May 11th, 2011 - Issue #583

In This Issue

1. Short Article: Mental Risk Management
2. Jim Wyckoff's Hot Market Report
3. Economic Calendar

1. Mental Risk Management

By TradingEmini.com:

"When you learn what not to do in order not to loose, only then can you begin to learn what to do in order to win" Edwin Lefevre, Reminiscences of a Stock Operator

1. Managing Position Size

Size envy can make traders take larger positions than they should. Most people can't walk straight into a gym and bench press 300lbs. Traders must build up financial capacity, technical skills and emotional development, judging progress against their own levels not others.

2. Dreaming of a Big Win

This is the earmark of a beginner. The key to success is consistency, steadily achieving profits with a simple sound process and using runners catch the larger moves or position trade with a separate broker account. A successful athlete focuses on the steps to achieve results not the results.

3. Vengeance Trading

Vengeance trading is when a trader takes a hit and...

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2. Jim Wyckoff's Hot Market Report

Gold Market at Critical Near-Term Technical Crossroads

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Comex gold futures were trading at weaker price levels in mid-morning dealings Wednesday. However, the bulls have this week regained some upside near-term technical momentum in what is an extra important tradinVengeance trading is when a trader takes a hit and g week, technically, following last week's strong selling pressure. Technically, June Comex gold futures the past three trading sessions saw a good corrective upside bounce following the strong selling pressure that hit the market late last week. Short covering and bargain-hunting buying were featured. Gold bulls still have the overall near-term and longer-term technical advantage, but the market is now at a critical near-term inflection point. If gold prices close out this week at or near the weekly high, then it would be a significantly bullish development to suggest the near-term price uptrend be re-established and would continue, including a likely challenge this month's all-time high of $1,577.40, or above, basis June futures. However, a close in June gold futures on Friday at or near the weekly low would be significantly bearish and would be one clue that the market has peaked and that sideways to lower price action is likely in the coming weeks. The gold bulls' next near-term upside technical objective is to produce a close above solid technical resistance at $1,550.00. Bears' next near-term downside price objective is closing prices below solid technical support at $1,492.00. First resistance is seen at the overnight high of $1,526.80 and then at $1,530.00. First support is seen at $1,500.00 and then at $1,492.00.

--Jim Wyckoff

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!

3. Economic Calendar

Source: Moore Research Center, Inc.

Date	Reports	Expiration & Notice Dates
05/11 Wed	6:00 AM CDT - MBA Mortgage Purchase Index 7:30 AM CDT - WASDE Report & Crop Production 7:30 AM CDT - Trade Balance(Mar) 9:30 AM CDT - API & DOE Energy Stats 1:00 PM CDT - Treasury Budget(Apr)
05/12 Thu	7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Core PPI & PPI(Apr) 7:30 AM CDT - Retail Sales(Apr) 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply
05/13 Fri	7:30 AM CDT - Dairy Products Prices 7:30 AM CDT - Core CPI & CPI(Apr) 8:55 AM CDT - Mich Sentiment(May)	LT: May Corn,Wheat,Oats(CBT) May Rough Rice(CBT) May Soybeans,Soymeal,Soyoil(CBT) May Lean Hogs(CME) May Eurodollar Options(CME) May Lean Hogs Options(CME) Jun Coffee Options(ICE)
05/16 Mon	7:30 AM CDT - NOPA Crush 7:30 AM CDT - Empire Manufacturing(Mar) 8:00 AM CDT - Net Long-Term TIC Flows(Mar) 9:00 AM CDT - NAHB Housing Market Index(May)	FN: May Lumber(CME) LT: May Eurodollar(CME) Jun Sugar 11 Options(NYM)
05/17 Tue	7:30 AM CDT - Building Permits & Housing Starts(Apr) 8:15 AM CDT - Capacity Util & Industrial Prod(Apr)	LT: Jun Crude Lt Options(NYM)
05/18 Wed	6:00 AM CDT - MBA Mortgage Purchase Index 9:30 AM CDT - API & DOE Energy Stats	LT: May Coffee(ICE) Jun Platinum Options(CMX) Jun Palladium Options(CMX)
05/19 Thu	7:30 AM CDT - Initial Claims-Weekly 9:00 AM CDT - Existing Home Sales(Apr) 9:00 AM CDT - Leading Indicators(Apr) 9:00 AM CDT - Philadelphia Fed(May) 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply	LT: May Butter(CME)
05/20 Fri	7:30 AM CDT - Dairy Products Prices 2:00 PM CDT - Cattle On Feed 2:00 PM CDT - Cold Storage	LT: Jun Crude Lt(NYM) May DJIA Options(CME) May Nikkei Options(CME) May S&P 500 Options(CME) May E-Mini S&P 500 Options(CME) May NASDAQ Ootions(CME) May E-Mini NASDAQ Options(CME) May Russell Options(CME) May Value Line Options(CME) Jun 2,5,10 Year Notes Options(CBT) Jun Bonds Options(CBT) Jun Corn,Oats Options(CBT) Jun Wheat,Rough Rice Options(CBT) Jun Soybeans,Soymeal,Soyoil Options(CBT) Jun Orange Juice Options(ICE)
05/23 Mon
05/17 Tue	9:00 AM CDT - New Home Sales(Apr)	FN: Jun Crude Lt(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!