In This Issue
Spread Trading Opportunities in Stock Index Futures
Silver Bulls May Now be Exhausted
Economic Calendar
Source CME Group
Ever wondered if there are other ways to trade e-mini products other than the regular long, short with stops?
Many of you have heard of options and different trading techniques and the following presentation details another unique approach to trading: spread trading between stock index futures, both for short and long term (Example: mini NASDAQ vs. Mini SP500 or Mini Russell 2000 vs. Mini SP midcap).
Topics covered in this 6 part video series include:
To Watch "Spread Trading Opportunities in Stock Index Futures" Please Fill Out the Form Below.
by Jim Wyckoff
Click the image to enlarge
December Comex silver futures on Tuesday hit a fresh contract and 30-year high of $29.34 an ounce. However, in late trading Tuesday prices backed way off on profit-taking pressure. And then in after-hours trading Tuesday afternoon the market dropped even farther when the CME announced it is raising trading margin requirements for silver futures. The daily trading range in December silver futures Tuesday was a mammoth, at nearly $3.00. Tuesday's price action in silver futures does begin to hint that the bulls have now become exhausted after producing a rally of more than $5.00 an ounce since last week's low of $23.935. The silver market bulls can still correctly argue that no serious technical damage has been inflicted and that prices are still in a 2.5-month-old uptrend on the daily bar chart. How the silver futures market closes on Friday will be a key technical clue for traders. A close at or near the weekly low would be significantly near-term bearish to suggest a near-term market top is in place. A solid rebound and close near the weekly high in silver futures on Friday would provide the bulls with fresh upside near-term technical momentum to then suggest more price gains are in the offing in the near term. From another technical perspective that favors the bears, the Directional Movement Index (DMI) overlaid on the daily bar chart for December silver futures shows some bearish divergence. The ADX line of the DMI in mid-October showed a reading of 53.51. Since that time the ADX line has moved lower, while at the same time the silver market, itself, has moved higher. That's called bearish divergence and is a bearish technical clue for silver. However, the ADX line of the DMI suggests the present price trend is still a strong one. Any ADX line reading above 30.00 does suggest a strong price trend is occurring in a market.
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 11/11 Thu |
VETERAN'S DAY | |
| 11/12 Fri |
7:30 AM CST - Dairy Products Prices 8:55 AM CST - Mich Sentiment(Nov) |
LT: Nov Rough Rice(CBT) Nov Soybeans(CBT) Nov Eurodollar Options(CME) Dec Cotton Options(NYM) Dec Coffee Options(ICE) |
| 11/15 Mon |
7:30 AM CST - NOPA Crush 7:30 AM CST - Retail Sales(Oct) 7:30 AM CDT - Empire Manufacturing Index(Nov) 9:00 AM CST - Business Inventories(Sep) |
LT: Nov Lumber(CME) Dec Sugar 11 Options(NYM) |
| 11/16 Tue |
7:30 AM CST - Core PPI & PPI(Oct) 8:00 AM CST - Net Long-Term TIC Flows(Aug) 8:15 AM CST - Capacity Util & Industrial Prod(Aug) 9:00 AM CST - NAHB Market Housing Index(Nov) |
FN: Nov Lumber(CME) Dec Cocoa(ICE) LT: Dec Crude Lt Options(NYM) |
| 11/17 Wed |
6:00 AM CST - MBA Mortgage Applications 7:30 AM CST - Building Permits & Housing Starts(Oct) 7:30 AM CST - Core CPI & CPI(Oct) 9:30 AM CST - API & DOE Energy Stats |
LT: Dec Platinum Options(NYM) |
| 11/18 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 - Philadelphia Fed(Nov) 9:30 AM CST - EIA Gas Storage 3:30 PM CST - Money Supply |
LT: Nov Feeder Cattle(CME) Nov Feeder Cattle Options(CME) |
| 11/19 Fri |
7:30 AM CST - Dairy Products Prices 2:00 PM CST - Cattle On Feed |
FN: Dec Coffee(ICE) LT: Dec Crude Lt(NYM) Nov DJIA Options(CME) Nov S&P 500 Options(CME) Nov E-Mini S&P 500 Options(CME) Nov NASDAQ Options(CME) Nov E-Mini NASDAQ Options(CME) Nov Russell Options(CME) Nov Value Line Options(CME) Dec Orange Juice Options(ICE) |
| 11/22 Mon |
2:00 PM CST - Cold Storage | |
| 11/23 Tue |
7:30 AM CST - GDP-Second Estimate(Q3) 7:30 AM CST - GDP Deflator-Second Estimate(Q3) 9:00 AM CST - Existing Home Sales(Oct) |
FN: Dec Cotton(NYM) Dec Crude Lt(NYM) LT: Dec Copper Options(CMX) Dec Silver Options(CMX) Dec Gold Options(CMX) Dec Natural Gas Options(NYM) Dec KC,MN Wheat Options(CBT) |
| 11/24 Wed |
7:00 AM CST - Census Crush 7:00 AM CST - Cotton Consumption 7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - Durable Orders(Oct) 7:30 AM CST - Personal Income & Spending(Oct) 9:00 AM CST - New Home Sales(Oct) 9:00 AM CST - FHFA Home Price Index(Q3) 9:30 AM CST - API & DOE Energy Stats 12:00 PM CST - EIA Gas Storage 1:00 PM CST - FOMC Minutes 3:30 PM CST - Money Supply |
LT: Dec Natural Gas(NYM) Dec Heating Oil Options(NYM) Dec RBOB Gasoline 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!