June 14th, 2018 - Issue #969
In This Issue
1. Trading 102: What's Your Trading blood type?
2. Hot Market Report: Corn Futures - The legend of Tomb Trader?
3. Economic Calendar
1. Trading 102: What's Your Trading blood type?
This is a reprint of an article Ilan Levy-Mayer, VP of Cannon wrote for SFO magazine a few years back. Timeless information which we wanted to share with you:
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: Corn Futures - Voice From The Tomb History
By Ilan Levy-Mayer, VPClick on image below to enlarge
This week’s highlighted Market is Corn. Corn futures are part of the GRAINS family which includes 4 types of Wheat, Soybean, Soymeal, Oats, Rough Rice and Bean Oil. All traded on the CBOT/GLOBEX exchange.
Summertime can be a volatile time for Grain Futures, just as winter can be the most volatile time for Natural Gas in the Northern Hemisphere. This fundamental push accompanied by technical extremes, should cause additional volatility and potential opportunity along with risk.
Grains as a complex were pushed much lower due to pressures from the China tarrifs.
Weather issues have recently helped prices move higher as many of the fields were flooded during critical times.
Now the question is crop progress, export sales and geo political developments. Every Monday at 3:00pm CDT the USDA releases its Crop progress report , The next day’s session is affected by these numbers.
OR
perhaps the following may be part of it?
Voice From The Tomb History
This is the legend of a wise grain trader that made a fortune trading "seasonals"* in the pits of the Chicago Board of Trade.
"After his wife died, a millionaire grain trader dedicated his life to raising their children. The children were lazy and thought they'd inherit all of their father's money.
He felt that his children were wasteful and believed they took him for granted. When he died, all the money went to charity. All he left them in his will were the following dates of when to buy and sell.
The will said that if they strictly followed his advice, they'd have the fortunes they always thought were going to drop in their laps."
Obviously this may just be a nice story...but here are the dates for the corn market :-) ....
Buy Corn: March 1st, June 25th...
Sell Corn May 20th and August 10th...
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.
Corn Futures Specs
Hours: 7:00 PM to 1:20 PM next day PM Central Time
Margins: $1325 initial, $950 Maint. ( as of the date of this newsletter)
Point Value: full Cent = $50.00 ( Example: $3.60 to $3.61/bu ). Min fluctuation is 2/8ths of a cent = $12.50 ( Example: 3.60 -3.602)
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
The corn market has good volume and can be traded outright in intra and inter market spreads, swing trading, using options and more.
Some of the basic fundamentals to keep in mind when you are considering trading ZC ( corn)
1. Longer term view of current market prices
2. Dates and times of important reports. WASDE, Planting intentions, Crop progress
3. Weather
4. Global Political situation (food often used as a weapon in trade)
4. Dollar strength or lack of, Brazilian Real value
Our brokers here at Cannon will be happy to chat about the Corn market, other grains, other futures, options, futures spreads and much more! Feel free to contact us at any time.
* Seasonal tendencies are a composite of some of the more consistent commodities futures seasonals that have occurred in the past . There are usually underlying fundamental circumstances that occur annually that tend to cause the futures markets to react in a similar directional manner during a certain calendar period of the year. Even if a seasonal tendency occurs in the future, it may not result in a profitable transaction as fees and the timing of the entry and liquidation may impact on the results.
