In This Issue
Live Cattle Bears Remain in Technical Control
Economic Reports and Expiration Notices
by Jim Wyckoff
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April live cattle futures on the Chicago Mercantile Exchange on Tuesday gapped lower on the daily bar chart, hit a fresh five-week low and closed near the session low. Still more near-term technical damage was inflicted Tuesday, as prices are trapped below a seven-month-old downtrend on the daily bar chart. The next downside technical price objective for the powerful cattle market bears is producing a close below strong technical support at the contract low of $82.45. Below that lies solid longer-term technical support at $80.00. For the downtrodden cattle bulls to begin to regain some fresh upside near-term technical momentum to begin to suggest that a market low is in place, they would have to fill on the upside Tuesday's downside price gap on the daily chart. That means a price move back to the $87.40 level, basis April futures. Above that lies solid technical resistance at last week's high of $88.30. The cattle bulls do have seasonal market tendencies on their side. Seasonal studies do show live cattle futures prices rallying from the February timeframe into the August timeframe. Cattle market traders will continue to keep a close eye on the key "outside markets," which are the value of the U.S. dollar, crude oil and the U.S. stock market. U.S. dollar strength or crude oil weakness are bearish for live cattle futures, as are weaker U.S. stock index futures prices. Any rebounds in crude oil or the U.S. stock market would be bullish factors for the cattle futures market.
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
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E-Futures International
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by Cannon Trading staff
A new President. A new attitude. New policies. Renewed hope. But, what does it all really mean for the futures markets and the direction of prices? How much impact can President Obama have? We still essentially have the same Congress. We still have essentially the same economic fundamentals. The same credit market conditions. We still have essentially the same geo-political issues. The same uncertainties. The same concerns. The same pressures. What does it really mean in the day to day world of trading?
It means continued volatility. It means continued opportunities for the astute futures trader. Futures traders have a distinct advantage over real estate investors and most equity investors. We can profit in up markets or down markets. Not so for the buyers of properties, or the majority of investors in equities. True, there are the rare stock traders who go short stocks, but for the most part, stock market investors are buy side only participants through mutual funds and most investment advisors.
As futures traders we have a unique opportunity in these volatile times. We can choose to buy then sell, looking for higher prices, or we can sell then buy, looking for lower prices. When we are right on the direction of price, we can profit. What a tremendous advantage over the other asset classes. This flexibility gives us more opportunity to profit and of course with the reward comes risk...hence if we are wrong experience losses. Add this advantage to the leverage we can use and it is evident why futures trading is rapidly becoming more and more intriguing to all types of investors. This holds true for conservative investors and those willing to accept a more aggressive stance towards risk.
This volatility also requires increased discipline on the part of traders. We must be aware of potential changes in the wind that could have major impacts on the existing conditions. This points out the increased need to stay in close contact with your broker. A quick phone call. A questioning e-mail or an instant message can be the key to managing your activities in these volatile times. Reach out to your broker. Allow him, and I say him since at this time there are no female brokers at Cannon, to keep you aware of key factors to evaluate in these volatile times. Information is power, and as a trader the more that you have to muster, the better you can be prepared for trading every day.
President Obama is the head of our government. As Harry Truman said, the buck stops at the President's desk. However, the quality of his work is dependent on the quality of those advisors that the President has working with him. The same can be said for us as futures traders. Take advantage of the depth of knowledge available to you by working closely with your Cannon Trading broker. The accumulated years of experience of the Cannon Trading brokers can only be an asset to you if you use them. The President is using the best advisors that he can find. You can do the same as a client of Cannon Trading. The group of brokers at Cannon are here to help. Use all of the assets available to you in your quest for future profits. Make this year of change the best trading year of your futures trading career.
IMPORTANT PLEASE NOTE: TRADING COMMODITY FUTURES AND OPTIONS INVOLVE SUBSTANTIAL RISK OF LOSS. THE RECOMMENDATIONS CONTAINED IN THE LETTER IS OF OPINION AND DOES NOT GUARANTEE ANY PROFITS. THERE IS NOT AN ACTUAL ACCOUNT TRADING THESE RECOMMENDATIONS. THESE ARE RISKY MARKETS AND ONLY RISK CAPITAL SHOULD BE USED. PAST PERFORMANCES ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
Add real-time global stock index prices to your site:
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
|---|---|---|
| 01/22 Thu |
7:30 AM CDT - Housing Starts(Dec)
7:30 AM CDT - Building Permits(Dec) 7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Initial Claims-Weekly 9:35 AM CDT - API & DOE Energy Stats 2:00 PM CDT - Cold Storage 3:30 PM CDT - Money Supply |
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| 01/23 Fri |
7:30 AM CDT - Cotton Ginnings
7:30 AM CDT - Dairy Products Prices 7:30 AM CDT - Livestock Slaughter 9:35 AM CDT - EIA Gas Storage 2:00 PM CDT - Cattle on Feed |
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| 01/26 Mon |
9:00 AM CDT - Existing Home Sales(Dec)
9:00 AM CDT - Leading Indicators(Dec) |
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| 01/27 Tue |
7:30 AM CDT - Durable Orders(Dec)
8:00 AM CDT - Consumer Confidence(Jan) FOMC Metting |
LT: Feb Copper Options(CMX)
Feb Gold Options(CMX) Feb Silver Options(CMX) Feb RBOB Gasoline Options(NYM) Feb Heating Oil Options(NYM) Feb Natural Gas Options(NYM) |
| 01/28 Wed |
9:35 AM CDT - API & DOE Energy Stats
FOMC Meeting |
LT: Jan Copper(CMX)
Jan Gold(CMX) Jan Silver(CMX) Jan Palladium(CMX) Jan Platinum(CMX) Feb Natural Gas(NYM) |
| 01/29 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 9:00 AM CDT - New Home Sales(Dec) 9:35 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
FN: Feb Natural Gas(NYM)
LT: Jan Feeder Cattle(CME) Jan Feeder Cattle Options(CME) Feb RBOB Gasoline(NYM) Feb Heating Oil(NYM) |
* 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!