This Blog provides futures market outlook for different commodities and futures trading markets, mostly stock index futures, as well as support and resistance levels for Crude Oil futures, Gold futures, Euro currency and others. At times the daily trading blog will include educational information about different aspects of commodity and futures trading.
Wednesday Sept. 15th insight by Mark O’Brien, Cannon Senior Futures Broker:
Market Insight: Natural Gas
In just three weeks of trading (Aug. 25-today), Oct, natural gas has made a massive ±$1.50 rally ($15,000 per contract), doubling in price from a year earlier reaching prices not seen since early 2014. Yet, at ±$5.50 per million British thermal units (MMBtu), natural gas prices are a fraction of that in Europe and Asia where prices have approached $18.00-20.00 MMBtu! The fundamental bases for these high prices: the U.S. is behind schedule stocking up for the winter. At the same time, it’s an important exporter to Europe which is in its own precarious supply situation with storage for winter ±16% below its 5-yr. average.
What’s next for prices depends largely on what kind of winter is in store for the U.S. and Europe and the degree to which U.S. producers can ramp up on storage. Catching up on the 5-yr. average build-up will be closely monitored.
Daily Chart below
Important: Trading commodity futures and options involves a substantial risk of loss.
The recommendations contained in this letter are of opinion only and do not guarantee any profits.
Past performances are not necessarily indicative of future results.
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.
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 as well as options on futures.
Tuesday Sept. 14th insight by Austin LaChapelle, Cannon Futures Broker:
It seems institutions are on the sidelines waiting for the fed announcement next week. Maybe the quad witching will give an opportunity to go long the index futures into the FOMC meeting.
I see an opportunity to go long the Nasdaq futures at 15150 – That is my personal bias. That being said I am waiting in the weeds for ES futures. We are nearing points in the ES that I am going to call very important pivotal areas.
We have 4437.50-4439 and 4426-4427. Offers below both of those levels could get things rolling for a real nice sell off. Will you be ready?
Another market that I am looking at, is crude oil futures. I am looking ( again this is my personal opinion) to get short around 71.20 hopefully the report tomorrow will be the catalyst to get into the trade.
Right now I prefer trading the December contract and sometimes you get a little squeeze into the expiration of the front month. We will see if we can get these to align to hit my target below 68.85.
Important: Trading commodity futures and options involves a substantial risk of loss.
The recommendations contained in this letter are of opinion only and do not guarantee any profits.
Past performances are not necessarily 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.
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 as well as options on futures.
Good Bye BIG S&P500 by John Thorpe, senior broker:
A Swan song for the venerable FULL Size or BIG S&P 500 Futures contract.
The initial $500.00 per point then subsequently $250.00 per point S&P contract is done, over. Because the contract became unwittingly large as the index value increased, the CME will be delisting the “Big” S&P following this week’s expiration leaving the E-Mini and Micro E-mini contracts as its legacy to thrive.
The price of the index itself became too expensive for smaller investors and lead to the creation of the ES in 1997 and the MES in 2019 as index values soared from 959.90 on September 17th 1997 to 4450.00 as of Friday’s close.
This from the CME:
As announced on May 4, 2021, and subject to regulatory review, CME Group will delist its standard-size futures and options on futures contracts on the Standard and Poor’s 500 Stock Price Index (“standard-size contracts”) following the expiration of the September 2021 contracts on Friday, September 17, 2021. After the delisting of the standard-size contracts, the E-mini suite of futures and options on the S&P 500 Index will continue to meet the trading and risk management needs of customer
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.
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 as well as options on futures.
Trading 201: To Become a Winning Trader, you Must Learn How to Lose…
Markets are constantly changing. The period of after Labor Day and into October can be more volatile at times. 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 Us
Many 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 RISK CAPITAL) 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.
I went into this subject and detailed day-trading money management in an article I wrote a few years back for SFO magazine. You can read the full article by filling out the form below
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
09-13-2021
Weekly Levels
Reports, First Notice (FN), Last trading (LT) Days for the Week:
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
Starting today traders will start trading the December contract rather than the September contract.
Symbol for Dec. is Z.
Example: ESZ21
The rollover period will be complete by next Friday when December Stock Indices contracts expire into cash, however currencies and financials are deliverable products!.
If you have any questions, please reach out to your broker here at Cannon and they can provide more insight.
I personally will switch once I see the December volume higher than the September volume.
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 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.
Put on your “Trading Glasses” – Quick Insight by John Thorpe, senior broker:
During a recent conversation with a long time client who was experiencing a relatively long losing streak and looking for a new indicator, a different indicator, a different time frame, she was looking for answers to make a major change in her approach. I asked her what she is currently using. She told me, Candlesticks and a number of other indicators. I suggested she doesn’t need to change much, a different perspective , a simpler perspective may be beneficial.
Using the same chart, simply change the glasses you are looking at the market through.
Change the style of your chart. I like to use the LINE Chart for clarity, Changing the style of your chart and add a simple moving average, the number of time frames are really not too important, ( 8,10,12,14,16, any will do the smaller the more sensitive, the longer the more smoothed) if simply for a few minutes, this unclutters your brain and will likely give you a different perspective about current market price volatility around your indicators and may give you a better understanding of how the market is moving so you can better assess where not only enter the market but where to place your trailing stops the SMA provides a rudimentary S&R and will tell you when we are in a sideways stance and help you avoid trading during the chop. I will cover a neat little trick with the trailing stops during my next discussion about “a different Perspective” Good trading and make it an excellent week!
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.
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 as well as options on futures.
I was wrong….when the MICROS first came out I was saying to myself “that defeats the whole point of leverage” BUT I am a big fan now.
MICRO CL, MICRO ES, MICRO NQ are just some of the markets with very nice volume and they offer the flexibility of scaling in and out, smaller exposure.
The NQ for example is trading at such levels compare to 3 years ago that a “normal 0.5%” move is worth approx. $1000 against you or in your favor simply because we are trading at 15613….compare to 780 3 years ago!! That is more than double the value/ exposure etc.
The MICRO CL got great volume and at times when this market is very volatile or you want to take a swing trade but still sleep well at night…..
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 as well as options on futures.
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 as well as options on futures.
NFP report tomorrow. Non Farm payroll, usually known as unemployment report. This is a market moving report that comes out usually the first Friday of every month.
Learn more about market moving reports by reading this well written article:
Trading 101: Ranking Market Events ( knowing what you don’t know…)
by: Cannon Trading Staff
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.
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 as well as options on futures.
MICRO crude oil is seeing some good volume. Over 53000 contracts traded today.
In my opinion a great vehicle for the following:
New traders and smaller traders.
When one wants to average in to increase/ build position and then scale out.
At times of higher volatility like today when numbers came out.
