In This Issue
1. Beware the Biases - Janice Dorn
2. Jim Wyckoff's Hot Market - May Soybeans
3. Economic Calendar
Featured Articles This Week
a. Forex Market Insight: EUR/USD Rallies...Why?
b. A Two-Bar Pattern that Points to Trade Setups
c. Want to Know Who's Going to Be President? Ask the Stock Market
By Janice Dorn, M.D., Ph.D.
Janice Dorn, M.D., Ph.D. is a Financial Psychiatrist and Financial Futurist. Dr. Janice Dorn is believed to be the only Ph.D. (Brain Anatomist) and M.D. (Board-Certified Psychiatrist and Addiction Psychiatrist) in the world who actively trades, writes commentary on the financial markets and coaches fellow traders. Dr. Dorn has been trading the gold futures markets full time since 1993. She has written over 2000 articles on trader and investor psychology, and coached over 600 traders.
It is one thing to show a man that he is in an error, and another to put him in possession of truth...John Locke
Cognitive biases describe the way you think--the operative words here being cognitive (thinking) and biases (prejudices). You tend to hold on to your biases, even when they don’t serve you well. This causes you to make trading mistake after trading mistake. Also, since your brain is hard-wired for biases, it is difficult to change them without experiencing some type of internal discomfort. Resistance to change and acting out of biases have two effects on your trading and investing: You do the same thing over and over again, and you expect different results every time you do it. This is--as you are aware—Albert Einstein’s definition of insanity.
In order to push through the biases that are holding you back from becoming a profitable trader and investor, you must be aware of them and make appropriate changes. How do you make changes? You retrain your trading brain. This is done through consistent coaching and practice. It takes time, but it is completely doable—and it works!
Soybean Bulls Have Technical Power
See on the daily bar chart that May soybean futures prices are in a two-month-old uptrend and this week hit a fresh four-month high. See, too, that the shorter-term moving averages I follow (9- and 18-day) are in a bullish posture as the 9-day is above the 18-day moving average, and both lines are trending higher. "The trend is your friend" in trading markets successfully--and the path of least resistance for the soybean market remains sideways to higher until technicals suggest otherwise.
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 |
| 2/24 Fri |
7:30 AM CST - USDA Weekly Export Sales 7:30 AM CST - Dairy Products Prices 8:55 AM CST - Michigan Sentiment-Final(Feb) 9:00 AM CST - New Home Sales(Jan) 2:00 PM CST - Cattle On Feed | LT: Mar 2,5,10 Year Notes Options(CBT) Mar Bonds Options(CBT) Mar Corn Options(CBT) Mar Wheat Options(CBT) Mar Oats Options(CBT) Mar Soybeans Options(CBT) Mar Soyoil Options(CBT) Mar Soymeal Options(CBT) Mar Rough Rice Options(CBT) Mar Heating Oil Options(NYM) Mar RBOB Gasoline Options(NYM) Mar Natural Gas Options(NYM) |
| 2/27 Mon |
9:00 AM CST - Pending Home Sales(Jan) | LT: Feb Copper(CMX) Feb Gold(CMX) Feb Silver(CMX) Feb Platinum(NYM) Feb Palladium(NYM) Mar Natural Gas(NYM) |
| 2/28 Tue |
7:30 AM CST - Durable Orders(Jan) 8:00 AM CST - Case-Shiller 20-City Index(Dec) 9:00 AM CST - Consumer Confidence(Feb) | FN: Mar Natural Gas(NYM) |
| 2/29 Wed |
6:00 AM CST - MBA Mortgage Purchase Index 7:30 AM CST - GDP-Second Estimate(Q4) 7:30 AM CST - GDP Deflator-Second Estimate(Q4) 8:45 AM CST - Chicago PMI(Feb) 9:30 AM CST - API & DOE Energy Stats 1:00 PM CST - Fed's Beige Book(Feb) | FN: Mar Bonds(CBT) Mar 2,3,5,10 Year Notes(CBT) Mar Copper,Gold,Silver(CMX) Mar Platinum,Palladium(NYM) Mar Corn,Oats,Wheat,Rough Rice(CBT) Mar Soybeans,Soyoil,Soymeal(CBT) LT: Feb Fed Funds(CME) Feb Live Cattle(CME) Mar Heating Oil(NYM) Mar RBOB Gasoline(NYM) Mar Sugar-11(NYM) Feb Funds Options(CME) Mar Lumber Options(CME) |
| 3/01 Thu |
7:30 AM CST - USDA Weekly Export Sales 7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - Personal Income & Spending(Jan) 9:00 AM CST - Construction Spending(Jan) 9:00 AM CST - ISM Index(Feb) 9:30 AM CST - EIA Gas Storage 1:00 PM CST - Auto & Truck Sales(Feb) 3:30 PM CST - Money Supply | FN: Mar Orange Juice(ICE) Mar Sugar-11(NYM) LT: Feb Butter(CME) Feb Milk(CME) Feb Butter Options(CME) Feb Milk Options(CME) |
| 3/02 Fri |
/td> | FN: Mar Heating Oil(NYM) Mar RBOB Gasoline(NYM) LT: Mar Live Cattle Options(CME) Apr Cocoa Options(ICE) |
| 3/05 Mon |
9:00 AM CST - Factory Orders(Jan) 9:00 AM CST - ISM Services(Feb) | |
| 3/06 Tue |
||
| 3/07 Wed |
6:00 AM CST - MBA Mortgage Purchase Index 7:15 AM CST - ADP Employment Change(Feb) 7:30 AM CST - Productivity-Rev(Q4) 9:30 AM CST - API & DOE Energy Stats 2:00 PM CST - Consumer Credit(Jan) | |
| 3/08 Thu |
6:30 AM CST - Challenger Job Cuts(Feb) 7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - USDA Weekly Export Sales 9:30 AM CST - EIA Gas Storage 3:30 PM CST - Money Supply |
* 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!