This is a sample of Brian’s email newsletter, The Cullen Outlook. This is the Pre-Dawn Update portion for Thursday, January 8th.
To gain access to these charts and all of the trade ideas in full, sign up for a complimentary 30 day trial.
2015…here we come!
I want to welcome all of you who have just begun following along as the New Year starts.
For everyone who has been with me for awhile, welcome back!
A few small changes that current followers will notice is how I will be labeling the emails that you receive.
The early morning emails (like this one) will now be Pre-Dawn Targeting. These emails will pinpoint all of the formations that I see where I believe trading opportunities exist.
For those who are just getting started following along, all clients can look to trade these markets if these levels are reached.
Broker assisted clients feel free to call your broker to discuss or email in…self-directed clients are free to pull the trigger on their own if they agree.
Next, the trade idea emails that come out during the day will be called Trade Idea Snapshot. This is where I will continue highlighting ideas with entries and management throughout. Traders may follow the ideas “as-is” or adjust them to your own comfort levels.
As in the past, some markets from the Pre-Dawn will be highlighted as Trade Ideas in The Cullen Outlook, others will not. I typically use the Pre-Dawn email forum to get ALL of my ideas out to youwith entry levels to trade and suggested exit points. As I have in the past, depending on time constraints, I will randomly choose to showcase a few throughout the week in the Snapshot emails.
We have alot to discuss this morning because this Pre-Dawn will cover the balance of the week and most likely Monday. So let’s get right to it…
Feb micro-GOLD: (MGCG5)
The very first thing that I am going to do this morning is recommend to go short the GOLD market. I will be doing multiple micro contracts with this one (as usual). 2 reasons for that: the regular contract is too big for this newsletters risk parameters and the mini contract trades on the LIFFE exchange and the open is later than the regular and micros. Each individual trader can decide if the regular contract is for them OR how many micros to do with this trade.
*** If you, as a trader, have been standing in the batter’s box waiting for a pitch to swing at…in my opinion this may be a good one to start off 2015. I really like this set-up and I think the risk is low enough with the micro contract to be comfortable for traders of all types ***
I like the idea of selling the Gold market here. We have a decent trendline that may provide some resistance as we are up above the 1200.0 level for the past 2 days. I like getting short around the 1220.0 level with 2 micro-contracts while risking just above December’s high of 1245.0 ($250 for each) If the trendline gets rejected one more time, I like the thought of adding another micro gold contracts or 2 on a break of 1200.0 with the goal of 1140.0 (see attached GOLD chart)
We didnt get the 14.40 entry from Tuesday but I will adjust this morning higher if we have to after yesterday’s retracement to get it. Pick your entry spot and know that 30 points of risk is $336.00, each point is $11.20. The way I look at it is we either get the bounce that we are looking for early this morning or we break lower and our stop order will be right there. (see attached SUGAR chart)
April LIVE CATTLE:
This market has been struggling with this 165.50 level
for the past 4 trading sessions. This 165.50 level was old support back at the
beginning of November. I like the idea of looking for it to correct lower while
risking just above the past week’s highs. A 165.00 entry with a 166.50 stop
order is my idea. The objective could be the late summer resistance points of
158.50 (see attached CATTLE chart)
March KANSAS CITY WHEAT:
We initially missed the 6.20 entry on Monday. After the 2 day rally was rejected at the trendline, I am very interested in getting long if this level holds again. Refer back to Monday’s trade idea as these parameters would still apply. Pricing is a bit better, last traded 6.18 1/2
March JAPANESE YEN:
Using a mini contract, I like trying to buy this
market. The mini contract is ½ the size of the regular contract ($6.25 per
tick). I liked the chart formation on Monday morning and thought I missed it
with Tuesday’s price action. With yesterday’s pullback I am looking at it as an
opportunity. With an entry price of 83.50 and the risk just below last week’s
lows, this would keep the trade at roughly $600 – $700 with a short term upside
target of 86.00 I think you can even consider adding onto the position if we
break 84.50 get the bounce we are looking for.
We are short 2 mini-contracts from 10.60, filled in the overnight session. See yesterday’s Trade Idea Snapshot for trade details.
I was hoping to send out an idea to get short the Bonds yesterday at 148’10 but the previous days high of 149’08 made it difficult to pinpoint a risk level. That said, I think using this 148’10 level as a stop is a good spot for getting short today at 147’20 This would be roughly 22 ticks. The Bond market is $31.25 per tick. The objective to look for may be 146’00 to start and 143’10 if we get some momentum. (see attached BONDS chart)
Have a great Thursday and rest of the week!
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.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
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 third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.