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Margin Requirements are your Ally
By Mark O’Brien, Senior Broker
As a rule, all futures contracts come with financial requirements in order to trade them. These requirements come in the form of margin. For the vast majority of traders – speculators – there are three types: 1.) the initial margin requirement, 2.) the maintenance margin requirement and 3.) the day trading margin requirement. The first two are established by the futures exchange on which a particular futures contract is traded. The initial margin requirement is the amount of cash you must have to initiate a position in the market. The maintenance margin requirement – typically 80-90% of the initial margin requirement – is the amount of money required to maintain the position your account. Day trading margin requirements are set by individual clearing firms and/or brokerage firms and are fractionally lower than a contract’s initial margin requirement, sometimes ±80% below the initial margin requirement.
While all these are designated as requirements, traders should also look at them as guardrails or markers that serve not just to notify you of the potential risk in the market you’re about to trade, but also to give you an idea of the risk to your account you should anticipate once you’re in the trade. Be prepared. In the event the market(s) you’re trading cause an adverse drop in your account’s balance – below the maintenance margin requirement of your position – and a margin call occurs, yes it’s an unfavorable outcome, but it’s also a genuine alert that you need to take action. It’s time to either offset part or all of the position or deposit more money (enough to bring your account back above the initial margin requirement) to keep the position. Treat margin requirements more as words to the wise rather than handcuffs. Trade with the thought that margin requirements are your friend.
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.
Futures Trading Levels
05-19-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Ten Year Bonds to Resume Downtrend?
Our brokers can help you navigate the different weapons” available to you as a trader. Will outright futures is the right strategy? perhaps futures and options combo? maybe a spread between the
10 year and the
30 year or maybe an
options spread like vertical put spread?
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.
Futures Trading Levels
05-18-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Trader’s Check List:
· Review prior day statement
· Check for any working orders on your platforms.
· Be aware of contract rollover dates
· Set a daily loss limit and learn NOT to overtrade
· Understand what reports are coming out today
· Make sure you are not distracted
· Calculate appropriate trading size based on current volatility and account size
· Start with Larger Time Frame charts to get proper perspective
· Understand what your goal is
· Measure your success or lack of
· Spend time furthering your trading education and exploring different methods
· Put trading in perspective and make sure the overall psychology of trading fits you.
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.
Futures Trading Levels
05-17-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Grains to resume uptrend? It has been a volatile sector along with the rest of the futures markets.
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.
Futures Trading Levels
05-13-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
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Fine-Tune Your Risk: Tap into the Precision of a Smaller-Sized Contract
By Mark O’Brien, Senior Broker
At a fraction of one full-sized contract, Mini and Micro futures provide flexible leverage as an alternative to large contracts. Among the available fractional futures contracts, by far the most well-known and most liquid are the E-mini stock index futures: E-mini S&P 500, E-mini Nasdaq, E-mini Russell 2000 and Mini Dow Jones. With the introduction back in May ’19 of the Micro E-mini futures, there are fractional versions of the E-minis.
But stock index futures are not the only ones with fractional contracts. Almost every commodity sector offers futures contracts that are fractional versions of their classic full-sized contracts. They all offer opportunities to trade markets with more precise leverage and reduced margins.
In the energy sector, there are E-mini natural gas futures contracts at 1/4 the size of full-sized contract (1 million British Thermal Units). A one-cent move for the E-mini natural gas futures contract is equal to $25.
In crude oil, whose full-sized, 1,000 barrel contract is the largest energy futures contract in the world by volume, there are both E-mini crude oil (1/2 the size) and Micro crude oil (1/10 the size).
Mini contracts are offered in corn, wheat and soybeans. All are 1/5 the size, so a 1-cent move in each contract is equal to $10.00 compared to a 1-cent move/$50 for their mighty forerunners.
In metals, the renowned COMEX 100-ounce gold futures contract can be traded fractionally with a 50-ounce Mini gold and a 10-ounce Micro gold.
Both silver and copper offer Mini contracts that are 1/2 the leverage of their respective 5,000-ounce and 25,000-pound full-sized relatives.
There are Micro futures contracts with 1/10 the leverage of their full-sized bellwether currency futures for all of those listed below:
Euro FX
Swiss Franc
British Pound
Japanese Yen
Canadian Dollar
Australian Dollar
A word of caution: many of these contracts’ liquidity is concentrated in their respective front months – often right up to their Last Trading Day. Take care to check a contract’s volume/open interest before trading.
Contact your Cannon Trading broker for additional information on any of these futures contracts, including price quotation, trading hours, minimum price fluctuation, symbol code, settlement method (cash or physical), risk considerations, etc.
Even if you are not a client yet, you can still contact us and we are happy to help. |
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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.
Futures Trading Levels
05-12-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Are you are Rancher, a Farmer or a processor and need to lock in Grain prices for feed or for the growing season?, Or maybe you can use assistance placing hedges to offset risk managing your herd in the Cattle or Hog markets? do you need tools for break even analysis?
See below what one of our hedging clients had to say!!
Visit our site for more info!
hedge cattle
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.
Futures Trading Levels
05-11-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Inflation & the Commodity Markets
by John Thorpe, Senior Broker
There are a number of characterizations of inflation in the business press and social media some related to the speed of inflation as in Creeping Inflation or Moderate inflation even hyper inflation and may be used as adequate adjectives, but these don’t describe what the causes of inflation are of which there can be many.
This Wednesday , CPI or the Consumer Price Index will be published at 8:30 am EDT an often quoted measure of Inflation but not the one the FRB uses to guide interest rate decisions, they choose to focus on the PCE or the Personal Consumption Expenditures Price Index. The Market will focus on both. If you recall last month the CPI showed the largest monthly advance in 42 years. The consensus from Econoday.com is for an 8.1 % Rate, with a much smaller incremental increase than the previous tally. Heading into that number
Gold prices had been rallying for 3 successive days and experienced a 20 dollar rally continuing the move and added an additional 2 days of inertia before the peak on April 18th and subsequent sell-off , nearly a month later the
Gold market seemingly is telling us that the consensus for CPI will be correct as reflected in weaker gold prices. If you watch the gold market watch the reaction to CPI on Wednesday morning. If CPI is Higher than the consensus and gold rally’s and holds those gains into the 1:30 pm EDT zone, then the recent lows in my view are in.
As for the causes of inflation, today we are in what economists call Demand – Pull inflation. This is when the aggregate demand for goods and services in an economy exceeds the aggregate supply. This concept is associated with full employment when adjusting the supply of goods and services is either not possible, or difficult to achieve in a timely manner. Always have a plan to manage the risk in your trades before you employ your strategy, Plan your trade and Trade your plan
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.
Futures Trading Levels
05-10-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
NFP tomorrow. The Non Farm Payrolls report in a very volatile environment we are in can be interesting to say the least….be careful out there….
Below are the contracts which are entering First Notice or Last Trading Day for the upcoming month. Be advised, for contracts that are deliverable, it is requested that all LONG positions be exited two days prior to First Notice and ALL positions be exited the day prior to Last Trading Day. If you have any questions
please contact your broker!
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.
Futures Trading Levels
05-06-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Basic and Effective Strategies for Trading in Volatile Market Conditions
By Mark O’Brien, Senior Broker
It’s a well-known saying – attributed to John Maynard Keynes: “Markets can stay irrational longer than you can stay solvent.” Two conclusions you could derive from Keynes’ observation: 1.) timing any market is not practicable and 2.) using leverage in volatile markets calls for genuine caution.
We are in the midst of a remarkable display of volatility in nearly every commodity asset class and futures traders can find entering trades a formidable endeavor. The question of where to place protective stop orders becomes more of an informed guess than before these recent months.
But this should not deter traders from entering markets, because there are numerous strategies – by and large incorporating options – that can allow your trades to withstand persistent up-and-down price action.
One of the simplest and more common strategies for futures traders is the incorporation of a purchased
call or put option against an associated short or long futures position. Depending on the option’s strike price and expiration date, the maximum risk to an adverse move in the market can be precisely calculated. In addition, the risk to an adverse move in the market during the option’s lifespan up to its expiration date – based on the futures contract’s price – can also be very closely calculated. At the same time, the position’s profitability can also be determined as a result of favorable market movement – over time and price.
This strategy has the important advantage of limited risk and price tolerability during adverse moves in the market that stop orders do not provide. The trade-off comes at the cost of the purchased option and its overall loss in value as a result of time decay during its lifespan as well as its loss in value incurred during a favorable market move for the futures contract.
Contact your Cannon Trading broker for additional information on this strategy and assistance in calculating a particular long option/opposing futures position to see if it relates to your trade style’s risk considerations.
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.
Futures Trading Levels
05-05-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Gold Watch Part 3
By John Thorpe, Senior Broker
Two weeks ago I highlighted the high of the move as a turning point for the yellow metal in the short term when the market achieved a $2003.00 per ounce daily high .
However, on that day the market closed at $1982.00 a troy ounce, a $20.00 plus dollar retracement off the high , I also noted that the 1920.00 area would be a support zone and that those that intended to go long should use a retracement back to that price level as an area to go long, to risk less by employing a risk strategy underneath 1920.0 per ounce.
Kudos for those that did as not only was this important area breached to the downside on April 25th but April 29th, as the market tested this number again and could not hold this level.1920.00 proved to be a very strong area for this market as the intraday trade hit this price ceiling, failed and closed near the lows at 1896.90.
I expect this current price discounting in the gold to temporarily rally hard moments after the Fed release only to sell off at the strength in the US Dollar as a result. It will be interesting to see if my theory works or not.
This should create an opportunity ( AND RISK!!) to sell the gold for a short term , hi volume break down into the low 1800’s. with your risk management technique employed above the 1900.00 area. Inflation is here and from an investment standpoint, because equities and bonds are both weak, (not since the early 80’s have we seen this combination) cash (by way of the US Dollar) is king in the short run.
I rarely recommend using more than 30% of your margin on any single idea and recommend a risk management strategy using, either stops, Options, spreads but prefer not to use the “free hand to click to get out” approach.
Use your disciplines and you will survive to trade another day.
The following are my PERSONAL suggestions on trading during FOMC days:
1.) Reduce trading size
2.) Be extra picky = no trade is better than a bad trade
3.) Choose entry points wisely. Look at longer time frame support and resistance for entry. Example, trader x looking to go long the mini–SP at 4325.00 with a stop at 4319.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 4319.75 and place a stop $250.00 to $500.00 below in this hypothetical example (consider current volatility along with support and resistance levels).
Expect the higher volatility during, right after and during the news conference 30 minutes after the announcement. Expect to see some “vacuum” (low volume, big zigzags) right before the number.
· Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
Keep in mind statement comes out at 1 Pm Central time, the news conference which dissects the language comes out 30 minutes later so the volatility window stretches out.
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.
Futures Trading Levels
05-04-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Learning The Different Types Of Charts And Patterns Will Be Another Arsenal In Your Trading Tools!
Ascending Triangle Futures Trading Chart Pattern
What is an Ascending Triangle Futures Chart Pattern?
An ascending triangle is a bullish futures pattern that can indicate a breakout in the upwards direction.
How do I Recognize an Ascending Triangle Futures Chart Pattern?
An ascending triangle is formed when resistance remains flat and support rises.
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.
Futures Trading Levels
05-03-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Cannon Futures Weekly Newsletter Issue # 1095
Dear Traders,
Trading 101: Few Ways to Enter a Trade
By Ilan Levy-Mayer, VP and Broker
Today I decided to touch more on an educational feature rather than provide a certain market outlook.
Many of our clients and blog readers know that when it comes to short term trading I am a fan of adjusting your trading technique/ game plan according to your assessment of the type of trading day that is developing in front of you. Volatility, reports, time of day are major keywords here.
There are so many different aspects to trading. From financial, fundamental, and emotional aspects of when to enter a trade, when to exit a trade and SO MUCH more in between…..
An important part of trading is trade entry. Assuming a trader knows why he/she is about to enter a trade the next step sounds simple right? simply buy or sell the contract you wish to trade….
Perhaps not so simple…read the rest
Valuable Tools & Resources for Traders:
- Would you like to get access to daily research? Access info on what is moving the markets both technically and fundamentally? FREE TRIAL
- Would you like a FREE CONSULTATION? Set up a time to talk with an experienced broker on variety of topics such as trading methods, indicators, concepts, questions on options/spreads/platforms and much more!
- Are you looking for Trading insights/ techniques? Watch a series of short videos on using Bollinger bands, Range bar charts and more!
- Thinking about day trading futures? Read the 8 steps for better day trading
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.
Futures Trading Levels
05-02-2022
Weekly Levels
Reports, First Notice (FN), Last trading (LT) Days for the Week:
https://mrci.com
Date Reports/Expiration Notice Dates
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
Get Real Time updates and more on our private FB group!
Earnings season is still in full swing and fueling an already very EXTREME volatile stock index futures like
NQ,
MES,
YM and others.
Tomorrow we have:
Exxon Mobile
Chevron
Bristol-Myers Squibb
Phillips
Just to name a few. Add this to an active economic calendar you can view below and one should prepare oneself for continued volatility.
The Friday options, which tomorrow are also end of month EOM options may be a good tool to:
Either speculate with the short term options ( probably allow for better staying power than futures in my opinion)
AND/OR
Use as possible protection with the futures.
Plan your trade, trade your plan!
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.
Futures Trading Levels
04-29-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Quick Recap of a Volatile Week so Far
by Mark O’Brien – Cannon Trading
So far this week, major stock indexes and benchmark interest rate sensitive instruments continued their erratic behavior.
Monday night (China’s Tuesday daytime): the Shanghai Composite index fell 5.1%, its worst selloff in more than two years. The yuan hit its lowest level since late 2020.
Investors are worried that the strict policies China has implemented to combat its most recent Covid-19 will add to the pressures weighing on China’s economic growth and further disrupt global supply chains.
Tuesday: U.S. stock indexes followed China’s with the
S&P 500 closing down ±120 points, or 2.8%. The
Dow Jones Industrial Average declined ±809 points, or 2.4%. The
Nasdaq Composite lost ±514 points, a ±4% pull-back its largest one-day percentage decline since September 2020.
Fears about a resurgence of Covid-19 cases in China, and global inflation are weighing on companies and consumers. The Federal Reserve’s indications that it will quickly tighten monetary policy are threatening to drag on growth.
Wednesday: Federal Reserve governor Lael Brainard won Senate confirmation Tuesday to become the central bank’s vice chairwoman and top adviser to Chairman Jerome Powell.
Fed watchers believe Ms. Brainard’s promotion isn’t likely to change the central bank’s near-term interest-rate policy plans because she has already been serving as a top lieutenant to Mr. Powell.
The yield on the
10-year U.S. Treasury note closed at 2.773%, close to its highest level since 2018. Investors have sold bonds in anticipation of higher interest rates.
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.
Futures Trading Levels
04-28-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
China, Ukraine/Russia, earnings, Inflation, rates and overall market sentiment sent stock futures much lower today.
NASDAQ been the leader so far and closed right on the first major support level below. Possible extended target as well as levels above for possible bounces, in the
daily chart below for your review.
