Trading Futures Using Fear and Greed 8.23.2016

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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 August 23, 2016

Hello Traders,

Greetings!

Trading 201: Day Trading Using fear and greed ( using Crude Oil futures as an example)

Crude Oil Futures volatility offers a “different market personality” than stock index futures. Here is some of the things you need to know about day trading crude oil futures:
By: Ilan Levy-Mayer, Cannon Trading Commodities Broker & VP

Crude Oil is one of MY favorite futures markets for day trading. Before I dive in and share with you how the volatility in crude oil fits my risk tolerance for day trading and provide a couple of chart examples, we should review some of the specifications ofCrude Oil Futures.

Crude Oil Futures have monthly expirations. So each month we trade a different contract month, so one needs to know when the first notice day and last trading day for crude oil futures are, in order to always make sure we are trading the proper month with the most liquidity and avoid any chance of getting into a delivery situation.

Next is the contract size. Crude Oil futures are based on 1000 barrels. To be honest from a day trading perspective all I care is that each tick or 1 cent fluctuation is $10 against me or in my favor per contract. That means that a move from 92.94 to 92.74 = $200.

Another factor is trading hours. At the time I am sharing my thoughts with you, April 8th 2013 ( I wrote this one a while back but the examples and logic are still very current!) , crude oil futures trade on the CME Globex platform and trade from 5 PM CDT until the next day at 4 PM CDT. That is 23 of straight trading hours. I definitely don’t recommend day trading this market 23 hours…but it is good to know the trading hours.

Volume in crude oil futures is pretty good to trade in my opinion. Averaging about 300,000 contracts per day.

One last pointer to touch on is the EIA (Energy Information Administration) report that normally comes out Wednesday at 9:30 CDT (on short weeks, holidays etc. , this report will be pushed to Thursday at 10 AM CDT). I tell my clients that this report is way too volatile and I like to be out 5 minutes before and not resume trading 5 minutes until after the report comes out. This report by itself deserves a writing but on short, the report provides information on how our stock pile is doing ( = supply/demand)  and the market will move based on the numbers versus what was expected. Again as a day trader, your main job is to know about this report, when it comes out and in my opinion stay out of the market during this time…

Read the rest of the article along with chart examples, specific trade set ups and other trading tips which can be applied to many markets not just the crude oil market
https://www.cannontrading.com/community/newsletter/Soybeans-bulls-running-out-of-steam-Day-Trading-using-fear-and-greed#one

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.

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Futures Trading Levels

Levels for Trade Date of  8.17.2016

Contract Sept. 2016 SP500 Nasdaq100 Dow Jones Mini Russell Dollar Index
Resistance 3 2196.67 4849.67 18690 1252.83 95.34
Resistance 2 2190.58 4833.83 18625 1246.17 95.14
Resistance 1 2185.67 4821.17 18571 1242.43 94.83
Pivot 2179.58 4805.33 18506 1235.77 94.63
Support 1 2174.67 4792.67 18452 1232.03 94.31
Support 2 2168.58 4776.83 18387 1225.37 94.11
Support 3 2163.67 4764.17 18333 1221.63 93.80
Contract Dec. Gold Sept. Silver Sept. Crude Oil Sept. Bonds Sept.   Euro
Resistance 3 1357.0 19.73 50.28 173 23/32 1.1417
Resistance 2 1351.4 19.49 49.68 173 3/32 1.1380
Resistance 1 1346.7 19.19 48.55 172 23/32 1.1356
Pivot 1341.1 18.95 47.95 172 3/32 1.1319
Support 1 1336.4 18.65 46.82 171 23/32 1.1296
Support 2 1330.8 18.41 46.22 171 3/32 1.1259
Support 3 1326.1 18.11 45.09 170 23/32 1.1235
Contract Dec. Corn Sept. Wheat Nov. Beans Dec. SoyMeal Sept. Nat Gas
Resistance 3 348.3 445.3 1043.50 345.47 2.82
Resistance 2 346.2 442.9 1031.75 339.73 2.76
Resistance 1 344.3 439.1 1023.75 335.27 2.72
Pivot 342.2 436.7 1012.00 329.53 2.66
Support 1 340.3 432.8 1004.0 325.1 2.6
Support 2 338.2 430.4 992.25 319.33 2.56
Support 3 336.3 426.6 984.25 314.87 2.52

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

All times are Eastern time Zone (EST)

4:05pm Currency Impact Detail Actual Forecast Previous Graph
TueAug 23  3:00am EUR
French Flash Manufacturing PMI
49.1 48.6
EUR
French Flash Services PMI
50.6 50.5
3:30am EUR
German Flash Manufacturing PMI
53.7 53.8
EUR
German Flash Services PMI
54.3 54.4
4:00am EUR
Flash Manufacturing PMI
52.1 52.0
EUR
Flash Services PMI
53.0 52.9
9:45am USD
Flash Manufacturing PMI
53.1 52.9
10:00am EUR
Consumer Confidence
-8 -8
USD
New Home Sales
575K 592K
USD
Richmond Manufacturing Index
6 10

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.

Tags: > Posted in: Future Trading News  

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