This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Futures, published on Wednesday, April 04, 2018.
There is a trade opportunity based on a potential M.E.T. breakout in the Cocoa futures market. The Stochastic indicator is showing strong Momentum to the downside. While the Trend Seeker is currently neutral, the MACD indicator has shifted bearish. The 20-day Moving Average is flattening out. Entering a short position only if the market trades through the 3/20/18 pivot point low.
Sell the July 2018 Cocoa futures contract at 2455 using a stop order, GTC.
Initial Margin = $1,650 Maintenance Margin = $1,500
Stop loss: Place buy stop on 2565, above recent highs, GTC (Initial Risk: $1,100)
Target: Place buy limit on 2255, near the 50% Fibonacci Retracement, GTC. ($2,000)
July 2018 Cocoa Chart from Bar Chart
Try Trade Spotlight Suite – Paid Edition – Quarterly for 91 Days
Trade Spotlight Suite – Paid Edition – Quarterly - Trade Spotlight is a suite of email advisories and provides futures, options and spread trade setups accompanied by definitive trade management. Trade setups are developed by applying the GBE trading methodology of chart formation breakouts confirmed through key technical indicators.
Trade Spotlight Suite – Paid Edition – Quarterly includes an email newsletter subscription.
Trade Spotlight Suite – Paid Edition – Quarterly trial lasts 91 days.
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.
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 trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.