In This Issue
Day Trading the Index Futures: How to Judge Good Entries
Reports and Expiration Notices
By Mike Reed
QUESTION: If the SP futures fall through support and go straight down for another two points, and I want to get short, should I a.) enter immediately, b.) two points below support, or c.) should I wait for a pullback and then try to get short?
You've got to be patient enough to wait for entries that have two things: first - a high probability of immediate gain, and second - a small potential for loss if the worst happens and your hard stop gets hit. This principle applies to all entries, and it's useful to think about it when you're trying to decide whether to enter on a pullback or a continuation of a move.
Want to read the entire article? Fill out this form to continue...
Mike Reed is author of TradeStalker's RBI Trader's Updates. He has been trading the Market for 24 years. His support and resistance numbers have been published on the internet since 1996. Mike's nightly support and resistance zones are specific and incredibly accurate. He offers an unlimited free trial of his nightly TradeStalker RBI Trader's Updates. Copyright 2006 Mike Reed
by Jim Wyckoff
February gold futures on Wednesday morning notched a fresh four-week high of $643.30 an ounce. Bulls have made a strong recovery from the mid-December "reaction low" of $615.00 an ounce. A three-month-old uptrend line remains in place on the daily bar chart. Prices did back off from the session high Wednesday, amid a stronger U.S. dollar versus the other major currencies. Gold tends to trade in an inverse fashion with the value of the U.S. dollar. Bulls do have fresh upside near--term technical momentum on their side. Their next upside objective is to produce a close above solid chart resistance at the December high of $655.80. Bears would regain fresh downside technical momentum by producing a close in February gold futures below the last "reaction low" of $615.00 an ounce, which would negate the present price uptrend. Gold traders will continue to closely monitor the value of the greenback versus the other major currencies, knowing the fate of the precious yellow metal is partially tied to the U.S. dollar. Near-term chart resistance for February gold futures is located at Wednesday's high of $643.30 and then at $650.00. Near-term technical support is seen at Wednesday's low of $635.10 and then at $630.00.
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 |
|---|---|---|
| 01/04 Thu |
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly 9:00 AM CST - Factory Orders(Nov) 9:00 AM CST - ISM Services(Dec) 9:30 AM CST - EIA Gas Storage 3:30 PM CST - Money Supply |
|
| 01/05 Fri |
7:30 AM CST - Nonfarm Payrolls & Unemploy Rate(Dec) 7:30 AM CST - Average Workweek & Hourly Earnings(Dec) |
|
| 01/08 Mon |
2:00 PM CST - Consumer Credit
|
|
| 01/09 Tue |
|
|
| 01/10 Wed |
7:30 AM CST - Trade Balance(Nov)
9:00 AM CST - Wholesale Inventories(Nov) 9:30 AM CST - API & DOE Energy Stats |
LT: Jan Orange Juice(NYBOT)
|
| 01/11 Thu |
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly 9:30 AM CST - EIA Gas Storage 1:00 PM CST - Treasury Budget(Dec) 3:30 PM CST - Money Supply |
|
* 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!