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May 24th, 2019 Newsletter

MICROS trading webinar with MICROS trading competition along with us bonds outlook. No fee to enter Start with $5,000 virtual Day trade from June 2-14, 2019* Be one of the top 3 traders with the highest P&L to win Deadline for registration: May 31, 2

May 24th, 2019 - Issue #966

In This Issue

1. Trading 202: MICROS Live Trading - Using overbought/oversold signals for Short term trading insights
2. Hot Market Report: US 30 year Bonds Supported by Cash Prices/a>
3.
Economic Calendar

MICROS Trading Competetion No fee to enter. Start with $5,000 virtual - Day trade from June 2-14, 2019* - Be one of the top 3 traders with the highest P&L to win - Deadline for registration: May 31, 2019

Memorial Day this Monday. Markets will have modified trading hours and some are closed on Monday.

1. Trading 202: MICROS Live Trading - Using overbought/oversold signals for Short term trading insights

Join us May 30th at 9 AM PDT/ 11 AM CDT for 45 minutes of Live trading where Ilan Levy-Mayer will give you an inside peek of the diamonds ALGO and methodology he uses for short-term trading. Ilan Levy-Mayer is the VP at Cannon Trading and has been involoved in futures trading since 1988 and he developed a few ALGOS and more importantly oberved thousands of traders over the years.

In this webinar, Ilan will share his trading screen and show you the tools he uses for day-trading, entries, exits, trade management and more! Ilan will trade MICROS ( MNQ, MES, M2K and MYM) and possibly other markets in real-time conditions and go over:

• How he likes to set up his charts
• How he likes to set up his DOM with preset exits
• Preparing for the trading days
• Deciding on trade entries/exits and trade managements
• Indicators he likes to use
• Describe how he manages risk & emotionss
Ilan will be able to answer questions while analyzing the markets LIVE.

SPACE is LIMITED, so reserve your space now!

Risk: 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

2. Hot Market Report: US Bonds Supported by Cash Prices

By John Thorpe & Ilan Levy-Mayer, Senior Brokers

Click on image below to enlarge

ZB futures; The US 30 year treasury bond market belongs to the "interest rate family" 10 year, 5 year, 2 year notes, the "Ultra bond" and others. All traded on the CBOT exchange.

Daily chart of T-Bond Futures for your review from this morning ( May 24th 2019). The Cash Market for the 30 yr. yield from March 27th 2019 to March 29th was under a yield of 2.85 This is the last time the futures price traded above 150.00 and did so for only a very short time, 48 hours. An Observation I want you to be aware of is The Treasury yield has been under that 2.85 mark since May 7th Not only did a dip in the Cash price for the bonds pay off for those who were patient on the long side with an eye toward the 150.00 Since May 7th, but two weeks later, this week on the 21st, Bond futures finally caught up with its past and again traded at the 150.00 level with cash yields roughly at 2.75 % for the long bond.
I would look for this level , 150.00, to hold on a retest, as the competing fundamental factors of the Tariff battle with China, weakening economic data in the US and potential military conflicts becoming more real in the Middle East and the South China sea. The Fed (FRB) exercising caution with further interest rate hikes, The Bond markets are now assuming their role this week as a “Safety” investment as more uncertainty globally has investors near the edge of their collective seats. This 150.00 area should be tested again and soon, if it holds, and it would surprise me if it didn’t, look for the bonds to trade above 150.00 for the next 6 months and probably until the final Fed Rate decision for the year December 11th 2019.
Bonds are a very liquid market with a relatively LARGE tick size of $31.25. This market offers different type of day-trading vehicle. Different behavior and personality. I like to look for set ups in this market and the 10 year notes in different ways. One is trying to "SCALP" the large tick size and the other, which I prefer is to look for "longer day trades " using the 15, 30 and 60 minutes charts. If you are a day-trader, you may want to watch this market, get a feel for the different type of trading it offers versus Indices or crude oil for example and see if it is a "worthy" market to add to your day-trading markets list. It goes without saying that bonds are an excellent market for options, swing trading and long term trading as well with 23 hours trading, strong volume and excellent liquidity. To access a free trial to the ALGOS shown in the chart visit and sign up for a free trial for 21 days with real-time data.
30 yr Treasury Bond Futures Specs
Hours: 05:00 PM previous day to 4:00 PM Central Time
Margins: $2530 initial, $2300 Maint. ( as of the date of this newsletter)
Point Value: full point = $1000 ( Example: 144.16 to 145.16 ). Min fluctuation is 0.01 = $31.25 ( Example: 144.16-144.17) Settlement: Physical Delivery
Months: Quarterly (March,June,Sep,Dec)
Weekly Options:YES

Some of the basic fundamentals to keep in mind when you are considering trading the U.S. 30yr Treasury Bonds for this matter:
1. Interest Rates.
2. FOMC Rate decisions and Language
3. Focus in macroeconomics
4. Bond Prices have an inverse relationship to Interest rates
5. Correlation to US Dollar prices
6. Inflationary prospects
7. Geopolitical Stability
8. U.S. Fiscal and Monetary Stability

Our brokers here at Cannon will be happy to chat about the Bond market, other interest rate products, other futures, options, futures spreads and much more! Feel free to contact us at any time.

