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 November 2, 2016
BIG day tomorrow!
FOMC meeting along with ADP employment report earlier in the day and crude oil numbers…
Be aware of the reports, know your strengths and weaknesses and decide if you should be trading during these reports or not.
refer back to notes from your ( hopefully ) trading journal and stay disciplined and consistent. No trade is better than a bad trade!
Here are some notes I share before every FOMC day….
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 2105.00 with a stop at 2099.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 2099.75 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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Levels for Trade Date of 11.02.2016
|Contract Dec. 2016||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||Dec. Gold||Dec. Silver||Dec. Crude Oil||Dec. Bonds||Dec. Euro|
|Resistance 3||1312.6||19.29||48.49||165 4/32||1.1227|
|Resistance 2||1302.7||18.90||47.92||164 6/32||1.1159|
|Resistance 1||1296.0||18.63||47.34||163 17/32||1.1118|
|Support 1||1279.4||17.97||46.19||161 30/32||1.1009|
|Support 3||1262.8||17.31||45.04||160 11/32||1.0900|
|Contract||Dec. Corn||Dec. Wheat||Jan. Beans||Dec. SoyMeal||Dec. Nat Gas|
Nationwide HPI m/m
Spanish Manufacturing PMI
Italian Manufacturing PMI
French Final Manufacturing PMI
German Unemployment Change
German Final Manufacturing PMI
Final Manufacturing PMI
German 10-y Bond Auction
ADP Non-Farm Employment Change
Crude Oil Inventories
Federal Funds Rate