Futures Trading Levels and Reports for August 30, 2012

Jump to a section in this post:

1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Economic Reports for Thursday August 30, 2012

 

Hello Traders,

One Way to Eliminate Fear and Greed While Day Trading

Disclaimer

The methods described in this article are for educational purposes only. Past results are not necessarily indicative of future results. The author and the publisher assume no responsibility for your trading results. Trading involves a high degree of risk. No recommendation is being made to buy any stock, commodity, option or other financial instrument. Consult your financial advisor before starting any investment system.

 

It is a known fact that fear and greed can be a trader’s worst enemies.

I’ve found one way that has helped some clients deal with fear and greed and their cousin, “getting out of winners too soon and staying in losers too long.”

What is it? Entering Multiple Contracts: Philosophy

In order to enter multiple contracts while day trading, one has to have the appropriate risk capital and margin requirements. But the advantage of trading more than one “unit” or splitting your trading size into two or more parts is as such:

If you enter a trade with one contract (or if you are treating your trading size as one unit, meaning you enter a trade with 4 contracts and exit the trade with 4 contracts), you can face a very quick dilemma, especially when day-trading. Consider the two following scenarios:

  1. You get in and very quickly you are up 2 mini SP points…what do you do? Do you take profit? Bring your stop loss closer? How do you avoid getting out too early or too late?
  2. You enter a trade and it goes against you rather quickly…if you get out then it is a loser…but the little voice in your head says “what if the market goes back up?”

In the first case scenario, when market decided to be nice to us and moved in our direction, I like to exit half of my positions relatively quickly. In the case of the mini SP, this would be around 7 ticks profit.

What I’ve found is that this will allow me to manage the rest of the trade in a much more relaxed manner. Since I’ve already locked profits in, now I can look for a proper stop close to my break-even level. I can analyze my next target more realistically and, if the market provides room for additional gains, be there to participate.

In the second case scenario, I can choose to risk a smaller amount or use a tight stop on the first half of my position and a bit wider stop on the other half of the position. This can help prevent the scenario when one does not get out of a trade because mentally one does not want to accept the loss.

Of course, there is much more to trading and day trading. Entry signals, exit techniques, why and when to get in a trade, and so on — all of these are key.

But I hope that this tip will assist you while trading and will prevent some of the instances where you get out of a trade too late or too early.

More on the subject to come in future blogs……

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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.

2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index

Contract Sept. 2012 SP500 (big & Mini) Nasdaq100 (big & Mini) Dow Jones (big & Mini) Mini Russell Dollar Index
Resistance 3 1421.27 2812.67 13185 829.17 81.93
Resistance 2 1416.88 2801.83 13155 824.33 81.77
Resistance 1 1413.57 2793.67 13130 820.77 81.67
Pivot 1409.18 2782.83 13100 815.93 81.51
Support 1 1405.87 2774.67 13075 812.37 81.42
Support 2 1401.48 2763.83 13045 807.53 81.26
Support 3 1398.17 2755.67 13020 803.97 81.16

3. Support & Resistance Levels for Gold, Euro, Crude Oil, and U.S. T-Bonds

Contract Dec Gold Sept. Euro Oct. Crude Oil Sept. Bonds
Resistance 3 1687.7 1.2619 97.72 149 28/32
Resistance 2 1680.1 1.2598 97.04 149 17/32
Resistance 1 1669.6 1.2564 96.11 149 7/32
Pivot 1662.0 1.2543 95.43 148 28/32
Support 1 1651.5 1.2509 94.50 148 18/32
Support 2 1643.9 1.2488 93.82 148 7/32
Support 3 1633.4 1.2454 92.89 147 29/32

4. Support & Resistance Levels for Corn, Wheat, Beans and Silver

Contract Dec. Corn Sept. Wheat Nov. Beans Sept. Silver
Resistance 3 836.7 931.2 1789.83 3141.0
Resistance 2 825.8 918.6 1771.67 3122.0
Resistance 1 819.7 912.2 1762.33 3099.0
Pivot 808.8 899.6 1744.17 3080.0
Support 1 802.7 893.2 1734.8 3057.0
Support 2 791.8 880.6 1716.67 3038.0
Support 3 785.7 874.2 1707.33 3015.0


5. Economic Reports

source:http://www.forexfactory.com/calendar.php

All times are Eastern time Zone (EST)

Date 3:51pm Currency Impact Detail Actual Forecast Previous Graph
Thu

Aug 30
 3:55am EUR
German Unemployment Change
7K 7K
4:10am EUR
Retail PMI
46.4
Tentative EUR
Italian 10-y Bond Auction
5.96|1.3
8:30am USD
Unemployment Claims
370K 372K
8:30am USD
Core PCE Price Index m/m
0.1% 0.2%
8:30am USD
Personal Spending m/m
0.4% 0.0%
8:30am USD
Personal Income m/m
0.4% 0.5%
10:30am USD
Natural Gas Storage
65B 47B
Day 1 ALL
Jackson Hole Symposium

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.

 

Tags: > > > > > > Posted in: Commodity Trading   | Future Trading News   | Futures Trading   | Index Futures  

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