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Risk & Trade Management in Volatile Markets, NQ Chart review & Support and Resistance Levels 12.01.2021

Posted on November 30, 2021 by Ilan

Dear Futures Trader,

Get Real Time updates and more on our private FB group!

https://business.facebook.com/groups/1105191589938254/

On Friday, Omicron, the new COVID-19 variant took the oxygen out of newsrooms. Detected first in South Africa, this mutation is being described as potentially more contagious than the Delta variant. It is unknown whether the currently available vaccines will provide protection from it.

On Monday the markets shrugged the news and bounced hard….

Today, Tuesday fear, greed and everything in between took over again and we witnessed strong sell off across different markets with high volatility in many segments:

Stock indices, rates, grains, softs, energies…..

See 30 minute chart of the Mini NASDAQ from today below. In less than one hour, the difference from high to low was approximately $7750!! That is extreme leverage and can be a double edge sword…..This is when possibly trading smaller size, like 1-2 MICRO NQ may be a better fit for smaller accounts.

Risk management and trade management become more important than buy/sell signals.

Learn to reduce trading size. Perhaps trade smaller contracts like the micros.
Adjust stops and entries based on volatility ( ATR/ Parabolics).
Be extra picky on entries without chasing trades.
Understand that loses are part of trading and this is definitely not a good time to “fight the markets”.
Focus more on risk management and ways to protect certain positions as needed. Survive to trade another day.
Consider possibly utilizing short term options rather than futures.

Useful link, just in case – -Example, cotton was down limit today, only sellers, no buyers….:

https://www.cmegroup.com/trading/price-limits.html

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 when it comes to Futures Trading.

Futures Trading Levels

12-01-2021

Economic Reports, source:

https://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.

Micro Mini NQ Chart Review / Fibonacci Extensions; Thanksgiving Holiday Schedule & Support and Resistance Levels 11.24.2021

Posted on November 23, 2021 by Ilan

Dear Futures Trader,

Get Real Time updates and more on our private FB group!

https://business.facebook.com/groups/1105191589938254/

An exercise in Fibonacci extensions….

As the NQ started moving lower today ( I actually prefer the MNQ as it causes less stomach ache when moves against me….), I was looking for a target profit on a short position a client of mine had.

I draw FIB extension for yesterday sell off move and applied it to the high on the bounce made early this morning….Today it turned out out to be an excellent tool (click for LARGER IMAGE)….gave me targets, possible trailing stops, possible re-entry and more ( always easier looking back after the fact)….Of course there are many times where this will NOT work but you may want to take a look at Fibonacci extensions as another tool in your arsenal and just Fibonacci retracement….

Short Trading week ahead with Thanksgiving Holiday this week.

See trading schedule below, be aware of the different reports, what is the market focusing on and the different closing times for the different markets between tomorrow and Friday/Sunday evening.

CME Globex Thanksgiving Holiday Futures Schedule 2021