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FOMC Notes & Economic Reports 7.31.2014

July 30th, 2014 Filed under Future Trading News | Comment (0)

Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

FOMC notes from Econoday.com:

Policy rates are unchanged. Taper remains on schedule to end with the October FOMC meeting. Policy rates are to remain low for a “considerable time” after the end of taper. Plosser dissented, objecting to “considerable time” phrase.

Emphasis was on the labor market which was upgraded with the comment, “Labor market conditions have improved , with the unemployment rate declining further.” But it was also noted, “a range of labor market indicators suggests that there remains significant underutilization of labor resources.”

The economy is seen as having rebounded from the anemic first quarter with household spending rising moderately and business fixed investment advancing. Housing is seen as remaining slow.

Inflation is closer to the Fed’s long-term goal and longer-term inflation expectations have remained stable.

Due to continued progress in the labor market, the FOMC decided to take a further measured reduction in asset purchases.

“Beginning in August, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $10 billion per month rather than $15 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $15 billion per month rather than $20 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction.”

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FOMC Interest Rate Decision Tomorrow & Economic Reports 7.30.2014

July 29th, 2014 Filed under Future Trading News | Comment (0)

Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

Voted Number 1 futures trading blog!

The FOMC interest rate decision is due at 14:00 ET in the US tomorrow ( Wednesday, July 30th ).

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 1965.00 with a stop at 1959.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 1959.75 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.
This is another great example why a trading journal would be an asset, as you can go back and check your notes from previous FOMC days.
Be patient and be disciplined.

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Crude Oil Futures Renko Charts & Economic Reports 7.23.2014

July 22nd, 2014 Filed under Commodity Brokers, Crude Oil, Future Trading News | Comment (0)

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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 July 23, 2014

Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

Voted #1 futures trading blog!

I mentioned in previous posts that I am getting to like range bar charts and Renko charts more and more when it comes for very short term trading.

The main reason why I like these type of charts along with volume charts when it comes to any time frame less than 10 minutes is because I think it helps filter out noise during slow times and help you get a quicker signal when there is time of heavier action in the market.

Example, let’s say you are using a 5 minute chart along with certain studies, to make a simple example, moving averages cross overs. Before you get a signal, the 5 minute bar has to finish so you can see the value of the moving averages and see if you got a cross over or not. There are times when the market is fast with heavy volume and you may miss 80% of the move because 5 minutes can be a long time for day traders…..On the other hand if you are using Renko/volume charts/Range bars and there is good volume, fast action, these bars will complete much faster to provide a much faster signal. On the same token, if the market is slow with low volume, you will sometimes get your moving averages cross over simply because time has passed….With volume / Renko charts you may be able to filter this out simply because the bars WONT complete unless there is enough volume/ price action. Obviously, these type of charts are by no means “holly grail” but I think one should observe and pay attention to the type of charts especially if you are a short term day trader.

Below is an example of crude oil 18 ticks range bar from today as well as a 5 minutes chart from today with the same studies/ conditions applied just to get a visual idea. If you like to try out the same charts I am sharing, feel free to contact Cannon Futures Trading and we will set you up for a free trial:

Crude Oil 5 minute chart 7-22-2014

Crude Oil 5 Minute Chart 7-22-2014

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Futures Levels & Economic Reports 7.09.2014

July 8th, 2014 Filed under Commodity Brokers, Index Futures | Comment (0)

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Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

Voted #1 futures trading blog!

I am not sure if it is the overbought conditions stock index futures are in, perhaps fear of the start of earning season or maybe it is the tense situation over in Israel/ Middle East – but the result today was one of the more meaningful down days of the last few months along with above avg. volume.

Not sure it is anything more than normal market action after indices made all time highs last week….I am a little more skeptic now days when it comes to the short side of the indices. That been said, if September SP500 can break below 1952 ( just a bit below today’s lows) I think we have higher chances of a continuation lower.

In between, know what time frame you are trading, know your rules, your objectives, accept the fact that you will have good and bad trading days and measure your progress after you define what it is.