RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

On December 10 and December 17 the CBOE and CME will finally launch the long awaited Bitcoin Futures contract. This will add a new element to bitcoin changing it from a buy side only trade to having the ability to go long or short. This should bring new larger and institutional participants to the market.

Anytime a new contract gets launched you want to get a gauge of the type of movement to expect, so take a look at the average true range of the last 30 days, week, day and hour.

Last 30 days – High $18,464 – low $5,868

Week- High $18,464 – Low $10,797

Day- High $18464 – Low $14,610

And the last hour as of this writing – High $15,564 – Low $14,796

As one can see based on the wide ranges this is a volatile contract so using a stop loss order is going to paramount.

The question is, will this just be a short lived contract like single stock futures, real estate futures or binary futures, no one knows. Two pieces of advice I can offer when diving into trading this product. Remember, markets tend to fall twice as fast as they rise. This occurs when investors catch a long trending bull move and then when they see their profits start to slip a “panic” occurs and everyone runs for the exit. The second is to remember to plan your trades and trade your plan.

Phillip Streible

Early in his career Phillip began trading his own account as a screen trader focusing on the metals, grains and stock indices. He then became a Series 7 licensed financial consultant with A.G. Edwards. Later, he expanded his trading experience into a Series 3 licensed commodity broker with Investment Analysis Group. Most recently he was a senior market strategist at MF Global before joining RJO Futures in October 2011 as a senior commodities broker. As a senior commodities broker his goal is to show clients how to anticipate, recognize and react to bull and bear market conditions through the use of technical analysis techniques that help them to define risk.