Managing Your Futures Trading / Position 3.15.2016 - Cannon Trading

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.

Managing Your Futures Trading/Position 3.15.2016

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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 Tuesday March 15, 2016

Hello Traders,

For 2016 I would like to wish all of you discipline and patience in your trading!



A note on managing trade size by my colleague, John Thorpe who has over 25 years of experience starting on the floor of the CBOT.

Managing your trading/position size is crucial to long term success regardless of style.

Daytrading, Swing or long term position trading.

In order to select the size you will employ make a mental note of three things before you trade.  The Foundation of Trading your plan is first determining the size you will be employing, the number of contracts.

We must assume your risk capital is fixed.

1)  How liquid is the contract I will be trading?

Are there frequent price gaps, lack of continuity with bid/ask spreads.

What is the Open Interest and Volume relative to other contracts in the same industry, index , futures contract type.

2)  What is the nominal cash value of the Futures or Commodity contract you are going to trade? S&P 500 at a price of 2010.00 X $50 = $100,500.00,  How deep are your pockets? Then the day margin is only 500.00?

#2 Yellow Corn $3.72 per bushel x 5000/bu = $18,600.00   roughly 19 percent of the ES.  There is a notable difference.

3)  What has the near-term dollar value volatility been for the market(s) you are anticipating?

Let’s use The ES  and ZC ( Corn) examples from today, The ESM6 hi was 2015.00 and lo 2002.00 that’s 13 points or $650.00, a quiet day  and for the Corn? 3.74 hi  and 3.7025 lo  3 ¾ cents per bushel that’s $187.50.

You can more easily see through this example how important your size is in managing your expectations.

Plan your trade around greater volatility than the market currently reflects, be ready for a 39 point range in the ES and a 10 cent range in the corn, I like to use a multiplier of 3 after I calculate dollar volatility.  If you do these three things consistently, you will find that you have traded the correct size to your benefit.

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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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Futures Trading Levels

Contract June 2016 SP500 Nasdaq100 Dow Jones Mini Russell Dollar Index
Resistance 3 2029.50 4415.58 17322 1091.63 97.48
Resistance 2 2022.25 4392.92 17252 1086.77 97.11
Resistance 1 2016.50 4376.83 17195 1082.43 96.87
Pivot 2009.25 4354.17 17125 1077.57 96.50
Support 1 2003.50 4338.08 17068 1073.23 96.27
Support 2 1996.25 4315.42 16998 1068.37 95.90
Support 3 1990.50 4299.33 16941 1064.03 95.66
Contract Apr. Gold May Silver Apr. Crude Oil June Bonds June   Euro
Resistance 3 1286.3 16.24 40.55 162 26/32 1.1287
Resistance 2 1274.1 16.05 39.66 162 14/32 1.1247
Resistance 1 1254.3 15.70 38.46 161 30/32 1.1189
Pivot 1242.1 15.51 37.57 161 18/32 1.1149
Support 1 1222.3 15.16 36.37 161 2/32 1.1091
Support 2 1210.1 14.97 35.48 160 22/32 1.1051
Support 3 1190.3 14.62 34.28 160 6/32 1.0993
Contract May Corn May Wheat May Beans May SoyMeal April Nat Gas
Resistance 3 373.9 488.0 903.17 275.97 1.95
Resistance 2 371.6 483.8 900.08 274.63 1.90
Resistance 1 370.2 481.3 897.92 273.07 1.86
Pivot 367.8 477.0 894.83 271.73 1.82
Support 1 366.4 474.5 892.7 270.2 1.8
Support 2 364.1 470.3 889.58 268.83 1.73
Support 3 362.7 467.8 887.42 267.27 1.69
Economic Reports


All times are Eastern time Zone (EST)

Date 3:55pm Currency Impact Detail Actual Forecast Previous Graph
TueMar 15  3:45am EUR French Final CPI m/m 0.2% 0.2%
6:00am EUR Employment Change q/q 0.2% 0.3%
8:30am USD Core Retail Sales m/m -0.2% 0.1%
USD PPI m/m -0.2% 0.1%
USD Retail Sales m/m -0.1% 0.2%
USD Core PPI m/m 0.1% 0.4%
USD Empire State Manufacturing Index -10.3 -16.6
10:00am USD Business Inventories m/m 0.0% 0.1%
USD NAHB Housing Market Index 59 58
4:00pm USD TIC Long-Term Purchases -29.4B

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.


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