3. Economic Calendar

Source: Moore Research Center, Inc.

Date Reports Expiration & Notice Dates
05/24
Fri
7:30 AM CDT - Durable Orders(Apr)
7:30 AM CDT - Durable Goods Ex-Transportation(Apr)
11:00 AM CDT - Cattle On Feed
 
LT: Jun 2,5,10 Year Notes Options(CBT)
Jun Bonds Options(CBT)
Jun Canola Options(CBT)
Jun Wheat Options(CBT)
Jun Corn Options(CBT)
Jun Rough Rice Options(CBT)
Jun Soybeans,Soymeal,Soyoil Options(CBT)
05/27
Mon
MEMORIAL DAY
 
 
 

 
 
 
05/28
Tue
8:00 AM CDT - FHFA Housing Price Index(Mar)
8:00 AM CDT - S&P Case-Shiller Home Price Index(Mar)
9:00 AM CDT - Consumer Confidence(May)
 
LT: Jun Copper Options(CMX)
Jun Gold & Silver Options(CMX)
Jun Natural Gas Options(NYM)
Jun RBOB & ULSD Options(NYM)
05/29
Wed
6:00 AM CDT - MBA Mortgage Index
3:30 PM CDT - API Energy Stocks
 
 
LT: May Copper(CMX)
May Gold & Silver(CMX)
May Platinum & Palladium(NYM)
Jun Natural Gas(NYM)
05/30
Thu
7:30 AM CDT - Initial Claims-Weekly
7:30 AM CDT - Adv Intl Trade In Goods(Apr)
7:30 AM CDT - Adv Retail Inventories(Apr)
7:30 AM CDT - Adv Wholesale Inventories(Apr)
7:30 AM CDT - GDP-Second Estimate(Q1)
7:30 AM CDT - GDP Deflator-Second Estimate(Q1)
9:00 AM CDT - Pending Home Sales(Apr)
9:30 AM CDT - EIA Petroleum Status Report
10:00 AM CDT - EIA Natural Gas Report
2:00 PM CDT - Dairy Products Sales
3:30 PM CDT - Money Supply
FN: Jun Natural Gas(NYM)
 
 
 
05/31
Fri
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Personal Income & Spending(Apr)
7:30 AM CDT - PCE Price Index(Apr)
7:30 AM CDT - Core PCE Price Index(Apr)
9:00 AM CDT - Univ of Mich Consumer Sent-Final(May)
FN: Jun 2,5,10 Year Notes(CBT)
Jun Bonds(CBT)
Jun Copper(CMX)
Jun Gold & Silver(CMX)
Jun Platinum & Palladium(NYM)
LT: May Bitcoin(CME)
May Fed Funds(CME)
Jun RBOB & ULSD(NYM)
May Fed Funds Options(CME)
Jun Lumber Options(CME)
06/03
Mon
9:00 AM CDT - Construction Spending(Apr)
9:00 AM CDT - ISM Manufacturing Index(May)
2:00 PM CDT - Cotton System
2:00 PM CDT - Fats & Oils
2:00 PM CDT - Grain Crushings

 
 
 
06/04
Tue
9:00 AM CDT - Factory Orders(Apr)
3:30 PM CDT - API Energy Stocks
 
 
FN: Jun RBOB & ULSD(NYM)
LT: May Butter(CME)
May Milk(CME)
May Butter Options(CME)
May Milk Options(CME)
06/05
Wed
6:00 AM CDT - MBA Mortgage Applications Index
7:15 AM CDT - ADP Employment Change(May)
9:00 AM CDT - ISM Non-Manufacturing Index(May)
9:30 AM CDT - EIA Petroleum Status Report
1:00 PM CDT - Fed's Beige Book(Jun)
2:00 PM CDT - Dairy Products Sales

 
 
 
06/06
Thu
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly
7:30 AM CDT - Productivity-Rev(Q1)
7:30 AM CDT - Trade Balance(Apr)
9:30 AM CDT - EIA Natural Gas Report
3:30 PM CDT - Money Supply

 
 
 
FN=First Notice, OE=Option Expiration, LT=Last Trade

Disclaimer: This calendar is compiled from sources believed to be reliable. Moore Research Center, Inc. assumes no responsibility for any errors or omissions. It is meant as an alert to events that may affect trading strategies and is not necessarily complete. The release dates for certain economic reports may have been rescheduled.

* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.

** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.

*** 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 herein 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 judgment in trading!

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