March 16th, 2021 Filed under Indices | Comment (0)
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It’s that time of the year where June contract is the front month for all stock indices/ currencies/ financials and other markets!
Tomorrow we have FOMC.
Normally the volatility is around the actual rate cut/increase….This time it is 99.99% of no change
. Language in the statement will be the main feature.
However, FOMC days do have unique behavior and this time my guess is, it will be around the language used after the announcement.
The following are my PERSONAL 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 3925.00 with a stop at 3919.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 3919.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).
· 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.
· Keep in mind statement comes out at 1 Pm Central time, the news conference which dissects the language comes out 30 minutes later so the volatility window stretches out.
· Know what the market was expecting, learn what came out and observe market reaction for clues
· Be patient and be disciplined
· If in doubt, stay out!!
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 when it comes to Futures Trading.
Futures Trading Levels
Economic Reports, source:
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 judgement in trading.
September 15th, 2011 Filed under Currency Futures, Futures Trading | Comments Off on New Front Month – Futures Trading Rollover Day for Minis and Currencies Tomorrow | Support and Resistance Levels
In this post:
1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini S&P 500 Futures Chart
4. Economic Reports
1. Market Commentary
FRONT MONTH FOR EQUITIES IS DECEMBER. THE SEPTEMBER MINI SP ( AND OTHER MINIS WILL STOP TRADING TOMORROW MORNING!! ALSO CURRENCIES WILL ROLLOVER TO DECEMBER TOMORROW. PAY ATTENTION AS DELIVERIES AND MISTAKES CAN BE QUITE COSTLY.
SYMBOL FOR DECEMBER IS Z
As far as price direction, I am still not sure how to attack this market (outside of quick day-trades which I review live). We are against some resistance levels on the daily chart and I am curious to see the market reaction as the September contract is few hours from expiration.
When in doubt, it’s best to stay out, even more so in trading. I think that many successful traders will agree that the trades you DON’T take are probably more important than the ones you do. Read the rest of this entry »