April 24th, 2015 - Issue #784

In This Issue

1. Hot Market Report - Gold Bears Remain in Technical Control, But Trading Choppy
2. Eliminating Fear and Greed while Day Trading
3. Economic Calendar

1. Gold Bears Remain in Technical Control, But Trading Choppy

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

A lack of fresh, bullish fundamental inputs is allowing the chart-based sellers to dominate gold trading recently. Price action has been choppy and sideways, but technically, June gold futures bears still have the firm overall near-term technical advantage. The gold bulls' next upside near-term price objective is to produce a close above solid technical resistance at the April high of $1,224.50. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,178.20. Gold continues to be held hostage to the daily price moves in the U.S. dollar index--with the yellow metal seeing limited buying interest when the USDX is higher, and seeing some buying occur when the USDX is lower on that particular day... --Jim

2. Eliminating Fear and Greed while Day Trading

Introduction
It is a known fact that fear and greed can be a trader's worst enemies.
One way that may help some clients deal with fear and greed and avoid getting out of winners too soon and staying in losers too long is entering multiple contracts.

Philosophy
In order to enter multiple contracts while day trading, one has to have the appropriate risk capital and margin requirements. But the advantage of trading more than one "unit" or splitting your trading size into two or more parts is as such:

If you enter a trade with one contract (or if you are treating your trading size as one unit, meaning you enter a trade with 4 contracts and exit the trade with 4 contracts), you can face a very quick dilemma, especially when day-trading. Consider the two following scenarios:

1. You get in and very quickly you are up 2 mini SP points...what do you do? Do you take profit? Bring your stop loss closer? How do you avoid getting out too early or too late?

**While the chart examples are a few years old, the concepts are still valid. If you would like a free Intraday trial after reading the article, Click Here!

3. Economic Calendar

Source: Moore Research Center, Inc.

* 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!