This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Futures, published on Wednesday, September 27, 2017.
There is a trade opportunity based on Trend Line breakout today in the Unleaded Gasoline (RBOB) futures market. There is a Double Top Formation with highs at 1.6258 (1/04/17) and 1.6822 (9/29/17). The Stochastic indicator is showing strong Momentum to the downside. The MACD indicator is showing a potential shift away from its current uptrend (most of that was the rally throughout the hurricane season). The 20-day and 50-day Moving Averages are parabolic, while the 200-day Moving Average has remained steady.
Sell the November 2017 RBOB futures contract at 1.6050 on a stop order, GTC.
Entry is a break of today’s low / Initial Margin = $4,675 Maintenance Margin = $4,250 / LTD is 9/29/17
If filled:
Stop loss: Place buy stop on 1.6320, above recent contract highs, GTC (Initial risk: $1,134)
Target: Place buy limit on 1.5520, near the 50% Fibonacci Retracement, GTC. ($2,226)
November 2017 RBOB Chart from Bar Chart
Risk Disclosure
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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