Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
* Big day tomorrow.
We have FOMC, crude oil numbers. It is also the first day of the trading month for February as well as ADP employment figures…..Little note about trading on FOMC below:
** The FOMC interest rate decision is due at 2:15 ET in the US tomorrow.
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 2265.00 with a stop at 2259.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 2259.75 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 02.01.2017
|Contract March 2017||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||Apr. Gold||March Silver||Mar. Crude Oil||Mar. Bonds||March Euro|
|Resistance 3||1241.9||18.30||54.82||152 17/32||1.0987|
|Resistance 2||1229.6||17.97||54.19||151 27/32||1.0908|
|Resistance 1||1220.1||17.77||53.50||151 11/32||1.0859|
|Support 1||1198.3||17.24||52.18||150 5/32||1.0732|
|Support 2||1186.0||16.91||51.55||149 15/32||1.0653|
|Support 3||1176.5||16.71||50.86||148 31/32||1.0604|
|Contract||March Corn||March Wheat||Mar. Beans||March SoyMeal||Mar. Nat Gas|
Nationwide HPI m/m
Spanish Manufacturing PMI
Italian Manufacturing PMI
French Final Manufacturing PMI
German Final Manufacturing PMI
Final Manufacturing PMI
EU Economic Forecasts
ADP Non-Farm Employment Change
Final Manufacturing PMI
ISM Manufacturing PMI
Construction Spending m/m
ISM Manufacturing Prices
Crude Oil Inventories
Total Vehicle Sales
Federal Funds Rate