Here you will find the most recent trade levels released today in the Market Dimensions Advisory. This update is showcasing the MDA SnapShot levels with potential buy and sell zones for you to consider executing starting your trading day. If you would like to further discuss these trades do not hesitate to contact me directly. If you are not getting these updates sent to your inbox each morning, please subscribe HERE. To see all MDA updates (morning & intra-day levels, trade recaps, educational material) visit my blog page HERE.
Contact me directly @ 800-958-9571 or via email: firstname.lastname@example.org
Follow me on twitter @MDA_SnapShot
Published 8/9/16 11:02 am central:
I have been keeping my eye on the Soybean Spread Nov 16 vs May 17. We have been in a downward channel as you can see in the chart below and have a strong TAS Navigator to this trend with newly formed levels. I have been waiting for us to move slightly higher to the previous POC Zone and off the most recent lows to look and sell this spread. Looking at the Nov Soybeans futures contract on a Daily chart you can see that this contract has rallied up today just under the $10.00 price Levels: This just happens to be the Top Zone on the MDA Daily SnapShot for Nov16 Soy Beans below. I am using this recent rally and hitting this top zone on the November Futures as a good timing to enter this short spread of Selling Nov16 and Buying May17
Click For larger Image:
November 16 Soybeans
Looking at the MDA SnapShot Daily Chart of the Nov16 May 17 Beans:
Click for larger Image:
Daily Chart Soybeans Nov16 vs May17 Spread
As you can see we are below the previous levels and had new levels newly formed. This is allowing us to have essentially to risk zones to choose from. Risk 1 @ 28 cents above the previous high and risk 2 above the newly formed top zone @ 20 cents.
Entry: 13.50 cents or better
I am looking to sell this contract @ 13.50 cents or better. The market just filled these prices. So you should be able to get this entry price or better.
Risk: With 2 risk levels on the board pick the best scenario that is right for you. I am will be using the initial risk @ 28 cents just to have stops in place for protection. If we have a bullish WASDE that could change things fundamentally we may look to adjust risk to the 20 cents for a shorter stop, but that will be a read as we have been in the spread for a few days.
We have a WASDE report this Friday, August 12th. This could add some volatility to the market and hopefully boost the downward momentum of this spread if it is favoring bears.
Info on WASDE
Market Dimensions Advisory – Free Edition - Market Dimensions Advisory leverages insights gained from working with professional traders, commercial clients and institutional businesses paired with an understanding of market relationships, order flow and trading volume, along with news, trends and seasonal info, to give you a "3D view" of trading. Market Dimensions Advisory – Free Edition includes an email newsletter subscription. The Market Action Scanner is a premier Market Profile based scanner powered by the acclaimed TAS proprietary algorithms. Sign up for a 14-day trial to Market Action Scanner!
Subscribe to Market Dimensions Advisory – Free Edition
Market Action Scanner
Market Dimensions Advisory – Free Edition - Market Dimensions Advisory leverages insights gained from working with professional traders, commercial clients and institutional businesses paired with an understanding of market relationships, order flow and trading volume, along with news, trends and seasonal info, to give you a "3D view" of trading.
Market Dimensions Advisory – Free Edition includes an email newsletter subscription.
The Market Action Scanner is a premier Market Profile based scanner powered by the acclaimed TAS proprietary algorithms. Sign up for a 14-day trial to Market Action Scanner!
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.
THE RISK OF LOSS IN TRADING COMMODITY FUTURES AND OPTIONS CONTRACTS CAN BE SUBSTANTIAL. THERE IS A HIGH DEGREE OF LEVERAGE IN FUTURES TRADING BECAUSE OF SMALL MARGIN REQUIREMENTS. THIS LEVERAGE CAN WORK AGAINST YOU AS WELL AS FOR YOU AND CAN LEAD TO LARGE LOSSES AS WELL AS LARGE GAINS.
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.