In This Issue
Using Tick Charts and Oscillators for Day-Trading
Hot Market Report
Economic Calendar
by Ilan Levy-Mayer VP of Cannon Trading and CTA at Levex.net
I really don't think anyone has found a "perfect way" to day-trade. Different techniques work well in different market environment.
In this week short educational feature, I will touch about one technique one can add to their trading arsenal. This technique works better on choppy, two sided ways. It DOES NOT work well when the market has a strong trend.
The chart below illustrates a few principals I like:
1. It uses a tick chart rather than a time chart. I like tick charts better when day-trading shorter time frames for the simple reason it already includes a big factor in the market, VOLUME. If you are using 5 minutes chart for example, you may get signals simply because time "has passed" and certain indicators you are using adopt certain values. When using tick charts, at times where there is lots of movement in the market, you won't have to wait until your time frame bar closes to get your signal, volume becomes a bigger more important part of your trading decision.
2. To continue reading this short article as well as viewing the illustrative chart, please fill out the short form below.
by Jim Wyckoff
Click the image to enlarge
March corn futures at the Chicago Board of Trade early Wednesday notched a fresh contract and 2.5-year high of $6.71 3/4 a bushel before the opening of the day-trading session. Price action Tuesday and early Wednesday could be the beginning of a bullish upside "breakout" from a two-week-old sideways trading range at higher price levels on the daily bar chart. The next upside price objective for the powerful corn market bulls is to produce a close above major psychological resistance at $7.00 a bushel. The all-time record high for the nearby corn futures contract was scored in June of 2008, at $7.79 a bushel. March corn futures are presently in a seven-month-old uptrend on the daily bar chart, having nearly doubled in price from the late-June low of $3.57 a bushel. There are no early technical clues to suggest a market top for corn is close at hand. It would take a close below major psychological support at the $6.00 level in March corn to produce serious chart damage to then suggest a major market top is in place. Veteran grain traders know this is the time of year when the seasonal "February Break" price weakness phenomenon can occur. With the the keen bullish attitudes in the grain markets at present, traders are wondering if the February Break will take a leave of absence this year. However, history does suggest that in the next several weeks traders will be able to look back on the grain price charts and be able to say that the February Break did indeed occur again this year in the grain futures markets.
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
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 02/02 Wed |
6:00 AM CST - MBA Mortgage Purchase Index 6:30 AM CST - Challenger Job Cuts(Jan) 7:15 AM CST - ADP Employment Change(Jan) 9:30 AM CST - API & DOE Energy Stats |
FN: Feb Heating Oil(NYM) Feb RBOB Gasoline(NYM) |
| 02/03 Thu |
7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - USDA Weekly Export Sales 7:30 AM CST - Productivity-Prel(Q4) 7:30 AM CST - Unit Labor Costs(Q4) 9:00 AM CST - Factory Orders(Dec) 9:00 AM CST - ISM Services(Jan) 9:30 AM CST - EIA Gas Storage 3:30 PM CST - Money Supply |
LT: Jan Milk(CME) Jan Milk Options(CME) |
02/04 |
7:30 AM CST - Dairy Products Prices 7:30 AM CST - Ave Workweek & Hourly Earnings(Jan) 7:30 AM CST - Nonfarm Payrolls(Jan) 7:30 AM CST - Unemployment Rate(Jan) |
LT: Feb Canadian Dollar Options(CME) Feb Currencies Options(CME) Feb US Dollar Index Options(ICE) Feb Live Cattle Options(CME) Feb Pork Bellies Options(CME) Mar Cocoa Options(ICE) |
| 02/07 Mon |
2:00 PM CST - Consumer Credit(Dec) | FN: Feb Live Cattle(CME) Feb Pork Bellies(CME) |
| 02/08 Tue |
||
| 02/09 Wed |
6:00 AM CST - MBA Mortgage Purchase Index 7:30 AM CST - WASDE Report & Crop Production 9:30 AM CST - API & DOE Energy Stats |
LT: Mar Coffee Options(ICE) |
| 02/10 Thu |
7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - USDA Weekly Export Sales 9:00 AM CST - Wholesale Inventories(Dec) 9:35 AM CST - EIA Gas Storage 1:00 PM CST - Treasury Budget(Jan) 3:30 PM CST - Money Supply |
LT: Mar Coffee Options(ICE) |
| 02/11 Fri |
7:30 AM CST - Dairy Products Prices 7:30 AM CST - Trade Balance(Dec) 8:55 AM CST - Mich Sentiment(Feb) |
LT: Feb Eurodollar Options(CME) Mar Cotton Options(CME) |
| 02/14 Mon |
7:30 AM CST - NOPA Crush | FN: Mar Cocoa(ICE) LT: Feb Eurodollar(CME) Feb Lean Hogs(CME) Feb Lean Hogs Options(CME) |
| 02/15 Tue |
7:30 AM CST - Empire Manufacturing(Feb) 7:30 AM CST - Export & Import Prices(Jan) 7:30 AM CST - Retail Sales(Jan) 8:00 AM CST - Net Long-Term TIC Flows(Dec) 9:00 AM CST - Business Inventories(Dec) 9:00 AM CST - NAHB Housing Market Index(Feb) |
LT: Mar Sugar 11 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!