June 22, 2012 - Issue #641
In This Issue
1. Trader's Resource Corner
2. Hot Market Report - COTTON - by Jim Wyckoff
3. Economic Calendar
Featured Articles This Week
1. Traders Resource Corner
A. Price Limits Update View recently updated price limits on most CME contracts Visit updates here
B. Daily Exchange Volume and Open Interest updated daily for most markets on the CME website. Nice, quick and easy to use format.Visit daily updates here
C. ICE exchange softs Monthly Outlook
Access this 8 page report instantly and read on what is moving the softs markets like Sugar, Cocoa, Coffee, Cotton and more.
2. "Short Squeeze" in Cotton Hammers Bears, Then Bulls
By Jim Wyckoff
The July cotton futures contract saw a classic "short squeeze" play out the past week. As open interest in the July contract declines and as the contract near its first-notice day for delivery next Monday, the short futures positions in the market were squeezed out and forced to pay up as prices began to rally strongly. Then, once all the short-covering by the weak-handed shorts ended as they were squeezed out of the market, the price of July cotton dropped sharply to hammer the weak-handed longs. Markets can be brutal to any and all traders at any given time. Markets do not discriminate in their brutality--just ask the small trader who was on the wrong side of the cotton market recently, or ask big-time traders at JP Morgan who lost billions recently.
Disclaimer:
Trading commodity futures and options involves substantial risk of loss. The recommendations 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 futures 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!
3. Economic Calendar
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 06/25 Mon |
9:00 AM CDT - New Home Sales(May) | FN: Jul Cotton(NYM) |
| 06/26 Tues |
8:00 AM CDT - Case-Shiller 20-City Index(Apr)
9:00 AM CDT - Consumer Confidence(Jun) |
LT: Jul Copper Options(CMX)
Jul Gold Options(CMX) Jul Silver Options(CMX) Jul Heating Oil Options(NYM) Jul RBOB Gasoline Options(NYM) Jul Natural Gas Options(NYM) |
| 06/27 Wed |
6:00 AM CDT - MBA Mortgage Purchase Index
7:30 AM CDT - Dairy Products Prices 7:30 AM CDT - Durable Orders(May) 9:00 AM CDT - Pending Home Sales(May) 9:30 AM CDT - API & DOE Energy Stats |
LT: Jun Copper(CMX)
Jun Gold(CMX) Jun Silver(CMX) Jun Platinum(NYM) Jun Palladium(NYM) Jul Natural Gas(NYM) |
| 06/28 Thurs |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - GDP & GDP Deflator-Third Estimate(Q1) 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
FN: Jul Natural Gas(NYM)
LT: Jun Butter(CME) Jun Milk(CME) Jun Butter Options(CME) Jun Milk Options(CME) |
| 06/29 Fri |
7:30 AM CDT - Grain Stocks
7:30 AM CDT - Quarterly Planted Acreage 7:30 AM CDT - Personal Income & Spending(May) 8:45 AM CDT - Chicago PMI(Jun) 8:55 AM CDT - Michigan Sentiment-Final(Jun) 2:00 PM CDT - Quarterly Hogs & Pigs |
FN: Jul Copper(CMX)
Jul Gold,Silver(CMX) Jul Platinum,Palladium(NYM) Jul Corn,Oats(CBT) Jul Wheat,Rough Rice(CBT) Jul Soyoil,Soymeal,Soybeans(CBT) LT: Jun 2,3,5 Year Notes(CBT) Jun Fed Funds(CME) Jun Live Cattle(CME) Jul Heating Oil(NYM) Jul RBOB Gasoline(NYM) Jul Sugar-11(NYM) Jun Fed Funds Options(CME) Jul Lumber Options(CME) |
| 07/02 Mon |
9:00 AM CDT - Construction Spending(may)
9:00 AM CDT - ISM Index(Jun) |
FN: Jul Orange Juice(ICE)
Jul Sugar-11(NYM) |
* 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!
