This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight:Futures, published on Thursday, July 14, 2016.
There is a trade opportunity based on a potential M.E.T breakout in the Lean Hogs futures market. The MACD and Stochastic indicators are bearish. Momentum is slightly flat, but anticipating a strong move on the major pivot point breakout. Trend Seeker is Down, with a Strong ranking. This trade is also in line with seasonal patterns.
Sell the October 2016 Lean Hogs contract at 66.700 using a stop order, GTC.
The entry is a break of the 5/24/16 low. Initial Margin = $1,320 Maintenance Margin = $1,200
Stop loss: Place buy stop on 68.700, above recent contract highs and the 50-day Moving Average, GTC. (Risk: $800)
Target: Place buy limit on 62.200, above the twelve month contract low, GTC. (Profit: $1,800)
October 2016 Lean Hogs Chart
Contact your Daniels Trading broker by phone or email to place this trade.
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STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
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