In This Issue
Hogs in a Downtrend, but Bottom Near?
Reports and Expiration Notices
For those of you trading the E-Mini S&P futures, the “Big” S&P 500 futures or any Stock Index contract, it is extremely important to remember that Thursday, Dec. 7th, is rollover day. It is recommended that all new positions be placed in the March 2007 contract as of Thursday's trade date. GLOBEX will not roll over until Thursday morning at 8:30 A.M. Central Time, despite the fact that the trade date changes at Wednesday afternoon's opening.
Further, please be aware that the executing brokers in the DECEMBER contract of the "Big" S&P 500 and NASDAQ 100 will not be "held" on ANY order, and that they will not take Cancel and Replace orders at all beginning Friday DECEMBER 8th. Also, please be aware of liquidity issues in the 2nd step E-Mini S&P and E-Mini NASDAQ. Expect sharply decreased liquidity on the DECEMBER contract beginning Thursday morning. Carefully consider whether you wish to place Market or Stop orders after that time.
Traders with electronic trading software should make sure that defaults reflect the proper contract as of Thursday morning.
NOTE: E-MINI rollover actually occurs at 8:30 A.M. Central Time, Thursday, but orders placed Wednesday afternoon and evening after 3:30 P.M. Central Time (before rollover) will work through Thursday's close (after rollover). Please consider carefully how you place Stop or Market orders in these contracts.
Feel free to call (800 - 454 - 9572) let us know if we can provide any further clarification, information or be of any additional assistance.
February lean hog futures at the Chicago Mercantile Exchange are in a price downtrend from contract high of 68.75 cents a pound, scored in early November. Prices this week notched a fresh six-week low of 62.80 cents. The lean hog bears do have some fresh technical momentum on their side. Their next downside price objective is to produce a close below solid chart support at the September low of 60.50 cents, basis February futures. A close below that key technical level would produce serious technical damage to strongly suggest a market top is in place and that prices will continue to trend lower. For the lean hog futures bulls to regain some fresh upside technical momentum, they would have to push February prices back above solid technical resistance at the September high of 65.70 cents. That would open the door to a challenge of the contract high of 68.75 cents. The Moving Average Convergence Divergence (MACD) indicator overlaid on the daily bar chart for February lean hogs is in a present posture that does encourage the bulls. While the MACD lines are in a bearish mode and are trending lower, the present posture of the lines is very similar to the posture of the lines in late September. At that time, February lean hogs did put in a market bottom and went on to post a contract high in early November.
Jim has an excellent daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at Jim Wyckoff
Disclaimer:
Trading commodity futures and options involves substantial risk of loss. The recommendations contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results. This is not a solicitation of any order to buy or sell, but a current futures 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!
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
|---|---|---|
| 12/07 Thu |
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly 9:30 AM CST - EIA Gas Storage 2:00 PM CST - Consumer Credit(Oct) 3:30 PM CST - Money Supply |
FN: Dec Live Cattle(CME)
LT: Dec Nikkei 225(CME) |
| 12/08 Fri |
7:30 AM CST - Nonfarm Payrolls & Unemploy Rate(Nov) 7:30 AM CST - Ave Workweek & Hourly Earnings(Nov) 2:00 PM CST - Dairy Products Prices |
LT: Dec Nikkei 225 Options(CME)
Dec U.S. Dollar Index Options(NYM) Dec Canadian Dollar Options(CME) Dec Currency Options(CME) |
| 12/11 Mon |
7:30 AM CST - Crop Production & WASDE 7:30 AM CST - Supply & Demand 9:00 AM CST - Wholesale Inventories(Oct) |
|
| 12/12 Tue |
7:30 AM CST - Trade Balance(Oct)
1:00 PM CST - Treasury Budget(Nov) 1:15 PM CST - FOMC Policy Statement |
|
| 12/13 Wed |
7:30 AM CST - Business Inventories(Oct)
7:30 AM CST - Retail Sales(Nov) 9:30 AM CST - API & DOE Energy Stats |
LT: Dec Cocoa(NYBOT)
|
| 12/14 Thu |
7:30 AM CST - Export & Import Prices(Nov)
7:30 AM CST - USDA Weekly Export Sales 7:30 AM CST - Initial Claims-Weekly 9:30 AM CST - EIA Gas Storage 3:30 PM CST - Money Supply NOPA Crush |
LT: Dec Corn(CBT)
Dec DJIA(CBT) Dec Oats(CBT) Dec Soybean Oil & Meal(CBT) Dec Wheat(CBT) Dec S&P 500(CME) Dec Lean Hogs(CME) Dec Nasdaq 100(CME) Dec Value Line Options(KCBT) Dec Lean Hog Options(CME) |
* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.
** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.
*** 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!