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.
Futures Trading Levels
04-27-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
No words of wisdom today…
Levels and reports for tomorrow below. Good Trading!
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.
Futures Trading Levels
04-26-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Interesting intraday action on indices, led by the NASDAQ 100 futures, the NQ or MNQ for the Micros.
Market is sitting on a short term support level as can be seen in the daily chart below.
If you are a day trader, you may want to explore using range bar or volume charts rather than minutes chart as they may help reduce noise in quiet markets and help you make decisions faster when the markets are moving faster. WATCH VIDEO HERE.
NQ, mini nasdaq futures daily chart on April 21st 2022
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.
Futures Trading Levels
04-22-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Global Growth Uncertainty = Great Opportunity and Risk
By Mark O’Brien Senior Broker
Today the IMF stated that it expects global economic growth to slow significantly this year – from 6.1% in 2021 down to 3,6% in 2022. The war in Ukraine is the most impactful catalyst to the downturn, its effects spreading most notably to higher food and energy prices as well as disruptions in global supply chains and trade. The pandemic continues to take a toll on growth as well with China’s growth forecast downgraded in the face of that country’s latest measures to combat the latest variant spread: lockdowns imposed nationally with some encompassing entire cities. Against this backdrop, central banks around the world are grappling with decisions to tamp down inflation. IMF Managing Director Kristalina Georgleva put it succinctly: “This is the most universally complex policy environment of our lifetime.”
This is an uncertain outlook and it translates to commodities prices across nearly all asset classes. Volatility remains the theme of the markets and to restate from past blogs, great opportunity and risk are both easy to find.
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.
Futures Trading Levels
04-21-2022
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Economic Reports, Source:
Forexfactory.com
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.
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Heads up:
Grains are now ALL July.
Tomorrow we have New Home Sales,
Crude oil numbers and Beige book so I suspect to see an active market across the board.
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.
Futures Trading Levels
04-20-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
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GOLD WATCH Part 2
By John Thorpe, Senior Broker
From a technical perspective
Gold Futures does look ready to test recent highs. there was clearly excitement today during the Hong Kong session and then again, follow through buying during the London session with todays high peaking at 9 a.m. NY time @2003.00 per troy ounce before retreating back during the London session to close up on the day but near the lower end of the days trading range.
IN MY OPINION,
Today’s Globex session appears to tell the tale of a short term reversal as “Gravestone Doji ” inks the chart today signifying the potential to move this market back into the 1940.00 area the next few days, still staying above critical support of 1920.00 .
A correction could put us in a better position to hold longs closer to support potentially risking less of our capital.. Keep an eye on this market as it is truly ready for a large move one way or the other.
*Trading commodity futures and options involves substantial risk of loss.
The recommendations contained in this blog are of opinion only and do not guarantee any profits.
These are risky markets and only risk capital should be used. Past performance is not indicative of future results*
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.
Futures Trading Levels
04-19-2022
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Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Wishing all of our clients and readers blessed holidays: Easter, Passover and Ramadan!
Markets are closed April 15th, Good Friday.
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.
Futures Trading Levels
04-18-2022
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Predicting in Confusing Times
By Mark O’Brien, Senior Broker
On one hand . . .
U.S. employers are adding hundreds of thousands of jobs a month – adding 431,000 jobs in March – and they would hire even more people if they could find them. U.S. initial jobless claims are at a 54-year low. Wages are rising at their fastest pace in decades.
Businesses are investing. Commerce Department data show U.S. business profits surged 35% last year, the most since 1950. In all four quarters of the year, the overall profit margin stayed above 13%, a level reached in just one other three-month period during the past 70 years.
Consumers are spending and households have trillions in savings. Indeed, the business profits mentioned above are due in large part because of strong household demand.
On the other hand . . . .
U.S. interest rates have risen materially. The average interest rate on the most popular U.S. home loan – the 30-year fixed-rate mortgage – increased to 5.13% last week, up more than 1.5% since the start of the year and the highest level since November 2018.
Strong consumer demand along with surging energy and food costs and global supply constraints have pushed U.S. inflation to a new four-decade high of 8.5% in March from the same month a year ago.
To complicate things further: global turmoil . . .
The war in Ukraine could last many more months, possibly years. The impact of Russia’s Feb. 24 invasion continues to ripple around the world.
China’s recent Covid lockdowns are putting its economy under strain and threatening once again to disrupt global supply chains.
Inflation “fever” is world-wide. India: 6.95%. Eurozone: 7.5%. U.K.: 7.0%, Brazil: 11.3% (all data for March).
These are arguably unprecedented times for futures prices. In the midst of such uncertainty, the call to manage your trades becomes even more important. The potential for price moves even more favorable and profitable than usual for your trades is very attainable. So too is the risk more pronounced. These are the conditions many traders go after.
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.
Futures Trading Levels
04-14-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
IS GOLD’S Lustrous sheen returning for investors?
By John Thorpe, Senior Broker
Stocks lower,
Bonds lower, Inflation higher:
Gold, after months and years of expecting the price of the metal to gain upward price momentum, the value for investors had been tarnished by the positive returns of high stock prices,
Crypto dreams, property values, Gems and artwork whose own luster may now have reached a short term point of no return. The Easy to Easiest money policies over the past decade have caught up and now it’s time to pay of our economic sins. Perhaps these times, the 2022’s and beyond are the right times for investing in the
precious metals. Please take a look at the Chart where you will see the importance of the 1920.00 area. It was previously the High of multi year consolidations. 5-31-2021 nearly a year removed , the lows of the past two weeks are skimming along the 50 day SMA. If you are a Steve Nison Fan
you may also notice the long legged Doji on March 29th just 2 weeks ago. any long position should be protected under the 1920.00 area as part of your risk management strategy., I will be following this market throughout the summer, please check back for updates and always have an exit strategy that you can employ!
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.
Futures Trading Levels
04-13-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Good Friday 2022 Holiday Schedule for CME / Globex and ICE Exchange
*Dates and times are subject to change
If you have any questions, please call the CME Global Command Center at +1 800 438 8616, in Europe at +44 800 898 013 or in Asia at +65 6532 5010
Globex® Good Friday 2022 Holiday Schedule for CME / Globex and ICE Exchange
More details at: http://www.cmegroup.com/tools-information/holiday-calendar.html
ICE Futures Good Friday 2022 Holiday Schedule for CME / Globex and ICE Exchange
Detailed holiday hours for ICE Futures: https://www.theice.com/holiday-hours
The above sources were compiled from sources believed to be reliable. Cannon Trading 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 closing times for certain contracts may have been rescheduled.
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Curious on an indicator that can help you with EXITS? How about using a certain indicator as a trailing stop?
Watch the latest trading videos we have posted and see if you can pick a tip or two on trading smarter!
In this week’s newsletter we are sharing four videos, each a few minutes long. The videos discuss practical tips for trading and sharing our experience with you
1. Using Bolinger Bands as a possible tool for exiting trades
2. One way you can use the Parabolics study ( also known as PSAR) to manage current positions, possibly as a trailing stop
3. Different ways traders can utilize support and resistance levels in their trading.
4. Entering trades on a stop, using “price confirmation”.
5. Utilizing Range Bar charts for shorter term trading as a way to try and filter out some noise.
Watch the videos instantly by clicking here
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.
Futures Trading Levels
04-12-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Updates:
- CME has launched Aluminum futures! more info available here, contact us if you would like to trade Aluminum futures.
- Would you like to get access to daily research? Access info on what is moving the markets both technically and fundamentally? FREE TRIAL
- Would you like a FREE CONSULTATION? Set up a time to talk with an experienced broker on variety of topics such as trading methods, indicators, concepts, questions on options/spreads/platforms and much more!
Stock Index futures were significantly lower today but bounced sharply off support levels, news sources cited “buy program” – I mentioned this to a client who asked me what the hell does it mean….
My speculation is that large institution had a “resting order” to buy at that levels, perhaps
GTC order , perhaps new order but that was able to absorb all selling pressure and then price went higher, triggered more short covering, fueled intraday buying and helped an impressive intraday reversal.
Two big questions I have:
Am I correct?
What’s next?
My speculation is as long as we can hold today’s lows, higher prices are path of least resistance.
Break below and it is a different ball game…..
I asked my colleague, John Thorpe for his feedback:
Why the buy programs? an over simplification is where we have been.. take a look at that low we got the bounce from.. and April 6th back in collegiate statistics 101 one of the first things we learn are the differences and applications of the Mean, the median and the mode… using the 4450 area this number satisfies the definition of the median and the mode if we begin taking our data points from the beginning of Q1 2021 for at least the last 6 months 4450 is the midpoint. it’s not that hard see why that is a critical area for the current market and potentially why, when the market got down to that level, Buy programs engaged. this is not to say this is a Fed put. what it does align with are the similarities between where the market was back on august , 31st 2021 and on the open 2 11 22. remember when the
ES tested 4200 six times and successfully rallied? a close greater than 4500.00 is the goal and could be the springboard to a significantly higher move and, it may be possible there is a seasonal component too. all markets like to test and retest areas where they have been before. this is no different.
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.
Futures Trading Levels
04-08-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
More Grain & Soy Product Volatility: Corn & Wheat Focus:
by Mark O’Brien
December
corn posted its fourth consecutive new contract high yesterday, likely still finding support from last week’s smaller-than-expected planted acreage number in the year’s USDA Prospective Planting report. For both
corn and
wheat, the war in Ukraine has traders worried about global grain supply, given Ukraine’s significant contribution to both. China’s
wheat crop has been described as a “potential disaster,” by the Hightower Report’s Stephen Maass and he’s not alone in his assessment of the country’s crop conditions, due to last fall’s record-breaking rain and flooding and subsequent planting delays. Additionally, record fertilizer prices may cause producers to use less, affecting this crop year’s yield. Phrases like ‘food inflation’ and ‘food scarcity’ are finding their way into commentary on future prices for a range of base commodities like grains, softs (
orange juice,
sugar,
coffee) and other “off exchange” staples.
This all sounds like the stage is set for price increases rarely seen for some commodities, particularly grains, but caveats abound. We’re way too early in the U.S. crop year to foresee how things will play out at harvest. Weather – anywhere in the world – is a fickle element and grain futures prices can seesaw at the slightest hint of change. We’ve already seen commodity prices react – or over react – to even hints of cessations of the war in Ukraine: peace talks, cease fires and the like. This should continue to be the expectation for price moves reacting to more of the same.
Updates:
- CME has launched Aluminum futures! more info available here, contact us if you would like to trade Aluminum futures.
- Would you like to get access to daily research? Access info on what is moving the markets both technically and fundamentally? FREE TRIAL
- Would you like a FREE CONSULTATION? Set up a time to talk with an experienced broker on variety of topics such as trading methods, indicators, concepts, questions on options/spreads/platforms and much more!
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.
Futures Trading Levels
04-07-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Both stocks and energies were significantly lower in today’s trading.
Curious on learning more on the different economic reports and what they mean for the markets you trade?
CLICK HERE
Moving Markets
May Copper tried pushing higher today but met heavy selling pressure around 4.86 levels.
Does the market have enough strength to test the 5.00 mark again? Or will it visit 4.64 first?
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.
Futures Trading Levels
04-06-2022
Improve Your Trading Skills
Economic Reports, Source:
Forexfactory.com
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.
Get Real Time updates and more on our private FB group!
Let’s Talk SPR
by John Thorpe, Senior Broker
Where is the SPR and how much
Sweet Crude do we have? Energy futures contracts have taken our breath away and our bank accounts over the past month. Volatility is directly correlated to levels of uncertainty. A more certain supply and demand futures tend to reduce Volatility greatly. Higher price volatility has historically been linked to greater supply and demand instability. The
Crude oil futures market has seen extraordinary volatility over the last month and for a variety of reasons. One recent reason for the downdraft in
Crude oil futures prices has been the proclamation from the Biden administration that oil will be released from the SPR (Strategic Petroleum Reserve). I have read a number of articles from a number of well respected national news outlets and they all provide a little different information about the size of the reserves and the amount of the limits to daily withdrawals.. You too may have come across some of the confusion. The U.S. Office of Fossil Energy and Carbon Management is our entity in charge of the SPR, a branch of the U.S. Department of Energy and they are responsible for the 4 underground storage locations and recordkeeping. Crude oil traders keeping score some of the rules of the game of the SPR should know, there are limits to daily withdrawals and the holdings are actually quite a mix of sweet crude and sour, all with different industrial uses.
Drawdown Capability
- Maximum nominal drawdown capability – 4.4 million barrels per day
- Time for oil to enter U.S. market – 13 days from Presidential decision
Moving Markets
Bearish technical signal on the daily chart.
Can the market break support?
If you are looking for other reference material please
contact your Cannon Broker for lists of solid, informative and helpful trading tomes
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.
Futures Trading Levels
04-05-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
As we approach tomorrow’s NFP ( non farm payroll) or as many refer to, “unemployment report” – major market moving event, we wanted to share this valuable resource:
If you are looking for other reference material please
contact your Cannon Broker for lists of solid, informative and helpful trading tomes
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.
Futures Trading Levels
04-01-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
Coming Up As We Close Q1 2022
By Mark O’Brien
If the war in Ukraine wasn’t disruptive enough for commodity prices, keep an eye out for a few noteworthy potential market movers stacked up over these next two days.
Tomorrow the U.S. Dept. of Agriculture will release its annual Prospective Plantings report. The report establishes acreage estimates for principal crops and leading commodities including
corn,
wheat,
soybeans,
oats and
cotton for the upcoming crop year. The report is serves as a record of the planting intentions of the nation’s farmers. Acreage estimates are based on surveys conducted during the first two weeks of March. This year the survey reached 78,900 farm operators in 48 states.
Tomorrow is also the date for the 27
th OPEC and non-OPEC Ministerial Meeting. Members meet at this event to determine the output levels for production beginning in May. OPEC+, an expanded group that includes non-OPEC members like Russia and Mexico, has immense power because its members control more than 40% of
global oil production.
U.S. private employment payrolls rose by 455,000 in March, according to this morning’s ADP National Employment Report. Up next, on Friday the Bureau of Labor Statistics will publish its official nonfarm payroll report. This is one of the most important monthly economic data points on the calendar. It’s intended to represent the total number of paid workers in the U.S., minus farm employees, government employees, private household employees and employees of nonprofit organizations. Economists – polled by The Wall Street Journal – forecasted a gain of 450,000 private sector jobs in March.
If you are looking for other reference material please
contact your Cannon Broker for lists of solid, informative and helpful trading tomes
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.
Futures Trading Levels
03-31-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
Trading Videos 101: Curious on an indicator that can help you with EXITS?
Watch the latest trading videos we have posted and see if you can pick a tip or two on trading smarter!
In this blog entry today we are sharing four videos, each a few minutes long. The videos discuss practical tips for trading and sharing our experience with you
2. One way you can use the Parabolics study ( also known as PSAR) to manage current positions, possibly as a trailing stop
5. Utilizing
Range Bar charts for shorter term trading as a way to try and filter out some noise.
