In This Issue
Economic Reports and Expiration Notices
With a modicum of risk appetite returning and the VIX volatility index registering the lowest level of fear since the credit market crisis began, equities have rebounded significantly in the past five months. Equity markets took another leg higher in the last month, confounding some bears, moving major indices into positive territory for the year. The Dow garnered a lot of headlines when it broke above 9000, and the S&P500 is streaking toward the 1000 mark as July posted its best result in 20 years, prompting PIMCO CEO Mohamed El-Erian to warn that the July rally in equities appears to be a "sugar rush." Meanwhile, treasury yields have crept higher in the face of relentless new supply and as central banks have remained silent about extending asset purchase plans. Commodities ground sideways through July but maintained an underlying bullish tone as the greenback demonstrated further weakness. As the climb up the wall of worry continues, August may prove to be an inflection point, as events this month may rekindle worries about the nascent recovery as we head into the fall.
Continued...
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Last week, we reviewed the corn market, observing that it was oversold in our opinion.
The market did bounce nicely, reaching our initial target of 3.73. The big unknown question now is: what's next?
Of course, no one can tell what the future holds, and it becomes a matter of calculated speculation, risk and trade management. At its current levels, the market experienced a quick, sharp rally and may be due for a correction.
A small correction, followed by a resumption of the rally would be a positive sign for the bulls. A pullback to 350-352 area is considered "normal" and if the market has more strength to it, it could find support. The next targets on the way up are 3.91 and 4.09.
Sometimes it is easier to manage trades such as this one with the assistance of a licensed broker who can provide you with an additional perspective, alerts, help with placement of stops and target as well as discussing possible option trades.
Feel free to contact your Cannon Trading broker with any questions and possible ideas regarding the current corn market and other markets we follow on a daily basis.
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Disclaimer
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NO INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 08/06 Thu |
7:30 AM CDT - Intial Claims-Weekly
7:30 AM CDT - USDA Wekkly Export Sales 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
|
| 08/07 Fri |
7:30 AM CDT - Dairy Products Prices
7:30 AM CDT - Ave Workweek & Hourly Earnings(Jul) 7:30 AM CDT - Nonfarm Payrolls(Jul) 7:30 AM CDT - Unemployment Rate(Jul) 1:00 PM CDT - Consumer Credit(Jun) |
LT: Aug Canadian Dollar Options(CME)
Aug Currencies Options(CME) Aug US Dollar Index Options(CME) Aug Live Cattle Options(CME) Aug Pork Bellies Options(CME) Sep Cocoa Options(ICE) |
| 08/10 Mon |
|
FN: Aug Live Cattle(CME)
Aug Pork Bellies(CME) |
| 08/11 Tue |
7:30 AM CDT - Productivity-Prel(Q2)
9:00 AM CDT - Wholesale Inventories(Jun) |
|
| 08/12 Wed |
7:30 AM CDT - WASDE Report & Crop Production
7:30 AM CDT - Supply & Demand 7:30 AM CDT - Trade Balance(Jun) 9:30 AM CDT - API & DOE Energy Stats 1:00 PM CDT - Treasury Budget(Jul) |
|
| 08/13 Thu |
7:30 AM CDT - Import & Export Prices(Jul)
7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - Retail Sales(Jul) 9:00 AM CDT - Business Inventories(Jun) 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
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* 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!