June 26th, 2020 - Issue #1012
In This Issue
1. Trading 201: Why do most futures traders lose money and how can you improve your odds?
2. Hot Market Report: Possible Break Out in Crude Oil Market?
3. Economic Calendar
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1. Why do most futures traders lose money and how can you improve your odds?
Watch the 45-minute recorded webinar where Ilan shared some of his observations of why a large percentage of traders lose money trading futures.
*Reasons why most traders lose
*Looking at tools you can utilize and improve your odds
*Review different methods/concepts of trading
*Ilan shares many tidbits that can help variety of traders
*Ilan answers questions
Watch the recorded 45-minute webinar which in our opinion contains some of the most valuable advise both new and advanced traders can utilize
Watch Recorded Webinar
Cannon Trading respects your privacy and will never give this information to a 3rd party.
2. Hot Market Report: Crude Oil Futures to Break Out?
By Joe Easton Senior BrokerClick on image below to enlarge
This week’s highlighted Market is Crude Oil. 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.
Weekly Crude Oil Futures chart to your right./b>
Crude oil Futures have been bouncing around between the $35-$36 support and the $40 resistance for the last three weeks. This could be viewed as a rectangle pattern.
Rectangles are usually continuation patterns measuring the width and extending it out should take us to about $45. The arrow on the chart shows the level that is being sold in front of the low $42.36.
Once we enter this weekly range we could test the high of that bar $47.
If we fail to close above this level, we would expect to fail and retest support at $35-36 levels or previous support at $23.
Stay Tuned, have a nice weekend.
Crude Oil Futures Specs
Hours: 5:00 PM to 4:00 PM next day PM Central Time
Margins: $8965 initial, $8100 Maint. FRONT MONTH margins are: $9,900 and 9,000 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
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: $4950 initial, $4500 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
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! Try a free consultation at any time.
3. Economic Calendar
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
|---|---|---|
| 06/26 Fri |
7:30 AM CDT - PCE Prices & Core(May)
7:30 AM CDT - Personal Income & Spending(May) 9:00 AM CDT - Univ of Mich Consumer Sent-Final(Jun) |
LT: Jun Bitcoin(CME)
Jun Copper(CMX) Jun Gold & Silver(CMX) Jun Platinum & Palladium(NYM) Jul Natural Gas(NYM) 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) |
| 06/29 Mon |
9:00 AM CDT - Pending Home Sales(May)
3:00 AM CDT - Crop Progress |
FN: Jul Natural Gas(NYM)
|
| 06/30 Tue |
8:00 AM CDT - S&P Case-Shiller Home Price Index(Apr)
8:45 AM CDT - Chicago PMI(Jun) 9:00 AM CDT - Consumer Confidence(Jun) 11:00 AM CDT - Grain Stocks 11:00 AM CDT - Planted Acreage 3:30 PM CDT - API Energy Stocks |
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 Butter & Milk(CME) Jun Black Sea Wheat(CME) Jun Fed Funds(CME) Jun Live Cattle(CME) Jul RBOB & ULSD(NYM) Jul Sugar-11(ICE) Jun Black Sea Wheat Options(CME) Jun Fed Funds Options(CME) Jun Butter & Milk Options(CME) Jul Lumber Options(CME) |
| 07/01 Wed |
6:00 AM CDT - MBA Mortgage Index
7:15 AM CDT - ADP Employment Change(Jun 9:00 AM CDT - Construction Spending(May) 9:00 AM CDT - ISM Manufacturing Index(Jun) 9:30 AM CDT - EIA Petroleum Status Report 1:00 PM CDT - Auto & Truck Sales(Jun) 2:00 PM CDT - Cotton System 2:00 PM CDT - Fats & Oils 2:00 PM CDT - Grain Crushings 2:00 PM CDT - Dairy Products Sales |
FN: Jul Orange Juice(ICE)
Jul Sugar-11(ICE) |
| 07/02 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - Unemployment Rate(Jun) 7:30 AM CDT - Trade Balance(May) 7:30 AM CDT - Nonfarm Payrolls(Jun) 7:30 AM CDT - Ave Workweek & Hourly Earnings(Jun) 9:00 AM CDT - Factory Orders(May) 9:30 AM CDT - EIA Natural Gas Report 3:30 PM CDT - Money Supply |
FN: Jul RBOB & ULSD(NYM)
LT: Jul Canadian Dollar Options(CME) Jul Currencies Options(CME) Jul Mx Peso Options(CME) Jul US Dollar Index Options(ICE) Jul Live Cattle Options(CME) Aug Cocoa Options(ICE) |
| 07/03 Fri |
INDEPENDENCE DAY(OBSERVED)
|
|
| 07/06 Mon |
3:00 PM CDT - Crop Progress
|
|
| 07/07 Tue |
2:00 PM CDT - Consumer Credit(May)
3:30 PM CDT - API Energy Stocks |
|
| 07/08 Wed |
6:00 AM CDT - MBA Mortage Index
9:30 AM CDT - EIA Petroleum Status Report 2:00 PM CDT - Dairy Products Sales |
|
| 07/09 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 9:00 AM CDT - Wholesale Inventories(May) 9:30 AM CDT - EIA Natural Gas Report 3:30 PM CDT - Money Supply |
LT: Jul Cotton(NYM)
|
| 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!
