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 Tuesday December 16, 2015
For 2015 I would like to wish all of you discipline and patience in your trading!
Here is some futures market insight from our Senior Broker, Jack Engin of today’s market action:
There is a muffled mix of excitement and tempered anxiety in the air surrounding all of the markets ahead of the FOMC’s all-important announcement tomorrow.
Our Vice President, Ilan Levy-Mayer, has in the past, issued sound and, in my opinion, paramount advice for trading on FOMC days; please heed his warnings below:
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 2065.00 with a stop at 2059.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 2059.75 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
Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains. If you need help creating a trading plan, visit our broker assist services.
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||Jan. Crude Oil||Mar. Bonds||March Euro|
|Resistance 3||1077.1||14.00||39.88||157 25/32||1.1206|
|Resistance 2||1072.5||13.91||38.88||156 27/32||1.1147|
|Resistance 1||1066.6||13.83||38.03||155 25/32||1.1051|
|Support 1||1056.1||13.65||36.18||153 25/32||1.0896|
|Support 2||1051.5||13.56||35.18||152 27/32||1.0837|
|Support 3||1045.6||13.48||34.33||151 25/32||1.0741|
|Contract||Mar. Corn||Mar. Wheat||Jan Beans||Jan. SoyMeal||Jan. Nat Gas|
|WedDec 16||3:00am||EUR||French Flash Manufacturing PMI||50.6||50.6|
|EUR||French Flash Services PMI||50.7||51.0|
|3:30am||EUR||German Flash Manufacturing PMI||52.7||52.9|
|EUR||German Flash Services PMI||55.5||55.6|
|4:00am||EUR||Flash Manufacturing PMI||52.8||52.8|
|EUR||Flash Services PMI||54.0||54.2|
|5:00am||EUR||Final CPI y/y||0.1%||0.1%|
|EUR||Final Core CPI y/y||0.9%||0.9%|
|9:15am||USD||Capacity Utilization Rate||77.3%||77.5%|
|USD||Industrial Production m/m||0.0%||-0.2%|
|9:45am||USD||Flash Manufacturing PMI||52.7||52.8|
|10:30am||USD||Crude Oil Inventories||-0.3M||-3.6M|
|2:00pm||USD||FOMC Economic Projections|
|USD||Federal Funds Rate||<0.50%||<0.25%|
|2:30pm||USD||FOMC Press Conference|
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.