In This Issue
Weekly Gold Chart and Commentary
PRECIOUS METALS: Precious metals are expected to exhibit a mixed-to-higher trading direction during November, with gold prices consolidating between $1,072 and $1,105. The market will receive follow-through support from the Nov 3rd breakout above $1,072 resistance, but just as was the case in early-Sep and early-Oct, we think the bullish tone of the market will moderate by mid-month. Longer-term support remains in place from gold's competition with other asset classes for the marginal investor dollar. The prospect of a slow and gradual U.S. economic recovery may help draw investment away from equity traders, while short-term interest rates maintained at low levels for an "extended period" will assure gold's attractiveness as both an inflation hedge and a store of value. Physical and ETF demand are expected to remain moderate following strong levels seen in Q1 & in the month of Oct, but hedge fund appetite for physical bullion should help make up the shortfall. -Tom Pawlicki, MF Global Research
by Jim Wyckoff
The headline of this educational feature may be a bit confusing, but I will explain what I mean shortly. First, I want to reiterate that trading futures, stock and FOREX markets is not an easy undertaking. It disgusts me that there are a few unsavory people in our industry that portray trading as an easy, get-rich-quick scheme, or as some endeavor for which there are "secrets" to be learned from those who hold "trading secrets."
Folks, the plain truth is that there are no trading secrets and no easy paths to quick success in trading markets. Beware of anyone who tries to tell (or sell) you such.
One of the biggest obstacles to success in trading markets is a lack of knowledge and understanding of the process of trading. The "process of trading" includes understanding financial leverage, market behavior and trader psychology. Understanding the process of trading can be achieved with perseverance and a willingness to continue to learn.
It's not coincidental that trading markets is similar to most other human endeavors: Hard work and experience are required to achieve notable success. A person who enjoys classic automobiles would not attempt to tear down and successfully rebuild an engine without having some previous experience, or without having learned about the workings of an automobile engine—including knowing about the tools involved in the operation.
I have written numerous times that learning about different trading tools, different markets and different trading strategies provides a solid foundation on the road to trading success.
Ironically, I believe a major advantage of being an experienced trader is knowing what you don't know about markets and trading. Yes, you heard that right: Knowing what you don't know.
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Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 11/12 Thu |
7:30 AM CST - Initial Claims-Weekly
9:35 AM CST - API & DOE Energy Stats 1:00 PM CST - Treasury Budget(Oct) |
LT: Dec Coffee Options(ICE)
|
| 11/13 Fri |
7:30 AM CST - Dairy Product Prices
7:30 AM CST - Export & Import Prices(Oct) 7:30 AM CST - Trade Balance(Sep) 7:30 AM CST - USDA Weekly Export Sales 8:55 AM CST - Mich Sentiment-Prel(Nov) 9:35 AM CST - EIA Gas Storage 3:30 PM CST - Money Supply |
LT: Nov Lumber(CME)
Nov Rough Rice(CBT) Nov Soybeans(CBT) Nov Eurdollar Options(CME) Nov US T-Bill Options(CBT) Dec Cotton Options(NYM) |
| 11/16 Mon |
7:30 AM CST - NOPA Crush
7:30 AM CST - Retail Sales(Oct) 7:30 AM CST - Empire Manufacturing(Nov) 9:00 AM CST - Business Inventories(Seo) |
FN: Nov Lumber(CME)
Dec Cocoa(ICE) LT: Nov Eurodollar(CME) Nov LIBOR(CME) Nov US T-Bill(CBT) Nov LIBOR Options(CME) |
| 11/17 Tue |
7:30 AM CST - Core PPI & PPI(Oct)
8:00 AM CST - Net Long-Term TIC Flows(Sep) 8:15 AM CST - Capacity Util & Industrial Prod(Oct) |
LT: Dec Crude Lt Options(NYM)
|
| 11/18 Wed |
7:30 AM CST - Building Permits & Housing Starts(Oct)
7:30 AM CST - Core CPI & CPI(Oct) 9:35 AM CST - API & DOE Energy Stats 2:00 PM CST - Milk Production |
LT: Dec Platinum Options(CMX)
|
| 11/19 Thu |
7:30 AM CST - Initial Claims-Weekly
7:30 AM CST - USDA Weekly Export Sales 9:00 AM CST - Leading Indicators(Oct) 9:00 AM CST - Phildelphia Fed(Nov) 9:35 AM CST - EIA Gas Storage 3:30 PM CST - Money Supply |
FN: Dec Coffee(ICE)
LT: Nov Feeder Cattle(CME) Nov Feeder Cattle Options(CME) |
* 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!