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Monday, February 19, 2017 - Weekly e-Newsletter - Issue No. 744

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Economic Calendar
Date
ET
Release
For
Consensus
Prior
Feb 22
7:00 AM
MBA Mortgage Applications Index
02/18
NA
-3.7%
Feb 22
10:00 AM
Existing Home Sales
Jan
NA
5.49M
Feb 22
2:00 PM
FOMC Minutes
02/01
NA
NA
Feb 23
8:30 AM
Initial Claims
02/18
NA
239K
Feb 23
8:30 AM
Continuing Claims
02/11
NA
2076K
Feb 23
9:00 AM
FHFA Housing Price Index
Dec
NA
0.5%
Feb 23
10:30 AM
Natural Gas Inventories
02/18
NA
-114 bcf
Feb 23
11:00 AM
Crude Inventories
02/18
NA
+9.5M
Feb 24
10:00 AM
Michigan Sentiment - Final
Feb
NA
95.7
Feb 24
10:00 AM
New Home Sales
Jan
NA
536K
 
This Week in History

Feb 21, 1946 - Pres. Truman created the Office of Economic Stabiliztion designed to watch prices and try to keep inflation down

Feb 22, 2008 - Northern Rock collapsed after investing in international markets for sub-prime mortage debt

Feb 25, 1913 - Ratification of the Sixteenth Amendment effectively cleared the way for the creation of the income tax

Feb 26, 1995 - Banings Bank, the oldest merchant bank in London, collapses after trader Nick Leeson's lost 827 million GBP

TRADING INSIGHT
Excerpt from Using Pivot Points to Interpret Price Movements

The 30-minute chart above shows the previous trading session in its entirety. The empty space shows the following trading session with pivot points plotted across the entire length of the coming session. Once you get to this point, you have completed the process. Now you have to determine whether such points have any significance based on your own mode of analysis.

Observations and questions:

  • The previous session shows an uptrend with the PP slightly below the opening of the following session.
  • If we were to view this price trend in light of the weekly or monthly trends, how significant is this up-trend?
  • If this is indeed an up-trend, what is the likelihood of the price moving past R1 or R2?
  • Would R2 be considered a strong oversold level?
  • What does the daily ATR (average true range) at various measurements tell us about the potential range of movements up or down?
  • Based on your own trading strategy, would you buy if price moves above R1, or R2? If so, where would you place your stops and how would you size your positions to mitigate downside risk?
  • Would you sell short if any of these levels are tested? If so where would you place your stops and how large of a position would you hold?

You can have access to the complete eBook for free - CLICK HERE.

 

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