Insights into trading ( or not….) on FOMC days & Levels 6.13.2018

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Dear Traders,

CME Fed Funds futures is currently projecting, with a 93.6 % confidence level;  .25 increase for tomorrow’s  FRB rate announcement.
FOMC days are quite different in their behavior:
** The FOMC interest rate decision is due at 2:00 ET in the US tomorrow. This is followed by the conference which will provide more clues ( volatility).
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 2765.00 with a stop at 2759.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 2759.75 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.
  • 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!!

 

Good Trading

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.

Futures Trading Levels

06-13-2018

Contract September 2018  SP500 #ES_F Nasdaq100  #NQ_F Dow Jones  #YM_F Mini Russell #RTY_F BitCoin Index #XBT_F
Resistance 3 2806.83 7319.17 25551 1708.70 7238.88
Resistance 2 2800.42 7280.83 25477 1700.50 7070.75
Resistance 1 2795.08 7257.67 25405 1693.80 6787.27
Pivot 2788.67 7219.33 25331 1685.60 6619.14
Support 1 2783.33 7196.17 25259 1678.90 6335.66
Support 2 2776.92 7157.83 25185 1670.70 6167.53
Support 3 2771.58 7134.67 25113 1664.00 5884.05
Contract August Gold #GC_F July Silver #SI-F July Crude Oil #CL-F Sept.  Bonds  #ZB_F June  Euro #6E_F
Resistance 3 1312.8 17.19 67.48 143 23/32 1.1878
Resistance 2 1308.8 17.09 67.09 143 11/32 1.1846
Resistance 1 1304.3 16.99 66.65 143  3/32 1.1801
Pivot 1300.3 16.88 66.26 142 23/32 1.1769
Support 1 1295.8 16.78 65.82 142 15/32 1.1724
Support 2 1291.8 16.68 65.43 142  3/32 1.1692
Support 3 1287.3 16.58 64.99 141 27/32 1.1647
Contract July  Corn #ZC_F July Wheat #ZW_F July Beans #ZS_F July SoyMeal #ZM_F July Nat Gas #NG_F
Resistance 3 392.2 566.8 972.08 361.33 3.05
Resistance 2 385.8 552.5 967.67 358.97 3.02
Resistance 1 381.7 543.5 960.83 356.23 2.98
Pivot 375.3 529.3 956.42 353.87 2.95
Support 1 371.2 520.3 949.6 351.1 2.9
Support 2 364.8 506.0 945.17 348.77 2.88
Support 3 360.7 497.0 938.33 346.03 2.84

Economic Reports, source: 

http://app.bettertrader.co 

 

 

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.

Posted in: Future Trading News  

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