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 February 26, 2014
For 2014 I would like to wish all of you discipline and patience in your trading!
Range bound, directionless trading today in stock index futures. Markets are pushing against all time highs and it will be interesting to see what kind of action we get.
So in hindsight, today’s trading environment was suitable for buying support, selling resistance. Trying to scalp the ranges as there was no real volatility or break out. Today’s action encouraged me to share a quick paragraph I wrote about the different types of trading days:
- My opinion is that there are 3 main types of trading days.
1. Most common is two sided trading action with swings up and down – this type of trading day is most suitable for using support and resistance levels along with overbought /oversold indicators.
2. Strong trending day, mostly one directional – this type of trading day is the least common, many times will happen on Mondays and maybe 3-5 times a month at most – this type of trading day is most suitable for using ADX, MACD crossovers and pretty much looking for pullbacks to jump on the trend
3. Slow and/ or choppy trading day – this type of trading day is best suited for taking small profits from the market by looking at volume spikes, using stochastics as possible entry signals and usually wait for a pullback before jumping in.
- Good question is how can one asses what type of trading day we will have while the market is still trading….I am doing some work about it and will be happy to hear feedback via email but here are some initial observations:
- Was the overnight session a wide, two sided trading range? If the answer is yes, good chances for similar trading day during the primary session ( primary session is when the cash/ stock market is open)
- Mondays have the highest chance for trending days
- The behavior of the first hour of trading can also suggests the type of action for the rest of the day.
- If the first 30 minutes have good volume, better chances for type 1 or type 2 trading days.
- low volume during first 30 minutes can suggest a choppy (type 3 trading day)
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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 March 2014||SP500 (big & Mini)||Nasdaq100 (big & Mini)||Dow Jones (big & Mini)||Mini Russell||Dollar Index|
|Contract||Apr. Gold||Mar. Silver||April Crude Oil||Mar. Bonds||Mar. Euro|
|Resistance 3||1358.5||2238.5||104.71||134 12/32||1.3819|
|Resistance 2||1351.1||2220.5||103.78||134 2/32||1.3793|
|Resistance 1||1345.9||2203.0||102.89||133 27/32||1.3767|
|Support 1||1333.3||2167.5||101.07||133 10/32||1.3715|
|Support 3||1320.7||2132.0||99.25||132 25/32||1.3663|
|Contract||May Corn||May Wheat||May Beans||May SoyMeal||May bean Oil|
|WedFeb 26||2:00am||EUR||GfK German Consumer Climate||8.3||8.2|
|Tentative||EUR||German 30-y Bond Auction||2.64|1.4|
|10:00am||USD||New Home Sales||406K||414K|
|10:30am||USD||Crude Oil Inventories||1.1M||1.0M|
|7:30pm||USD||FOMC Member Pianalto Speaks|
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