Look at Your Calendar!!
By Mark O’Brien, Senior Broker
The value of the U.S. Dollar has reached heights not seen in twenty years. This morning, the yield on the interest rate instrument that serves as the benchmark for borrowing – the 10-year Treasury Note – cracked 4% for the first time in 10 years, at a pace of ascendance not seen in four decades. Headlines abound calling attention to high price of gas, family homes, food items, appliances and more. As we’ve noted in prior blogs, these fundamentals are a reflection of the overall decline in purchasing power, commonly termed inflation. It’s a condition of the global economy as well as here in the U.S. and we’re apprised of it frequently in the form of a host of economic data released by government and private institutions.
Some reports are released regularly such as the U.S. Labor Department’s unemployment report at 7:30 A.M., Central Time on the first Friday of the month (with rare exceptions), or the Energy Information Agency’s crude oil stocks report at 9:30 A.M. each Wednesday. Others are released periodically such as the USDA’s Crop Production Report at 11:00 A.M., or the Commerce Department’s Producer and Consumer Price Index reports at 7:30 A.M. – almost always on consecutive days. Others can be somewhat unexpected, such as announcements by the executive and/or legislative branches of government on fiscal and other major economic policy decisions
For futures traders – particularly day traders – the calendar of reports is an opportunity to catch potentially sizable market reactions in stock indexes, interest rate instruments, precious metals, energies, currencies, grains, livestock, lumber and food staples like sugar, coffee and cocoa. Sudden moves provide added risk and opportunity for futures.
Indeed, it’s important for traders to know which reports can be the most impactful and when these reports are coming. The Cannon Trading Weekly Newsletter (available Friday) and this daily blog are excellent sources to keep you informed of these important reports.
As always, plan your trade and trade your plan. Please contact your broker or Cannon Trading with any questions.
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.
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09-29-2022
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This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.
