November 9th, 2018 - Issue #943
In This Issue
1. WEBINAR: Trading using Market Correlation
2. Hot Market Report: Palladium Quietly Made One of the Largest Runs.....
3. Economic Calendar
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1. Trading 102: Trading using Market Correlation WEBINAR
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: Palladium Making Multi Years High
By Mark O'Brien, Senior BrokerClick on image below to enlarge
Palladium is part of the Precious Metals sector along with "it's" brothers Platinum, Gold, Silver and Copper.
Daily chart from this morning, (Nov. 9th 2018). As of the time I am typing this newsletter, Palladium is backing off with sympathy to the sell off in gold and silver, however, notice the major run this market experienced from mid August.
In our opinion, this market may be sitting on junction, either a double top and correction or gathering strength to make new highs.
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, Palladium, though not on most traders’ radars, may be worth including on your trading platform’s quote display. In the face of gold and silver trading near 2-yr. lows, and copper trading barely 4% above its 1-yr. low, palladium more than doubled in price from its Jan. ’16 lows near ±$500/oz. to over $1100/oz. (a >7-yr. high) by last January. It made a 7-month ±$300 correction down to ±$810 only to turn mid-August and more rapidly trade up to retest its Jan. highs these last few weeks.
On a different note, I don't personally like day-trading Palladium but I feel it is a good market for swing trading
Palladium Futures Specs
Hours: 5:00 PM to 4:00 PM next day PM Central Time
Margins: $6,050 initial, $5,500 Maint. ( as of the date of this newsletter)
Point Value: Each $1 move = $100. Min fluctuation is 0.1 = $10
Settlement: Physical, deliverable commodity 100 troy ounces
Months: Quarterly cycle of March H, June M, September U, and December Z
Weekly Options:NO, only quarterly options
Some of the basic fundamentals to keep in mind when you are considering trading the Palladium or other metals for this matter:
1. Longer term view of current market prices
2. Dates and times of important reports.
3. Commitment of Traders report (COT)
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 Palladium market, other metals, 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 |
|---|---|---|
| 11/09 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 |
5:00 AM CST - NFIB Small Business Optimism Index(Oct)
1:00 PM CST - Treasury Budget(Oct) |
|
| 11/14 Wed |
6:00 AM CST - MBA Mortgage Index
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) |
| 11/16 Fri |
7:30 AM CST - USDA Weekly Export Sales
8:15 AM CST - Capacity Util & Industrial Prod(Oct) 3:00 PM CST - Net Long-Term TIC Flows(Aug) |
FN: Nov Lumber(CME)
Dec Cocoa(ICE) LT: Nov Nikkei Options(CME) Nov Eurodollar Options(CME) Nov Russell Options(CME) Dec Orange Juice Options(ICE) |
| 11/19 Mon |
9:00 AM CST - NAHB Housing Market Index(Nov)
2:00 PM CST - Milk Production |
LT: Nov Eurodollar(CME)
Nov Mx Peso(CME) Dec Crude Lt(NYM) |
| 11/20 Tue |
7:30 AM CST - Housing Starts & Building Permits(Oct)
3:30 PM CST - API Energy Stocks |
|
| 11/21 Wed |
6:00 AM CST - MBA Mortgage Index
7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - Durable Goods-Ex Transportation(Oct) 7:30 AM CST - Durable Orders(Oct) 9:00 AM CST - Existing Home Sales(Oct) 9:00 AM CST - Leading Indicators(Oct) 9:30 AM CST - EIA Petroleum Status Report 11:00 AM CST - EIA Natural Gas Report 11:00 AM CST - Cattle On Feed 11:00 AM CST - Cold Storage 2:00 PM CST - Dairy Product Sales |
FN: Dec Coffee(ICE)
Dec Crude Lt(NYM) LT: Dec Platinum Options(NYM) Dec Palladium Options(NYM) |
| 11/22 Thu |
THANKSGIVING DAY
|
|
| 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!