3. Economic Calendar
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
|---|---|---|
| 06/17 Mon |
7:30 AM CDT - Empire State Manufacturing(Jun)
11:00 AM CDT - NOPA Crush 2:00 PM CDT - Net Long Term TIC Flows(Apr) 3:00 PM CDT - Crop Progress |
FN: Jul Cocoa(ICE)
LT: Jun Currencies(CME) Jun Eurodollar(CME) Jun Mx Peso(CME) Jun US Dollar Index(ICE) Jun Eurodollar Options(CME) Jul Crude Lt Options(NYM) Jul Sugar-11 Options(ICE) |
| 06/18 Tue |
7:30 AM CDT - Building Permits & Housing Starts(May)
3:30 PM CDT - API Energy Stocks |
LT: Jun Canadian Dollar(CME)
|
| 06/19 Wed |
6:00 AM CDT - MBA Mortgage Index
9:30 AM CDT - EIA Petroleum Status Report 1:00 PM CDT - FOMC Rate Decision 2:00 PM CDT - Dairy Products Sales |
LT: Jun 10 Year Notes(CBT)
Jun Bonds(CBT) Jul Platinum Options(NYM) Jul Palladium Options(NYM) |
| 06/20 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - Current Account Balance(Q1) 7:30 AM CDT - Philadelphia Fed Index(Jun) 9:00 AM CDT - Leading Indicators(May) 9:30 AM CDT - EIA Natural Gas Report 3:30 PM CDT - Money Supply |
FN: Jul Coffee(ICE)
LT: Jun S&P 500(CME) Jul Crude Lt(NYM) Jun S&P 500 Options(CME) |
| 06/21 Fri |
9:00 AM CDT - Existing Home Sales(May)
2:00 PM CDT - Cattle On Feed |
LT: Jun E-Mini Dow(CME)
Jun E-Mini S&P 500(CME) Jun NASDAQ(CME) Jun Russell(CME) Jun E-Mini Dow Options(CME) Jun E-Mini S&P 500 Options(CME) Jun NASDAQ Options(CME) Jun Russell Options(CME) Jul 2,5,10 Year Notes Options(CBT) Jul Bonds Options(CBT) Jul Canola Options(CBT) Jul Wheat Options(CBT) Jul Corn Options(CBT) Jul Oats Options(CBT) Jul Rough Rice Options(CBT) Jul Soybeans,Soymeal,Soyoil Options(CBT) Jul Orange Juice Options(ICE) |
| 06/24 Mon |
2:00 PM CDT - Cold Storage
3:00 PM CDT - Crop Progress |
FN: Jul Cotton(NYM)
Jul Crude Lt(NYM) |
| 06/25 Tue |
7:00 AM CDT - S&P Case-Shiller Home Price Index(Apr)
8:00 AM CDT - FHFA Housing Price Index(Apr) 9:00 AM CDT - Consumer Confidence(Jun) 9:00 AM CDT - New Home Sales(May) 3:30 PM CDT - API Energy Stocks |
LT: Jul Copper Options(CMX)
Jul Gold Options(CMX) Jul Silver Options(CMX) Jul Natural Gas Options(NYM) Jul RBOB & ULSD Options(NYM) |
| 06/26 Wed |
7:30 AM CDT - Adv Intl Trade In Goods(May)
7:30 AM CDT - Adv Retail Inventories(May) 7:30 AM CDT - Adv Wholesale Inventories(May) 7:30 AM CDT - Durable Orders(May) 7:30 AM CDT - Durable Goods Ex-Transportation(May) 9:30 AM CDT - EIA Petroleum Status Report 2:00 PM CDT - Dairy Products Sales |
LT: Jun Copper(CMX)
Jun Gold(CMX) Jun Silver(CMX) Jun Platinum & Palladium(NYM) Jul Natural Gas(NYM) |
| 06/27 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - GDP-Third Estimate(Q1) 7:30 AM CDT - GDP Deflator-Third Estimate(Q1) 9:00 AM CDT - Pending Home Sales(May) 9:30 AM CDT - EIA Natural Gas Report 2:00 PM CDT - Quaterly Hogs & Pigs 3:30 PM CDT - Money Supply |
FN: Jul Natural Gas(NYM)
|
| 06/28 Fri |
7:30 AM CDT - Personal Income & Spending(May)
9:00 AM CDT - Univ of Mich Consumer Sent-Final(Jun) 11:00 AM CDT - Grain Stocks 11:00 AM CDT - Planted Acreage |
FN: Jul Copper(CMX)
Jul Gold & Silver(CMX) Jul Platinum & Palladium(NYM) Jul Canola(CBT) Jul Wheat(CBT) Jul Corn(CBT) Jul Oats(CBT) Jul Rough Rice(CBT) Jul Soybeans,Soymeal,Soyoil(CBT) LT: Jun 2,5 Year Notes(CBT) Jun Bitcoin(CME) Jun Fed Funds(CME) Jun Live Cattle(CME) Jul RBOB & ULSD(NYM) Jul Sugar-11(ICE) Jun Fed Funds Options(CME) Jul Lumber Options(CME) |
| 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!
