Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
Two main notices today:
1. We will have a webinar tomorrow right after the close on getting started in scalping.
2. We have FOMC coming out tomorrow – some notes on that as well!
1. Join us for a webinar on Dec 14, 2016 at 1:00 PM PST.
Getting Started in Scalping/Ultra Short Term Trading
Join us for a 60 -minute webinar on Wednesday Dec 14th at 3:00 P.M., Central Time.
The term ‘scalping’ now covers many different styles of trading with one common trait. You are in and out of the market in a very short time period. Frequency of trades is usually but not always high.
In this webinar, we’ll look at specific techniques for short term trading and why you might want to consider using these techniques.
– The benefits and risks of short term trading
– Market making techniques
– Market state – when to scalp
– The role of correlated markets
– Scalping volatility
– Scalping around volume
– Scalping around depth/front running the front runners
– Scalping mid-leg absorption
– Scalping around high visibility areas
– Stops – definitely not what you think
Risk free demo will be available.
SPACE is LIMITED, so reserve your space now! https://attendee.gotowebinar.com/register/8467547232373354500
Risk: 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
After registering, you will receive a confirmation email containing information about joining the webinar.
2. The second, tomorrow is FOMC meeting.
The FOMC interest rate decision is due at 2:15 ET in the US tomorrow as well as Crude Oil Inventories earlier that day.
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 2165.00 with a stop at 2159.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 2159.75 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
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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Levels for Trade Date of 12.14.2016
|Contract Dec. 2016||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||Feb. Gold||March Silver||Jan. Crude Oil||Mar. Bonds||Dec. Euro|
|Resistance 3||1177.0||17.59||54.46||150 24/32||1.0726|
|Resistance 2||1172.0||17.41||53.93||150 7/32||1.0698|
|Resistance 1||1166.3||17.19||53.40||149 18/32||1.0663|
|Support 1||1155.6||16.79||52.34||148 12/32||1.0599|
|Support 2||1150.6||16.61||51.81||147 27/32||1.0571|
|Support 3||1144.9||16.39||51.28||147 6/32||1.0536|
|Contract||March Corn||March Wheat||Jan. Beans||March SoyMeal||Jan. Nat Gas|
French Final CPI m/m
Average Earnings Index 3m/y
Claimant Count Change
Industrial Production m/m
BOE Gov Carney Speaks
Core Retail Sales m/m
Retail Sales m/m
Core PPI m/m
Capacity Utilization Rate
Industrial Production m/m
Business Inventories m/m
Crude Oil Inventories
FOMC Economic Projections
Federal Funds Rate
FOMC Press Conference