This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Futures, published on Monday, November 21, 2016.
There is a trade opportunity based on a potential M.E.T. breakout in the Cocoa futures. The Trend Seeker is Down, but with a Weak ranking. The MACD and Stochastic indicators are beginning to hook bullish. Anticipating the Trend Seeker to change to Up on the breakout. This trade is in line with the seasonal tendencies of this market. The British Pound appears to be strengthening as well, which has correlation with the Cocoa futures contract.
Buy the March 2017 Cocoa futures contract on 2,460 using a stop order, GTC.
Entry is a break of today’s high (2,458). Initial margin: $1,815 Maintenance margin: $1,650
Stop loss: Place sell stop at 2,355, below the twelve-month contract low, GTC. ($1,050)
Target: Place sell limit at 2,675, a potential resistance level, GTC. ($2,150)
March 2017 Cocoa Chart
Contact your Daniels Trading broker by phone or email to place this trade.
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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