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 Thursday October 03, 2013
For 2013 I would like to wish all of you discipline and patience in your trading!
I wrote this one before about different markets traders may want to look at for day trading or what I call “Day-Trading life outside of the mini SP”
Each market has different personality, different behavior along with different times of the day when it is most active. If you are finding that the ES is not giving you enough risk/opportunities then start monitoring a couple of other markets and perhaps explore them in demo / simulated mode.
I will try over the next few blogs to shed some light on other markets i think are suitable for day-trading along with what is unique about these markets, personality and most active trading hours.
Today I am going to start with interest rates, mostly the ten year and 30 year.
In most platforms, the symbols are ZB for 30 year bonds and ZN for 10 year notes. The current front month is December which is Z. So ZBZ3 for example.
|Contract Size||The unit of trading shall be U.S. Treasury Bonds having a face value at maturity of one hundred thousand dollars ($100,000) or multiples thereof|
|Price Quotation||Points ($1,000) and 1/32 of a point. For example, 134-16 represents 134 16/32. Par is on the basis of 100 points.|
|Underlying Unit||One U.S. Treasury note having a face value at maturity of $100,000.|
|Deliverable Grades||U.S. Treasury notes with a remaining term to maturity of at least six and a half years, but not more than 10 years, from the first day of the delivery month. The invoice price equals the futures settlement price times a conversion factor, plus accrued interest. The conversion factor is the price of the delivered note ($1 par value) to yield 6 percent.|
|Price Quote||Points ($1,000) and halves of 1/32 of a point. For example, 126-16 represents 126 16/32 and 126-165 represents 126 16.5/32. Par is on the basis of 100 points.|
|One-half of one thirty-second (1/32) of one point ($15.625, rounded up to the nearest cent per contract), except for intermonth spreads, where the minimum price fluctuation shall be one-quarter of one thirty-second of one point ($7.8125 per contract).|
|Contract Months||The first five consecutive contracts in the March, June, September, and December quarterly cycle.|
These contracts are often affected by many of the economic reports that come out at 8:30 Am Eastern and there is very active volume between the hours of 8 am EST and 3 PM EST
Volume on both contracts is very good. Ten years will often have 1 million contracts traded per day ( might be the second most active US futures market after the mini SP 500) and the bonds will avg. around 300,000 contracts.
These markets can experience very volatile movements during and right after different reports but then will often trade smooth or in an intraday trend the rest of the day.
Follow these two markets in demo mode for a while if you have not traded them before and get a feel for the movement, reaction to reports, execution etc.
If you have any questions, feel free to contact me.
Below is a 3 tick range bar chart of the US bond market or what i refer to as the 30 year bonds ZBZ3 from today
Would you like to have access to the DIAMOND and TOPAZ and 5T ALGOs as shown above and be able to apply for any market and any time frame on your own PC ? You can now have a three weeks free trial where the ALGO is enabled along with few studies for your own sierra/ ATcharts. The trial comes with a 23 page PDF booklet which explains the concepts, risks and methodology in more details.
To start your free 3 weeks trial, please send me an email with the following information:
1. Are you a client of Cannon Trading?
2. Are you currently trading futures?
3. Charting software you use?
4. If you use sierra or ATcharts, please let me know the user name so I can enable you
5. Markets you currently trading?
TRADING COMMODITY FUTURES AND OPTIONS INVOLVE SUBSTANTIAL RISK OF LOSS. THE RECOMMENDATIONS CONTAINED IN THE LETTER IS OF OPINION AND DOES NOT GUARANTEE ANY PROFITS. THERE IS NOT AN ACTUAL ACCOUNT TRADING THESE RECOMMENDATIONS. THESE ARE RISKY MARKETS AND ONLY RISK CAPITAL SHOULD BE USED. PAST PERFORMANCES ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NO INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS
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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 Dec. 2013||SP500 (big & Mini)||Nasdaq100 (big & Mini)||Dow Jones (big & Mini)||Mini Russell||Dollar Index|
|Contract||Dec. Gold||Dec. Silver||Nov. Crude Oil||Dec. Bonds||Dec. Euro|
|Resistance 3||1382.0||2325.3||107.72||135 1/32||1.3733|
|Resistance 2||1353.1||2264.7||105.97||134 15/32||1.3672|
|Resistance 1||1334.7||2220.3||104.92||133 29/32||1.3630|
|Support 1||1287.4||2115.3||102.12||132 25/32||1.3527|
|Support 2||1258.5||2054.7||100.37||132 7/32||1.3466|
|Support 3||1240.1||2010.3||99.32||131 21/32||1.3424|
|Contract||Dec Corn||Dec. Wheat||Nov.Beans||Dec. SoyMeal||Dec. bean Oil|
|ThuOct 3||All Day||EUR||German Bank Holiday|
|3:15am||EUR||Spanish Services PMI||50.9||50.4|
|3:45am||EUR||Italian Services PMI||49.3||48.8|
|4:00am||EUR||Final Services PMI||52.1||52.1|
|5:00am||EUR||Retail Sales m/m||0.3%||0.1%|
|Tentative||EUR||French 10-y Bond Auction|
|Tentative||EUR||Spanish 10-y Bond Auction||4.50|2.0|
|7:30am||USD||Challenger Job Cuts y/y||56.5%|
|10:00am||USD||ISM Non-Manufacturing PMI||57.2||58.6|
|10:30am||USD||Natural Gas Storage||96B||87B|
|1:30pm||USD||FOMC Member Powell 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 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