In This Issue
1. Cotton Market Bulls Regain Technical Strength
2. Educational Feature: Dealing With Losing Trades
3. Economic Calendar
ICE Futures U.S. cotton for March delivery has rallied around 8 cents a pound (800 points) in the wake of a very bullish USDA report issued on Feb. 9. The cotton market bulls have also regained near-term technical strength. March cotton early Tuesday scored a fresh five-week high of 74.81 cents. The popular shorter-term moving averages (9- and 18-day) have moved into a bullish posture for March cotton. The 9-day has crossed above the 18-day moving average recently, and both averages are now trending higher. Near-term technical resistance is located at 75.00, 75.50 and then at 76.00 cents. The next major upside technical objective for the rejuvenated cotton market bulls is pushing and closing March futures prices above strong overhead chart resistance at the January high of 76.77 cents. Above that lies psychological resistance at 80.00 cents a pound. Near-term chart support for March cotton futures is located at 74.00 cents, at 73.50 and then at 73.00 cents. Solid chart support is located at 72.50 cents. A close below 72.50 would provide the cotton market bears with some fresh downside near-term technical momentum to suggest a near-term market top is in place.
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
by Jim Wyckoff
(Note: This feature is a favorite of mine, and I believe all traders need to address this issue every once in a while. — Ilan Levy-Mayer, Vice President, Cannon Trading)
A main tenet of success in futures trading is the ability to accept losing trades as part of the overall trading process. This is not an easy undertaking--especially since many futures traders tend to be of a more competitive nature in the first place. Traders certainly don't have to enjoy losing trades, but they must accept the fact and move on. Those who can't accept the fact that losing trades are a part of futures trading usually don't stay in the business very long.
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 02/18 Thu |
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - Core PPI & PPI(Jan) 9:00 AM CST - Leading Indicators(Jan) 9:00 AM CST - Philadelphia Fed(Feb) 9:30 AM CST - EIA Gas Storage 10:00 AM CST - API & DOE Energy Stats 3:30 PM CST - Money Supply |
FN: Mar Coffee(ICE)
|
| 02/19 Fri |
7:30 AM CST - Dairy Products Prices
7:30 AM CST - Core CPI & CPI(Jan) 2:00 PM CST - Cattle on Feed 2:00 PM CST - Milk Production |
LT: Feb Nikkei Options(CME)
Feb DJIA Options(CME) Feb S&P 500 Options(CME) Feb E-mini S&P 500 Options(CME) Feb NASDAQ Options(CME) Feb Russell Options(CME) Feb Value Line Options(CME) Mar 2,3,5,10 Yr Notes Options(CBT) Mar Barley Options(CBT) Mar Bonds Options(CBT) Mar Corn Options(CBT) Mar Oats Options(CBT) Mar Orange Juice Options(ICE) Mar Rough Rice Options(CBT) Mar Soybeans Options(CBT) Mar Soymeal Options(CBT) Mar Soyoil Options(CBT) Mar Wheat Options(CBT) |
| 02/22 Mon |
2:00 PM CST - Cold Storage
|
FN: Mar Cotton(NYM)
LT: Mar Crude Lt(NYM) |
| 02/23 Tue |
8:00 AM CST - Case-Shiller 20-City Index(Dec)
9:00 AM CST - Consumer Cofidence(Feb) |
LT: Feb Pork Bellies(CME)
Feb Gold(CMX) Feb Silver(CMX) Feb Palladium(CMX) Feb Platinum(CMX) Mar Copper Options(CMX) Mar Gold Options(CMX) Mar Silver Options(CMX) Mar Heating Oil Options(NYM) Mar RBOB Gasoline Options(NYM) Mar Natural Gas Options(NYM) |
| 02/24 Wed |
9:00 AM CST - New Home Sales(Jan)
9:30 AM CST - API & DOE Energy Stats |
FN: Mar Crude Lt(NYM)
LT: Feb Copper(CMX) Feb Silver(CMX) Feb Gold(CMX) Feb Platinum(CMX) Feb Palladium(CMX) Mar Natural Gas(NYM) |
| 02/25 Thu |
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - Durable Orders(Jan) 9:30 AM CST - EIA Gas Storage 3:30 PM CST - Money Supply |
FN: Mar Natural Gas(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!