This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Futures, published on Tuesday, July 25, 2017.
There is a trade opportunity based on potential breakout in the Soybean futures market. There was a 1-2-3 Top Formation in place until today’s volatile market surpassed the number two point. However, the breakout to the downside in still in play. The Stochastic indicator is showing strong Momentum to the downside. The Trend Seeker is up, but with a weak ranking. The MACD indictor is shifting to a bearish trend.
Sell the November 2017 Soybean futures contract on 991’0 on a stop order, GTC.
Entry is a break today’s low (992’0). Initial Margin = $2,310 Maintenance Margin = $2,100
Stop loss: Place buy stop on 1014’0, above recent highs and halfway of today’s trading range, GTC ($1,150)
Target: Place buy limit on 960’0, above the gap on the chart, GTC. ($1,550)
You may trade the mini Soybean futures contract with an Initial Margin of $462 and Maintenance Margin of $420. The risk would be $230 and the profit would be $310 based on the same prices above.
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.
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.