If you are looking for other reference material please
contact your Cannon Broker for lists of solid, informative and helpful trading tomes
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.
Futures Trading Levels
03-30-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
Have you considered a Futures IRA?
Mark your Calendars for April 15th. TAX day is coming, there is still time to make a 2021 contribution ! Did you know you can trade futures , futures options and derivatives in a retirement account? . We, at
Cannon Trading can accommodate a wide array of retirement plan accounts through Plan administrators www.cannontrading.com has working relationships with. Investing in futures allows individuals to diversify their retirement accounts . While investing in futures carries greater risks, it provides investors greater flexibility and unique strategies beyond stocks, bonds, ETF’s and mutual funds. Investing through your self directed IRA can be tax advantaged as trading profits can be tax deferred or tax free is in a ROTH IRA. We also support many IRA Rollover accounts for clients. Futures generally have a low correlation to stock and bond prices. This is not a recommendation to buy or sell a security however, simply informing our clients that trading futures through your retirement account may be a prudent option for you as you look for diversification opportunities.. Please reach out to us with any questions about opening or transferring an existing IRA to trade Futures with CannonTrading. here is a link to IRS Guidelines for working with IRA’s.
IRA Year- End Reminders | Internal Revenue Service (irs.gov)
If you are looking for other reference material please
contact your Cannon Broker for lists of solid, informative and helpful trading tomes
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.
Futures Trading Levels
03-28-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
Plan Your Trade, trade Your Plan!
If you are looking for other reference material please
contact your Cannon Broker for lists of solid, informative and helpful trading tomes
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.
Futures Trading Levels
03-25-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
Adjust Your Trading to the Markets
By Mark O’Brien
For the last month, our blogs have continually bore a resemblance to a war correspondence, connecting the events in Ukraine to large moves in commodities prices. Other “traditional” market movers such as the designs and actions of the Federal Reserve, monthly economic reports – on unemployment, housing starts, consumer confidence, etc. – the all-important U.S. Dept. of Agriculture’s world supply/demand crop reports, weekly reports on crude oil, refined products and natural gas storage and supplies, all have taken a somewhat back seat to the impact war has had on commodities. We hear of commodities being “war priced” at recent lows (stocks, the U.S. dollar) and highs (energies, precious metals, grains), or trading at a “war premium,” with guidance that any cessation in hostilities could lead to substantial price breaks.
Another continual theme to this blog will be to encourage you to take this environment in which we are now trading into account and be extra-mindful of the heightened potential risks in the market(s), particularly those that trade overnight – which includes just about everything except livestock. If you’re taking a directional approach to trading, consider using options as protection of your futures positions. Consider futures spreads. Consider limited-risk options spreads.
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If you are looking for other reference material please contact your Cannon Broker for lists of solid, informative and helpful trading tomes
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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.
Futures Trading Levels
03-24-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Futures Trading Risks and Advantages
Understanding the nature of risk as a futures trader is a critical element to success. While a risky environment, the advantages of the futures market are obvious to an educated trader. Leverage, long trading hours, hasty order executions, and powerful platforms are all worth mentioning. The best trading environments also attract stiff competition. The words trader and risk management become synonymous with one another. What risks need to be managed exactly?
First and foremost, the risk of capital loss or “losing money.” Capital is the lifeblood of a trading business. It may seem trivial or obvious, but the emotional and mental tax that comes from spending time to lose money can be significant. Small problems and habits quickly compound which amplifies the risks associated with trading derivatives or leveraged positions. Leverage amplifies mistakes which may cause persistent challenges with psychology and mental fortitude. This cycle can exist perpetually so long as a trader continues to allow it.
All Traders Face Loss
All traders face risk of loss, it’s the nature of the industry. What differs among each trader is the collective experiences that make up how they manage the reaction to the losses. This is true of all trading, but particularly important when using leverage. Sometimes overprotecting a trade or being afraid to lose can add risk to a system. Smothering multiple trades with stop losses may have a similar effect as letting a bad trade run.
Risk management is multi-dimensional. The proper location for a stop loss might be relative to several factors in the risk management system. It’s a dynamic environment with multiple inputs. Occasionally, risk can be created from outside factors such as weather interrupting power or an internet service provider outage. Risk comes in many shapes, but the trader that actively mitigates and manages ALL types of risk should have an increased chance for success.
What are the “Alternative Risks” that can effect trading?
Here is a list of “alternative risks” that may go unnoticed at first. These risks may correlate directly to trading results by hindering a trader’s mental, emotional, or physical performance.
- Stress or adversity caused from a personal situation outside of trading
- Lack of hydration or healthy diet
- Distractions by phone, social media, etc.
- Resulting – or weighing the validity of a strategy on the immediate or short-term result, rather than testing it over time.
This list communicates just a few of the risks that exist outside of the trade itself. These variables can impact how a trader follows rules, rationalizes, and behaves.
The Advantages of Trading
Though risky, the futures market may prove advantageous to the savvy trader. Capital efficiency and liquidity provide the opportunity to scale, and short-term gains on futures are taxed more favorably than stocks (Always check with a CPA before trading.) The futures provide a way for traders to actively hedge investments outside of what could be considered “regular business hours.” Many markets trade overnight which allows access to hedge nearly round the clock. The advantages of commodity futures are unparalleled when used in the proper context. Commodity businesses across the world can use the futures market to aid in pricing forward their products, and preparing for the future.
Another notable benefit of the futures market is the availability of futures options. A great example is how agricultural options provide a way to gradually manage the risk of their commodities. A farmer may use a protective put as a means to hedge corn prices before the harvest. These are just a few examples of the advantages of trading futures and futures options. As always, consult with a broker to learn more about the risks associated with trading or trading strategies. Being educated before diving into a challenging atmosphere is a true demonstration of discipline and risk management.
You can download one of our trading platforms with live data and the options board here
E-Futures International | Futures Trading Platform & Broker Demo Account (cannontrading.com).
We will be happy to screen share with you and answer any questions you may have about futures related inquiries.
Author: Josh Meyers, Broker at Cannon Trading Company
Important: Trading commodity futures and options involves a substantial risk of loss. Therefore, recommendations contained in this letter are of opinion only and do not guarantee any profits. There is not an actual account trading these recommendations and past performances are not necessarily indicative of future results.
Get Real Time updates and more on our private FB group!
A Video on How to Customize your Multiple DOMS
By Josh Meyers, Series 3 Broker
Some traders are more visual than others.
Regardless of your style of trade, I feel that organizing the DOMs in the way shown in the video can help anyone who trades more than one market at a time.
If you are looking for other reference material please
contact your Cannon Broker for lists of solid, informative and helpful trading tomes
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.
Futures Trading Levels
03-23-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
A Note on using Futures Spreads
By John Thorpe, Senior Broker
Futures spreads are a way to get involved in trending markets at a lower margin cost and often times can give the trader staying power to last weeks if not months. If you were thinking about entering the
Crude market, or the
Grain markets but were psyched out by the volatility of an outright long or short futures position.
Futures Time Spreads or Calendar spreads where the trader goes long one month and simultaneously goes short another month of the same commodity is a way to engage your margin dollars in a trend. Some advantages of using a spread are
1.) Timing-you can be wrong about the timing of entry but have staying power to be patient for the trend.
2.) Cost efficient- the margin dollars required to hold a spread can be significantly lower than holding an outright position.
3.) Charting-you can chart a spread just as easily as you can an outright and run all the same technicals you are used to.
4.) Liquidity-most common
calendar spreads are liquid at all times of the day. allowing you to enter or exit with ease.
Some examples of Calendar spreads would be in the grain markets,
Long July Corn and Short December Corn, this would be a Bull spread. Or
Long July Soybeans and Short November Soybeans, again this is an example of a Bull spread. Another term for Grain spreads such as those mentioned are Old crop/New Crop spreads. buy the current marketing year crop ( harvested last year) and sell the futures contract that represents the crop yet to be harvested, the new crop.
On the E-Futures trading platform
(FREE DEMO) you can pull up the market for these spreads using a simple formula, and you can view the DOM as well!.
If you are looking for other reference material please
contact your Cannon Broker for lists of solid, informative and helpful trading tomes
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.
Futures Trading Levels
03-22-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Dow-Jones In Real Time
Providing exposure to 30 of the largest companies in the U.S., the Dow-Jones futures market is directly correlated to the value of the Dow-Jones Industrial Average. Among the most liquid contracts on the exchange, the Dow futures are a favorite for all types of traders. Whether you are a scalper live streaming online, or you’re a position trader placing phone orders, the Dow futures are a diverse landscape with traders participating from all over the world.
Real time quotes are widely available across media outlets, trading platforms, and brokerages. The E-Mini Dow futures(YM) trade on the CBOT as part of the CME Group. Minimum tick size is one point with a value of $5.00 per point, per contract. The notional value of the E-Mini Dow contract can be calculated using the value of the Dow Jones Industrial Average times $5. A smaller alternative, the E-Micro Dow(MYM) contract trades at one-tenth the format of the former, or $0.50 per tick.
The Dow-Jones Advantage
Dow-Jones futures offer competitive margin requirements and leverage, allowing responsible investors and traders the opportunity to hedge larger positions with less capital. For U.S. Traders, the IRS classifies broad based index futures such as the Dow Futures under the 60/40 rule which allows trading profits to be taxed at 60% the more favorable capital gains rate, and only 40% as ordinary income (Check with a CPA before trading.)
As an investment device, the Dow-Jones futures provide real time leveraged exposure to the index value, which promotes capital efficiency for investors and traders. This means that skilled risk managers, like yourself, will no doubt find competitive and creative solutions to manage risk.
The Dow Jones Futures market is a competitive market for tools and platforms to trade with. Hence, a plethora of options are available to both retail and professional traders. The Dow-Jones Futures are traded on by many brokerages, software, and platforms, with access to real time data quotes being provided from the exchange through several different data providers.
Dow Jones Futures Live Stream
The Dow-Jones futures market shares a strong correlation to the other U.S. Index futures such as the Nasdaq 100, S&P500, and Russell 2000 contracts. This means that the U.S. markets tend to reflect the movement of one another with additional correlations to the bond markets, currencies, and many other commodities such as gold, silver, etc. Notably, the futures trade nearly 24 hours a day through the week, from Sunday evening until Friday. It’s arguable that if you consider the ease of shorting, capital efficiency, etc. it makes futures a much more valuable tool than ETF’s. Additionally, also available are the Dow Futures Options contracts which expire monthly. Be sure to understand your risks, and consult with your broker before trading.
Key Points of the Dow-Jones Futures Market
- Dow-Jones Futures provide leveraged exposure to the DJIA for traders and investors. Take caution when you are approaching a leveraged environment, as the risks can be substantial.
- Multiple Contract Sizes for different sized investors, traders, and strategies
- E-Mini(YM) – $5 per point
- E-Micro(MYM) – $10 per point
- Profits are taxed more favorably at the 60/40 rate.
- Trade nearly 24 hours a day, 6 days a week.
You can download one of our trading platforms with live data and the options board here
E-Futures International | Futures Trading Platform & Broker Demo Account (cannontrading.com).
We will be happy to screen share with you and answer any questions you may have about futures related inquiries.
Author: Josh Meyers, Broker at Cannon Trading Company
Important: Trading commodity futures and options involves a substantial risk of loss. Therefore, recommendations contained in this letter are of opinion only and do not guarantee any profits. There is not an actual account trading these recommendations and past performances are not necessarily indicative of future results.
Get Real Time updates and more on our private FB group!
Quadruple witching tomorrow….
Futures, futures options, stock options and single stocks all expire tomorrow morning right on the open of the stock market.
Keep in mind that
March mini SP and it’s relatives (
mini Dow,
mini Nasdaq etc.) EXPIRE tomorrow and cash settle based on special settlement price….Markets can get volatile tomorrow morning right before and around the open.
The March contract will simply cease to trade. If you have not switched to June yet, now is the time…..
Would you like to trade futures using MT5? if so, reply back to this email!
If you are looking for other reference material please
contact your Cannon Broker for lists of solid, informative and helpful trading tomes
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.
Futures Trading Levels
03-18-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
FOMC RECAP by Mark O’Brien:
All eyes and ears were on the Federal Open Market Committee’s meeting and Fed. Chairman Powell’s post-meeting press conference earlier today. The Fed issued its statement at 1:00 P.M., Central Time. The 0.25% boost to the target federal funds rate (the benchmark for short-term interest rates) was the Fed’s first rate increase since the beginning of the global pandemic. The expectation is that this is just the first of several interest rate increases – one of the means by which our current 40-yr. high inflation reading might be tamed. Despite the seemingly small first step, Fed policy is an ongoing massive and complicated effort to control inflation and spur job growth – the Fed’s well-known and important dual mandate – particularly in these times. The Russian invasion of Ukraine, its accompanying high energy prices – affecting other commodities markets – and their implications on the economy all make the Fed’s decision to take this first step a significant one.
Yet, not to sound trite, but now that this is in the rearview mirror, it’s back to following the less predictable and all-embracing disaster that is the war in Ukraine, which is unquestionably the main catalyst to price instability in the near future.
If you are looking for other reference material please
contact your Cannon Broker for lists of solid, informative and helpful trading tomes
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.
Futures Trading Levels
03-17-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
Looks like the FED will raise rates for the first time in few years tomorrow or at least this is the consensus.
The following are my PERSONAL suggestions on trading during FOMC days:
· Reduce trading size
· Be extra picky = no trade is better than a bad trade
· Choose entry points wisely. Look at longer time frame support and resistance for entry. Take the approach of entering at points where you normally would have placed protective stops. Example, trader x looking to go long the
mini SP at 4325.00 with a stop at 4319.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 4319.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).
· Expect the higher volatility during and right after the announcement
· Expect to see some “vacuum” ( low volume, big zigzags) right before the number.
· Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
· Keep in mind statement comes out at 1 Pm Central time, the news conference which dissects the language comes out 30 minutes later so the volatility window stretches out.
· Know what the market was expecting, learn what came out and observe market reaction for clues
· Be patient and be disciplined
· If in doubt, stay out!!
Rollover Notice: June is now the front month for Stock Index futures like
ES, MES,
NQ, MNQ etc. as well as for financials like
ZB and
ZN and currencies as well, like
6E,
6B etc.
ESM22 instead of ESH22.
March stock index futures will settle into cash on Friday morning right around the open.
Also note, Margin increase in several markets.
Volatility is higher and some moves are very violent, have a risk management, trade management in plan, don’t jump in the water with out some sort of a life vest.
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.
Futures Trading Levels
03-16-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
Rollover Notice
June is now the front month for Stock Index futures like
ES, MES,
NQ, MNQ etc. as well as for financials like
ZB and
ZN and currencies as well, like
6E,
6B etc.
ESM22 instead of ESH22.
March stock index futures will settle into cash on Friday morning right around the open.
Also note, Margin increase in several markets.
Volatility is higher and some moves are very violent, have a risk management, trade management in plan, don’t jump in the water with out some sort of a life vest.
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.
Futures Trading Levels
03-15-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
Margin increase in several markets.
Volatility is higher and some moves are very violent, have a risk management, trade management in plan, don’t jump in the water with out some sort of a life vest.