At 1/10th of the regular crude oil contract along with good liquidity the MICRO crude oil is now joining MICRO ES, MICRO NQ, MICRO russell, MICRO dow, MICRO gold and the MICRO bitcoin as what I consider good, SMALLER, liquid 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.
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 as well as options on futures.
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.
*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
First trading day of the month tomorrow. Wishing all of us a successful trading month and a healthy, safe September.
Was hoping to share some valuable insight about trading or the markets today but honestly I think the markets are waiting for Labor Day weekend coming up and volatility is still relatively low in most markets.
One advice I have to share is, observe and trade more than one market. if you are only trading crude oil and your trading model/ style looks for volatility and crude goes into low volatility – now what? ( Talking about crude oil….don’t forget tomorrow we have inventories at 10:30 AM EST and dont forget we have MICRO crude oil with nice volume and 1/10th the size!)
But if you learn the fundamentals of few markets, lets say ES, Cl and ZB and you scan these markets for set ups you like – I personally feel that may be a better approach than just trading a single market.
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.
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 as well as options on futures.
At times we may see higher volatility and/or larger moves on last and first trading days of the month as large traders/ institutions may adjust for accounting reasons.
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.
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 as well as options on futures.
The following rankings are based on actual results with commissions and monthly vendor fees included.
Profit and Loss as shown below is not necessarily representative of a single account, but is a compilation of several accounts over time, and is based on the physical trade ticket. Past performance may not be necessarily indicative of future results. Results are based on actual trades with commissions, monthly vendor fees, and exchange/nfa fees included. Broker tracks only actual trading and key punches in trade data from trading ticket on a daily basis. So long as there is at least 1 contract by a client auto-trading system broker has ability to track. The risk of loss in trading commodity futures and options can be substantial and may not be suitable for all investors.
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.
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 as well as options on futures.
Trading 101: Ranking Market Events ( knowing what you don’t know…)
by: Cannon Trading Staff
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…
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 as well as options on futures.
Well, STOP WONDERING. You can call upon a professional, experienced, Series-3 broker who can access and share all the information above and more – utilizing our firm’s cumulative experience in futures trading: over 30 years!
LIVE WEBINAR: Cannon Trading and CME Group invite you to attend an online event on Monday, August 30, to learn more about Micro Treasury Yield futures, a streamlined approach to trading US treasury benchmark rates launching on August 30.
Join us for a conversation with Craig Bewick, Senior Director of Client Development and Sales, to discuss the contract specs in greater detail. Traded in yield, the contracts directly reference the most recently auctioned Treasury securities at key tenor points across the curve. Cash-settled and available on four key tenors, Micro Treasury Yield futures offer exposure to on-the-run Treasury yields plus the precision of a smaller contract.
Craig Bewick is senior director of client development and sales at CME Group. Mr. 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. After spending over eight years with WH Trading LLC, he returned to CME Group working to educate and promote futures trading. Mr. Bewick currently writes for InFocus Options Corner.
In This Webinar You Will Learn:
• What is unique about the MICRO rate futures?
• Different ways to trade the new instruments
• Possible spread set ups between the MICRO rates and other products
Risk: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time
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 as well as options on futures.
Micro Futures and Why Treasury Markets Matter to the Retail Trader
By Jim Iuorio
U.S. treasuries are, by far, the largest and most liquid market in the world. In 2020, U.S. treasuries traded over $600 billion in value per day, well above the $450 billion traded in the U.S. stock market. This number is independent of the enormous notional amounts that trade in futures and other interest rates derivative products. The point is that the reach of the treasury market is massive.
Now, combine this fact with one of the most significant shifts we’ve seen in the trading world over the last two years: the growing involvement of the retail trader/investor who is taking a much larger role in managing their own finances and investments. Treasuries are a natural fit for the trader looking for choice in their trading approach.
Up until this point most treasury products were geared toward institutional use. New Micro Treasury futures will open the door for the retail trader and add flexibility for this growing group.
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 as well as options on futures.
When markets are moving SO FAST like the NQ/ ES and others have recently, I like using automated stops and limits. One can do so using brackets or even built in strategies where you specify different limits, stops, when to move your stop as a trailing stop and much more.
I know my stomach feels much better when I have stops and limits working in the system working….( also maybe use MICROS for the same reason?)
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 as well as options on futures.
Micro Treasury Yield futures see strong liquidity on launch day: 2,265 contracts traded
In the first day of trading, Micro Treasury Yield futures saw a warm reception as robust screen liquidity across all tenors enabled active trading, with activity from over a dozen global participants.
In this webinar John Seguin will present, “The Logical Approach to Trading”, where he will review the professional trader’s checklist and introduce the Varea Signal Menu and Macrograph. Whether you’re a seasoned professional or novice, his techniques will give you great ideas and tools to use on your journey of becoming a better trader.
By the end of this informative presentation, we hope you will be able to compete with pros and create better trading strategies.
About John Seguin: John spent years 20 at the Chicago commodity exchanges. In 2002 he finished his career as a broker when electronic trading began to replace trading pits. While servicing institutional traders in the pits of the CBOT and CME, John developed a training program and Macrograph, a unique charting tool. He teaches charting techniques and fundamentals. John publishes daily commodity market updates.
Risk: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time
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.
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 as well as options on futures.
Cannon Trading & AlgoReturns.com invites you to attend an online event on Thursday August 19th.
In this webinar John Seguin will present, “The Logical Approach to Trading”, where he will review the professional trader’s checklist and introduce the Varea Signal Menu and Macrograph. Whether you’re a seasoned professional or novice, his techniques will give you great ideas and tools to use on your journey of becoming a better trader.
By the end of this informative presentation, we hope you will be able to compete with pros and create better trading strategies.
About John Seguin: John spent years 20 at the Chicago commodity exchanges. In 2002 he finished his career as a broker when electronic trading began to replace trading pits. While servicing institutional traders in the pits of the CBOT and CME, John developed a training program and Macrograph, a unique charting tool. He teaches charting techniques and fundamentals. John publishes daily commodity market updates.
Risk: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time
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.
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 as well as options on futures.
Cannon Trading & AlgoReturns.com invites you to attend an online event on Thursday August 19th.
In this webinar John Seguin will present, “The Logical Approach to Trading”, where he will review the professional trader’s checklist and introduce the Varea Signal Menu and Macrograph. Whether you’re a seasoned professional or novice, his techniques will give you great ideas and tools to use on your journey of becoming a better trader.
By the end of this informative presentation, we hope you will be able to compete with pros and create better trading strategies.
About John Seguin: John spent years 20 at the Chicago commodity exchanges. In 2002 he finished his career as a broker when electronic trading began to replace trading pits. While servicing institutional traders in the pits of the CBOT and CME, John developed a training program and Macrograph, a unique charting tool. He teaches charting techniques and fundamentals. John publishes daily commodity market updates.
