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
If filled:
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.
Risk Disclosure
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.
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