Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
When markets trade with such high volatility, one must understand the enviroment he or she are trading in, which is quite different from the enviroment of a few weeks ago.
Ranges are wider, speed is faster and volume is higher. You must take that into account, adjust your trading accordingly and make sure that you set limits as far as your daily risk is concerned and not allow for one trade or one trading day to wipe your trading account.
I wrote more about the topic in an article called: “Survivor day-trading.”
In between, daily chart of Mini SP for your review below. I ran some FIB extensions and the next target if this sell off continues is 1238.75:
Daily Chart of the Mini S&P 500 from August 2nd, 2011
Economic Reports Wednesday August 3rd, 2011
Challenger Job Cuts y/y
ADP Non-Farm Employment Change
ISM Non-Manufacturing PMI
Factory Orders m/m
Crude Oil Inventories
Economics Report Source: http://www.forexfactory.com/calendar.php
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!