Futures Trading Levels and Economic Reports for January 26, 2011

Support & Resistance Levels

This Blog provides futures market outlook for different commodities and futures trading markets, mostly stock index futures, as well as support and resistance levels for Crude Oil futures, Gold futures, Euro currency and others. At times the daily trading blog will include educational information about different aspects of commodity and futures trading.

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Futures Trading Levels and Economic Reports for January 26, 2011

We should see volatile next 24 hours.

State of the Union tonight and tomorrow we have FOMC statement.

I shared the Dow Jones Cash index yesterday so i am providing an updated chart from today in which I actually got a potential sell signal.

As you can see we have a RED diamond appearing ahead of tomorrows open, the way I like to trade this signal is by entering on a stop, so in this case I will wait to see if Dow Jones Cash trades below today’s low at 11898 and only then I would have higher confidence to be short.

Below the chart, please review some notes i wrote for FOMC days:

SP-500-Day-Trading-2011-01-26

Past results are not necessarily indicative of future results.
The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

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.
My observations suggest choppy, low volume up until announcement, followed by some some sharp volatile moves right during and after the announcement. However, with tonights state of Union, we may see more volatility during first couple of hours as well.

GOOD TRADING!

TRADING LEVELS!

futures-trading-levels-20110126

Economics Report Source: http://www.forexfactory.com/calendar.php

Wednesday, January 26, 2011

WEF Annual Meetings
10:00am USD

Crude Oil Inventories
10:30am USD

Crude Oil Inventories
10:30am USD

FOMC Statement
2:15pm USD

Federal Funds Rate
2:15pm USD

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Company, Inc. Any statement of facts herein 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!

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RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.
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