Volatility returns to Energy and Metal Futures; Economic Reports and Levels 9.03.2014
Posted By:- Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
Hello Traders,
For 2014 I would like to wish all of you discipline and patience in your trading!
BIG moves in energy and metals sector along with improved range and volume in stock indices.
I suspect this will continue the rest of this week with more reports ahead including Friday’s monthly employment levels.
Something my colleague mentioned to me today reminded me how “unnatural” trading can be for the human mind….As we are executing some trading systems on behalf of clients here at Cannon, one of the trading systems is a breakout system which caught the big sell off today in Crude, heating oil and gold ….( this is by no means to say that this system does this every day or anything of the sort but simply to provide an example of the following….): As the markets were moving in the direction the system wanted , my colleague mentioned, ” wish we could take profits now…” and it reminded me of one of the basic mistakes we all do. Taking profits too early and letting losses ride too long…The system which we execute under a letter of direction, ended up making quite a bit more by riding the trend rather than “taking profits now” and while this is not to imply that this happens all the time, my opinion is that many traders , day traders and long term traders take out profits too quickly and stay in losers too long. The reason? Our human mind wants to see the profits as “ours”, i.e closed profits so we can know for sure this was a win….vise versa on the losing side…we refuse to close losses because as long as the trade is open we have a chance for it to reverse, once we close it, it is a done deal, it is a closed losing trade….
So the point of the story is, that many times while trading we need to fight the urge to do what feels comfortable and rather do what we researched and believed produce results over time (assuming you do have a method/concept you researched and believed in…..)
Wishing you a great trading month ahead!
GOOD TRADING !
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past performance is not indicative to future results.
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Futures Trading Levels
| Contract Sept. 2014 | SP500 | Nasdaq100 | Dow Jones | Mini Russell | Dollar Index |
| Resistance 3 | 2020.25 | 4118.67 | 17253 | 1192.53 | 83.40 |
| Resistance 2 | 2013.25 | 4107.33 | 17191 | 1186.87 | 83.23 |
| Resistance 1 | 2006.75 | 4100.42 | 17124 | 1182.33 | 83.12 |
| Pivot | 1999.75 | 4089.08 | 17062 | 1176.67 | 82.95 |
| Support 1 | 1993.25 | 4082.17 | 16995 | 1172.13 | 82.84 |
| Support 2 | 1986.25 | 4070.83 | 16933 | 1166.47 | 82.67 |
| Support 3 | 1979.75 | 4063.92 | 16866 | 1161.93 | 82.56 |
| Contract | December Gold | Dec.Silver | Oct. Crude Oil | Dec. Bonds | Sept. Euro |
| Resistance 3 | 1307.7 | 19.9 | 98.38 | 140 25/32 | 1.3169 |
| Resistance 2 | 1298.2 | 19.7 | 97.14 | 140 11/32 | 1.3154 |
| Resistance 1 | 1282.0 | 19.5 | 95.17 | 139 16/32 | 1.3142 |
| Pivot | 1272.5 | 19.3 | 93.93 | 139 2/32 | 1.3127 |
| Support 1 | 1256.3 | 19.0 | 91.96 | 138 7/32 | 1.3115 |
| Support 2 | 1246.8 | 18.9 | 90.72 | 137 25/32 | 1.3100 |
| Support 3 | 1230.6 | 18.6 | 88.75 | 136 30/32 | 1.3088 |
| Contract | Dec Corn | Dec. Wheat | Nov. Beans | Dec. SoyMeal | Dec. bean Oil |
| Resistance 3 | 370.0 | 556.0 | 1042.33 | 378.80 | 32.86 |
| Resistance 2 | 368.3 | 555.5 | 1039.67 | 370.40 | 32.70 |
| Resistance 1 | 366.0 | 555.3 | 1035.83 | 365.20 | 32.41 |
| Pivot | 364.3 | 554.8 | 1033.17 | 356.80 | 32.25 |
| Support 1 | 362.0 | 554.5 | 1029.3 | 351.6 | 32.0 |
| Support 2 | 360.3 | 554.0 | 1026.67 | 343.20 | 31.80 |
| Support 3 | 358.0 | 553.8 | 1022.83 | 338.00 | 31.51 |
source: http://www.forexfactory.com/calendar.php
All times are Eastern time Zone (EST)
| Date | 4:08pm | Currency | Impact | Detail | Actual | Forecast | Previous | Graph | |
|---|---|---|---|---|---|---|---|---|---|
| WedSep 3 | 3:15am | EUR | Spanish Services PMI | 55.5 | 56.2 | ||||
| 3:45am | EUR | Italian Services PMI | 51.7 | 52.8 | |||||
| 4:00am | EUR | Final Services PMI | 53.5 | 53.5 | |||||
| 5:00am | EUR | Retail Sales m/m | -0.3% | 0.4% | |||||
| 10:00am | USD | Factory Orders m/m | 10.9% | 1.1% | |||||
| All Day | USD | Total Vehicle Sales | 16.5M | 16.5M | |||||
| 2:00pm | USD | Beige Book |
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 here in 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
