It is not often that I share monthly charts as the one ofgold futuresbelow but recent price action calls for analysis of longer term view.
In This Issue
1. Gold Testing Major Support Levels
2. Entry & Exit Strategies
3. Economic Calendar
By: Ilan Levy-Mayer, Cannon Trading VP @ Forex Magnate
October 8th, 2014
It is not often that I share monthly charts as the one of gold futures below but recent price action calls for analysis of longer term view.
Drop in metals, energies and other commodities over the last few months brought gold to a recent low of 1182.80. Strength of US dollar along general weakness in the commodity sectors were the main contributors to the recent sell off.
I mentioned before that I believe fundamentals take over technical charts anytime we look at longer term time frames such as monthly/ yearly etc. yet it still helps to look at the charts and try to find clues from previous price action.
Looking at Heikin-Ashi monthly chart below, you will notice the amazing run gold had since it’s first major correction in 2009 when it resumed the bull run and went all the way up to flirt with the $2000 mark. Since then this market corrected pretty fast and tested the 1180 level 3 times, June 2013, Dec 2013 and just recently Oct 2014. The band between 1154 ( 61.8a % retracment level) and 1183 is crucial.
- Click on this link to see more of this article.From our friend Jim Wyckoff
I have received several email messages from my readers asking about how to best determine entry and exit strategies when trading markets. Here are just a few of their quotes:
"Though my success rate has been high, I am only breaking even financially, due to getting out too early in profit and letting my losses run too far."
"Many articles are written showing when and where to enter trades... but how many articles are written about "running" positions? Where to exit surely has to be the biggest key to trading success!"
"I would appreciate some advice or tips on how to and when to enter a market and when to exit."
Of course, if a trader knew exactly when to get into a market and when to get out, wouldn't trading be easy! But even the most successful traders in the world can't do that. The best they can strive for is to catch a bigger part of any move (trend) in the market, and then get out with a good profit before the market turns against them.
I've written past articles on trading with the trend and not against it, on the perils of trying to pick tops and bottoms, on support and resistance, and on letting profits run and cutting losses short, as well as trading the "breakouts." I won't repeat all those trading tenets here, but if you've missed some of my articles, drop me an email and I can attach some of them in an email to you.
In this article, I'll get more specific on entries and exits, and what to do if you are in a trade and are accumulating profits or absorbing losses.
First of all, if you are in a trade, you should already have a general plan of action in place, including potential entry and exit points, before you entered the trade. Certainly, you can alter your plan of action in the heat of battle, but you should not enter any trade without having a well-thought-out trading plan. Also in your trading plan you can have a few scenarios that could occur and what you would do if they did occur.
Source: Moore Research Center, Inc.
Date | Reports | Expiration & Notice Dates |
10/13 Mon |
COLUMBUS DAY | LT: Oct Eurodollar(CME) |
10/14 Tues |
LT: Oct Lean Hogs(CME) Oct Soymeal(CBT) Oct Soyoil(CBT) Oct Lean Hogs Options(CME) |
|
10/15 Wed |
6:00 AM CDT - MBA Mortgage Purchase Index 7:30 AM CDT - Core PPI & PPI(Sep) 7:30 AM CDT - Empire Manufacturing(Oct) 7:30 AM CDT - Retail Sales(Sep) 7:30 AM CDT - Retail Sales-ex auto(Sep) 9:00 AM CDT - Business Inventories(Aug) 11:00 AM CDT - NOPA Crush 1:00 PM CDT - Fed's Beige Book(Oct) 3:00 PM CDT - Dairy Product Sales |
LT: Nov Platinum Options(NYM) Nov Palladium Options(NYM) Nov Sugar-11 Options(ICE) |
10/16 Thurs |
7:30 AM CDT - Initial Claims-Weekly 8:15 AM CDT - Capacity Util & Industrial Prod(Sep) 9:00 AM CDT - NAHB Housing Market Index(Oct) 9:00 AM CDT - Philadelphia Fed(Oct) 9:30 AM CDT - EIA Gas Storage 10:00 AM CDT - API & DOE Energy Stats 3:00 PM CDT - Dairy Products Sales 3:30 PM CDT - Money Supply 5:00 PM CDT - Net Long-Term TIC Flows(Aug) |
LT: Nov Crude Lt Options(NYM) |
10/17 Fri |
7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Building Permits & Housing Starts(Sep) 8:55 AM CDT - Mich Sentiment(Oct) |
LT: Oct DJIA Options(CME) Oct Nikkei Options(CME) Oct S&P 500 Options(CME) Oct E-Mini S&P 500 Options(CME) Oct NASDAQ Options(CME) Oct E-Mini NASDAQ Options(CME) Oct Russell Options(CME) Oct Cotton Options(ICE) Oct Orange Juice(ICE) |
10/20 Mon |
* 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!