Risk: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time
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.
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 as well as options on futures.
Would you pay $700.00 for a one way airplane ticket between Chicago and Dallas? Economy? How about $650.00 one way between Oakland and Seattle in a middle seat? What if the price of your favorite coffee-chino increased by 50% or even 90%, how much will you be willing to pay to get that same fix? Or would you buy a lesser product? Is it rational we as consumers are forced to change our buying habits due to unexpected price increases?
A jeweler needs to buy resources (platinum, silver, gold, etc.) to make what he is going to sell, even when resources are sparse and costs are high. A farmer may be forced to sell his product when there is an abundance and prices are low. This doesn’t seem fair to the jeweler, who needs his supplies even when their costs skyrocket, or the farmer, who toils through a growing season and takes on the risks of weather, insects, and disease. These prices can fluctuate dramatically on the world market, and yet it is important for sellers to keep their prices a steady as possible to please their customer base. Perhaps where it is most apparent how important these fixed prices are is with your daily cup of coffee. A coffee roaster like Starbucks must try to control the cost of inputs even when the price for raw coffee bean fluctuates, sometimes dramatically, on the world market. If they couldn’t control the cost of the coffee, then you would not be able to depend on your daily $5.00 fix. Even Airlines are subjected to price variability in the form of costs for jet fuel. As fuel costs rise, the ticket price needs to cover the expense, and a rational increase in the price of a coach ticket should be expected; Budget prices no more. Irrational market price moves for the basic inputs of industry are long and storied throughout human history.
All of the above hedge price risk, to try to offset some of that price risk. But where do they begin?
On a different topic, have you looked at some of our automated trading systems recently?
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 as well as options on futures.
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 as well as options on futures.
At some point in nearly everyone’s trading timelines, they wonder how their trading successes (or failures) compare with those of other traders. Wondering just how well you stack up to other traders in the industry is a natural curiosity and a human psychological tendency. However, actually knowing the success or failure rates of others doesn’t do a lot to move you farther down the road of where you want to be regarding trading success.
Most traders also wonder about the success rates of the “professional” traders—the ones who make their living solely by the profits they generate from trading. I will provide you with an answer to this question at the end of this feature.
Below are 10 questions regarding measuring your own trading progress and success. These questions should help you determine where you stand in this challenging field of endeavor.
1. What is trading “success?” This is a most basic question. Most would agree that ultimate trading success is defined as being profitable at trading—making more money than you lose. There are other secondary factors that also define success in trading, such as finding a “balance” between trading and other life activities. But it’s being profitable at trading that is the benchmark of defining success.
2. What is trading “progress?” Beginning traders should not expect to have immediate and ultimate success trading futures, stocks or FOREX markets. What they can expect in the early going is to make steady progress through gaining knowledge and experience. Even veteran successful traders continue to make trading progress. Achieving and maintaining trading success requires continual progress—namely continuing to seek out trading and market knowledge. Traders who truly enjoy the “progress” and process of trading do have a significant trading edge over those who do not enjoy learning and gaining experience.
3. At what point in my trading timeline should I expect trading “success?” Trading success (winning trades) can come right away—even for the beginning traders. What is less likely for the inexperienced traders is sustained trading success. Beginners can even run into a “hot streak” that skews the overall reality of trading. Immediate (and likely fleeting) success for a beginning futures trader can do longer-term psychological harm—if he or she does not fully recognize and understand the hard work and perseverance required on the road to trading success. Many times I get questions from less-experienced traders that go something like this: “I’ve been trading two years and I’ve only been able to about break even.” My reply to them is, “Hey, you should not be too discouraged with those results. Many traders don’t have that kind of success in the early going.”
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 as well as options on futures.
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 as well as options on futures.
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 as well as options on futures.
iSystems is a trading platform that allows you the investor/trader to browse and view performance from over 1500 professionally designed systems.
You can browse statistics, performance, logic and much more.
A series 3 professional broker is here to assist you if you would like to evaluate any specific systems and even better how to create a diversified portfolio based on your risk profile and capital.
The capital requirements for each Algo range from just $3000.00 and up.
You can choose between day trading Algos and swing trading Algos and much more….
Some clients like to have some automated systems in addition to their self directed account, some clients prefer to only utilize automated systems as they don’t have the time or desire to trade on their own.
Futures trading is complex and carries the risk of substantial losses. It is not suitable for all investors. The ability to withstand losses and to adhere to a particular trading program in spite of trading losses are material points which can adversely affect investor returns.
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 as well as options on futures.
The different pulse of the markets on different days makes a big difference. The strategies used on fast and volatile market may not work when the same market is choppy and quieter. I think that maybe there are some rare strategies that will work in all market environments but I have never seen one yet….So be aware of how the market/ markets you are trading are acting.
What type of action did the overnight session had?
How did the first 30 minutes of primary session went ( in markets like stock index futures where the underlying asset, i.e. stocks, just opened)?
Does it seem like the day ahead will be one of those speedy, crazy type of price action? or perhaps choppy? possibly a trending day?
Certain strategies will work better. Know what weapons in your trading arsenal will work better in what type of market conditions and try to adjust accordingly.
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.
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 as well as options on futures.
To access a free trial to the ALGOS shown in the videos along with other tools? (Slanted arrows possible buy, pink squares = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
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.
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 as well as options on futures.
Most Common Pitfalls To Avoid When Trading Futures-Commodity Futures
500 experienced futures brokers were asked what caused most futures traders to lose money when comes to trading futures.
Their answers reflected the trading experience of more than 10,000 futures traders. Download the PDF and find out what they said.
1) Have A Plan
Many futures traders trade without a plan. They do not define specific risk and profit objectives before trading. Even if they establish a plan, they “second guess” it and don’t stick to it, particularly if the trade is a loss. Consequently, they overtrade and use their equity to the limit (are undercapitalized), which puts them in a squeeze and forces them to liquidate positions. Usually, they liquidate the good trades and keep the bad ones.
2) News Factor
Many traders don’t realize the news they hear and read has, in many cases, already been discounted by the market.
3) Trade Objectively
After several profitable trades, many speculators become wild and non conservative. They base their trades on hunches and long shots, rather than sound fundamental and technical reasoning, or put their money into one deal that “can’t fail.”
4) Know Your Size
Traders often try to carry too big a position with too little capital and trade too frequently for the size of the 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.
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 as well as options on futures.
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 as well as options on futures.
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!!
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.
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 as well as options on futures.
We had a few conversations in the office last week and the topics included:
breakout trading, counter trend trading, trend following and such.