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.
Futures Trading Levels
03-11-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
“I use mental stops”…..Said the trader who just blew up his account day trading crude oil the wrong way…..
By Mark O’Brien
As futures brokers, we’ve heard clients share their thoughts on trading and truly, their strategies are as unique as the individual trader. With that said, there are a number of “nuts and bolts” to trading that all traders can employ – or not. One example of these is the
STOP order. We as brokers hear a variety of assertions from our clients as to the virtues or evils of employing STOP orders in their trading.
In this blog we’re going to showcase today’s price activity in
April crude oil to make a case for the virtues of employing STOP orders.
Notwithstanding the almost unheard-of ±$23/$23,000 per contract price range, at one point, the April crude oil contract fell ±$10 per barrel/$10,000 per contract in the span of five minutes.
As we’ve spelled out in recent blogs, with the Russian attack on Ukraine and all the geopolitical moving parts now involved in the conflict, commodity price volatility has reached remarkable heights across several asset classes – energies in particular. So be it, but this provides us with low hanging fruit, as it were, to advocate for the use of STOP orders. Price moves like this literally scream for the implementation of STOP orders, lest you find your proverbial trading legs cut off at the knees – or worse. If you find yourself eyeing
crude oil,
unleaded gas,
gold, wheat, any stock index, just to list the recent headliners, transpose those mental stops to actual orders. Trade safely and sanely.
5 min chart of crude oil from today when the news on OPEC send crude oil tumbling over $15 in minutes. If you were long, with “mental stops”….good luck.
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.
Futures Trading Levels
03-10-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
Trading Agricultural Options in volatile markets
A new options report by Rich Excell
Get actionable insights on the latest market opportunities and how to trade them using options on futures. Benefit from the experience of a widely followed veteran institutional trader who successfully managed multi-billion portfolios throughout his career.
In this week’s issue, Rich Excell examines volatility in agricultural markets and explores two ways to approach these markets using grain option strategies.
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.
Futures Trading Levels
03-09-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
Size does Matter
By John Thorpe, Senior Broker
Recently the margins have increased for Wheat and Gold futures as well as the stock indices for good reason. Geopolitical risk has put these markets on notice that the margins, already low, were not sufficient to protect clients and firms from the extreme price action these commodities have been experiencing.
The intraday moves have been nothing short of jaw dropping; with opportunity comes risk.
(all indices roll from March to June this Thursday and Friday)
Did you know there were also other Micro contracts to take advantage of many of these futures contracts outsized price swings? And they are liquid too!
The WTI Contracts overnight margin requirement is now going to be set tonight @ $13,500.00 and most clearing firms would rather not give a break for Day trading margins
The answer to participate in the crude market if the current volatility is too rich for your blood, you may take a look at the Micro’s :
The exchange has increased the margin several times over the past week and today’s increases are here and currently no break for Daytrading..
MORE CME energy margin increases:
You do however, have two smaller sized contracts that are plenty liquid, the QMj22 that is a 500bbl contract and trades in .025 increments 110.025, 110.050, 110.075 and so on.. the margin is ½ the full size contract or $6750.00
And you also have the micro WTI Crude Oil MCLJ22 a 100 bbl contract 1/10 the size that trades in minimum increments like the full size. 100.02,100.03,100.04 and so on.. the margin is 1/10th or 1320.00 per contract The micro’s also give you the ability to trade as many crude contracts incrementally in 100 barrel units.
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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.
Futures Trading Levels
03-08-2022
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
NFP Tomorrow!
From Econoday.Com:
Definition
The most closely watched of all economic indicators, the employment situation is a set of monthly labor market indicators based on two separate reports: the establishment survey which tracks 650,000 worksites and offers the nonfarm payroll and average hourly earnings headlines and the household survey which interviews 60,000 households and generates the unemployment rate.
Nonfarm payrolls track the number of part-time and full-time employees in both business and government. Average hourly earnings track employee pay while the average workweek, also part of the establishment survey, tracks the number of hours worked. The report’s private payroll measure excludes government workers.
Consensus Outlook
A 390,000 rise is Econoday’s consensus for nonfarm payroll growth in February which in January, at 467,000, far surpassed the high estimate. February consensus range is 197,000 to 625,000. Average hourly earnings, which in January also far surpassed expectations at a monthly 0.7 percent gain for an annual 5.7 percent rate, are expected to show continued pressure, at 0.5 and 5.8 percent respectively.
KEY margin increases to note:
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.
Futures Trading Levels
03-04-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
Russia, Ukraine & Commodities
By Mark O’Brien, Senior Broker
In a recent blog post, it was noted, “We’re just one month into this calendar year with more developments ahead – geopolitically, weather-related and monetary policy related – all set to cause commodity prices across a range of asset classes to exhibit potentially rugged price action. Keep an eye out.” Now two months into this calendar year, it appears that statement was subdued.
Many of the market moves stem from the escalating war activities in Ukraine, which will remain a dominant force in determining prices of several commodities. Russia and Ukraine account for nearly 20% of global corn exports and 25% of wheat.
May corn traded to new contract highs overnight (747¾, basis May).
May wheat traded up its 75-cent limit today to the highest level since March of 2008. Russia is responsible for up to 40% of the
palladium supply to the world, a commodity not typically among any trader’s top-ten to keep an eye on. It’s seen a ±$300/oz. move up since Friday’s close and is poised to close at daily contract highs. Prices in
crude oil surged again today, trading intermittently to life-of-contract highs above $112/barrel. These and other markets – think metals, other energy products, stock index futures – will continue to exhibit outsize moves. And while fears of physical supply disruptions, a ratcheting up of inflation expectations and other forces have sellers moving to the sidelines across numerous commodities, these traders are not gone. Take care.
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.
Futures Trading Levels
03-03-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
More on LIMIT Moves: Wheat
By John Thorpe, Senior Broker
Futures contract limit moves during extreme volatility….. rules are different for each commodity that does have a hard daily price limit. not all futures contracts have
daily price limits. Here is a discussion from the CME of Daily Price limits
Product Examples for Daily Price (Trading) Limits – Electronic Platform Information Console – Confluence (cmegroup.com) a current list of markets where limits are enabled is here
Price Limits: Ags, Energy, Metals, Equity Index (cmegroup.com) the reason we draw your attention to this is the current state of the
Wheat market with the first 2 months in the Chicago Soft contracts and of the KC Hard red winter contracts. Limit markets are also known as Limit Bid or limit offer markets where there are Bidders or offerors “jumping into the Pool” clamoring to get long or short.. we refer to the excessive bids or offers as “the Pool” when exterior pressures create the perception of shortage of a commodity, as is the case for wheat this week, markets make limit moves. near today’s close I took this snapshot of the number of unfulfilled bids in the pool is seen in the bid size column :
The Wheat market will re-open tonight @ 8:00 PM EST if the exchange moves to a .75 cent limit the dollar value of a limit move is $3750.00 per contract.
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.
Futures Trading Levels
03-02-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
Get Real Time updates and more on our private FB group!
Cross Currents to Fuel Volatility Even Higher
By John Thorpe, Senior Broker
It’s clear the market has been reacting to the minute by minute changes from the international communities responses to the Russian Invasion into another sovereign country. These currents have been pushing markets violently the past week and are expected to continue to do so for days and weeks to come. However , we can’t lose sight of 3 very important domestic issues that could have far reaching global impacts as well. Here in the U.S. , on Tuesday night President Joe Biden is scheduled to give his first “State of the Union” address to the American citizens and world. Without a doubt, the futures markets will be reacting during our evening session Tuesday night March 1st 9:00 P.M. EST. Wednesday Morning 10:00 A.M. ending Thursday afternoon, Fed Chair Jerome Powell presents his report—called the Monetary Policy Report—that is submitted semiannually to the Senate Committee on Banking, Housing, and Urban
Affairs and to the House Committee on Financial Services, along with
testimony from the Federal Reserve Board Chair., this will be the first time Fed Chair will be answering questions directly related to the Russia/Ukraine conflict since the conflict began.
On Friday Morning at 8;30 a.m. EST the most watched labor department number is released: Nonfarm Payrolls (NFP) also known as the Employment situation report. Here are this months expectations from Econoday.com
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.
Futures Trading Levels
03-01-2022
Improve Your Trading Skills
Economic Reports, Source:
http://BetterTrader.Co
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.
NASDAQ Futures Marketwatch, Investing in futures & CME
When looking at the Dow, NASDAQ, and S&P futures, there are similarities and differences between stock ETF’s and these Futures. Depending on how much leverage you would like to employ, the Futures numbers are below. If you are looking at the futures prices and had questions about the valuations, we have included a quick key below:
Dow futures symbol YM, Stock ETF Equivalent symbol DIA
Nasdaq Futures symbol NQ, Stock ETF Equivalent symbol QQQ
S&P Futures symbol ES, Stock ETF Equivalent symbol SPY
Notional Value Calculations for Dow NASDAQ S&P Futures
Both Mini and Micro E-Mini (1/10th size of the E-Mini)
Mini Dow futures price X $5 = Notional Value
Micro Emini Dow (MYM) futures price X .50 = Notional Value
Mini Nasdaq 100 futures price X $20.00 = Notional value
Micro E-Mini Nasdaq (MNQ) 100 futures price x $2.00 = Notional value
Mini S&P futures price X $50.00 = Notional Value
Micro E-Mini S&P (MES) Futures price X 5.00 = Notional value
If Dow @ 32000 Notional Value of YM = $160,000.00 Margin to hold $ 8800.00
E-Micro 32000 Notional value of MYM = $16,000.00 Margin to hold $ 880.00
If Nasdaq @ 13500.00 Notional Value of NQ = $270,000.00 Margin to hold $16,500.00
E-Micro 13500.00 Notional value of MNQ = $27,000.00 Margin to hold $ 1650.00
If S&P @ 4250.00 Notional value of ES = $212,500.00 Margin to hold $11,800.00
E-Micro 4250.00 Notional value of MES = $21,250.00 Margin to hold $1180.00
Dow Nasdaq S&P futures also offer options, Weekly Options for E-Mini S&P 500 Futures | Cannon Trading.
You can download one of our trading platforms with live data and the options board here
E-Futures International | Futures Trading Platform & Broker Demo Account (cannontrading.com).
We will be happy to screen share with you and answer any questions you may have about futures related inquiries.
Author: John Thorpe, Senior Broker at Cannon Trading Company
Important: Trading commodity futures and options involves a substantial risk of loss. Therefore, recommendations contained in this letter are of opinion only and do not guarantee any profits. There is not an actual account trading these recommendations and past performances are not necessarily indicative of future results.
Get Real Time updates and more on our private FB group!
No Trade is Better than a Bad Trade….
Not to sound cliché but with the volatility we have seen today and the last few weeks….it seems that very few “enjoy” the extreme volatility and more are “suffering” with this extreme volatility.
The below are today’s ranges per one contract, for good and BAD:
Gold: $10,000.00
Soybeans $5000.00
Crude $9000.00 Silver $9000.00
NQ $19000.00
ES $9500.00
Euro $2500.00
When in doubt stay out.
On a practical note:
Are you using Sierra charts and looking to implement their Teton order routing?
If so, look no further, Cannon can assist you in getting set up!
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.
Futures Trading Levels
02-25-2022
Improve Your Trading Skills
Economic Reports, Source:
ForexFactory.com
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.
Get Real Time updates and more on our private FB group!
Adjusting for volatility
By Josh Meyers, Cannon Trading Series 3 Broker
Expansion, contraction, and regime switches. How does volatility impact you? It’s relative to each of us, our trade style, risk tolerance, even our headspace. Babysitting tight-stops in a noisy order book can make trading miserable, but a market order triggered late is counter-productive. The results of volatility and leverage can be shocking. A few losses on a volatile day can impact a trader more than they realize. Sometimes the risk in trading comes from peeking over the edge or bending your rules because “today has more opportunity.” Trading the structure of the markets may help with consistency during volatile times. Stop sizes and take profits become relative to what you’re experiencing and the environment may seem more familiar. Although trading result may be amplified, this can be mitigated by sizing your position down.
Psychologically preparing to engage a volatile environment can help as well. Volatility mixed with leverage is an advanced-level test of your mettle or resolve, and traders that get comfortable in the environment tend to enjoy it. Something notable is the idea of the E-Micro contract sizing. The reduced exposure of these contracts can make fast markets seem more manageable, and the scale of the moves created from volatility may reduce the impact of commissions on your bottom line. Larger contract sizes are proportionately more commission friendly, but only if they don’t impact your performance. Trading smaller on volatile days may give you performance edge over other traders who are dealing with challenges of trading larger than usual. Trading the correct size should yield the best result and help you navigate the mental and emotional challenges of a volatile market.
Are you using Sierra charts and looking to implement their Teton order routing?
If so, look no further, Cannon can assist you in getting set up!
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.
Futures Trading Levels
02-24-2022
Improve Your Trading Skills
Economic Reports, Source:
ForexFactory.com
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.
Gold Futures Analysis
Taking a closer look at gold futures analysis, price and prediction, the CME gold futures contract (GC) is one of the most actively traded on the exchange marketplace. Each contract represents 100 troy ounces (see contract for specs) with a tick value of $10 or .10 per ounce. The CME continues to provide accessibility for smaller traders by offering contract sizes such as the Micro gold futures (MGC). Standing at 1/10th the size of the aforementioned, with a tick value of $1, the MGC provides accessibility to those who may size their positions incrementally. Both contracts are actively traded, providing good liquidity to market participants.
Whether the standard applies or not, gold continues to be a popular choice for investors and traders alike. In gold futures analysis, the market participants of gold futures are diverse. People across the world hedging, speculating, and doing business with the hope of a better future. Though volatile at times, gold has a record of recovery after periods of price adversity. Inflationary concerns and looming world conflict have once again sent gold futures careening toward all-time highs. In a time where Bitcoin and other cryptos continue to draw attention from those pursuing extraordinary returns, metal investors seem to have enjoyed relative stability and growth since the COVID-19 crisis. Gold looks poised to once again push upward as investors and traders seek financial solace from the anticipated Russia/Ukraine military conflict.
From a technical analysis perspective, gold appears to be testing the upper side of a price consolidation that’s lasted for nearly a year. Assuming continued strength, one could argue that gold will top $2,000 an ounce this year and possibly make a new all-time high. If conflict materializes and broad-market weakness presents, the negative beta correlation of gold to the S&P500 may create buying pressure.
Price & Prediction
Taking this into consideration, it’s important for traders like you to brace for multiple scenarios when doing a gold futures analysis, with price and prediction. All signs point upward for gold, which means it can be useful to reflect and prepare for something less obvious. Ironically, like a punishment for the preemptive celebration of traders and investors, when things seem a shoo-in, adversity reveals itself. Make a plan for when things don’t go your way. Gold may retest $2,000/ounce and fall back into price consolidation, or reverse and press downward. Any number of scenarios could play out, and only time will tell. You must consider these and more factors when looking at gold futures analysis, price and prediction. Those prepared with reactive risk management solutions, active at finding low risk/high reward trading opportunities will succeed.
