March 27th, 2015 - Issue #780
In This Issue
1. Hot Market - U.S. Dollar Index Bulls Work to Regain Technical Momentum
2. Jim Wyckoff Discusses Entry & Exit Strategies
3. Economic Calendar
1. Hot Market Review - U.S. Dollar Index Bulls Work to Regain Technical Momentum
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
The U.S. dollar index (USDX) is a basket of six major currencies combined versus the U.S. dollar. The USDX is a major "outside market" that can have a significantly daily impact on many other markets. See on the daily bar chart that the USDX has backed down from the recent multi-year high, but the overall price uptrend remains in place. Late this week the USDX has recovered as bulls have regained a bit of upside technical momentum. There are early technical clues to begin to suggest the USDX has put in a near-term top. A better clue would be if prices dropped below solid chart support at the March spike low.
2. Jim Wyckoff Discusses Entry & Exit Strategies
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:
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"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."
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"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!"
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"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.
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Entry and Exit Strategies by Jim Wyckoff
Cannon Trading respects your privacy and will never give this information to a 3rd party.
3. Economic Calendar
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 03/30 Mon |
7:30 AM CDT - PCE Prices-Core(Feb) 7:30 AM CDT - Personal Income & Spending(Feb) 9:00 AM CDT - Pending Home Sales(Feb) |
FN: Apr Natural Gas(NYM) |
| 03/31 Tues |
8:00 AM CDT - Case-Shiller 20-City Index(Jan) 8:45 AM CDT - Chicago PMI(Mar) 9:00 AM CDT - Consumer Confidence(Mar) 11:00 AM CDT - Grain Stocks 11:00 AM CDT - Prospective Plantings |
FN: Apr Copper(CMX) Apr Gold & Silver(CMX) Apr Platinum & Palladium(NYM) LT: Mar 2,5 Year Notes(CBT) Mar Fed Funds(CME) Mar Butter(CME) Mar Milk(CME) Apr RBOB & ULSD(NYM) Mar Butter Options(CME) Mar Milk Options(CME) Apr Lumber Options(CME) |
| 04/01 Wed |
6:00 AM CDT - MBA Mortgage Purchase Index 6:15 AM CDT - ADP Employment Report(Feb) 9:00 AM CDT - ISM Index(Mar) 9:00 AM CDT - Construction Spending(Feb) 9:30 AM CDT - API & DOE Energy Stats 2:00 PM CDT - Dairy Products Sales 6:00 PM CDT - Auto & Truck Sales(Mar) |
|
| 04/02 Thurs |
6:30 AM CDT - Challenger Job Cuts(Mar) 7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - Trade Balance(Feb) 9:00 AM CDT - Factory Orders(Feb) 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
FN: Apr RBOB & ULSD(NYM) LT: Apr Canadian Dollar Options(CME) Apr Currencies Options(CME) Apr Live Cattle(CME) Apr US Dollar Index Options(ICE) May Cocoa Options(ICE) |
| 04/03 Fri |
GOOD FRIDAY 7:30 AM CDT - Nonfarm Payrolls(Mar) 7:30 AM CDT - Unemployment Rate(Mar) 7:30 AM CDT - Hourly Earnings & Ave Workweek(Mar) |
|
| 04/06 Mon |
9:00 AM CDT - ISM Services(Mar) | FN: Apr Live Cattle(CME) |
* 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!
