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.

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8 Steps for Successful Day Trading & Futures Levels & Economic Reports for 11.06.2013

Posted on November 5, 2013September 16, 2014 by Ilan

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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 Wednesday November 6, 2013

Hello Traders,

For 2013 I would like to wish all of you discipline and patience in your trading!

8 Steps for successful Day-Trading

My name is Ilan Levy-Mayer and I am the Vice President and Senior Futures Broker at Cannon Trading. I came up with the following personal observations after serving online traders worldwide for more than 15 years.

The following steps are guides to progress, and are not necessarily in sequential order. Some of them are always required, but each futures trader is different and will relate to these stages in their own ways. While attempting to learn and progress, one must keep in mind that futures trading is risky and can involve significant losses.

1. Education

Hopefully if you are already trading you have completed your initial education: contract specs, trading hours, futures brokers, platforms, the opportunities as well as the risk and need to use risk capital in futures, and so on. Understanding this information is essential to futures trading. The second type of education is ongoing: learning about trading techniques, the evolution of futures markets, different trading tools, and more.

2. Find a System

I am definitely not advising you to go on the web and subscribe to a “black box” system (using buy/sell triggers if don’t know why they are being generated). What I am advising is developing a trading technique: a general set of rules and a trading concept. As you progress, you may want to put the different rules and indicators into a computerized system, but the most important factor is to have a focus and a plan. Don’t just wake up in the morning and trade “blank.”

3. Survival

This is the key! Do what you need to do in order to survive this brutal business and give yourself the chance of being here down the road with more experience and a better chance of success. Survival is probably the biggest key for beginning traders. There is a saying in this business: “live to trade another day.” It is so true!

READ THE REST…..

Continue reading “8 Steps for Successful Day Trading & Futures Levels & Economic Reports for 11.06.2013”

30 Yr Bonds & 10 Yr Notes – Trading Levels & Economic Reports for 11.05.2013

Posted on November 4, 2013September 16, 2014 by Ilan

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For 2013 I would like to wish all of you discipline and patience in your trading!

Each market has different personality, different behavior along with different times of the day when it is most active. If you are finding that the ES is not giving you enough risk/opportunities then start monitoring a couple of other markets and perhaps explore them in demo / simulated mode.

I will try over the next few blogs to shed some light on other markets i think are suitable for day-trading along with what is unique about these markets, personality and most active trading hours.

Today I am going to start with interest rates, mostly the ten year and 30 year.

In most platforms, the symbols are ZB for 30 year bonds and ZN for 10 year notes. The current front month is December which is Z. So ZBZ3 for example.

Product Symbol	ZB

Contract Size	The unit of trading shall be U.S. Treasury Bonds having a face value at maturity of one hundred thousand dollars ($100,000) or multiples thereof

Price Quotation	Points ($1,000) and 1/32 of a point. For example, 134-16 represents 134 16/32. Par is on the basis of 100 points.

Product Symbol	ZN

Underlying Unit	One U.S. Treasury note having a face value at maturity of $100,000.
Deliverable Grades	U.S. Treasury notes with a remaining term to maturity of at least six and a half years, but not more than 10 years, from the first day of the delivery month. The invoice price equals the futures settlement price times a conversion factor, plus accrued interest. The conversion factor is the price of the delivered note ($1 par value) to yield 6 percent.
Price Quote	Points ($1,000) and halves of 1/32 of a point. For example, 126-16 represents 126 16/32 and 126-165 represents 126 16.5/32. Par is on the basis of 100 points.
Tick Size (minimum fluctuation)	One-half of one thirty-second (1/32) of one point ($15.625, rounded up to the nearest cent per contract), except for intermonth spreads, where the minimum price fluctuation shall be one-quarter of one thirty-second of one point ($7.8125 per contract).
Contract Months	The first five consecutive contracts in the March, June, September, and December quarterly cycle.

These contracts are often affected by many of the economic reports that come out at 8:30 Am Eastern and there is very active volume between the hours of 8 am EST and 3 PM EST.

Volume on both contracts is very good. Ten years will often have 1 million contracts traded per day ( might be the second most active US futures market after the mini SP 500) and the bonds will avg. around 300,000 contracts.

These markets can experience very volatile movements during and right after different reports but then will often trade smooth or in an intraday trend the rest of the day.

Follow these two markets in demo mode for a while if you have not traded them before and get a feel for the movement, reaction to reports, execution etc.

If you have any questions, feel free to contact me.

Continue reading “30 Yr Bonds & 10 Yr Notes – Trading Levels & Economic Reports for 11.05.2013”

Real Time Trade Alerts – Trading Levels & Reports for 11.01.2013

Posted on October 31, 2013September 16, 2014 by Ilan

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For 2013 I would like to wish all of you discipline and patience in your trading!

