(Q3) 9:00 AM CDT - Construction Spending(Sep) 9:00 AM CDT - ISM Manufacturing Index(Oct) 9:30 AM CDT - EIA Natural Gas Report 1:00 PM CDT - Auto & Truck Sales(Oct) 2:00 PM CDT - Cotton System 2:00 PM CDT - Fats & Oils 2:00 PM CDT - Grain Crushings 3:30 PM CDT - Money Supply |
FN: Nov Orange Juice(ICE)
|
| 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 |
3:30 PM CST - API Energy Stocks
|
|
| 11/07 Wed |
6:00 AM CST - MBA Mortgage Index
9:00 AM CST - JOLTS-Job Openings(Sep) 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 |
|
| 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!
