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 Wednesday July 27, 2016
The FOMC interest rate decision is due at 2:15 ET in the US tomorrow ( Wednesday, July 27th ). Also more than a few economic numbers ahead of the announcement.
FOMC days have different characteristics than other trading days. If you have traded for a while, check your trading notes from past FOMC days that may help you prepare for tomorrow.
if you are a newcomer, take a more conservative approach and make sure you understand that the news can really move the market.
The following are suggestions on trading during FOMC days:
- Reduce trading size
- Be extra picky = no trade is better than a bad trade
- Choose entry points wisely. Look at longer time frame support and resistance for entry. Take the approach of entering at points where you normally would have placed protective stops. Example, trader x looking to go long the mini SP at 2165.00 with a stop at 2159.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 2159.75 and place a stop a few points below in this hypothetical example.
- Expect the higher volatility during and right after the announcement
- Expect to see some “vacuum” ( low volume, big zigzags) right before the number.
- Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
- Know what the market was expecting, learn what came out and observe market reaction for clues
- Be patient and be disciplined
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 Sept. 2016||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||Aug. Gold||Sept. Silver||Sept. Crude Oil||Sept. Bonds||Sept. Euro|
|Resistance 2||1330.1||19.98||43.88||173 12/32||1.1075|
|Resistance 1||1325.0||19.84||43.34||172 16/32||1.1044|
|Support 2||1308.5||19.36||41.82||170 12/32||1.0972|
|Support 3||1303.4||19.22||41.28||169 16/32||1.0941|
|Contract||Dec.Corn||Sept. Wheat||Nov. Beans||Dec. SoyMeal||Nov. Nat Gas|
German Import Prices m/m
GfK German Consumer Climate
M3 Money Supply y/y
Private Loans y/y
Prelim GDP q/q
Index of Services 3m/3m
CBI Realized Sales
German 30-y Bond Auction
Core Durable Goods Orders m/m
Durable Goods Orders m/m
Pending Home Sales m/m
Crude Oil Inventories
Federal Funds Rate