Within the gold futures, speculative traders skilled in order flow/tape reading should find intraday opportunities. While swing traders and portfolio-style risk managers may utilize gold futures to hedge or manage their broad market exposure. Directionally focused swing/position trading continues to be viable option for disciplined traders as well. The critical element to success tends to be risk management, regardless of trading style.
Nowadays cryptocurrency has taken the world by storm. Outsized returns and the hope of instant success draw a crowd. It seems an era of new-school vs. old-school, but caution is advised. For millennia our species has valued gold. Bitcoin was created in 2009. It can be argued that the cryptocurrency market is still in its initial price discovery phase. Please consider that strong value can be found outside of what’s considered trendy or popular. It’s ironic that gold seems less glamorous these days. Be sure to do your due diligence, and remember what they say about all that glitters….Happy Trading!
Author: Josh Meyers, Broker at Cannon Trading Company
Important: Trading commodity futures and options involves a substantial risk of loss. Therefore, recommendations contained in this letter are of opinion only and do not guarantee any profits. There is not an actual account trading these recommendations and past performances are not necessarily indicative of future results.
Get Real Time updates and more on our private FB group!
This is a news market. Russia/ Ukraine news and updates are dominating the markets.
Sharp fast moves within seconds.
Be aware, know what is going on in the overnight, any developments, how it affects the markets you trade etc.
Below is an example for service I use and look at and is available for our clients:
Tuesday, February 22–Jim Wyckoff’s Markets Report
Global stock markets were mostly lower overnight. The U.S.
stock indexes are pointed toward weaker openings when the
New York day session begins. Trader and investor risk
aversion elevated following a three-day U.S. markets-
holiday weekend. Russia has sent troops into breakaway
parts of Ukraine, with Russian President Putin calling it a
“peace-keeping” mission. The U.S. and the West have slapped
new sanctions on Russia, including Germany halting
operations on a key oil pipeline into Russia. The U.S. says
Russia now has 190,000 troops at the Ukrainian border. This
matter is likely to remain on the front burner of the
marketplace for some time to come. “Markets are on war
footing” was a news headline from Barrons today.
Gold prices hit an eight-month high of $1,918.00 an ounce
overnight, on safe-haven demand.
Are you using Sierra charts and looking to implement their Teton order routing?
If so, look no further, Cannon can assist you in getting set up!
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.
Futures Trading Levels
02-23-2022
Improve Your Trading Skills
Economic Reports, Source:
ForexFactory.com
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.
What Are Gold Futures?
Like all commodity futures, gold futures are derivative financial contracts. A derivative is a type of contract whose value is determined by or derived from the value of another asset. In the case of gold futures contracts, the other asset is an amount of gold. The major gold futures contracts traded on the CME Group’s COMEX Exchange are derived from the value of 100 ounces, 50 ounces, and 10 ounces of gold with a rated fineness of 995. What this means is the underlying metal’s purity is at least 99.5% or more. In turn, because of the reflective relationship between gold futures contracts and gold itself, understandably the price of a futures contract is valued similarly to and fluctuates with the price of gold.
The Marketplace Breakdown
Gold futures, such as those traded on the CME Group’s COMEX Exchange, are an efficient means for you as a trader to participate in the directional movement of the price of gold. The exchange is essentially the marketplace where these futures are traded. By means of electronic networks, an exchange’s market participants can be apprised of vital information like this futures contract’s current price, competing bids and offers, the number of contracts changing hands (volume), the total number of outstanding contracts (open interest), and more. It’s also the means by which participation in the gold futures marketplace takes place. It’s where buyers and sellers, or futures traders like you, meet.
How Do You Begin Trading This Market?
Gaining access to the gold futures market generally calls for a trading account to be opened with a registered brokerage. It is through this arrangement that market participation is facilitated and orders to buy and sell gold futures can be placed to the exchange via an electronic trading platform – called Globex at the CME. The exchange is responsible for the execution of trades between buyers and sellers. This is possibly the most important function of the exchange, in that it serves as the buyer to every seller and the seller to every buyer, thus virtually eliminating credit risk for each market participant.
Author: Mark O’Brien, Senior Broker at Cannon Trading Company
Important: Trading commodity futures and options involves a substantial risk of loss. Therefore, recommendations contained in this letter are of opinion only and do not guarantee any profits. There is not an actual account trading these recommendations and past performances are not necessarily indicative of future results.
Micro Gold Futures: An Overview
Micro gold futures contracts are useful in bearish equity environments, where gold is showing its strength. It can serve as a portfolio stabilizer when markets are stressed. While the metal is not always immune to selling pressure, like when it sold off when the world went into “lockdown mode” in March 2020, it can outperform typical risk assets in these market environments.
With micro gold futures you have a greater ability to pinpoint scale, since the notional value is price times quantity, or 1890.00/oz X 10 Ounces. You can use them along side the 100 oz gold contract to control $250,000.00 of the metal. Here’s a great breakdown example of what that might mean for a trader like you:
- $1890 x 100oz Full Size Gold Contract = $189,000.00 on Notional Value plus $1890 x 30 ounces ( 3 Micro Gold Futures contracts) = $56,700 for a total $245,700.00 Notional Value.
- The Margin required for 1 Micro Gold Futures Contract is $660.00 currently and the Full Size Margin at $6600.00 currently, means the good faith deposit to control $245,700.00 of Gold is only $8580.00.
Gold contracts provide global price discovery and opportunities for portfolio diversification by presenting an alternative to gold bullion, coins, and mining stock investments. Gold also offers ongoing trading opportunities, as gold prices respond quickly to political and economic events. Micro gold futures is 1/10th the size of the standard 100 troy ounce contract but, price action nearly mirrors it’s big brother 100% of the time.
Micro Gold Futures & Standard Gold Futures: A Few Current Technical and Fundamental Thoughts
- Gold has been range-bound since April of 2020- $1690.00/oz low and $2089.00 high.
- This past month has seen the metal rally above it’s midpoint at $1889.50 by a small margin.
- The market is keeping an eye on a similar set of factors as has been the case for the last several months, namely inflation, the Fed taper, and the timing of “lift off” in US nominal rates.
- January 2022 saw some increases in managed money net length, perhaps as the headwinds for gold may have been factored into these price levels.
- February has started very positively, with gold posting gains after key events (FOMC and NFP) and now sitting just below a key resistance level of 1919 USD/oz.
Author: John Thorpe, Senior Broker at Cannon Trading Company
Important: Trading commodity futures and options involves a substantial risk of loss. Therefore, recommendations contained in this letter are of opinion only and do not guarantee any profits. There is not an actual account trading these recommendations and past performances are not necessarily indicative of future results.
Get Real Time updates and more on our private FB group!
“You Must Understand That There Is More Than One Path To The Top Of The Mountain.”- Miyamoto Musashi, A Book Of Five Rings: The Classic Guide To Strategy
Many experienced traders say that the stiffest challenge you’ll face in becoming a futures trader is conquering your own psyche. Why? Because losing is part of trading, and people hate to lose.
In this “Trading Psychology” Course you will learn:
· How to examine your patterns and behaviors and recognize when they are holding you back
· Maintaining self-confidence as a trader even in the face of inexperience
· The mathematical expectation model and how it can decrease your losses
· Determining the trading plan that is right for your trading personality
· Understanding and using Motivation – Risk – Reward to its full advantage
· Creating effective trading technique strategies
· Qualities of Successful Traders
Are you using Sierra charts and looking to implement their Teton order routing?
If so, look no further, Cannon can assist you in getting set up!
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.
Futures Trading Levels
02-18-2022
Improve Your Trading Skills
Economic Reports, Source:
ForexFactory.com
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.
Get Real Time updates and more on our private FB group!
We’ve seen a slight increase in exchange fees from the CME Group starting Feb 1., for a number of futures groups.
Agricultural futures and options saw a ten-cent increase, from $1.95 to $2.05, including grains and soy complex futures contracts.
Are you using Sierra charts and looking to implement their Teton order routing?
If so, look no further, Cannon can assist you in getting set up!
The Teton Futures Order Routing service is a high-quality order routing service with advanced risk management from Sierra Chart to provide order routing, for outright futures and spreads, direct to the major exchanges. There is no other intermediary provider.
Orders are routed direct to the exchange with high reliability and very low latency, in under 500 microseconds.
Supported exchanges are CME, CBOT, NYMEX, COMEX, FairX.
This service is offered at no cost to both clearing firms and to users. It has no transaction fee per contract traded. To our knowledge this is an industry first. This Teton Order Routing service still provides very high quality order routing.
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.
Futures Trading Levels
02-17-2022
Improve Your Trading Skills
Economic Reports, Source:
ForexFactory.com
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.
Trading currency futures offer the perks of a central exchange and transparency regarding the flow of orders as they come into the market. Market participants share a level playing field with volume transparency and the information they use to trade. Traders are provided with peace of mind and can unabashedly focus on improving their performance, which promotes a diverse and liquid trading environment. Confident traders in turn create liquidity in the financial markets.
Trading liquidity persists across many major USD futures currency pairs, including the Euro(6E,) Yen(6J,) British Pound(6B,) Canadian Dollar(6C,) Australian Dollar(6A,) Mexican Peso(6M,) and more. The reasonable margin requirements and competitive trading fees and commissions of the futures market make trading currency futures an attractive option for many styles and types of traders.
However, even though it’s transparent, don’t underestimate the challenge provided by the market itself. Liquidity and tight bid-ask spreads are created from voluminous markets. Importers and exporters hedging their currency risk, financial institutions conducting business, and speculators hoping to earn a living, are all hoping for a better future. This creates a competitive atmosphere with participants jockeying for the best position. It’s definitely an environment to prepare for carefully.
The exchange continues to provide accessibility for traders of many different capital amounts. Trading at 1/10th the size of the larger contract, the E-Micro FX Futures provides a smaller alternative than their larger relative. Although the fees and commissions tend to scale more economically for the larger sized contracts, the micro contracts allow traders more flexibility to size their positions. In addition, they also provide opportunity for creative hedging, spreads, and pairs trading with the bigger contract sizes. A savvy trader may find themselves geographically tracking interest rates.
Trading Currency Futures: Here Are Some Useful Tips for Budding Traders!
-
Intimately Learn Your Currency Instrument
It’s common for traders to have a favorite instrument. It can be argued that a trader’s favorite instrument is one that they’re most familiar with. Currency futures traders tend to find niches as each pair or futures contract will have behaviors unique to itself. As technology advances and the markets continually become more efficient, instrument correlation is more obvious. Though correlated at times, the volatility, price behavior, liquidity, and volume of each instrument or currency will be unique.
- Learn one instrument until you feel comfortable with it. You might find that it’s easier to understand the price movement of other instruments once you’ve studied a single one for awhile.
- Get specific with how you perceive the price movement of your selected instrument.
- Learn your instrument’s correlation to others. Ask yourself, “how does my favorite instrument, correlate to the others throughout the market and world?”
- Watch or practice that instrument on a demo until you feel confident in explaining what you’re seeing.
-
Define Your Trading Currency Futures Plan
For novice currency futures traders, the excitement of “giving it a try” will often outpace their strategic planning phase. Most traders can remember the thrill of their first few trades. Before long, the reality of the market tends to encroach on a trader’s psyche. Beginners learn that the market is not as easy as they would’ve hoped and they wish they had been more thorough in their planning stages.
- Assess who you are as a person. Do you know your personality type? Build a trading plan around yourself and your business needs. If you’re trying to trade a strategy that doesn’t fit your personality, your results will suffer.
- Build a plan that clearly defines when you should or should not trade. If you can’t answer when you should trade, then you should study your instrument further. A desire to learn and improve can be argued as one of a trader’s defining qualities.
- Prepare for different outcomes. Traders tend to romanticize the results they seek. Trust in your plan. Currency futures trading is full of adversity, all trading is. The consistency of yourself, and your plan, is what will help you through the challenging times.
-
Execute with Discipline
It’s obvious and underutilized that a trader’s discipline will slip when it’s least expected. The best tools, plan, education, and commission structure will be of no help to an undisciplined currency trader. At the pinnacle of adversity, when asked about discipline, traders tend to smile. It’s a sensitive subject.
- Practice self-awareness and mindfulness. Ask yourself the hard questions. “Am I trading because of a good opportunity, or am I just trying to make-up for a previous trade?”
- Develop good muscle memories and rework bad ones. Sometimes traders pickup bad habits as they learn. Do your best to identify these, as well as other stress that could impact your discipline and focus.
- All traders feel emotion. Don’t let the emotion control your decisions. Trading leveraged instruments may provide you with immediate feedback and that’s not always a positive thing. The markets move quickly and it’s easy to get lost in the action. A good rule of thumb is to try and trade a size that seems boring. If you’re constantly stressed or anxious about your position, it may be too sizable.
- There’s no easy way to deal with your own challenging behavior. It’s a struggle that all traders face. The deciding factor in your success will be how effectively and confidently you manage your failures. Having discipline in all aspects of your trading creates fruitful possibilities.
Get More Insights and Sign Up for A Free Demo Here: https://www.cannontrading.com/software/e-futures-international?q
Author: Josh Meyers, Broker at Cannon Trading Company
Important: Trading commodity futures and options involves a substantial risk of loss. Therefore, recommendations contained in this letter are of opinion only and do not guarantee any profits. There is not an actual account trading these recommendations and past performances are not necessarily indicative of future results.
Presidents Day 2022 Holiday Schedule for CME / Globex and ICE Exchange
*Dates and times are subject to change
If you have any questions, please call the CME Global Command Center at +1 800 438 8616, in Europe at +44 800 898 013 or in Asia at +65 6532 5010
Globex® Presidents Day 2022 Holiday Schedule for CME / Globex and ICE Exchange
More details at: http://www.cmegroup.com/tools-information/holiday-calendar.html
ICE Futures Presidents Day 2022 Holiday Schedule for CME / Globex and ICE Exchange
Detailed holiday hours for ICE Futures: https://www.theice.com/holiday-hours
The above sources were compiled from sources believed to be reliable. Cannon Trading 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 closing times for certain contracts may have been rescheduled.
Get Real Time updates and more on our private FB group!
More than a few reports tomorrow in addition to the Situation in Russia/ Ukraine.
Mortgages Delinquencies, Energy numbers, FOMC minutes and a few others! Be aware.
Are you using Sierra charts and looking to implement their Teton order routing?
If so, look no further, Cannon can assist you in getting set up!
The Teton Futures Order Routing service is a high-quality order routing service with advanced risk management from Sierra Chart to provide order routing, for outright futures and spreads, direct to the major exchanges. There is no other intermediary provider.
Orders are routed direct to the exchange with high reliability and very low latency, in under 500 microseconds.
Supported exchanges are CME, CBOT, NYMEX, COMEX, FairX.
This service is offered at no cost to both clearing firms and to users. It has no transaction fee per contract traded. To our knowledge this is an industry first. This Teton Order Routing service still provides very high quality order routing.
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.
Futures Trading Levels
02-16-2022
Improve Your Trading Skills
Economic Reports, Source:
ForexFactory.com
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.
