In This Issue
Introducing the Cannon Futures Trading Blog
Gold, Silver Bulls Stymied by Stock Market Turmoil
Reports and Expiration Notices
We are proud to introduce the Cannon Trading Daily Support and Resistance Levels Blog!
Previously available by email only, the blog now updates every trading day, featuring:
Click the image below to view a larger version of the hot market chart:
Hot Market Report provided by Jim Wyckoff
Tuesday's stock market turmoil has stymied the gold market bulls. Instead of a flight-to-quality scenario, whereby investors seek safe haven in gold, traders have instead dumped the precious yellow metal due to fears of deflationary pressures. During heightened geopolitical tensions in past months, gold prices had been pushed higher on a flight-to-quality scenario. Technical traders are also now eyeing on Wednesday morning a downside "breakout" from a bear flag pattern that has recently formed in April gold futures. A drop below strong chart support at the March low of $634.50 would help to confirm the downside breakout from the bear flag. Measuring implications from the flag pattern in April gold would suggest a downside target of below $600.00 an ounce. The gold market bears have indeed faded, from a technical perspective, the past few trading sessions. To regain the upside technical initiative, bulls would have to push April gold futures back above strong chart resistance at the $660.00 price area. A close above this resistance area would open the door to a price move to the late-February high of $692.50, or above. For May silver futures, prices on Wednesday have also seen a bearish downside "breakout" from a bearish pennant pattern on the daily bar chart. A push and close below strong technical support at the March low of $12.49 would produce more serious near-term chart damage to confirm the breakout from the bearish pennant pattern. Measuring implications for this particular bearish pennant on the daily chart in May silver suggest a downside target of below $11.00 an ounce. The silver bulls would regain some fresh upside technical momentum by pushing May futures back above solid technical resistance at last week's high of $13.235. Both silver bulls and bears will continue to monitor very closely what is now the most important "outside market" for these metals: the U.S. stock market. Further weakness in the stock market will very likely mean more downside price pressure in gold and silver.
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 |
|---|---|---|
| 03/15 Thu |
7:30 AM CDT - PPI & Core PPI(Feb) 7:30 AM CDT - NY Empire State Index(Mar) 7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Initial Claims-Weekly 8:00 AM CDT - Net Foreign Purchases(Jan) 9:30 AM CDT - EIA Gas Storage 11:00 AM CDT - Philadelphia Fed(Mar) 3:30 PM CDT - Money Supply |
LT: Mar Value Line(KCBT)
Mar Value Line Options(KCBT) Mar Cocoa(NYBOT) Mar S&P 500(CME) Mar S&P 500 Options(CME) Mar Lumber(CME) Mar Nasdaq 100(CME) Mar Nasdaq 100 Options(CME) Mar GSCI(CME) Mar DJIA(CBT) Mar DJIA Options(CBT) Apr Crude Oil Options(NYM) |
| 03/16 Fri |
7:30 AM CDT - CPI & Core CPI(Feb) 8:15 AM CDT - Capacity Util & Indus Prod(Feb) 9:00 AM CDT - Michigan Sentiment-Prel(Mar) |
FN: Mar Lumber(CME)
LT: Mar E-mini S&P 500(CME) Mar Eurodollar(CME) Apr Orange Juice(NYBOT) Mar E-mini S&P 500 Options(CME) |
| 03/19 Mon |
|
FN: Mar Currencies(CME)
LT: Mar US Dollar Index(NYBOT) Mar LIBOR(CME) Mar Eurodollar(CME) Mar Currencies(CME) Mar LIBOR Options(CME) |
| 03/20 Tue |
7:30 AM CDT - Housing Starts & Building Permits(Feb)
|
FN: Mar Canadian Dollar(CME)
LT: Mar Coffee(NYBOT) Mar Canadian Dollar(CME) Apr Crude Oil(NYM) |
| 03/21 Wed |
9:30 AM CDT - API & DOE Energy Stats
11:15 AM CDT - FOMC Meeting Announcement |
LT: Mar Rough Rice(CBT)
Mar US 10 Yr Note(CBT) Mar US 30 yr Bond(CBT) Apr Platinum Options(NYM) |
| 03/22 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 9:00 AM CDT - Leading Indicators(Feb) 9:30 AM CDT - EIA Gas Storage 2:00 PM CDT - Cold Storage 3:30 PM CDT - 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!