While the answer usually reveals itself after the fact, the following information shared by
By Gabe Vasquez of Transparent Trading Solutions
is helpful in our opinion:
Three-Sigma is a statistical calculation where the data is within three standard deviations from the mean. The mean can be an average price or average daily range. The premise is, when prices moves too far, too fast, outside of this statistical anomaly, mean reversions (pullback, or reversals) may occur with a high degree of probability
The Keltner Chanel is a volatility-based technical indicator composed of three separate lines. The middle line is an exponential moving average (EMA) of the price. Additional lines are placed above and below the EMA. The upper band is typically set two times the ATR above the EMA, and the lower band is typically set two times the ATR below the EMA.
The bands expand and contract as volatility (measured by ATR) expands and contracts.
Since most price action will be encompassed within the upper and lower bands (the channel), moves outside the channel can signal trend change or an acceleration of the trend. The direction of the channel, such as up, down, or sideways, can also aid identifying the trend direction of the asset.
Keltner channels have multiple uses and how they are used will largely depend on the settings a trader uses. A longer EMA will mean more lag in the indicator, so the channels won’t respond as quickly to the price changes. A shorter EMA will mean the bands react quickly to price changes but will make it harder to identify a true trend direction.
A bigger multiplier of the ATR to create the bands will mean a larger channel. The price hit the bands less often. A smaller multiplier means the bands will be closer together and the price will reach or exceed the bands more often.
**You are about to leave the Cannon Trading website. No responsibility is assumed to any such statement or any expression of opinion herein. Readers are urged to exercise their own judgement. Good Trading!
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.
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 as well as options on futures.
DAILY COFFEE COMMENTARY7/22/2021 Frost damage significant; temps well below expectations (29) Another cold night for Brazilian Arabica growing areas added to this week’s frost damage, and that gave a significant boost to the coffee market as it is likely to further reduce their upcoming 2022/23 “on-year” coffee crop. Brazilian coffee trees have dealt with very dry conditions since the second half of 2020 and may have another La Nina to contend with later this year, so there was little room for any additional negative weather conditions. There is an increasingly strong case for coffee prices to climb above the 200.00 level. While it was highly unlikely before this week that it would approach the output totals seen in the last 2 “on-year” crops, Brazil’s 2022/23 Arabica production may be heading for their lowest “on-year” Arabica production since the 2014/15 season.
Near-term support for September coffee is at 180.00 and 176.90, with resistance is at 188.10 and 195.00
Daily Chart for your review below. CLICK for LARGER Image. The market has provided multiple buy signals since early April.
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.
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 as well as options on futures.
Over the last several months, two of the major stock averages (the S&P 500 and Nasdaq 100) have been on a relentless upward trajectory. This has occurred as the VIX (S&P 500 Volatility Index) has remained elevated relative to its historical levels. In past bull markets, the VIX (which many refer to as the fear gauge) has traded in the low teens and even dropped to single digit readings during strong advances in the stock market. So why is this time different? More importantly, can we use the VIX to increase our odds of timing long and short entries in the S&P 500 and Nasdaq futures? I believe the answer is yes.
First, A quick definition of the VIX: It is an index that measures the premium of at-the-money Calls and Puts on the Cash S&P 500 going out one month in duration. Some market participants utilize options (because of their leverage component) to hedge long only portfolios. For that reason, when the stocks come under pressure, the demand for this protection increases and thus premiums (the cost to buy options) increases. Simply, there is an inverse correlation between the VIX index and stocks. As stocks drop, the VIX will rise and vice-versa.
Now that we have a better understanding of how the VIX works, let’s look at a 4 hour chart going back 2 months. In it, we can see that it has formed a clearly defined range between 15 on the lower band and 21 on the high extremity. If you look at a chart of the S&P 500 futures you will notice that on every corrective (drop) in this index over the last 2 months, the VIX has rallied up to 21. Additionally, note that when the VIX fails to move above this level, the ES (S&P 500 futures) stops falling and usually finds buyers. Conversely, when stocks advance, and the VIX stays above 15, stocks generally pause or struggle to have any meaningful move higher.
Of course, this range will not persist indefinitely, as these patterns never do. However, I believe we can glean useful information from this environment. Can we surmise that a break above the recent range in the VIX implies more selling (bearish) implications? Separately, a break below the key 15 level may insinuate that institutional investors feel more comfortable lifting their hedges, thus leaving more room for stocks to rally in the short-term.
We can never rely on one single indicator to buy or sell, but as traders, we always need to seek an edge. Perhaps this can give you a different way to look at the markets. More importantly, by monitoring the VIX relative to what options traders and institutions are doing to hedge their portfolios, my hope is that it can help you make better trading decisions.
Until next time, I hope everyone has a great trading week.
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 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.
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.
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 the 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.
After a large sell off yesterday, stock index futures bounced sharply today….
I wish I REALLY knew…..However, a mentor of mine once told me that in situations like this, the 3rd day action is critical to watch and see if the market really holds and a temporary bottom is in or if the sell off resumes.
4 hour chart of the RTY for your review 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.
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 the 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.
COVID Variants fears…..While past performance is not indicative of future results, it might be worthwhile to look at how markets behaved during Jan-May of 2020.
Intraday Volatility in stock index futures is extremely high. Actually across many markets Crude and NASDAQ futures leading the volatility but metals, energies and grains have seen higher volatility. I noticed the stock index futures today as I was actively monitoring and trading with some clients and saw the ES make 14 points moves and more, BOTH ways in the same 15 minutes….Intraday chart for illustration below.
1. Learn to reduce trading size. Perhaps trade smaller contracts like the micros.
2. Adjust stops and entries based on volatility ( ATR/ Parabolics).
3. Be extra picky on entries without chasing trades.
4. Understand that loses are part of trading and this is definitely not a good time to “fight the markets”.
5. Focus more on risk management and ways to protect certain positions as needed. Survive to trade another day.
Markets are moving extremely fast and at times quoting systems, platforms can’t even keep up.
The risk is MUCH GREATER than I have seen, yet some traders look for it.
That is ok, as long as you :
Know the rules, understand current margins, know where the circuit breakers are/ limit moves.
Figure out your max risk.
After you do all that, feel free to trade but jumping in and trying to trade without the basic knowledge above is like jumping into a stormy ocean without a life vest…..
Get Real Time updates and more on our private FB group!
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.
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.
Policy Responses and Outcomes to Great Recession and Pandemic
By Blu Putnam, Chief Economist ,CME Group
Lessons from 2008 and 2020
Great Recession began September 2008, equities recovery started in March 2009.
Real GDP reached pre-recession peak in Q1 2011, jobs fully recovered in May 2014.
Pandemic hit U.S. equities in late February, market recovery began one month later.
Real GDP on track to reach or exceed pre-pandemic peak by Q2 2021.
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.
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.
CME Group has removed the trading halt between 3:15 and 3:30 p.m. CT on CME Globex for Equity Index products.
