In This Issue
1. December to March Rollover Notice
2. Near–Term Technical Damage in February Live Cattle
3. Economic Calendar
Please note that Equity Indices products; TF, ES, NQ, EMD and YM roll on Thursday the 9th at 8:30 am Chicago time from the December 2010 contract to the March 2011 contract. The month code for March is 'H1'.
It is recommended that all new positions be placed in the March contract as of Thursday's trade date.
Please close any open December Currencies positions by the close on Friday the 10th.
Should you have any further questions please contact your broker.
By: Jim Wyckoff
February live cattle futures on the Chicago Mercantile Exchange on Tuesday closed sharply lower and near the session low after hitting a fresh contract and two-year high of $107.00 early in the trading session. Price action Tuesday also scored a big and bearish "key reversal" down on the daily bar chart, whereby the daily high was higher than the previous day's high, scoring a new contract high, and then prices reversed to close solidly lower and with a daily low that was below the previous trading session's low. That's one early technical clue that a near-term market top is in place for live cattle futures. Live cattle market bulls need to show fresh power soon to recover from Tuesday's near-term technical damage. Bulls' next upside price objective is to push and close February futures prices above solid technical resistance at Tuesday's contract high of $107.00. The next downside technical objective for the bears is pushing below solid technical support at $102.75, which is the bottom of a big upside price gap on the daily bar chart. First resistance is for February live cattle is seen at $105.00 and then at $105.50. First support is seen at $104.50 and then at Wednesday's low of $104.20. Stay tuned!
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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
Disclaimer:
Trading commodity futures and options involves substantial risk of loss. The recommendations 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 futures 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!
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 12/08 Wed |
6:00 AM CST - MBA Mortgage Applications 9:30 AM CST - API & DOE Energy Stats |
LT: Dec Cotton(NYM) |
| 12/09 Thu |
7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - USDA Weekly Export Sales 9:00 AM CST - Wholesale Inventories(Oct) 9:30 AM CST - EIA Gas Storage 3:30 PM CST - Money Supply |
|
| 12/10 Fri |
7:30 AM CST - Dairy Products Prices 7:30 AM CST - WASDE Report & Crop Production 7:30 AM CST - Export & Import Prices(Nov) 7:30 AM CST - Trade Balance(Oct) 8:55 AM CST - Mich Sentiment(Dec) 1:00 PM CST - Treasury Budget(Nov) |
LT: Jan Coffee Options(ICE) |
| 12/13 Mon |
LT: Dec Currencies(CME) Dec US Dollar Index(ICE) |
|
| 12/14 Tue |
7:30 AM CST - NOPA Crush 7:30 AM CST - Core PPI & PPI(Nov) 7:30 AM CST - Retail Sales(Nov) 9:00 AM CST - Business Inventories(Oct) 2:15 PM CST - FOMC Rate Decision |
FN: Dec US Dollar Index(ICE) LT: Dec Barley(CBT) Dec Canadian Dollar(CME) Dec Corn(CBT) Dec Lean Hogs(CME) Dec Oats(CBT) Dec Soymeal(CBT) Dec Soyoil(CBT) Dec Wheat(CBT) Dec Lean Hogs Options(CME) |
| 12/15 Wed |
6:00 AM CST - MBA Mortgage Applications 7:30 AM CST - Core CPI & CPI(Nov) 8:00 AM CST - Net Long-Term TIC Flows(Sep) 8:15 AM CST - Capacity Util & Industrial Prod(Nov) 9:00 AM CST - NAHB Housing Market Index(Dec) 9:30 AM CST - API & DOE Energy Stats |
LT: Dec Cocoa(ICE) Jan Crude Lt Options(NYM) Jan Platinum Options(NYM) Jan Sugar 11 Options(NYM) |
| 12/16 Thu |
7:30 AM CST - Building Permits & Housing Starts(Nov) 7:30 AM CST - Intial Claims-Weekly 7:30 AM CST - USDA Weekly Export Sales 7:30 AM CST - Current Account Balance(Q3) 9:00 AM CST - Philadelphia Fed(Dec) 9:30 AM CST - EIA Gas Storage 3:30 PM CST - Money Supply |
LT: Dec NASDAQ(CME) Dec S&P 500(CME) Dec Value Line(CME) Dec NASDAQ Options(CME) Dec S&P 500 Options(CME) Dec Value Line Options(CME) |
| 12/17 Fri |
7:30 AM CST - Dairy Products Prices 9:00 AM CST - Leading Indicators(Nov) 2:00 PM CST - Cattle On Feed 2:00 PM CST - Milk Production |
LT: Dec DJIA(CME) Dec E-Mini S&P 500(CME) Dec E-Mini NASDAQ(CME) Dec Russell(CME) Dec DJIA Options(CME) Dec E-Mini S&P 500 Options(CME) Dec E-Mini NADSDAQ Options(CME) Dec Russell Options(CME) Jan Cotton Options(NYM) Jan Orange Juice Options(ICE) |
| 12/20 Mon |
LT: Dec Coffee(ICE) Jan Crude Lt(NYM) |
|
| 12/21 Tue |
LT: Dec 10 Year Notes(CBT) Dec Bonds(CBT) Dec Butter(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!