Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Tuesday June 2, 2015
For 2015 I would like to wish all of you discipline and patience in your trading!
The first trading day of June 2015 was a wild ride in many markets….almost as if the markets were quite confused on the direction for the month and traded very choppy with “unexplained, fast moves” both ways. I saw this in stock index futures, metals, currencies and even the grain sector…
As traders we need to learn how to adapt quickly, sense what type of trading day is developing in front of us and trade accordingly.
I wrote the following a while back and shared it before but worth sharing again as refresher:
- In my opinion there are 3 main types of trading days.
1. The most common day are two sided trading action with swings up and down – this type of trading day is most suitable for using support and resistance levels along with overbought/oversold indicators.
2. Strong trending days, mostly one directional – this type of trading day is the least common, many times will happen on Mondays and maybe 3-5 times a month at most – this type of trading day is most suitable for using ADX, MACD crossovers and pretty much looking for pullbacks to jump on the trend.
3. Slow and/or choppy trading days – this type of trading day is best suited for taking small profits from the market by looking at volume spikes, using stochastics as possible entry signals and usually wait for a pullback before jumping in.
- A good question I’ve been asked is how can one asses what type of trading day we will have while the market is still trading….I have been doing some work in finding the answers and will be happy to hear feedback via email but here are some initial observations:
- Was the overnight session a wide, two sided trading range? If the answer is yes, good chances for similar trading day during the primary session (primary session is when the cash/stock market is open)
- Mondays have the highest chance for trending days
- The behavior of the first hour of trading can also suggests the type of action for the rest of the day.
- If the first 30 minutes of the trading day have good volume, better chances for type 1 or type 2 trading days.
- Low volume during the first 30 minutes can suggest a choppy (type 3 trading day)
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.
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|Contract June 2015||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||Aug. Gold||July Silver||July Crude Oil||Sept. Bonds||June Euro|
|Resistance 3||1221.7||17.65||62.15||157 9/32||1.1074|
|Resistance 2||1213.2||17.41||61.39||156 12/32||1.1029|
|Support 1||1180.3||16.49||59.53||152 23/32||1.0886|
|Support 2||1171.8||16.25||58.77||151 26/32||1.0841|
|Support 3||1159.6||15.91||58.22||150 14/32||1.0792|
|Contract||July Corn||July Wheat||July Beans||July SoyMeal||July Nat Gas|
|TueJun 2||All Day||EUR||Italian Bank Holiday|
|3:00am||EUR||Spanish Unemployment Change||-115.4K||-118.9K|
|3:55am||EUR||German Unemployment Change||-10K||-8K|
|5:00am||EUR||CPI Flash Estimate y/y||0.2%||0.0%|
|EUR||Core CPI Flash Estimate y/y||0.7%||0.6%|
|10:00am||USD||FOMC Member Brainard Speaks|
|USD||Factory Orders m/m||-0.0%||2.1%|
|USD||IBD/TIPP Economic Optimism||49.8||49.7|
|All Day||USD||Total Vehicle Sales||17.0M||16.5M|
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.