This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Futures, published on Tuesday, April 11, 2017.
There is a trade opportunity based on a trend line and M.E.T breakout today in the Chicago Wheat futures market. The MACD and Stochastic indicators are both bullish even if Trend Seeker is still down. Anticipating a change in Trend Seeker as the Moving Averages are converging a cross-over is a bullish signal.
Buy the July 2017 Chicago Wheat on 446’0 using a limit order, GTC.
Initial Margin = $1,100 Maintenance Margin = $1,000
Stop loss: Place sell stop at 429’0 below the 3/31/17 low, GTC. (Risk: $850)
Target: Place sell limit at 488’0, near the top point on the trend line (2/16/17), GTC. (Profit: $2,100)
July 2017 Chicago Wheat Chart from Bar Chart
You can trade the mini Wheat futures contract with an Initial Margin of $220 and Maintenance Margin of $200. The risk is $170 and the profit is $420 based on the same price points above.
Contact your Daniels Trading broker by phone or email to place this trade.
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.