Webinar Invite: Cannon Trading & CME Group invites you to attend an online event on Wednesday, July 14, to learn more about Micro WTI Crude Oil futures, a new tool for managing crude oil price exposure launching on July 12. Join John Bria, CME Group’s Director of Client Development & Sales, as he discusses the contract specs for Micro WTI Crude Oil futures in greater detail. At 1/10 the size of the benchmark WTI futures contract, the Micro contract offers the same robust transparency and price discovery, but with smaller margin requirements.
Webinar Invite: Cannon Trading & CME Group invites you to attend an online event on Wednesday July 14, to learn more about Micro WTI Crude Oil futures, a new tool for managing crude oil price exposure launching on July 12.
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.
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 the 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.
A good start for MICRO WTI Crude Oil Futures today with close to 18,000 contracts traded on the first day.
We will have a webinar this Wednesday on the topic of MICRO Crude Oil and a few interesting pointers on possible uses for the smaller contract.
Webinar Invite: Cannon Trading & CME Group invites you to attend an online event on Wednesday July 14, to learn more about Micro WTI Crude Oil futures.
**CME Group has removed the trading halt between 3:15 and 3:30 p.m. CT on CME Globex for Equity Index products.
Webinar Invite: Cannon Trading & CME Group invites you to attend an online event on Wednesday July 14, to learn more about Micro WTI Crude Oil futures, a new tool for managing crude oil price exposure launching on July 12.
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.
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 Trading & CME Group invites you to attend an online event on Wednesday July 14, to learn more about Micro WTI Crude Oil futures, Futures Trading Levels,
a new tool for managing crude oil price exposure launching on July 12. Join John Bria, CME Group’s Director of Client Development & Sales, as he discusses the contract specs for Micro WTI Crude Oil futures in greater detail. At 1/10 the size of the benchmark WTI futures contract, the Micro contract offers the same robust transparency and price discovery, but with smaller margin requirements.
Webinar Invite: Cannon Trading & CME Group invites you to attend an online event on Wednesday July 14, to learn more about Micro WTI Crude Oil futures, a new tool for managing crude oil price exposure launching on July 12.
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Risk: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time
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
7-12-2021
Weekly Levels
Reports, First Notice (FN), Last trading (LT) Days for the Week:
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
If you are a short term or swing trader, use a 4 hour chart and look for lower risk/ higher reward type of set ups.
I would look to go short at upper 74 levels ( 74.88) and I would look to go long at 71.20. Both entries can be used with a small stop.
If you are an option trader look to sell vertical call spreads above 77 and vertical put spreads below the 70 level with 30 days or less to expiration. More on this strategy here.
If you are a day trader, than good news! The CME is launching a MICRO WTI Crude Oil futures which are 1/10 the size and can be used for hedging, “pyramiding positions and more. The new contract will start trading July 12th. More info here.
For now, until I get a close a daily close below 70.97 I favor the long side, a close below 70.97 based on the daily chart will shift the strength to the bear camp.
**CME Group has removed the trading halt between 3:15 and 3:30 p.m. CT on CME Globex for Equity Index products.
Webinar Invite: Cannon Trading & CME Group invites you to attend an online event on Wednesday July 14, to learn more about Micro WTI Crude Oil futures, a new tool for managing crude oil price exposure launching on July 12.
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.
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.
CME Group has removed the trading halt between 3:15 and 3:30 p.m. CT on CME Globex for Equity Index products.
Here is what our private Facebook members ( private group – free to join)
saw this morning before the open. These past few weeks Al was able to provide guidance with the uptrend both in Crude and SP 500 with very accurate support levels as well as targets. You can join the private group at:
DEFLATIONARY PRESSURES which is spooking & confusing the EQUITY market again. Paradoxically, with the Interest rates racing to new lows, the money managers are desperate and struggle to generate yield, which is BULLISH for EQUITIES in the end. It’s the only game in town.
LOWER rates have a BULLISH UNDERTONE for TECHNOLOGY, hence the NASDAQ closing higher yesterday as the DOW and S&P’S closed LOWER.
U S&P
4377.00 is the next OBJECTIVE until
a close below 4300.25 occurs.
KEY MA 4253.75
Bullish undertone above
KEY TREND MA 4209.00
CLOSE BELOW DAMAGES the
SECULAR Bull TREND.
4137.50 is MASSIVE MA SUPPORT
CRITICAL MA SUPPORT!!
4082.00
MUST HOLD!!
U S&P Closed 4334.00 -8.75
ALGO SUPPORT:
4308.50
4300.50 Sell SCO
4291.75
U NASDAQ
LOWER BOND YIELDS POWERING
NASDAQ HIGHER!!
MA SUPPORT:
14,268.00
Bullish bias above
KEY MA SUPPORT
13,891.00 ******
Secular Bull Trend
MUST HOLD!!
MASSIVE MA SUPPORT
13,694.50
CRITICAL MA MUST HOLD!!
13,567.00
U NASDAQ
Closed 14,775.50 +61.75
ALGO SUPPORT:
14,561.00
14,520.00 Sell SCO
14,474.50
Q CRUDE Closed $73.37 -1.79
Q CRUDE
ALGO RESISTANCE:
74.55
73.99 Buy SCO
73.51
72.38 Key MA
69.32 CRITICAL MA
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.
Webinar Invite: Cannon Trading & CME Group invites you to attend an online event on Wednesday July 14, to learn more about Micro WTI Crude Oil futures, a new tool for managing crude oil price exposure launching on July 12.
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.
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 as well as options on futures.
CME Group has removed the trading halt between 3:15 and 3:30 p.m. CT on CME Globex for Equity Index products.
Webinar Invite: Cannon Trading & CME Group invites you to attend an online event on Wednesday July 14, to learn more about Micro WTI Crude Oil futures, a new tool for managing crude oil price exposure launching on July 12. Join John Bria, CME Group’s Director of Client Development & Sales, as he discusses the contract specs for Micro WTI Crude Oil futures in greater detail. At 1/10 the size of the benchmark WTI futures contract, the Micro contract offers the same robust transparency and price discovery, but with smaller margin requirements.
Webinar Invite: Cannon Trading & CME Group invites you to attend an online event on Wednesday July 14, to learn more about Micro WTI Crude Oil futures, a new tool for managing crude oil price exposure launching on July 12.
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.
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.
CME Group has removed the trading halt between 3:15 and 3:30 p.m. CT on CME Globex for Equity Index products.
4th of July Holiday Schedule below for your review.
Make sure you are aware of the different hours and which markets are closed Monday, July 5th.
Non Farm Payroll tomorrow at 5:30 Am pacific, 8:30 AM EST. This is a market mover report!
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.
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.
CME Group has removed the trading halt between 3:15 and 3:30 p.m. CT on CME Globex for Equity Index products.
