May 3, 2013 - Issue #684
In This Issue
1. What do I need to start trading futures?
2. E-mini Russell 2000 June Outlook - JS Services
3. Economic Calendar
1. What do I need to start trading futures?
Date: May 1st, 2013
By: Justin Smith, Cannon Trading Commodities Broker
How do I get started with Futures Trading?
So you’ve come this far. You’ve evaluated different vehicles of investment, and you have decided to expand your portfolio to include commodity futures , Now what? You are going to need a few tools at your disposal: a knowledgeable commodity broker that is quick on their feet, a reliable, efficient platform that will get you the information you require and executes your trades on a timely basis, and perhaps most importantly a plan.
Let’s begin with the most important requirement: because futures are so highly leveraged (if you are holding one contract of the E-mini S&P 500, the notional value of the contract is 50x the current index price), there’s no doubt it can be a very risky asset class and you should only be trading with “risk capital”, or money that you can stand to lose and won’t affect your lifestyle if you do. Once you’ve accumulated your risk capital and you’ve come to terms with the nature of trading futures, you can take matters a step further by doing research on what kind of trader you want to be.
Self-directed, Broker-assist, or Managed?
One of the most difficult aspects of futures trading is coming to terms with one’s own skill set; what are the characteristics of my trading? What are the flaws and finer points of my trading? Is day-trading the E-mini S&P 500 something I was cut out for, or does my personality gear me more towards swing-trading the grains?If you like this Newsletter, Please share!
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Cannon Trading respects your privacy and will never give this information to a 3rd party.2. E-mini Russell 2000 June Outlook - JS Services
From our friends JS Services JUN '13 E-MINI RUSSELL 2000 ** NEUTRAL POSITIVE EXTREME **
- The MKT is pressing the extreme but remains in a firm posture. On the SELL side REVERSAL strategies off the UP and UT1 will work best. If the integrity of the previous session low remains intact, avoid FADE strategies as expectation is for a higher trade. BREAKOUT strategies are a lower probability and should just "go". Risk little and have a resting defined target.
- On the BUY side FADE and REVERSAL strategies are recommended off the DP and DT1. As long as the MKT continues to hold positive structure, these strategies should be aggressively taken. BREAKOUT strategies should only have 1 pullback after a resistance breach, bottoming out above the DIR if they are going to follow through in the session. Any more and the market will be vulnerable to a neutral shift. click on image below to enlarge
3. Economic Calendar
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 05/06 Mon |
||
| 05/07 Tues |
6:00 AM CDT - MBA Mortgage Purchase Index 9:30 AM CDT - API & DOE Energy Stats 3:00 PM CDT - Dairy Products Sales |
|
| 05/08 Wed |
6:00 AM CDT - MBA Mortgage Purchase Index 9:30 AM CDT - API & DOE Energy Stats 3:00 PM CDT - Dairy Products Sales |
LT: May Cotton(NYM) |
| 05/09 Thurs |
7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - USDA Weekly Export Sales 9:00 AM CDT - Wholesale Inventories(Mar) 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
FN: May Heating Oil(NYM) May RBOB Gasoline(NYM) |
| 05/10 Fri |
11:00 AM CDT - WASDE Report & Crop Production 1:00 PM CDT - Treasury Budget(Apr) |
LT: May Orange Juice(ICE) May Eurodollar Options(CME) Jun Coffee Options(ICE) |
| 05/04 Mon |
7:30 AM CDT - Retail Sales(Apr) 9:00 AM CDT - Business Inventories(Mar) |
LT: May Eurodollar(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.
