Trading Levels and Reports 8-01-2012
Posted By:- Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
Jump to a section in this post:
1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Economic Reports for Wednesday August 1, 2012
Hello Traders,
August Gold is entering delivery period, so if you are trading gold, make sure you start trading December gold. Symbol for December is Z.
The FOMC interest rate decision is due at 2:15 ET in the US tomorrow ( Wednesday, Aug. 1st ). Also more than a few economic numbers ahead of the announcement.
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 1365.00 with a stop at 1359.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 1359.75 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
- Be patient and be disciplined
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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.
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
| Contract Sept. 2012 | SP500 (big & Mini) | Nasdaq100 (big & Mini) | Dow Jones (big & Mini) | Mini Russell | Dollar Index |
| Resistance 3 | 1388.17 | 2668.00 | 13067 | 802.43 | 83.29 |
| Resistance 2 | 1385.48 | 2660.00 | 13045 | 798.37 | 83.11 |
| Resistance 1 | 1380.37 | 2649.00 | 13013 | 791.03 | 82.91 |
| Pivot | 1377.68 | 2641.00 | 12991 | 786.97 | 82.74 |
| Support 1 | 1372.57 | 2630.00 | 12959 | 779.63 | 82.54 |
| Support 2 | 1369.88 | 2622.00 | 12937 | 775.57 | 82.36 |
| Support 3 | 1364.77 | 2611.00 | 12905 | 768.23 | 82.16 |
3. Support & Resistance Levels for Gold, Euro, Crude Oil, and U.S. T-Bonds
| Contract | Dec Gold | Sept. Euro | Sept. Crude Oil | Sept. Bonds | |
| Resistance 3 | 1645.5 | 1.2431 | 92.25 | 152 30/32 | |
| Resistance 2 | 1638.5 | 1.2384 | 91.28 | 152 9/32 | |
| Resistance 1 | 1628.1 | 1.2349 | 89.36 | 151 27/32 | |
| Pivot | 1621.1 | 1.2302 | 88.39 | 151 6/32 | |
| Support 1 | 1610.7 | 1.2267 | 86.47 | 150 24/32 | |
| Support 2 | 1603.7 | 1.2220 | 85.50 | 150 3/32 | |
| Support 3 | 1593.3 | 1.2185 | 83.58 | 149 21/32 |
4. Support & Resistance Levels for Corn, Wheat, Beans and Silver
| Contract | Dec. Corn | Sept. Wheat | Nov. Beans | Sept. Silver | |
| Resistance 3 | 821.7 | 900.6 | 1677.67 | 2868.5 | |
| Resistance 2 | 817.1 | 897.4 | 1667.33 | 2851.0 | |
| Resistance 1 | 811.2 | 892.8 | 1654.17 | 2821.5 | |
| Pivot | 806.6 | 889.7 | 1643.83 | 2804.0 | |
| Support 1 | 800.7 | 885.1 | 1630.7 | 2774.5 | |
| Support 2 | 796.1 | 881.9 | 1620.33 | 2757.0 | |
| Support 3 | 790.2 | 877.3 | 1607.17 | 2727.5 |
5. Economic Reports
All times are Eastern time Zone (EST)
source:http://www.forexfactory.com/calendar.php
| Date | 3:50pm | Currency | Impact | Detail | Actual | Forecast | Previous | Graph | |
| Wed
Aug 1
|
3:15am | EUR |
Spanish Manufacturing PMI
|
41.1 | |||||
| 3:45am | EUR |
Italian Manufacturing PMI
|
44.2 | 44.6 | |||||
| 4:00am | EUR |
Final Manufacturing PMI
|
44.1 | 44.1 | |||||
| 8:15am | USD |
ADP Non-Farm Employment Change
|
121K | 176K | |||||
| 9:00am | USD |
Final Manufacturing PMI
|
51.9 | 51.8 | |||||
| 10:00am | USD |
ISM Manufacturing PMI
|
50.3 | 49.7 | |||||
| 10:00am | USD |
Construction Spending m/m
|
0.5% | 0.9% | |||||
| 10:00am | USD |
ISM Manufacturing Prices
|
39.3 | 37.0 | |||||
| 10:30am | USD |
Crude Oil Inventories
|
-1.5M | 2.7M | |||||
| All Day | USD |
Total Vehicle Sales
|
14.0M | 14.1M | |||||
| Tentative | USD |
Loan Officer Survey
|
|||||||
| 2:15pm | USD |
FOMC Statement
|
|||||||
| 2:15pm | USD |
Federal Funds Rate
|
<0.25% | <0.25% |
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 herein 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
