In This Issue
By: Justin Smith, Cannon Trading Commodities Broker
Demo Trading. Also known as simulated trading, paper trading, playing with Monopoly money; whatever you'd like to call it, a demo can be your best friend or your worst enemy. Every Futures broker dreads having this conversation with their clients, as it is necessary with every new trader; however, much to a broker’s chagrin, every new trader will say that they already understand when in fact they rarely do. Let me assure you, if you're a new or even sometimes-intermediate trader, you probably don't. You may understand one popular issue of the conversation but odds are if you have been paper trading for five years waiting to be "successful" or to "understand the futures markets" in the simulated world before moving on, you have less of a chance of being successful in the live futures markets because you're setting yourself up for failure (if you ever do, in fact, trade in the live markets). You should seriously consider speaking with a licensed commodities and futures broker before diving in.
For the uninitiated, demo trading is the practice of trying out an online trading platform on a simulated basis—in a free demo trading account, you’re granted simulated funds, you’re placing simulated orders in the markets and you’re shown simulated profits and losses on what your trades might have done for you if you were futures trading on a live platform with live funds. First and foremost, it’s a wonderful technological tool for testing out a platform to see if it will suit your trading methodology. It can also be used to try different trading strategies, but problems arise when one equates simulated trading too much with live futures trading.
From our friend Jim Wyckoff
Jim has an excellent daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at www.jimwyckoff.com click on image below to enlarge
See on the daily bar chart for the U.S. dollar index that prices are in a solid five-week-old uptrend and this week hit a fresh nine-week high. Prices Thursday saw a profit-taking pullback but the bulls remain in solid near-term technical control, to suggest still more upside price pressure in the near term. The stronger greenback has been a bearish underlying factor for most raw commodity markets, which are priced in U.S. dollars on the world market.
Source: Moore Research Center, Inc.
|Date||Reports||Expiration & Notice Dates|
|1:00 PM CDT - Treasury Budget(Feb)||LT: Feb Crude Lt(NYM)|
|6:00 AM CDT - MBA Mortgage Purchase Index
7:30 AM CDT - Export & Import Prices(Feb)
7:30 AM CDT - Retail Sales(Feb)
9:00 AM CDT - Business Inventories(Jan)
9:30 AM CDT - API & DOE Energy Stats
3:00 PM CDT - Dairy Products Sales
|7:30 AM CDT - NOPA Crush
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly
7:30 AM CDT - Core PPI & PPI(Feb)
7:30 AM CDT - Current Account Balance(Q4)
9:30 AM CDT - EIA Gas Storage
3:30 PM CDT - Money Supply
|LT: Mar Wheat(CBT)
Mar Rough Rice(CBT)
Mar Soybean Oil(CBT)
Mar Soybean Meal(CBT)
Mar S&P 500(CME)
Mar NASDAQ Options(CME)
Mar S&P 500 Options(CME)
|7:30 AM CDT - Core CPI & CPI(Feb)
7:30 AM CDT - Empire Manufacturing(Mar)
8:00 AM CDT - Net Long-Term TIC Flows(Jan)
8:15 AM CDT - Capacity Util & Industrial Prod(Feb)
8:55 AM CDT - Mich Sentiment(Mar)
|LT: Mar DJIA(CME)
Mar E-Mini S&P 500(CME)
Mar E-Mini NASDAQ(CME)
Mar DJIA Options(CME)
Mar E-Mini S&P 500 Options(CME)
Mar E-Mini NASDAQ Options(CME)
Mar E-Mini Russell Options(CME)
Apr Crude Lt Options(NYM)
Apr Orange Juice Options(ICE)
Apr Sugar-11 Options(NYM) )
|9:00 AM CDT - NAHB Housing Market Index(Mar)
2:00 PM CDT - Milk Production
|FN: Mar Lumber(CME)
LT: Mar Currencies(CME)
Mar US Dollar Index(ICE)
Mar Eurodollar Options(CME)
* 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!