This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight:Futures, published on Wednesday, August 10, 2016.
There is a trade opportunity based on a M.E.T breakout in the Natural Gas futures market. The MACD and Stochastic indicators are bearish. Trend Seeker is Down, switching today, making this a Strong 1 Trade Strategy as well.
Sell the October 2016 Natural Gas contract at 2.630 using a limit order, GTC.
The entry is a pull back to the 7/21/16 low. Initial Margin = $2,420 Maintenance Margin = $2,200
Stop loss: Place buy stop on 2.710, above the 7/21/16 high, GTC. (Risk: $800)
Target: Place buy limit on 2.450, near a potential support level and the 200-day Moving Average, GTC. (Profit: $1,800)
October 2016 Natural Gas Chart
You may trade the mini Natural contract with an Initial Margin of $605 and Maintenance Margin of $550. The risk would be $400 and the profit would be $900 based on the same prices above.
Contact your Daniels Trading broker by phone or email to place this trade.
Try Trade Spotlight: Futures for 30 Days
Trade Spotlight: Futures Trial - An email advisory that provides futures contract trade setups accompanied by definitive trade management. Trade setups are developed by applying the GBE trading methodology of chart formation breakouts confirmed through key technical indicators.
Trade Spotlight: Futures includes an email newsletter subscription.
Trade Spotlight: Futures trial lasts 30 days.
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.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.