To continue our mini Dow story from yesterday….After the close I got one of my “reversal” indicators to generate a sell signal as a counter trend trade. Personally to me, it gave a bit more confidence in the short side of the trade, HOWEVER, I think that actual trade management, where to place a stop, where to take profits, do you place a limit order for the target or do you just trail your stop ? these and other questions are probably the most important factors when it comes to success or failure of trades.

Daily chart for your review below.

YM - E-Mini Dow Futures - $5 Multiplier, Equlaized Active Daily Continuation — YM – E-Mini Dow Futures – $5 Multiplier

On a different note, I have a daily newsletter where I share trade set ups like the one above:

Get Real Time Trade Alerts Service via text and email
Would you like to receive a 30 day free trial to a new trade alert service?

Get new buy/ sell ideas along with suggested stops and profit targets in real time.

This trade alert service was developed and published by LEVEX Capital Management Inc. ( “LEVEX”) a registered CTA with the CFTC and member of the NFA.

“LEVEX” will transmit alerts via text and/or email with potential buy and sell recommendations for different commodities along with suggested stops and profit targets. The alerts are based on technical analysis and using a computerized model developed by “LEVEX”.

Each day the program runs a market scan to look for markets that fit certain technical criteria / trade algorithm developed by LEVEX Capital management Inc. Once a market has been identified as a possible high probability set up, you will receive a trade alert with the trade idea.

Continue reading “Real Time Trade Alerts – Trading Levels & Reports for 11.01.2013”

Mini Dow Futures Outlook & Risk/Reward – Trading Levels & Reports for 10.31.2013

Posted on October 30, 2013September 16, 2014 by Ilan

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For 2013 I would like to wish all of you discipline and patience in your trading!

So FOMC came and gone and like I said many times before, many times the real reaction comes the next day.
Which way, I am not sure but I am sharing a daily chart of the mini Dow futures where I see either potential for double top if we hold below today’s high OR potential for a break above and move towards the next FIBONACCI extension as seen on the chart.

As always in our business….time will tell, which brings me to a different point I would like to share:

My thoughts are as follow, there is probably 65% chance this market will try to make a new high and break today’s high ( in my opinion), however, I think that is we make a new high it will not be that much further than were we at now. While I think there is better chances for a move up, I think that if we do make a move down, there are HIGHER probabilities for a larger move downside than a larger move to the upside….hope this make sense. Based on this personal view of mine, I will look for a short set up with relatively small stop in hopes to catch the next big wave down. it may take a few attempts on my end but I like the risk / reward of this set up and hope that by sharing the thought process I gave you an idea on another approach for trading.

Continue reading “Mini Dow Futures Outlook & Risk/Reward – Trading Levels & Reports for 10.31.2013”

FOMC Statement + Futures Trading Levels & Economic Reports for October 30, 2013

Posted on October 29, 2013September 16, 2014 by Ilan

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For 2013 I would like to wish all of you discipline and patience in your trading!

First a quick heads up: A colleague of mine whom I respect his technical forecasts is holding a webinar tomorrow:

Is this rally in Gold for real? Find out for yourself. Wednesday morning October 30th at 11 AM EDT when Rick Ackerman of Rick’s Picks offers timely technical forecasts and trading tips for some of the most popular bullion vehicles, including Comex futures, GOLD, Silver Wheaton and Newmont Mining Register now for this one-time presentation, which will conclude with a Q&A session devoted to your favorite trading vehicle.

https://www2.gotomeeting.com/register/380360810

Secondly, The FOMC interest rate decision is due at 14:00 ET in the US tomorrow ( Wednesday, Oct. 30th).

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 1525.00 with a stop at 1519.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 1519.75 and place a stop a few points below in this hypothetical example.
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
This is another great example why a trading journal would be an asset, as you can go back and check your notes from previous FOMC days.
Be patient and be disciplined Continue reading “FOMC Statement + Futures Trading Levels & Economic Reports for October 30, 2013”

Stock Index Futures = Different Personalities, Trading Levels and Economic Reports October 29, 2013

Posted on October 28, 2013September 16, 2014 by Ilan

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For 2013 I would like to wish all of you discipline and patience in your trading!

Big week ahead for stock index futures as well as other markets.

We have FOMC taking place tomorrow and Wednesday with rate announcement coming out Wednesday.

A few other reports that did not take place during the shut down are released this week. Make sure you check forexfactory.com for updated report times.

I think that stock index futures have been a little harder to trade these past few years…With the Fed injecting money using the QE program, the “normal market forces” are not in play as much as in other markets. I personally miss the days where stock index futures traded “freely” and can’t wait for what I consider normal, free market forces to determine price action. That being said, it is what it is and I guess FED action is part of the market right now and we as traders need to adjust.

