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Monday, January 16, 2017 - Weekly e-Newsletter - Issue No. 739

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Economic Calendar
Date
ET
Release
For
Consensus
Prior
Jan 17
8:30 AM
Empire Manufacturing
Jan
NA
9.0
Jan 18
7:00 AM
MBA Mortgage Applications Index
01/14
NA
NA
Jan 18
7:00 AM
MBA Mortgage Index
01/14
NA
5.8%
Jan 18
8:30 AM
CPI
Dec
NA
0.2%
Jan 18
8:30 AM
Core CPI
Dec
NA
0.2%
Jan 18
9:15 AM
Industrial Production
Dec
NA
-0.4%
Jan 18
9:15 AM
Capacity Utilization
Dec
NA
75.0%
Jan 18
10:00 AM
NAHB Housing Market Index
Jan
NA
70
Jan 18
2:00 PM
Fed's Beige Book
Jan
NA
NA
Jan 18
4:00 PM
Net Long-Term TIC Flows
Jan
NA
$9.4B
Jan 19
8:30 AM
Initial Claims
01/14
NA
247K
Jan 19
8:30 AM
Continuing Claims
01/07
NA
2087K
Jan 19
8:30 AM
Housing Starts
Dec
NA
1090K
Jan 19
8:30 AM
Building Permits
Dec
NA
1201K
Jan 19
8:30 AM
Philadelphia Fed
Jan
NA
21.5
Jan 19
10:30 AM
Natural Gas Inventories
01/14
NA
-151 bcf
Jan 19
11:00 AM
Crude Inventories
01/13
NA
+4.100M
 
This Week in History

Jan 17, 1991 - Beginning of Gulf War causes the Dow to jump 114.60 points; then, one of the biggest historical one-day market gains

Jan 20, 1870 - Woodhull, Claflin, & Co. run by Victoria Woodhull and Tennessee Claflin becomes the first brokerage firm run exclusively by women

Jan 21, 1895 - Sherman Anti-trust Act is rendered useless after Supreme Court's ruling in favor of E.C. Knight in the case of United States v. E.C. Knight.

Jan 22, 1932 - The Reconstruction Finance Corporation is created as an independent agency to fight the effects of the Depression on the U.S. economy

Jan 22, 2002 - After difficult competition, Kmart was put into Chapter 11 bankruptcy proceedings, but soon re-emerged

TRADING INSIGHT
How to begin trading a new instrument and market

Over the course of your trading, you might decide to look into the possibility of trading different instruments and markets. To prepare for this, you will want to do some basic research on the new instruments and markets before you begin trading live. Here are a just few tips to get you started.

  1. Trading hours As you know, markets have different opening and closing hours. Be sure to know when a market opens and closes so that you don’t get stuck holding a contract after the market close. If you don’t have enough margin funds to hold the contract, you will be subject to margin call and liquidation (which means more fees for you to pay).
  2. Margins Know the margins required to hold your position. This may seem commonsensical, so don’t end up unpleasantly surprising yourself with a rejected order, margin call, or liquidation just because you don’t know what the margins are.
  3. Fundamentals and Economic Calendar Just because you are a technical trader doesn’t mean you shouldn’t have a solid understanding of the fundamentals. Some markets follow a production cycle (such as crop commodities) and are subject to the separate fundamental forces of an industry (agricultural, for instance) and the overall economy (domestic and international). Avoid the surprise of a fundamentally-triggered event when you are just trying to trade a quick technical set-up.
  4. Volume and Liquidity It may seem silly for a trader to attempt scalping the Oats market. But again, you’d be surprised. This is an extreme example, but I think you get the main point. Before delving into a new market, always check the overall volume and liquidity. This goes for all kinds of trading. Does your market exhibit a fairly stable average true range only to exhibit extreme lock-limit moves during certain fundamental cycles? If so, and if you were not aware of it, it can prove to be a very painful lesson.

Main point: do your homework before trading new instruments and markets. If you have any questions or need assistance in finding out more, be sure to talk to your broker.

 

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