January 24th, 2020 - Issue #997
In This Issue
1. Why do most futures traders lose money and what you can do to improve your odds?
2. Hot Market Report: $10 Move Down on Crude Oil Futures last 2 weeks!
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: $10 Move Down on Crude Oil Futures last 2 weeks!
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.
Crude oil -CL futures traded to $65.65 per barrel on January 8th, 2020 when Iran attacked US forces in Iraq. 2 weeks later we are trading under $54 per barrel. This attack was in response to the January 4th U.S drone strike killing Iranian General Qassem Soleimani. Crude Oil closed the week- 2 days later at $59.12, over $6 off the high. Prior to this recent high CL rallied 10 of the past 13 weeks since early October lows of 50.99. Perfect example of the market going down 3 times faster than going up. This week we are down another $5 after a small range last week. Pictured in the chart market has been in a range for the last year dating back to last January. Technically CL tested both support and resistance multiple times and I expect to breakout to a measured move of about $12 in the not so distance future.
The market has shown "respect" so far to support and resistance levels and the heightened volatility creates some interesting option spreads possibilities ( and risks). We believe volatility will remain higher than normal and as traders, we need to adjust our trading approach and settings to higher volatility.
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.
On a different note, Crude Oil futures are fastly becoming one of the more popular contracts for day-trading as volatility, speed, price fluctuations are all there for the double edge sword, day-traders love.
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: $2062 initial, $1850 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
Crude Oil Futures Specs
Hours: 5:00 PM to 4:00 PM next day PM Central Time
Margins: $4125 initial, $3750 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
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! Feel free to contact us at any time.
3. Economic Calendar
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
|---|---|---|
| 01/24 Fri |
7:30 AM CST - USDA Weekly Export Sales
2:00 PM CST - Cattle On Feed |
LT: Feb 2,5,10 Year Notes Options(CBT)
Feb Bonds Options(CBT) Feb Canola Options(CBT) Feb Wheat Options(CBT) Feb Corn Options(CBT) Feb Oats Options(CBT) Feb Rough Rice Options(CBT) Feb Soybeans,Soymeal,Soyoil Options(CBT) |
| 01/27 Mon |
9:00 AM CST - New Home Sales(Dec)
|
|
| 01/28 Tue |
7:30 AM CST - Durable Goods-Ex Transportation(Dec)
7:30 AM CST - Durable Orders(Dec) 8:00 AM CST - S&P Case-Shiller Home Price Index(Nov) 9:00 AM CST - Consumer Confidence(Jan) 3:30 PM CST - API Energy Stocks |
LT: Feb Copper Options(CMX)
Feb Gold & Silver Options(CMX) Feb Natural Gas Options(NYM) Feb RBOB & ULSD Options(NYM) |
| 01/29 Wed |
6:00 AM CST - MBA Mortgage Index
9:00 AM CST - Pending Home Sales(Dec) 9:30 AM CST - EIA Petroleum Status Report 1:00 PM CST - FOMC Rate Decision(Jan) 2:00 PM CST - Dairy Products Sales |
LT: Jan Copper(CMX)
Jan Gold & Silver(CMX) Jan Platinum & Palladium(NYM) Feb Natural Gas(NYM) |
| 01/30 Thu |
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - GDP-Adv(Q4) 7:30 AM CST - GDP Chain Deflator & Adv(Q4) 9:30 AM CST - EIA Natural Gas Report 3:30 PM CST - Money Supply |
FN: Feb Natural Gas(NYM)
LT: Jan Feeder Cattle(CME) Jan Feeder Cattle Options(CME) |
| 01/31 Fri |
7:30 AM CST - Employment Cost Index(Q4)
7:30 AM CST - PCE Prices & Core(Dec) 7:30 AM CST - Personal Income & Spending(Dec) 8:45 AM CST - Chicago PMI(Jan) 9:00 AM CST - Univ of Mich Consumer Sent-Final(Jan) 2:00 PM CST - Cattle 2:00 PM CST - Sheep & Goats |
FN: Feb Copper(CMX)
Feb Gold & Silver(CMX) Feb Platinum & Palladium(NYM) LT: Jan Bitcon(CME) Jan Black Sea Wheat(CME) Jan Fed Funds(CME) Feb RBOB & ULSD(NYM) Jan Black Sea Wheat Options(CME) Jan Fed Funds Options(CME) Feb Lumber Options(CME) |
| 02/03 Mon |
9:00 AM CST - Construction Spending(Dec)
9:00 AM CST - ISM Manufacturing Idex(Jan) 1:00 PM CST - Auto & Truck Sales(Jan) 2:00 PM CST - Cotton System 2:00 PM CST - Fats & Oils 2:00 PM CST - Grain Crushings |
|
| 02/04 Tue |
9:00 AM CST - Factory Orders(Dec)
3:30 PM CST - API Energy Stocks |
FN: Feb RBOB & ULSD(NYM)
LT: Jan Butter(CME) Jan Milk(CME) Jan Butter Options(CME) Jan Milk Options(CME) |
| 02/05 Wed |
6:00 AM CST - MBA Mortgage Index
7:15 AM CST - ADP Employment Change(Jan) 7:30 AM CST - Adv Intl Trade In Goods(Dec) 7:30 AM CST - Adv Retail Inventories(Dec) 7:30 AM CST - Adv Wholesale Inventories(Dec) 7:30 AM CST - Trade Balance(Dec) 9:30 AM CST - EIA Petroleum Status Report 2:00 PM CST - Dairy Products Sales |
|
| 02/06 Thu |
7:30 AM CST - USDA Weekly Exports Sales
7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - Productivity-Prel(Q4) 9:30 AM CST - EIA Natural Gas Report 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!