What i wrote above is part of the reason i find markets like crude oil, gold, grains and even bond futures more appealing for trading. So if any of you have some what of a similar feeling to what I described above and looking for alternative markets – let me know and I can be of help by suggesting different markets and pointing out some of the characteristics for the different markets.

Continue reading “Stock Index Futures = Different Personalities, Trading Levels and Economic Reports October 29, 2013”

Different Ways to Invest in Commodities and Futures

Posted on October 28, 2013September 16, 2014 by Ilan

When it comes to investing in commodities/futures there are several different ways to do so. I’ve been a futures broker at Cannon Trading Company for about 4 years and I wanted to touch base on a few different ways I have seen clients trade and invest in futures and commodities over the years.

I have seen many investors (small and large) participate in trading ETFs or ETF funds. With ETFs you do not own the actual commodity but you are looking to track the performance on either a single commodity or commodity index containing many different commodities through either its physical storage or derivatives positions in the market.

I do not accommodate trading ETFs or ETF funds with my actual clients. I am a registered futures broker and here at Cannon Trading Company we do not accommodate ETF trading for our clients. Please keep in mind the differences when trading ETFs versus commodities and futures. With ETFs you may experience management fees where as if you have a self directed futures and commodities trading account you will not experience those types of fees. Also when trading futures, unless you have a limited power of attorney on your account where you authorize another individual to trade your account, there is not a third party making your trading decisions and trading your account on your behalf. Here, at Cannon Trading Company many futures/commodities trader have self directed accounts where he or she makes their own decisions when it comes to trading.

Continue reading “Different Ways to Invest in Commodities and Futures”

Futures Trading Levels and Economic Reports for October 25, 2013

Posted on October 24, 2013September 16, 2014 by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

For 2013 I would like to wish all of you discipline and patience in your trading!

Get Real Time Trade Alerts Service via text and email

Would you like to receive a 30 day free trial to a new trade alert service?

Get new buy/ sell ideas along with suggested stops and profit targets in real time.

This trade alert service was developed and published by LEVEX Capital Management Inc. ( “LEVEX”) a registered CTA with the CFTC and member of the NFA.

Markets covered:

Stock Indices
Energies
Metals
Grains
Softs
Currencies
Interest rates

Pricing:

After your complete FREE 30 day trial the cost is as follows:
Cannon Trading clients – $149 per month
Retail traders without a Cannon Trading account – $299 per month
Money Managers, Hedge Funds and Brokers – $999 per month

Continue reading “Futures Trading Levels and Economic Reports for October 25, 2013”

Futures Trading Levels and Economic Reports for October 24, 2013

Posted on October 23, 2013September 16, 2014 by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

For 2013 I would like to wish all of you discipline and patience in your trading!

So yesterday I mentioned a potential short on the mini NASDAQ which produced a few points today and I was asked why did I think we may see a correction today? The answer is based on mostly technical indicators and conditions I use and tested.The one that provided me with the trigger for a short yesterday after the close is based on the Bollinger bands study.I found out that stock index futures have “respect” for the bands…. and when we have a close outside the upper band, followed by a close below the higher band and also a low that is lower than the previous low, there is a good statistical chance for a correction towards the middle band. I marked that condition with a RED TRIANGLE on the chart.

Obviously this condition is just that, a condition, something to give me personally a trade direction and a level of confidence to act upon it. Some times it works, others it does not and this is where the more important part of trading comes to play and that is trade management.

Below is the updated mini NASDAQ chart with the bands, possible stops/ target for review:

As you can see the first target for this pull back was met at 3323, the second target if this works out will be 3307. The hard part at this point is where to bring the stop to?
keep it at 3381 right above the recent high or bring it closer to entry level around 3356?
The next few days will provide the answer as to which choice was better (-:

ENQ - E-mini NASDAQ 100, Equlized Active Daily Continuation

Futures Trading Levels and Economic Reports for October 23, 2013

Posted on October 22, 2013September 16, 2014 by Ilan

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For 2013 I would like to wish all of you discipline and patience in your trading!

I had 3376 as potential target for the mini NASDAQ for the last week or so. To be honest, I DID NOT think it would make it there but it did…question is now what?

If you are a counter trend trader, you can go short against this level risking a few points above it. If you are more on the conservative side, you probably want to wait for a trigger that the market is running out of steam before trying the short side….That trigger may be a cross over of stochastic on the hourly chart, perhaps a break below today’s lows….really depends on the style of trade you feel comfortable with and the time frame you are trading. The chart below is more for what I call swing trading rather than day trading.

There are many different ways to lose money trading futures and very few to make $$$. Some methods will work on some markets, some of the time. I have not found a way that works on all markets all the time….

Daily chart for your review below:

ENQ - E Mini NASDAQ 100, Equalized Active Daily Continuation

Continue reading “Futures Trading Levels and Economic Reports for October 23, 2013”

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