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 January 27, 2016
For 2015 I would like to wish all of you discipline and patience in your trading!
The FOMC interest rate decision is due at 2:15 ET in the US tomorrow ( Wednesday, Jan. 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 1865.00 with a stop at 1859.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 1859.75 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 March 2016||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||Feb. Gold||March Silver||Mar. Crude Oil||Mar. Bonds||March Euro|
|Resistance 3||1143.9||15.02||35.80||162 3/32||1.0948|
|Resistance 2||1133.5||14.80||34.10||161 15/32||1.0917|
|Resistance 1||1127.9||14.66||32.64||160 22/32||1.0892|
|Support 1||1111.9||14.30||29.48||159 9/32||1.0836|
|Support 2||1101.5||14.08||27.78||158 21/32||1.0805|
|Support 3||1095.9||13.94||26.32||157 28/32||1.0780|
|Contract||Mar. Corn||Mar. Wheat||Mar Beans||Mar. SoyMeal||Feb. Nat Gas|
|WedJan 27||2:00am||EUR||GfK German Consumer Climate||9.3||9.4|
|Tentative||EUR||German 30-y Bond Auction||1.49|1.0|
|10:00am||USD||New Home Sales||503K||490K|
|10:30am||USD||Crude Oil Inventories||4.0M|
|USD||Federal Funds Rate||<0.50%||<0.50%|
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.