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 April 30, 2014
For 2014 I would like to wish all of you discipline and patience in your trading!
The FOMC interest rate decision is due at 14:00 ET in the US tomorrow ( Wednesday, April 30th).
This FOMC will follow more than a few important reports that will be released earlier in the morning, so I expect a volatile session.
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 1875.00 with a stop at 1869.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 1869.75 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
- This is another great example why a trading journal would be an asset, as you can go back and check your notes from previous FOMC days.
- Be patient and be disciplined
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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 2014||SP500 (big & Mini)||Nasdaq100 (big & Mini)||Dow Jones (big & Mini)||Mini Russell||Dollar Index|
|Contract||June Gold||May Silver||June Crude Oil||June Bonds||June Euro|
|Resistance 3||1319.5||2003.5||102.74||135 19/32||1.3946|
|Resistance 2||1313.0||1989.5||102.13||135 8/32||1.3912|
|Resistance 1||1305.0||1975.0||101.55||134 27/32||1.3880|
|Support 1||1290.5||1946.5||100.36||134 3/32||1.3814|
|Support 2||1284.0||1932.5||99.75||133 24/32||1.3780|
|Support 3||1276.0||1918.0||99.17||133 11/32||1.3748|
|Contract||July Corn||July Wheat||July Beans||July SoyMeal||July bean Oil|
5. Economic Reports
|WedApr 30||2:00am||EUR||German Retail Sales m/m||-0.6%||1.3%|
|2:45am||EUR||French Consumer Spending m/m||0.3%||0.1%|
|3:00am||EUR||Spanish Flash GDP q/q||0.4%||0.2%|
|3:55am||EUR||German Unemployment Change||-10K||-12K|
|4:00am||EUR||Italian Monthly Unemployment Rate||13.0%||13.0%|
|5:00am||EUR||CPI Flash Estimate y/y||0.8%||0.5%|
|EUR||Italian Prelim CPI m/m||0.1%||0.1%|
|8:15am||USD||ADP Non-Farm Employment Change||203K||191K|
|8:30am||USD||Advance GDP q/q||1.2%||2.6%|
|USD||Advance GDP Price Index q/q||1.6%||1.6%|
|USD||Employment Cost Index q/q||0.5%||0.5%|
|10:30am||USD||Crude Oil Inventories||1.3M||3.5M|
|USD||Federal Funds Rate||<0.25%||<0.25%|
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.