Get Real Time updates and more on our private FB group!
Are GeoPolitical Risks Factored into FOMC Decisions?
By John Thorpe, Cannon Trading Senior Broker
Data Dependent? Will
Crude Oil and
Grain Prices weigh on Fed Minutes? and is this data relevant in the Fed’s decision making process? This Wednesday @ 2PM eastern the Federal Reserve Board releases to the public the Minutes from the January 25-26th meeting. we will find out the answers on Wednesday and the market will react. 1. Yes they had an announcement on the 26th about rates and 2. Yes a statement was released on the 26th that included this language ” The Committee’s assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments.” and Yes the Federals Open Market Committee on the 26th disclosed it’s “principles for Reducing the Size of the Federal Reserve’s Balance sheet”
https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm These however are not the Minutes of the Meeting, which , when released on Wednesday are market movers. Traders and Analysts copiously review the language used, looking for clues to Policy. The Minutes do include the complete economic analysis compiled by officials and whether or not Members had voiced opposition to the majority of the group If the FOMC minutes reveal inflation related pressure from a breach of the nationalized borders of Ukraine by Russia, the concerns will not only effect and Impact the world Crude Oil market, but will inevitably impact global prices of Grain, namely Wheat. Ukraine is the second largest country in Europe, after Russia and is a major producer and exporter of Wheat, Maize, Barley and Oats and account for 16% of world grain exports according to SGS; a global grain inspection company and commodity consultancy firm.
Are you using Sierra charts and looking to implement their Teton order routing?
If so, look no further, Cannon can assist you in getting set up!
The Teton Futures Order Routing service is a high-quality order routing service with advanced risk management from Sierra Chart to provide order routing, for outright futures and spreads, direct to the major exchanges. There is no other intermediary provider.
Orders are routed direct to the exchange with high reliability and very low latency, in under 500 microseconds.
Supported exchanges are CME, CBOT, NYMEX, COMEX, FairX.
This service is offered at no cost to both clearing firms and to users. It has no transaction fee per contract traded. To our knowledge this is an industry first. This Teton Order Routing service still provides very high quality order routing.
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.
Futures Trading Levels
02-15-2022
Improve Your Trading Skills
Economic Reports, Source:
ForexFactory.com
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.
Get Real Time updates and more on our private FB group!
Every trader has done it. You’ve done it, your friends have done it, even your broker has done it at one point early in their career.
Here’s the scenario:
You’ve finally finished your futures education at Cannon Trading Company. You’ve done you’re homework on stops, limits, indicators and price movements for the market you’re trading. You’re ready to go, you enter your limit order and you wait.
**DING**
You get filled. Your heart rate picks up, a wry smile crosses your face and you begin to imagine the possibilities of the one trade you’re in: How much can I make? How much can I lose before it’s too much? You’ve waited through months of technical trading and deep meditation to get here, and now it’s finally paying off with one of your first trades in the live market. Sayonara paper trading; aloha live futures.
Then, all of a sudden, the top of the hour hits and the market starts acting up. It’s getting more volatile and more volatile; it’s picking up speed and taking an unforgiving turn against you. You can’t think straight, all you can think about is your losing position that could get worse and worse as the seconds go by. You race to put in a stop order, but you finally have to settle for a market order just to stop the bleeding. You stare.
**DING**
You’re out of the market. What the hell just happened? You stare at the screen; did your indicators lie to you? Is your system faulty? Did you not listen to your broker? Well, probably not. But you’re down several handles, you’ve lost some money and your pride is aching.
What the hell happened was CPI report you were not aware of or did not know what it means…..
As a trader, you will come across many factors that you must consider before entering or exiting the markets. Some of the most important aspects to look for are economic events that can move the markets drastically one way or another.
There are many types of economic events including releases by a governing body, changes in sales or consumption of commodities, and increases in supply and demand. All of these can affect the markets you trade, making it important for you to know how and when these changes are happening.
Are you using Sierra charts and looking to implement their Teton order routing?
If so, look no further, Cannon can assist you in getting set up!
The Teton Futures Order Routing service is a high-quality order routing service with advanced risk management from Sierra Chart to provide order routing, for outright futures and spreads, direct to the major exchanges. There is no other intermediary provider.
Orders are routed direct to the exchange with high reliability and very low latency, in under 500 microseconds.
Supported exchanges are CME, CBOT, NYMEX, COMEX, FairX.
This service is offered at no cost to both clearing firms and to users. It has no transaction fee per contract traded. To our knowledge this is an industry first. This Teton Order Routing service still provides very high quality order routing.
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.
Futures Trading Levels
02-11-2022
Improve Your Trading Skills
Economic Reports, Source:
ForexFactory.com
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.
Get Real Time updates and more on our private FB group!
Keep an Eye on . . . . Everything
By Mark O’Brien, Cannon Trading Senior Broker
Last Friday’s monthly unemployment report caught nearly every economist off guard, showing a gain of 467,000 new jobs in Jan. compared to the median estimate of 150,000 and a massive upward revision in the November and December totals: November was revised up to 647,000 from 249,000 and December was revised up to 510,000 from a previously reported 199,000. Those changes brought the 2021 total to 6.665 million, easily the biggest single-year gain in U.S. history.
Inflation-sensitive commodities markets including
metals,
equity indexes and
currencies have been anticipating an increasingly hawkish inflation-fighting Fed to hike interest rates at least five times in 2022. The current resiliency in the jobs market against the pandemic generally and the Omicron variant surge in recent months is likely to keep the Fed on this schedule. In the commodity sectors referenced above, look for expanded volatility ahead.
Already apparent and not to be ignored,
Chicago Board of Trade soybean and
corn futures set eight-month highs today on concerns that more unfavorable crop conditions due to drought are in store in growing areas of South America.
Cattle, Hogs and
cotton all hit life-of-contract highs in their respective front month futures contracts within the last week (not to be confused with all-time highs). Notable mention: March
cotton traded through $1.28 intraday and made its highest weekly close since July 2011.
Lastly,
crude oil traded in the neighborhood of $90/barrel – an 8-year high – as global consumption remains strong and oil stockpiles have plummeted in the past year with many major producers – OPEC + and the U.S. among them – struggling to pump more.
We’re just one month into this calendar year with more developments ahead – geopolitically, weather-related and monetary policy related – all set to cause commodity prices across a range of asset classes to exhibit potentially rugged price action. Keep an eye out.
.
Are you using Sierra charts and looking to implement their Teton order routing?
If so, look no further, Cannon can assist you in getting set up!
The Teton Futures Order Routing service is a high-quality order routing service with advanced risk management from Sierra Chart to provide order routing, for outright futures and spreads, direct to the major exchanges. There is no other intermediary provider.
Orders are routed direct to the exchange with high reliability and very low latency, in under 500 microseconds.
Supported exchanges are CME, CBOT, NYMEX, COMEX, FairX.
This service is offered at no cost to both clearing firms and to users. It has no transaction fee per contract traded. To our knowledge this is an industry first. This Teton Order Routing service still provides very high quality order routing.
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.
Futures Trading Levels
02-10-2022
Improve Your Trading Skills
Economic Reports, Source:
ForexFactory.com
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.
Get Real Time updates and more on our private FB group!
“Take the Time to Learn How to Manage Trading Risks”
By John Thorpe, Cannon Trading Senior Broker
When speaking with customers, the conversation that often times bubbles up when speaking about trading results invariably leads to this question “what do you do when you trade?”, and Invariably my opening salvo is “manage the risks” there are a number of ways to mange the risks and reduce the costs of both losses and fees., You have to ask yourself why you are trading. are you trading just to trade? to alleviate boredom? I swear i have seen so many traders just drop the 25 cent piece into the slot and tug that one armed bandit hard. ” i need another cocktail! Where is my server? “… His or her chances to “win” are less than 10% Forget about luck , the video graphic reels or readouts on the machine are but visual representations of a predetermined outcome , the computers internal memory has already been spinning through millions of combinations the moment you pull the lever ( or push the button, think click your mouse), This may be stimulating for some and perfectly fine if you have the discretionary income to continue to feed your endorphin buzz. .. But for most of us , we need to understand our risk management style to incorporate into our trading. What I talk about is
stop loss orders ( yes stops), but wait, that’s not all and only a small part of the strategy, we need to have an understanding of how we can utilize a low cost options strategy as well, to compliment our trade idea. In addition, we can understand what markets may be correlated to the market you are trading and “spread off” your risk during a trade idea until you can see your plan unfold more clearly, then lift your spread from a correlated product and continue with your trade utilizing training stops, options, or whatever other tools are available, Hell! you can even change the delta on your positions with so many of the
new Micro contracts that have become viable risk management tools as well, Please spend the time to understand these and many other Ideas with a broker, your personal broker here at Cannon Trading, I am, with a degree of certainty, sure you will benefit from that conversation, which may be the beginning of a long term and possibly more profitable relationship. For a more satisfying and rewarding trading experience, as my colleague ,Ilan Levy-Mayer has said for years, ” Plan your trade and Trade your Plan”.
Are you using Sierra charts and looking to implement their Teton order routing?
If so, look no further, Cannon can assist you in getting set up!
The Teton Futures Order Routing service is a high-quality order routing service with advanced risk management from Sierra Chart to provide order routing, for outright futures and spreads, direct to the major exchanges. There is no other intermediary provider.
Orders are routed direct to the exchange with high reliability and very low latency, in under 500 microseconds.
Supported exchanges are CME, CBOT, NYMEX, COMEX, FairX.
This service is offered at no cost to both clearing firms and to users. It has no transaction fee per contract traded. To our knowledge this is an industry first. This Teton Order Routing service still provides very high quality order routing.
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.
Futures Trading Levels
02-09-2022
Improve Your Trading Skills
Economic Reports, Source:
ForexFactory.com
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.
Get Real Time updates and more on our private FB group!
Overtrading the Afternoon
By Josh Meyers, Cannon Trading Series 3 Broker
Knowing when (or NOT) to trade can be difficult. Keeping a close eye on volume can help. Defining “normal” volume for your trading style will help you through behavioral shifts in the markets. Improving this problem can be as simple as watching volume/price move through time.
Watch volume through time. Holiday sessions, busy days, around FOMC, across different volatility environments, etc. Patterns in your performance will become more evident, and you’ll develop rules and systems around your traits as a trader.
There’s also another aspect that shouldn’t be underestimated. Most discretionary traders are more mentally/physically fatigued in the afternoon, which makes it easier to slip-up, especially in unfamiliar trading conditions. Knowing when to hang it up for the day is an underrated trading skill.
Here are a few tips
(These are for opinion/educational purposes only)
I like to watch a 30m price chart, with a faster chart for volume(1m or faster) so I can compare the two relative to one another. Watch both big and small and take note of the behavior. You don’t always have to trade! Sometimes watching to learn is beneficial. Watching different time frames allows for better context and helps to keep a trader out of tunnel vision.
Define a “normal” trading environment for your system and observe how instrument behavior changes based on external factors like time of day or fundamental factors.
Keep an eye on yourself mentally and physically as you trade. Make sure you’re trading with focus and direction. If your performance is suffering, take a break. Although taking a break can be hard, it’s sometimes the best solution for a trader’s performance. If you don’t feel good about trading, it’s ok to walk away.
Shifts in market behavior can be unexpected. Sometimes it happens slowly, sometimes quickly. Try to avoid tunnel vision or putting too much emphasis on a particular trade/entry as it could lead to an expectation or bias for the following trades.
A few additional tips for the active management of overtrading:
Set a timer between trades
o Pick a spot for an order and let the price come to you.
The need to be right about a trade can be more costly than accepting a loss
- Actively look for better spots. Trade less, look more. Seems simple I know……
- Practice self-assessment. How am I doing? Am I following my plan?
Hope this helps!
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.
Futures Trading Levels
02-08-2022
Improve Your Trading Skills
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Are you using Sierra charts and looking to implement their Teton order routing?
If so look no further, Cannon can assist you in getting set up!
The Teton Futures Order Routing service is a high-quality order routing service with advanced risk management from
Sierra Chart to provide order routing, for outright futures and spreads, direct to the major exchanges. There is no other intermediary provider.
Orders are routed direct to the exchange with high reliability and very low latency, in under 500 microseconds.
Supported exchanges are CME, CBOT, NYMEX, COMEX, FairX.
EUREX exchange to be added later.
Options trading are not currently supported.
This service is offered at no cost to both clearing firms and to users. It has no transaction fee per contract traded. To our knowledge this is an industry first. This Teton Order Routing service still provides very high quality order routing.
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.
Futures Trading Levels
02-04-2022
Improve Your Trading Skills
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Focus on Soybeans:
In 2019 the world produced about 12 billion bushels of
soybeans, or about 367 million tons. Give or take, that’s not far from the last five years’ production. Unlike decades past, when the United States lead the world in
soybean production, now about half of the world’s soybeans are grown on farms in five countries in South America: Brazil, Argentina, Paraguay, Bolivia and Uruguay. So, it should be no surprise that the price of U.S.-grown
soybeans is influenced by South American
soybean prices. This is acutely the case in recent weeks. While U.S. farmers are just readying farmland for this year’s crop, the South American crop is well on its way and yield and quality estimates for this crop year are being tallied as the region moves towards harvest. Weather forecasts have recently turned drier to exacerbate a lack of rain early in the crop year and traders expect to see significant damage to the crop. This was not evident in the
latest USDA world supply/demand report released Jan. 12. Since then, soybeans for March delivery on the Chicago Board of Trade have advance ±10% from ±$14.00/bushel to ±$15.50, prices not seen since last June. Expect outsize price moves in the coming weeks.
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.
Futures Trading Levels
02-03-2022
Improve Your Trading Skills
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
We have both energy numbers and the ADP employment report tomorrow.
OPEC meeting to add some fuel…..
Be aware of what reports are coming, when and what markets they affect.
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.
Futures Trading Levels
02-02-2022
Improve Your Trading Skills
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Uncovering Potential Unforeseen Traps
by John Thorpe, Senior Broker
Many of you are purely technical traders and for good reason I understand why. It’s also critical to understand why there, from time to time, become sharp price deviations from your technicals that many times are simply one offs but sometimes can result in longer term trend shifts. It’s always important when trading Futures and Commodities to look past the headlines and beyond indicators and respect the weekly economic calendar. I Extoll the virtues with my clients and through this Blog the importance of knowing the markets you trade and the reports that Government agencies around the Globe generate at every opportunity I have with them . If you are trading Grains,
ZS,
ZW,
KE,
ZC,
ZO, ZL,
ZM monthly WASDE release dates , Planting Intentions and Weekly sales numbers are a few examples of reports that are released during trading hours that you need to be aware of, If you are trading Bonds,
ZB Notes, ZN, Stock indices,
S&P 500 ES, MES ,
Nasdaq 100 NQ, MNQ or trading any of the foreign currencies there are reports and Meetings that occur on a regimented basis that clearly impact your ability to manage risks to your satisfaction.. please, if you are new to this part of trading, don’t know where you can get this information readily, , there are services, Calendars and other resources your Broker can help you with. Just contact your Cannon Broker, She or He will be happy to share solid, respected sources so you don’t fall into a margin deficiency trap as a result of some unforeseen event that other traders were aware of and were able to plan accordingly to either become Flat, place appropriate stops, spread off the risk or utilize option strategies to avoid potential turmoil in your account.
