This is a sample entry from Brian Cullen’s email newsletter, The Cullen Outlook.
Happy Friday! If there is one thing to take away from this week in trading, its this…take what the market gives you, when it gives it to you! We saw some great moves in the markets this week that had some pretty quick reversals to follow. I watched many of you navigate them quite well while some struggled. So lets talk stop orders this morning and how they can easily frustrate traders of all experience levels. And then we will get started…
There will be times when you move your stops up too close and miss additional moves in the market. There will be times where you dont moves your stops close enough and you “give back” more than desired. There is no one way to manage your stops and no style works all the time. We all struggle with the same challenge every trade. The key is to be consistent. If you are an aggressive trader and prefer to move your stops close as the market goes your way….do it! If you are more conservative and prefer to give the market room to breathe before tightening your stops…do that! Just be consistent in your approach and hopefully it all evens out in the end. It is nice when you hit the homerun, and everyone wants to of course, but remember that stringing together a few singles scores runs too!
I am speaking from experience here! (as those who have been following along for an extended period of time can attest to, while watching all of my “mistakes and missteps” along the way as I get my ideas out to you). It is ok to not be perfect when trading. We all make mistakes and the best part is….the markets are always open tomorrow!
With that being said, I have a few markets that I wanted to bring to your attention for today and into next week….
1) I have been watching the Sept mini-Dow market trade back and forth between 17000 and 17100 just waiting for the right time to get short. There have been some nice 60 – 80 point moves in there along the way. I mentioned on Wednesday that it looks tired. ***we will now be trading December so the price levels have changed but the chart looks the same ***
I would like to see a bump up to 17000 (currently at 16948) and look to get short. Risk would be a new high around 17100 If we catch the move the objectives are wide open!
2) In the currencies (we are now in December), I have been watching the Euro Currency the past few days as it has been coiling up into a compact pennant after the 200 point collapse on the 4th. If we break out to the upside, say the 129.75 level, I would look to get long. The risk would be 100 points or so just under the pennant point. I would like to see it retrace up to 132.00 and perhaps 134.00 (The mini contract E7Z4 is 1/2 the size of the regular contract…100 points is $625.00)
3) The November Natural Gas market has recently been trading in a 25 cent channel and we are approaching the bottom 3.85 level. I would like to get long at the 3.85 level and look to bounce back above the 4.10 level. The risk could be the 3.75 level and trade 2 mini contracts (QGX4) There is not too much explaining that needs to be done with this one, the chart pretty much says it all.
4) The October Live Cattle market matched its late July high point of 160.00 (high of 161.75) before being turned away yesterday. Currently at 157.35 Important to note…yesterday it closed BELOW Wednesday’s low which could be seen as a bearish trigger. It has rallied over 15.00 (146.00 to 161.00) since August 21st and there could be a potential for a swift move lower if we see early selling this morning. The 50% retracement level would be 153.00 The MACD and RSI are starting to roll over as well.
5) Finally, one for the softs traders. The Cotton market has done 2 things to note. First it broke the down trendline 2 days ago that began in mid-May (yellow circle on chart). And secondly it closed above the last reaction high at the 68.00 level (green arrow on chart) which is also congestion from mid-July (blue box on chart). The upside objective could be the last congestion area up at the 77.00 level.
I hope you all have a great Friday (finish the week strong) and enjoy your weekend!
LET’S DO THIS!
Learn Futures Technical Analysis from a Pro with The Cullen Outlook
The Cullen Outlook is a futures trading newsletter for those wishing to follow the moves of Brian Cullen, an experienced technical trader. He’ll identify charts setups, provide direct trade recommendations and plans, and share other useful insights to help you become a better technical trader.
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.