Big moves in some sectors while stock indices have been pretty “sleepy” recently.
Grains snapped higher following USDA planted acres report. At times locked limit up.
I have also seen a bit more volatility in the softs, like Sugar, Cotton and Coffee.
Below you will see Fourth of July trading schedule for your information.
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.
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.
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.
Starting June 28, 2021, CME Group has removed the trading halt between 3:15 and 3:30 p.m. CT on CME Globex for Equity Index products.
This enhancement will allow market participants to access liquidity continuously throughout the trading day and manage event risk that occurs during the trading session with greater ease.
Tomorrow is also the last trading day of the month!
Last trading days and first trading days of the months will at times have unique characteristics. Possible larger moves, sharper turns, higher volume.
Large traders/ funds will try to “close the books for the month”, book profits or losses etc.
Do you homework, go over notes from your journal, study the charts from prior last/ first trading days and be prepared.
Get Real Time updates and more on our private FB group!
To access a free trial to the ALGOS shown in the chart along with other tools? (Arrows possible buy/sell, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
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.
Starting today, June 28, 2021, CME Group has removed the trading halt between 3:15 and 3:30 p.m. CT on CME Globex for Equity Index products.
This enhancement will allow market participants to access liquidity continuously throughout the trading day and manage event risk that occurs during the trading session with greater ease.
Subject to regulatory review and effective June 28, 2021, CME and CBOT will eliminate the 3:15 p.m. – 3:30 p.m. Central Time (CT) trading halt on CME Globex which currently exists for certain Equity futures and options contracts.
The halt was initially implemented to account for transactions conducted via open outcry in the trading pits and is therefore no longer necessary.
June is almost over and just like that next week is 4th of July and the beginning of what we consider “summer trading”…
Summer trading USUALLY = less volume, narrower ranges but also larger moves on certain reports.
Below is a video I put together a few years ago on trading using overbought and oversold conditions – still very valid in m opinion.
To access a free trial to the ALGOS shown in the chart along with other tools? (Arrows possible buy/sell, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
Futures Trading Levels
for June 29th
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.
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
Please note that July grains are slowly getting into delivery period and some of the grains front months are changing. Bean oil active month is now December.
Soybeans futures sitting on decision area. read more…..
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.
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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Soybeans futures are sitting on what I consider a “junction level”. Price action will determine if the recent sell off is a shift in market bias and the trend is now favoring lower prices OR if this is a support level and simply profit taking.
It is worth noting that most grains are currently in “contango” where front month prices are higher than back months and that by itself presents some interesting spread set ups.
To access a free trial to the ALGOS shown in the chart along with other tools? (Arrows possible buy/sell, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
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.
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.
Please note that July grains are slowly getting into delivery period and some of the grains front months are changing. Bean oil active month is now December.
Bitcoin futures tested MAJOR chart support level today. So far it held….
To access a free trial to the ALGOS shown in the chart along with other tools? (Arrows possible buy/sell, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
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.
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.
We started the week with a strong up-trending Monday in equities, crude oil and a strong downtrend in bonds which encouraged me to share the following with you on the different types of trading days:
In my opinion there are 3 main types of trading days.
1. The most common day are two sided trading action with swings up and down – this type of trading day is most suitable for using support and resistance levels along with overbought/oversold indicators.
2. Strong trending days, mostly one directional – this type of trading day is the least common, many times will happen on Mondays and maybe 3-5 times a month at most – this type of trading day is most suitable for using ADX, MACD crossovers and pretty much looking for pullbacks to jump on the trend.
3. Slow and/or choppy trading days – this type of trading day is best suited for taking small profits from the market by looking at volume spikes, using stochastics as possible entry signals and usually wait for a pullback before jumping in.
A good question I’ve been asked is how can one asses what type of trading day we will have while the market is still trading….I have been doing some work in finding the answers and will be happy to hear feedback via email but here are some initial observations:
Was the overnight session a wide, two sided trading range? If the answer is yes, good chances for similar trading day during the primary session (primary session is when the cash/stock market is open)
Mondays have the highest chance for trending days
The behavior of the first hour of trading can also suggests the type of action for the rest of the day.
If the first 30 minutes of the trading day have good volume, better chances for type 1 or type 2 trading days.
Low volume during the first 30 minutes can suggest a choppy (type 3 trading day)
Are there other strong trends in other sectors? ( bonds? metals? energies? Dollar index? )
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.
Daily 30 yr bonds chart for your review below. I have heard from some clients that they “like the personality of the bonds” better than the ES and NQ. Different dynamics, larger tick size – may be worth your time to follow and try in SIM MODE first.
To access a free trial to the ALGOS shown in the chart along with other tools? (Arrows possible buy/sell, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
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.
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.
Strong US $ resulted in weak metals, grains and currencies. Strong bond market and VERY volatile stock index trading.
Nasdaq making all time highs while Dow was down over 500 points at one point.
If you are a member of our FREE Facebook group, you would have had access to the information below BEFORE the day started ( if you are NOT a member, simply visit: https://business.facebook.com/groups/1105191589938254/ ) :
06.17.21 Thursday post FOMC days can see very large moves.
SCO = STOP CLOSE ONLY
MA= MOVING AVERAGE
GOOD MORNING.
FOMC DECISION:
FED FUNDS
NO CHANGE 0 – 0.25%
ASSET PURCHASES PROGRAM of
$120 billion per month remains intact.
2021 INFLATION FORECAST:
UP 1.0%
From 2.4% to 3.4%
Unemployment:
Seen at 4.5% for 2021
3.8% for 2022
THE DEFLATIONARY SPIRAL MAY STILL
BE LINGERING. THAT’S WHY THE INFLATIONARY TRADE ISN’T GAINING ANY TRACTION AND THE FED MAY BE CORRECT
ALGO IS LONG THE US $ AGAIN, WHICH
IS HAMMERING THE GOLD & SILVER.
Chicago
Export Sales 7:30
Jobless Claims 7:30
U S&P
KEY MA 4191.75
LOW yesterday 4190.25
MUST HOLD!
CLOSE BELOW 4191.50 triggers 4156.00
KEY MA 4173.75
Market must hold to
maintain SECULAR Bull TREND.
4173.50 close triggers 4105.00
4063.75 is MASSIVE MA SUPPORT
CRITICAL MA SUPPORT!!
4018.75
MUST HOLD!!
U S&P
ALGO RESISTANCE:
4240.25
4231.50 Buy SCO
4224.00
U S&P Closed 4213.00 -23.50
ALGO SUPPORT:
4194.75
4186.50 Sell SCO
4177.00
U NASDAQ
MA SUPPORT:
13,697.75
MAJOR SUPPORT
13,656.75 *******
KEY MA!!
MUST HOLD!!