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.
Futures Trading Levels
02-01-2022
Improve Your Trading Skills
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Tremendous volatility continues. Market moving extremely fast at times.
Step back and take a deep breathe when needed.
Self control and good money management plan are keys!
Heads up: April gold is now front month.
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.
Futures Trading Levels
01-28-2022
Improve Your Trading Skills
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Enter the 39th Annual
World Cup Trading Championships®
Futures and Forex Divisions for 2022
January 1st, 2022 – December 31st, 2022
The 2022 World Cup Trading Championships® are just around the corner.
You are invited to enter the ultimate trading challenge, where some of the world’s best Futures and Forex traders compete.
The World Cup Trading Championships have been held since 1983 and are the most prestigious trading competitions in the industry. The winners of each division will prove that they are the best of the best.
The top profitable Entrants will be eligible to receive a magnificent pewter Bull and Bear trophy or a beautiful crystal Bull and Bear Trophy.
Real-money competitions based on net returns – no entry fee required.
Take on traders from across the globe to compete for coveted Bull & Bear trophies, glory, and new career opportunities.
Do you have what it takes?
Contact us at 1-310-859-9572 or Visit Us
on the WebTrading futures and forex involves significant risk of loss and is not suitable for everyone. CME Group is the trademark of CME Group, Inc. CME Group is the trademark of CME Group, Inc.
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.
Futures Trading Levels
01-27-2022
Improve Your Trading Skills
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
FOMC Statement tomorrow:
From CNBC.com
The Federal Reserve is expected to say this week it is moving forward with interest rate hikes and considering other policy tightening, reversing the easy policies it put in place to fight the pandemic. The Fed begins its two-day meeting Tuesday and on Wednesday afternoon, the central bank is expected to issue a new statement that shows it is resolved to fight inflation. Against the backdrop of a violent stock market correction, Fed officials are expected to say they are ready to push up the fed funds rate from zero as soon as March.
The following are my PERSONAL suggestions on trading during FOMC days:
· Reduce trading size
· Be extra picky = no trade is better than a bad trade
· Choose entry points wisely. Look at longer time frame support and resistance for entry. Take the approach of entering at points where you normally would have placed protective stops. Example, trader x looking to go long the mini SP at 4325.00 with a stop at 4319.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 4319.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).
· Expect the higher volatility during and right after the announcement
· Expect to see some “vacuum” ( low volume, big zigzags) right before the number.
· Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
· Keep in mind statement comes out at 1 Pm Central time, the news conference which dissects the language comes out 30 minutes later so the volatility window stretches out.
· Know what the market was expecting, learn what came out and observe market reaction for clues
· Be patient and be disciplined
· If in doubt, stay out!!
If you are looking for other reference material please
contact your Cannon Broker for lists of solid, informative and helpful trading tomes
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.
Futures Trading Levels
01-26-2022
Improve Your Trading Skills
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Equity Price limits and Circuit Breakers Information by John Thorpe, Senior Broker
As traders during volatile periods, it’s important to know the rules
relative to trading halts and circuit breakers.
The following is largely from the CME rulebook, please understand the rules are different between the Overnight and Day sessions .
Equity product price limits and circuit breakers
Our U.S. Equity futures markets have a range of automated safeguards in place – some of which are coordinated with cash equity markets.
CME Group U.S. Equity futures have 7% price limits overnight and remain open for trading at that limit. If markets reach 7% up or down during the overnight session, they remain open but can only trade up to those price limits. Further, Dynamic Circuit Breakers will be in effect with a width of 3.5%. If a contract market moves beyond +/- 3.5% within an hour during the overnight session, trading will be paused for two minutes.
Daytime trading employs market-wide circuit breakers, a kind of price limit that halts trading for a period of time to help the market reset.
CME Group U.S. Equity futures markets are coordinated with stock circuit breakers at market 7%, 13%, and 20%. The 7% and 13% circuit breakers are each followed by 15-minute trading halts; if the 20% level is reached, the market closes for the trading day. Learn more below:
If you would like to know what the current price levels will be for the Equity markets you are trading at the 7%,13% and 20% levels,
please contact your broker at Cannon Trading as these numbers change daily based on the Previous days settlement price calculated in the last 30 seconds of trading– 2:59:30-3:00:00 PM CST
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.
Futures Trading Levels
01-25-2022
Improve Your Trading Skills
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Improve Your Trading Skills
Do your stop orders seem to act like trade magnets?
Have you ever looked into the range of available futures options strategies?
Do you know the ins and outs of futures spreads?
You’re invited to call for more info.: 1-800-454-9572, or you’re welcome to
register hereWe look forward to your inquiry.
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.
Futures Trading Levels
01-21-2022
Improve Your Trading Skills
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Be Watchful for Stock Market & Petroleum Product Oscillations
By Mark O’Brien
The prevailing downward bias in
stock indexes has plenty of justification: a 1.4 million single-day case spike in infections last week, market expectations for up to four interest rate hikes this year, less-than-robust readings for last week’s initial jobless claims and retail sales, potential Russian military action against Ukraine, surging energy prices (
crude oil traded up to a 7-year high yesterday).
Yet, there are supportive elements capable of counteracting the equity index sell-off of recent days: traders may look at this latest correction as sufficient to compensate for future Fed. policy actions, rate hike fears will tend to moderate with softening economic data. The latest Omicron developments continue to be encouraging. New Covid-19 cases are plummeting in a growing list of places. Since early last week, new cases in Connecticut, Maryland, New Jersey and New York have fallen by more than 30 percent. They’re down by more than 10 percent in Colorado, Florida, Georgia, Massachusetts and Pennsylvania. In California, cases may have peaked. Acknowledging the tensions between Washington and Moscow, U.S. Secretary of State Anthony Blinken will meet with his Russian counterpart on Friday and promised “relentless diplomatic efforts to prevent renewed aggression and to promote dialogue and peace.”
Crude oil traders should expect the recent price increase to be met with increased volatility as political tensions involving major producers such as the United Arab Emirates and aforementioned Russia could exacerbate the already tight supply outlook. Blow-off tops should not be downplayed.
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.
Futures Trading Levels
01-20-2022
Improve Your Trading Skills
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Correlational Observations of Indices Market Behavior.
VIX Volatility futures Index.
By John Thorpe, Senior Broker
VIX futures expiration is a monthly occurrence. The expiration is somewhat varied, the remaining 2021 schedule is included below, typically, middle of the month on Wednesday mornings. Take a look at your daily chart for any of the indices and you see the sell offs during the week of or the week prior to
VIX
expiration days.
My belief is there would be a smaller probability of a correlational relationship during a Bear stock market, However, Since we are in the 12th year of a bull market, I believe the underling price action is created by portfolio managers rolling their hedges and adjusting their risk for the coming month. They often use the week prior to Short the VIX at higher prices (lower equity index prices) for the first week of the new
VIX contract month as they are buying back their old contract shorts pushing the VIX prices higher, thereby pushing negative sentiment into the marketplace. If there are more extreme price movements in their favor, they will elect to have the hedges expire to cash as the contracts are financially settled.
Coincidentally, to the recent market sell off January VIX expires Wednesday morning 19th at 8:00 a.m. CDT
19 January 2022
16 February 2022
15 March 2022 (Tuesday, due to Good Friday on 15 April 2022)
20 April 2022
18 May 2022
15 June 2022
20 July 2022
17 August 2022
21 September 2022
19 October 2022
16 November 2022
21 December 2022
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.
Futures Trading Levels
01-19-2022
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Trading Videos 101: Curious on an indicator that can help you with EXITS?
Watch the latest trading videos we have posted and see if you can pick a tip or two on trading smarter!
In this blog entry today we are sharing four videos, each a few minutes long. The videos discuss practical tips for trading and sharing our experience with you
2. One way you can use the Parabolics study ( also known as PSAR) to manage current positions, possibly as a trailing stop
3. Different ways traders can utilize support and resistance levels in their trading.
4. Entering trades on a stop, using “price confirmation”.
5. Utilizing Range Bar charts for shorter term trading as a way to try and filter out some noise.
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.
Futures Trading Levels
01-14-2022
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Any asset experiencing double-digit price change as a percentage will catch traders’ eyes. If this didn’t catch yours, check it out:
Today, the front-month Feb. natural gas futures contract shot up ±58 cents to ±$4.83 MMBtu. for a ±13.5% increase.
Another solid rally was seen in Mar. copper with a ±$13-cent ($3,250) move up to $4.56, briefly breaching $4.60 and now at almost 3-month highs.
Honorable mention: crude oil. In barely one month – 28 trading sessions – the front-month Feb. crude has traded from an intra-day low of $62.26 on Dec. 2 to life-of-contract highs near ±$82.50.
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.
Futures Trading Levels
01-13-2022
Economic Reports, Source:
https://bettertrader.co/
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.
Dr. Martin Luther King Jr. 2022 Holiday Schedule for CME / Globex and ICE Exchange
*Dates and times are subject to change
If you have any questions, please call the CME Global Command Center at +1 800 438 8616, in Europe at +44 800 898 013 or in Asia at +65 6532 5010
Globex® Dr. Martin Luther King Jr. 2022 Holiday Schedule for CME / Globex and ICE Exchange
More details at: http://www.cmegroup.com/tools-information/holiday-calendar.html
ICE Futures Dr. Martin Luther King Jr. 2022 Holiday Schedule for CME / Globex and ICE Exchange
Detailed holiday hours for ICE Futures: https://www.theice.com/holiday-hours
The above sources were compiled from sources believed to be reliable. Cannon Trading 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 closing times for certain contracts may have been rescheduled.
Get Real Time updates and more on our private FB group!
Day- Trading Alerts via Text Directly to Your Phone FREE TRIAL ($249 value)
3 Weeks FREE TRIAL
The real time trade alerts FREE 3-week trial uses a combination of proprietary information technical studies, trading ALGOS and a few popular indicators for confirmation.
All trades are intended to be day trades and will be complimented with text exits at any time after entry and at the latest by the end of the trading day.
You will receive a text and email each time there is an entry or exit in a simple language along with the current price for that specific market.
Text alerts available to US and Canada residents. Int’l clients will receive the alerts via email.
Real-time trade signals via text available for the following markets:
* Gold, silver, copper
* mini SP, mini Nasdaq, mini Dow
* Crude oil
* 30 year Bonds
* Hogs, Cattle
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.
Futures Trading Levels
01-12-2022
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
More than a few FED Personnel will be talking tomorrow which can move the markets at times. Please see insight by my colleague John Thorpe, Senior Broker below:
Fed Chair Testimony tomorrow morning , 10:00 a.m. EST Tomorrow , January 11th, Jerome Powell will be speaking at 10:00 a.m. EST Before the Committee on Banking, Housing, and Urban Affairs in the U.S. Senate , Prepare yourselves and trading accounts for statements designed to provide calm in lieu of the recent market turbulence. The difficulty for Powell, unlike his recent speech about the Fed minutes, which is written ahead of time, is this “testimony” will be ad lib. My belief is the markets will react more intensely to Chairman Powell’s testimony than the volatility we saw during the January 5th minutes of the December 14-15 2021 policy meeting. Markets have been traveling largely in one direction since that moment in time. Equity indices lower, Bonds and notes lower, Metals lower, food stuffs lower.. Be careful during this time frame and expect unexpected market reactions in many of the markets we are trading during his nomination testimony.
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.
Futures Trading Levels
01-11-2022
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
NFP Report Tomorrow: By Mark O’Brien, Senior Broker
Here comes the Labor Department’s December Non-Farm Payrolls Report, long form for the unemployment report.
We just saw the surge in private hiring in the ADP National Employment Report on Wednesday. According to the report, private payrolls jumped by 807,000 jobs last month, the most in seven months and nearly double the early consensus after rising by 505,000 in November. Economists polled by Reuters had forecast private payrolls would increase by 400,000 jobs. The ADP report has a poor record of predicting the Labor Dept.’s numbers – primarily because of each report’s differing means of collecting data. The consensus for tomorrow’s report is to see 400,000 new jobs created, with a consensus range of 300,000 to 500,000. Private payrolls are expected to come in ±363,000.
This month’s backdrop includes a demand for workers reaching historic highs as businesses struggle to meet the rush of demand for goods and services. A record 4.5 million Americans quit their jobs in November as employers sought to fill 10.6 million job openings. Hires rose from 6.5 million in October to 6.7 million in November, a sign that most job-quitters are switching to new firms instead of dropping out of the workforce. On top of these variables, the rapid spread of the Omicron variant and its impact on jobs may not be reflected in this month’s report.
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.
Futures Trading Levels
01-07-2022
Economic Reports, Source:
https://bettertrader.co/
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.
Pass the Knowledge – Feel Free to Forward to a Friend!
Get Real Time updates and more on our private FB group!
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Hello Traders,
Happy and prosperous New Year from the Cannon Trading Team!
We appreciate the chance to serve your futures trading needs and are here to assist.
FOMC Minutes report triggered one of the larger sell offs we have seen in recent months. NQ and RTY were both down over 3% when the trading day was over.
Hope it helps.
*While I have no idea were the market is going from day to day, minute to minute, week to week etc. I do know that in the past, some of the sharpest and largest rallies were short covering after a large sell off. More often than not market sell offs and volatility like we are seeing do not end up as V type of action but more like U or W when it is all said and done.
*Expect the unexpected…
* Have an idea of what you are looking to do, keep in mind possible risk and have a game plan. Now more than ever, plan your trade and trade your plan!
* Think money management, hedging risk while you are still trying to figure out how to profit.
* Know what is going on, reports, current margins, current limits and more.
*Consider short term options instead of futures and/or MICROS
*Trade smaller. The bands are much larger. Watch the VIX.
* DO NOT assume anything…if you are not sure, contact us and we will try our best to assist with the combined, vast experience we have here as a team. * Wash hands, take this seriously and do your best to stay healthy….
My colleague, John Thorpe, Ex floor broker, contributed the following on the VIX and the VVIX:
“We recommend all stock indices intraday traders to keep an eye on the VIX for directional clues and study, many of you have access through other means to view this critical trading barometer, VIX now trades 5 days per week ,23 hours per day. if you need to add the VIX data to your trading platforms , it’s 3 bucks per month, penny wise and pound foolish if you don’t. Contact your broker on how to add the Volatility Index traded through the CBOE to your trading platform.”
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Futures Trading Levels
01-06-2022
Economic Reports, Source:
https://bettertrader.co/
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.
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.
Get Real Time updates and more on our private FB group!
Happy and prosperous New Year from the Cannon Trading Team!
We appreciate the chance to serve your futures trading needs and are here to assist.
