Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
For 2014 I would like to wish all of you discipline and patience in your trading!
Today’s action in stock indices was quite impressive! The volatility we are now seeing is so different than what we witnessed 2 months ago it’s almost like we are trading a completely different market!
We had almost a 50 point range on the SP today!! Much different than the 8-12 points range we saw couple months back….This calls for you as a trader to adjust, researched and be aware of the market conditions you are trading in.
The market is moving much faster. I was watching the DOM today off and on and the speed of the moves was extreme.
When volatility expands I have the following tips:
- 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 1925.00 with a stop at 1919.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 1919.75 and place a stop a few points below in this hypothetical example.
- Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
- Be patient and be disciplined
As far as market outlook, we are still in a wide band as you can see below in both the daily and hourly charts:
For a free trial of the indicators shown in the charts above, visit:
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. Past performance is not indicative to future results.
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|Contract Dec. 2014||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||December Gold||Dec.Silver||Nov. Crude Oil||Dec. Bonds||Dec. Euro|
|Resistance 3||1248.9||17.99||90.44||142 2/32||1.2916|
|Resistance 2||1236.7||17.73||89.54||141 16/32||1.2836|
|Resistance 1||1229.5||17.58||88.64||141 6/32||1.2789|
|Support 1||1210.1||17.17||86.84||140 10/32||1.2662|
|Support 2||1197.9||16.91||85.94||139 24/32||1.2582|
|Support 3||1190.7||16.76||85.04||139 14/32||1.2535|
|Contract||Dec Corn||Dec. Wheat||Nov. Beans||Dec. SoyMeal||Dec. bean Oil|
Futures Trading Levels
|ThuOct 9||2:00am||EUR||German Trade Balance||18.4B||22.2B|
|2:45am||EUR||French Trade Balance||-5.7B||-5.5B|
|4:00am||EUR||ECB Monthly Bulletin|
|10:00am||USD||Wholesale Inventories m/m||0.3%||0.1%|
|10:30am||USD||Natural Gas Storage||108B||112B|
|11:00am||EUR||ECB President Draghi Speaks|
|Day 1||ALL||G20 Meetings|
|1:01pm||USD||30-y Bond Auction||3.24|2.7|
|1:10pm||USD||FOMC Member Tarullo Speaks|
|1:30pm||USD||FOMC Member Fischer 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 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 judgment in trading.