In This Issue
Day-Trading Stock Index Futures
Economic Reports and Expiration Notices
Marc from TradingEmini.com is a 14-year trader who worked as a proprietary trader for JP Capital, a division of Andover Trading. For the past 7 years Marc has been offering Private Mentorship with Real Money Calls, made in Real Time. Prior to this Marc was an executive with technology companies such as Sprint and Canon.
Before the market opens, it is crucial to prepare three trading zones (Buy Zone-Sell Zone-Chop, Dangerous Zone). To do the Daily Analysis he uses a daily Chart with 6EMAS, sometimes he browses through the weekly as well and finally zooms to the 60mn. Being prepared means you make high probability, strategic trades with a minimum of 3:1 ratio within the Buy Zone-Sell Zone-Chop Zone.
See how this is done from Monday's Rally Pre Market Video.
So by knowing your zones you quickly establish entry points plus stop loss and target points - from which you can calculate a trade's profit ratio e.g. a 1 point stop loss* risked with a 3 point target equals a profit ratio of 3:1, a healthy trade, worth taking. He usually does not take a trade unless the ranges show a minimum of a 3:1 ratio.
It is crucial to start your trading day with a clear map.
The basic principle of Support & Resistance is sell at resistance, buy at support. To identify levels for the day he uses dynamic moving averages and price action i.e. chart patterns like head and shoulders and double tops and bottoms. With these he establishes Trading Zones.
He uses 2 main charts one ES 60mn chart for trend recognition-major support and resistance, a time and sales for price action only looking at the bids, speed and rhythm of the tape and a 5mn volume indicator chart to add and exit any given position.
Using moving averages and price action to identify support & resistance keeps your system succinct yet dynamic and you avoid the lagging nature of more complex indicators. The less but more immediate the data you focus on, the more you will be in-tune with the market and your trading will be less stressful. This greatly reduces the risk of destructive psychological behaviours like revenge trading.
A note from Marc
I hope this has been useful to you and if you would like to read more material or take advantage of our DAILY LIVE PREMARKET ANALYSIS please feel free to pop along to our website. Last but not least in my opinion the most important factor is to be well capitalized when trading the ES.
See our 1% rule video Money Management Video
Feel free to see some of these Live PRE MARKET videos. I will be sharing some more in depth knowledge in a free one hour event next week live in our room, everybody is welcome to attend.
Also feel free to join us daily on Twitter for live updates.
*The placement of contingent orders by you such as "stop-loss" or "stop-limit" order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.
** There is a substantial risk of loss in futures trading! Neither the presenter, publisher or Cannon Trading is liable for any losses that may be incurred by the use of the methods described herein and any such liability is expressly disclaimed. There is a substantial risk involved in trading, and not everyone can become a successful trader.
*** Past performance is not indicative of futures results
A new financial widget from Cannon Trading! Follow the major U.S. stock indices.
Get the US Stock Indices WidgetValues of the major United States stock indices: the Dow Jones Industrial Average, S&P 500 index, NASDAQ composite, Russell 2000 index, and S&P 400 Midcap index. Add this to your blog, Facebook page, iGoogle, and more! Either click get & share on the widget or add this code to your site: |
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
|---|---|---|
| 05/07 Thu |
7:30 AM CDT - Productivity-Prel(Q1)
7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - Unit Labor Costs(Q1) 9:35 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply 2:00 PM CDT - Consumer Credit(Mar) |
|
| 05/08 Fri |
7:30 AM CDT - Dairy Product Prices
7:30 AM CDT - Ave Workweek & Hourly Earnings(Apr) 7:30 AM CDT - Nonfarm Payrolls(Apr) 7:30 AM CDT - Unemployment Rate(Apr) 9:00 AM CDT - Wholesale Inventories(Mar) |
LT: May Orange Juice(ICE)
May Canadian Dollar Options(CME) May Currencies Options(CME) May US Dollar Index Options(CME) Jun Coffee Options(ICE) |
| 05/11 Mon |
|
|
| 05/12 Tue |
7:30 AM CDT - WASDE Report & Crop Production
7:30 AM CDT - Supply & Demand 7:30 AM CDT - Trade Balance(Mar) 1:00 PM CDT - Treasury Budget(Apr) |
|
| 05/13 Wed |
7:30 AM CDT - Import & Export Prices(Apr)
7:30 AM CDT - Retail Sales(Apr) 9:00 AM CDT - Business Inventories(Mar) 9:35 AM CDT - API & DOE Energy Stats |
LT: May Cocoa(ICE)
|
| 05/14 Thu |
7:30 AM CDT - NOPA Crush
7:30 AM CDT - Core PPI & PPI(Apr) 7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Initial Claims-Weekly 9:35 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
LT: May Corn(CBT)
May Wheat(CBT) May Oats(CBT) May Rough Rice(CBT) May Soybeans(CBT) May Soymeal(CBT) May Soyoil(CBT) May Lean Hogs(CME) May Lean Hogs Options(CME) Jun Crude Oil Lt Options(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!