Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
Jump to a section in this post:
1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Economic Reports for Friday February 8, 2013
For 2013 I would like to wish all of you discipline and patience in your trading!
More than a few clients and prospects have asked me: How do you use the support and resistance levels? Many others have asked me about the diamond ALGO as well…There is no black and white formula but what I have in common for both the SR levels and the Diamond ALGO is that I like to use them in conjunction with other tools/ methods etc.
In the example below, taken from today’s session, you will see two signals I got from the DIAMOND algo, one for long and one for short. At the time I got these signals, I looked at the published SR levels for today and saw that I have an opportunity to go long, using the 1494 S2 level as possible stop and about an hour later I saw an opportunity to go short using the 1505.25 pivot level as possible stop. As one can see, the long turned out nicely, the short would have probably got stopped out unless one would have taken very quick profit. I actually like to place the stops a couple of ticks BELOW or ABOVE the levels.
These are just examples and hindsight is always much easier. I decided to share this as an example because I actually used both the indicators and the published support and resistance levels to assist a full service client in taking a long trade on the mini SP 500 at that time.
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NO INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
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.
|FriFeb 8||2:00am||EUR||German Trade Balance||13.7B||14.6B|
|2:45am||EUR||French Gov Budget Balance||-103.4B|
|4:00am||EUR||Italian Industrial Production m/m||0.2%||-1.0%|
|Day 2||EUR||EU Economic Summit|
|10:00am||USD||Wholesale Inventories m/m||0.5%||0.6%|
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