A close below damages the Secular Bull trend and triggers 13,470.00
CRITICAL MA SUPPORT
13,422.50 ******
LAST MA 13,418.00
U NASDAQ Closed 13,972.75 -49.00
ALGO SUPPORT:
13,970.25
13,942.50 Sell SCO
13,911.50
13,710.74
13,649.50 Sell SCO
13,578.25
U NASDAQ
FIBONACCI RETRACEMENTS:
14,155.25 to 12,906
38.2% = 13,679
50.0% = 13,531.25
61.8% = 13,384.50
N CRUDE
74.75 is the next OBJECTIVE,
then 80.00 long term.
N CRUDE Closed $72.15 +0.03
N CRUDE
ALGO SUPPORT:
70.65
70.30 Sell SCO
69.91
67.93 Key MA
66.11 CRITICAL MA
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.
To access a free trial to the ALGOS shown in the chart along with other tools? (Arrows possible buy/sell, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
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.
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.
Tight narrow ranges before the announcement and volatile two sided action right before and after.
10 min chart for your review below as well as some insight into the verbiage that is moving the markets:
The Fed keeps benchmark rates and the pace of bond-buying unchanged but the biggest shift is a hawkish tilt to its rate forecasts as Fed median projections show 2 rate-hikes by end-2023 and 7 FOMC members see a hike in 2022…
To access a free trial to the ALGOS shown in the chart along with other tools? (Arrows possible buy/sell, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
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.
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.
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 3925.00 with a stop at 3919.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 3919.75 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!!
September is now front month for stock indices ( ES, NQ etc.), currencies, financials ( TBonds etc.)
Symbol for Sept. is U.
Example: ESU21
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.
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.
September is now front month for stock indices ( ES, NQ etc.), currencies, financials ( TBonds etc.)
Symbol for Sept. is U.
Example: ESU21
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.
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.
Starting tomorrow MAKE sure to trade September currencies as well.
Starting tomorrow many traders will start trading the SEPTEMBER contract rather than the JUNE contract.
Symbol for Sept. is U.
Example: ESU21
The rollover period will be complete by next Friday when June contracts expire into cash.
Here are a few pointers from Austin Lachapelle, Cannon Trading Broker:
With the volume looking to change in the equity indices my recommendation is to make sure you are trading strategies on larger time-frames till the end of this week. If using volume indicators be more cautious on the data that has been gathered. The June contract will start rolling into the September tomorrow. I recommend switching your charts and trading to the September month by days end. Be a little more cautious on the close Thursday and Friday as larger players will begin to sell the June and could possibly be more cautious when buying the September at these levels.
Tomorrows levels published today will still show June contract until the Sept. volume is higher.
To get the Sept. levels do the following:
Substract 9 points for the Sept. ES
Substract 95 points for the Sept. YM
Substract 10 points for the Sept. NQ
Substract 3 points for the RTY
Add 9 points for the euro ( 6E)
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
6-11-2021
Tomorrows levels published today will still show June contract until the Sept. volume is higher.
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.
Tomorrow, June 10th is rollover day in US stock index futures.
Starting tomorrow many traders will start trading the SEPTEMBER contract rather than the JUNE contract.
Symbol for Sept. is U.
Example: ESU21
The rollover period will be complete by next Friday when June contracts expire into cash.
Here are a few pointers from Austin Lachapelle, Cannon Trading Broker:
With the volume looking to change in the equity indices my recommendation is to make sure you are trading strategies on larger time-frames till the end of this week. If using volume indicators be more cautious on the data that has been gathered. The June contract will start rolling into the September tomorrow. I recommend switching your charts and trading to the September month by days end. Be a little more cautious on the close Thursday and Friday as larger players will begin to sell the June and could possibly be more cautious when buying the September at these levels.
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
6-10-2021
Tomorrows levels published today will still show June contract until the Sept. volume is higher.
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.
A dynamic research tool for Futures traders based on revolutionary algorithmic IP. Experienced management team has combined decades of trading experience with superior programming capability to produce this unparalleled algorithmic trading product.
Daily email to traders identifying trading opportunities (signals) on more than 20 specific tickers per a discrete set of rules and conditions/algorithms.
Packages are signals only (Basic, $99/month) or signals with execution suggestions by VAREA trading specialists (Premium, $199/month) and get a free month of the Premium product when you sign up. Contact your broker for implementation instructions to get you started.
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.
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.
A dynamic research tool for Futures traders based on revolutionary algorithmic IP. Experienced management team has combined decades of trading experience with superior programming capability to produce this unparalleled algorithmic trading product.
Daily email to traders identifying trading opportunities (signals) on more than 20 specific tickers per a discrete set of rules and conditions/algorithms.
Packages are signals only (Basic, $99/month) or signals with execution suggestions by VAREA trading specialists (Premium, $199/month) and get a free month of the Premium product when you sign up. Contact your broker for implementation instructions to get you started.
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.
Both crude oil and natural gas numbers will be out tomorrow as it is a short trading week.
I wrote the following article on day-trading crude oil futures a few years back and I feel it has some excellent pointers which can help trading any markets. Read the article HERE.
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.
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.
Wishing all of you excellent trading in the month of June!
May your trading have all of the following and more:
Patience
Discipline
Trading Plan
Money management
Good Risk-reward trades
Most Common Pitfalls To Avoid When Trading Futures-Commodity Futures
500 experienced futures brokers were asked what caused most futures traders to lose money when comes to trading futures.
Their answers reflected the trading experience of more than 10,000 futures traders. Download the PDF and find out what they said.
1) Have A Plan
Many futures traders trade without a plan. They do not define specific risk and profit objectives before trading. Even if they establish a plan, they “second guess” it and don’t stick to it, particularly if the trade is a loss. Consequently, they overtrade and use their equity to the limit (are undercapitalized), which puts them in a squeeze and forces them to liquidate positions. Usually, they liquidate the good trades and keep the bad ones.
2) News Factor
Many traders don’t realize the news they hear and read has, in many cases, already been discounted by the market.
3) Trade Objectively
After several profitable trades, many speculators become wild and non conservative. They base their trades on hunches and long shots, rather than sound fundamental and technical reasoning, or put their money into one deal that “can’t fail.”
4) Know Your Size
Traders often try to carry too big a position with too little capital and trade too frequently for the size of the 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.
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.
Memorial Day Futures CME GLOBEX Trading Schedule below:
Trading Videos 101: 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.
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.
Memorial Day Futures CME GLOBEX Trading Schedule 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.
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.
September will be front month for bonds/ 10 years etc. starting tomorrow.
Memorial Day Futures CME GLOBEX Trading Schedule 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.
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.
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.
Today’s price action is positive in our opinion for the technical picture of the yellow metal. Daily chart along with levels to watch in the chart below. Click for larger image.