Energies Insight by John Thorpe, Senior Broker
O.P.E.C. will make a decision on output policy for February when they meet tomorrow. Please expect and prepare accordingly in the early A.M. and anticipate additional volatility not only in the energy markets ,
CL,
NG,
RBOB and
Heating oil but also in the Equity indices
ES, MES,
NQ, MNQ,
YM, MYM,
RTY , and food markets as OPEC will be meeting in Vienna at 8a.m. EST (1 p.m. Central European TIme zone ) in light of the current restrictions and challenges related to the COVID-19 pandemic, please find the expected hours of release useful. Will their decision add to the existing inflationary concerns or will OPEC concede it’s output tightening instituted in 2020 has run it’s course and agree to raise it’s output limits in a measured approach or more substantially? The
bond market has taken a nose dive in recent days and interest rates are expected to rise , tightening credit, Metals have also sold off in anticipation of easing inflationary pressures. Manage your risk well this week.
1. The 36th JMMC Meeting is scheduled to take place on Tuesday, 4 January 2022, at
13:00 (CET) via videoconference.
2. On the same day, 4 January 2022, the 24th OPEC and non-OPEC Ministerial Meeting
is slated to convene at 14:00 (CET) via videoconference.
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.
Futures Trading Levels
01-04-2022
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Markets will have NORMAL TRADING HOURS Friday and Monday.
Happy Holidays and a prosperous New Year from the Cannon Trading Team!
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.
Futures Trading Levels
12-31-2021
Economic Reports, Source:
https://bettertrader.co/
NONE TOMORROW Dec. 31st
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.
Get Real Time updates and more on our private FB group!
The last few trading days of 2021 have seen much lighter volume, a bit choppier price action as many of the larger traders and institutions took off the time right before Christmas and will return next week.
Understand the type of market environment you are in and how it affects trading in the markets you trade.
Markets will have NORMAL TRADING HOURS Thursday, Friday and Monday.
Happy Holidays and a prosperous new year from the Cannon Trading Team!
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.
Futures Trading Levels
12-30-2021
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
The last few trading days of 2021 have seen much lighter volume, a bit choppier price action as many of the larger traders and institutions took off the time right before Christmas and will return next week.
Understand the type of market environment you are in and how it affects trading in the markets you trade.
Markets will have NORMAL TRADING HOURS Thursday, Friday and Monday.
Happy Holidays and a prosperous new year from the Cannon Trading Team!
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.
Futures Trading Levels
12-29-2021
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
In this “Options on Futures for Equity Traders” FREE Course you will learn:
- Understanding Options Contract Details
- Trading Options on Futures Using Strategies you Already Know
- Influence of Pricing on the Option for Equity Traders
- Why Options on Futures Gives Added benefit of Diversifying Risk
- Trading Options During Economic Events
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.
Futures Trading Levels
12-28-2021
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Thursday, December 23, 2021 – Normal Market Close Time. However, since the markets will remain closed until Sunday – we will require *Any open positions must meet Exchange Maintenance Margin 15 minutes before the market close (3:45 pm CST).
2021 Key Takeaways with Craig Bewick of the CMEGroup.com
What a year it’s been… again. Even though there are still 7 more trading days left in 2021, and much could change in the next 7 trading days, we decided to take an assessment of where we’ve come since 12/31/2020.
- S&P 500 and Nasaq-100 futures prices were up by over 20%; E-mini S&P 500 options implied volatility is trading at just about the same level as it was a year ago
- Even though it’s trading well off its highs of the year, WTI Crude Oil futures prices are up by nearly 50%
- Gold futures prices were a bit “range bound” this year. However, if we look at implied volatility as one measure of potential price movement, the average closing 30-day implied volatility in 2021 was nearly equal to the average closing level since December of 2011. Also, if we look at it by year, the average closing level in 2021 was 14.2%; higher than 2017 (10.7%), 2018 (9.8%) and 2019 (10.8%).
- US Treasury yields increased. The 10-Year yield is up from under 1% to nearly 1.5%. We used data from the St. Louis Fed to get the 12/31/21 value and compared it to the current 10-Year Micro Yield futures price so it’s not perfect, but does provide an indication of the yield increase. Of course, as Jim Iuorio pointed out in a recent Yield Insights video that was published here, the last time inflation readings were at the current levels, the 10-Year yield was near 12%.
- Soybean futures prices, after a year of historic volatility, wound up almost unchanged on the year. We downloaded data from QuikStrike to verify this and included the graph below in which the orange line depicts the price level at the beginning and end of the year.
- Natural Gas futures prices have also been characterized by historic volatility and, even though they are trading well below this year’s high levels, are still 50% higher than a year ago
- In a year that saw CME launch several new cryptocurrency products, Bitcoin has increased in price by about 66% and implied volatility, while still among the highest compared to other CME options products, has come down from over 100% to about 78%
So, in a year that was not short of potentially market moving headlines and seemingly as more questions than answers remain, we hope all of our In FOCUS readers have enjoyed our daily commentary.
We wish everyone a very happy and healthy holiday season and good trading year in 2022.
Craig Bewick has spent 25 years in futures and options markets, starting at CBOT and CME working in risk management, regulatory, technology, product management and client development.
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.
Futures Trading Levels
12-23-2021
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Volatile markets in a short trading week as markets are CLOSED this Friday!
Energies numbers tomorrow at 7:30 AM Pacific time.
On a different note, bit more humorous….as we head into the holiday season and 2021!
The trader’s prayer
May I never be facing north when the markets headed south, and may locked limit always be on my side. 🤜🏼
May the money left on the table be someone else’s and may my pockets be deeper than the correction.
✋ May I always be 5 minutes ahead of the market, And may my order have a clear path to the pit (electronic exchange now days….).
✋ And if this one is a winner, I swear I quit!
Introducing Micro Ether Futures
At 1/10 the size of one ether, Micro Ether futures (MET) provides a precision, efficient, cost-effective way to manage your exposure to one of the largest cryptocurrencies in the world by market capitalization.
- Fine-tune your Ether exposure
- Enjoy price discovery on a regulated exchange
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.
Futures Trading Levels
12-22-2021
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Introducing Micro Ether Futures
At 1/10 the size of one ether, Micro Ether futures (MET) provides a precision, efficient, cost-effective way to manage your exposure to one of the largest cryptocurrencies in the world by market capitalization.
- Fine-tune your Ether exposure
- Enjoy price discovery on a regulated exchange
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.
Futures Trading Levels
12-20-2021
Economic Reports, Source:
https://bettertrader.co/
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.
Christmas 2021 Holiday Schedule for CME / Globex and ICE Exchange
*Dates and times are subject to change
If you have any questions, please call the CME Global Command Center at +1 800 438 8616, in Europe at +44 800 898 013 or in Asia at +65 6532 5010
Globex® Christmas Day 2021 Holiday Schedule for CME / Globex and ICE Exchange
More details at: http://www.cmegroup.com/tools-information/holiday-calendar.html
ICE Futures Christmas Day 2021 Holiday Schedule for CME / Globex and ICE Exchange
Detailed holiday hours for ICE Futures: https://www.theice.com/holiday-hours
The above sources were compiled from sources believed to be reliable. Cannon Trading 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 closing times for certain contracts may have been rescheduled.
Cannon Futures Weekly Letter Issue # 1079
Dear Traders,
Trading 201: Learn to Lose, Learn to Step Away with Profits and Losses
Important NOTE: With The Recent Volatility Across Markets, We Have Seen Margins Increase In Some Markets As Well As Wild Swings And Extreme Volatility In Many Markets.
For Some, It Can Cost The Full Account Value But Doesn’t Need To. These Volatile Times Require MAJOR Adjustments In How You Approach Trading And Risk Management. I Hope This Article Helps And I Encourage You To Utilize Our Brokers And The Knowledge They Have To Assist You..
Contact UsMany different factors go into trading. Too many to discuss efficiently in one blog post. Some relate to trading techniques, other to money management, mental aspect, risk capital and much more.
But one that sticks in my eyes is the inability to accept a loss. I see many clients who can make money and have days where they make money but when they lose, they lose much more, sometimes even losing control and losing a big portion of their account.
I am not sure how a trader can embed this into their trading mind, BUT in my opinion if you train your brain to expect losses, understand losses and that losing days will happen, you will increase your chances of surviving in this business, which in return will actually give you a chance to succeed….
Losses are part of trading and as long as your losses are part of the plan and are quantified in advance and you can adhere to your rules, then you have a chance. I think it’s easy when traders are winning…making money etc. Much harder when you lose or down. your brain starts playing tricks on you…it tells you to double down, maybe reverse even though your analysis does not say so….all of a sudden you start pulling trades out of instinct, fear rather than a calculated plan that has solid risk/ reward.
If a trader learns how to lose, to accept losses, to have realistic expectations, then he/ she can avoid having one of those terrible days when traders can lose almost of all their account.
Also, while a bit easier in my mind, a day trader should also step away when he reached a predefined profit target for the trading day. In my humble opinion, the more you day trade, the more fatigued you become and larger chances for errors.
I went into this subject and detailed day trading money management in an article I wrote a few years back for SFO magazine.
Good Trading
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.
Futures Trading Levels
12.20.2021
Weekly Levels
Reports, First Notice (FN), Last trading (LT) Days for the Week:
https://mrci.com
Date Reports/Expiration Notice Dates
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
Get Real Time updates and more on our private FB group!
Quadruple witching tomorrow….
Futures, futures options, stock options and single stocks all expire tomorrow morning right on the open of the stock market.
Keep in mind that December
mini SP and it’s relatives (
mini Dow,
mini Nasdaq etc.) EXPIRE tomorrow and cash settle based on special settlement price….Markets can get volatile tomorrow morning right before and around the open.
The December contract will simply cease to trade. If you have not switched to March yet, now is the time…..
Introducing Micro Ether Futures
At 1/10 the size of one ether, Micro Ether futures (MET) provides a precision, efficient, cost-effective way to manage your exposure to one of the largest cryptocurrencies in the world by market capitalization.
- Features & Benefits
- Fine-tune your Ether exposure
- Enjoy price discovery on a regulated exchange
- Lower margin
- Diversify your portfolio
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.
Futures Trading Levels
12-17-2021
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Spotlight on the Fed / Economy
By Mark O’Brien, Senior Broker
Right up to yesterday’s Producer Price Index, the U.S. economy has posted inflation measurements not seen in four decades. And yet,
stocks and
bonds continue to rally (the latter an inverse relationship to interest rates) and
gold and
silver remain under pressure.
Reading into this, from the Fed.’s standpoint (and they look at numerous other data points to guide their policy), they have felt they can remain cautious in their stance on raising interest rates – at least until pandemic-related influences on the economy abate (think supply chain shortages and resulting higher demand and prices for goods). With that said, the thinking on rate policy has indeed begun to stir. The argument that inflation is mostly transitory has been challenged – by rising wages and pretty resilient energy prices – a category traditionally kept outside core inflation measurements. It seems the last several FOMC meetings have been deemed the defining moment for the Fed. and their stance for the future of the U.S. economy. Stay tuned.
Introducing Micro Ether Futures
At 1/10 the size of one ether, Micro Ether futures (MET) provides a precision, efficient, cost-effective way to manage your exposure to one of the largest cryptocurrencies in the world by market capitalization.
- Features & Benefits
- Fine-tune your Ether exposure
- Enjoy price discovery on a regulated exchange
- Lower margin
- Diversify your portfolio
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.
Futures Trading Levels
12-16-2021
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
FOMC Statement tomorrow:
The following was written by my colleague, John Thorpe, an ex floor broker and a Senior Broker with Cannon Trading:
Since the depths of the pandemic, the Fed has been buying U.S. Treasuries and agency mortgage-backed securities in the open to signal its commitment to easy money policies. The Feds balance sheet has more than doubled during the Pandemic, from just under 4 trillion to nearly 9 trillion U.S. dollars. At the November Fed meeting , the governors had for the first time admitted that inflation may not be “transitory” and charted a path to “gradually” taper purchases with a target of mid 2022 to wind down the necessary taper .“If the market perceives that the Fed is behind the curve in controlling inflation, it would lead to higher inflation expectations and long-term interest rate hikes, potentially weakening the dollar and pressuring asset values,” said Madhavi Bokil, senior vice president at Moody’s Investors Service. In lieu of a gaudy CPI number recently at 6.8 and PPI increased by the largest amount in recorded economic history.
The market is looking for the Fed to acknowledge the existence of inflation in clearer terms than the November statement and the need to decelerate asset purchases and accelerating the “Taper” in an attempt to prevent a flat yield curve between the 2 yr and 10 yr notes. If this portion of the yield curve flattens or turns negative, this typically signals a recession. It has narrowed in recent weeks to a spread of only .75. This meeting is a very important one and so far this week, the equity markets are reacting to a potential need to accelerate the taper, an admission by the FED that they may be nervous about their inability to control inflation and an impending recession.
The following are my PERSONAL suggestions on trading during FOMC days:
· Reduce trading size
· Be extra picky = no trade is better than a bad trade
· Choose entry points wisely. Look at longer time frame support and resistance for entry. Take the approach of entering at points where you normally would have placed protective stops. Example, trader x looking to go long the mini SP at 4325.00 with a stop at 4319.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 4319.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).
· Expect the higher volatility during and right after the announcement
· Expect to see some “vacuum” ( low volume, big zigzags) right before the number.
· Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
· Keep in mind statement comes out at 1 Pm Central time, the news conference which dissects the language comes out 30 minutes later so the volatility window stretches out.
· Know what the market was expecting, learn what came out and observe market reaction for clues
· Be patient and be disciplined
· If in doubt, stay out!!
If you are looking for other reference material please
contact your Cannon Broker for lists of solid, informative and helpful trading tomes
Introducing Micro Ether Futures
At 1/10 the size of one ether, Micro Ether futures (MET) provides a precision, efficient, cost-effective way to manage your exposure to one of the largest cryptocurrencies in the world by market capitalization.
- Features & Benefits
- Fine-tune your Ether exposure
- Enjoy price discovery on a regulated exchange
- Lower margin
- Diversify your portfolio
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.
Futures Trading Levels
12-15-2021
Economic Reports, Source:
https://bettertrader.co/
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.
Get Real Time updates and more on our private FB group!
Insight into Futures Options by John Thorpe
if you have read our blog for any length of time you’ll recognize that we believe for some traders, the use of relatively limited risk strategies for trading the Indices using weekly options rather than day trading the futures may be a more appropriate trading vehicle to employ your price analysis and manage your risk, I need to share with those of you who are interested, video vignettes comprising a short course to understanding “Options on Futures” specifically for Equity traders, it’s a 4 part short course I will share with you on this Friday’s “Cannon Weekly Newsletter” risk management is King!
In this “Options on Futures for Equity Traders” FREE Course you will learn:
- Understanding Options Contract Details
- Trading Options on Futures Using Strategies you Already Know
- Influence of Pricing on the Option for Equity Traders
- Why Options on Futures Gives Added benefit of Diversifying Risk
- Trading Options During Economic Events
if you missed the course in the Nov 5 newsletter:
, then Friday will be a course with a slightly different angle to which you may reach a better understanding of how options can work for you in your trading arsenal
Good Trading
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.
Futures Trading Levels
12-14-2021
Economic Reports, Source:
https://bettertrader.co/
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.
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