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.
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 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.
10 Key Questions on Measuring Your Trading Progress, Success
At some point in nearly everyone’s trading timelines, they wonder how their trading successes (or failures) compare with those of other traders. Wondering just how well you stack up to other traders in the industry is a natural curiosity and a human psychological tendency. However, actually knowing the success or failure rates of others doesn’t do a lot to move you farther down the road of where you want to be regarding trading success.
Most traders also wonder about the success rates of the “professional” traders—the ones who make their living solely by the profits they generate from trading. I will provide you with an answer to this question at the end of this feature.
Below are 10 questions regarding measuring your own trading progress and success. These questions should help you determine where you stand in this challenging field of endeavor.
1. What is trading “success?” This is a most basic question. Most would agree that ultimate trading success is defined as being profitable at trading—making more money than you lose. There are other secondary factors that also define success in trading, such as finding a “balance” between trading and other life activities. But it’s being profitable at trading that is the benchmark of defining success.
2. What is trading “progress?” Beginning traders should not expect to have immediate and ultimate success trading futures, stocks or FOREX markets. What they can expect in the early going is to make steady progress through gaining knowledge and experience. Even veteran successful traders continue to make trading progress. Achieving and maintaining trading success requires continual progress—namely continuing to seek out trading and market knowledge. Traders who truly enjoy the “progress” and process of trading do have a significant trading edge over those who do not enjoy learning and gaining experience.
3. At what point in my trading timeline should I expect trading “success?” Trading success (winning trades) can come right away—even for the beginning traders. What is less likely for the inexperienced traders is sustained trading success. Beginners can even run into a “hot streak” that skews the overall reality of trading. Immediate (and likely fleeting) success for a beginning futures trader can do longer-term psychological harm—if he or she does not fully recognize and understand the hard work and perseverance required on the road to trading success. Many times I get questions from less-experienced traders that go something like this: “I’ve been trading two years and I’ve only been able to about break even.” My reply to them is, “Hey, you should not be too discouraged with those results. Many traders don’t have that kind of success in the early going.”
4. How long will it take to go from being a less-experienced trader to an experienced and hopefully successful trader? Determining a precise timeline at which trading success will arrive will vary greatly among traders. Some beginning traders will spend nearly full time coming up to speed. Others may spend an hour or two a week on the subject. There is no right answer on how much time to spend studying trading and markets. I have many readers who are taking up trading in retirement. I have a few that have taken up trading over the age of 80 years. One is never too young or too old to learn about markets and trading. A general rule would be for a beginning trader not to expect sustained trading success within a few months. More likely is a timeframe of a few years to achieve sustained trading success. Now you see why money management is so important in futures trading. You have to survive before you can succeed!
5. When should I “throw in the towel” and admit that trading is not for me? There is no one right answer to this question. If trading is making you miserable and creating other bad habits (kicking the dog), then it’s time to quit—or at least take an extended break. If you do not have the financial resources to trade futures, then you should not participate. Futures trading should be conducted only with money a trader can stand to lose, without impacting other more important obligations, such as grocery and rent money. It is important to point out that the beginning futures traders who “flame out” first are usually the ones who did not have the financial resources to trade futures in the first place.
6. Am I still hungry for trading and market knowledge? One should never stop endeavoring to gain more knowledge about markets and trading. Even the successful veterans who’ve been in the business for many, many years will say that they are still learning on a daily basis. If you are still striving to learn more about this business–and are enjoying doing it–then that’s a positive signal.
7. How many trading losers should I absorb before I change my trading plan of action? This is a real tough one to answer. Again, there is no single right answer. However, if you believe you have a well-founded and thoroughly researched trading plan of action, don’t abandon it just because you are on a losing streak. All traders have winning and losing streaks. That’s a part of trading. Traders enjoy the winning streaks and do not enjoy the losing streaks. But during the losing streaks they forge ahead, knowing that their plan of action is still solid. Trading plans can certainly be tweaked, such as trading fewer contracts or trading less frequently during a losing streak. For most traders, a complete overhaul of one’s trading plan is probably a last resort that merits much consideration.
8. How can I keep myself motivated on the winding road to trading success? Traders who enjoy the entire process of trading don’t really need a lot of motivational help because they are already fascinated by what they are reading and learning. But during a losing streak or some other “dry spell” in trading—when morale can slip—it is prudent to read some trading books that are based less on specific methodologies and more on trading psychology. Attending trading seminars is a great way for a trader to become reinvigorated. (And it’s also a great value to those already invigorated!) You not only will gain fresh trading and market knowledge, but you also will get to see and speak with the seminar lecturers as well as traders who are in the same position as you.
9. How much should I listen to other traders when trying to evaluate my own trading progress or my own trading plan? It is good to have a trading partner or “buddies” with whom to share your ideas and to discuss markets and trading. The learning curve improves when a trader has another trader or traders with similar experience with whom to share ideas. It is also beneficial to have an experienced mentor to help guide you through the “rough waters” that all traders experience at times. But at some point, most traders do want to be more or less autonomous in their decision-making. As many traders gain more experience, knowledge and confidence, they will use outside influences as “second opinions” to reinforce or provide another angle to their own sound opinions. Many traders also have full-time “day jobs” and need outside sources to help save them time and to keep track of what’s going on in all the markets.
10. What is the average success rate of the “professional” trader? I have not seen any “official” studies of the percentage of winning trades of the average professional trader. However, it is generally agreed upon by many in our industry that the better professional traders have a winning percentage of around 4 out of every10 trades—or a 40% winning percentage. Breaking this down even further, it is estimated that half of the winning trades are only small winners and not much better than break-even. Thus, it can be loosely extrapolated that most of the professional futures traders make most of their money on one or two trades out of every 10. This only underscores the importance of sound money management in futures trading—namely cutting losses short and letting winners run.
That’s it for now. Next time, we’ll examine another important issue on your road to trading success.
Jim Wyckoff is the proprietor of the analytical, educational and trading advisory service, “Jim Wyckoff on the Markets.” He has a website at www.jimwyckoff.com
Important: Trading commodity futures and options involves a substantial risk of loss.
The recommendations contained in this letter are of opinion only and do not guarantee any profits.
Past performances are not necessarily 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.
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.
Intraday Volatility in stock index futures is extremely high. Actually across many markets BTC futures leading the volatility but metals, energies and grains have seen higher volatility. I noticed the stock index futures today as i was actively monitoring and trading with some clients and saw the ES make 20 points moves and more, BOTH ways in the same 15 minutes….Intraday chart for illustration below.
Learn to reduce trading size. Perhaps trade smaller contracts like the micros.
Adjust stops and entries based on volatility ( ATR/ Parabolics).
Be extra picky on entries without chasing trades.
Understand that loses are part of trading and this is definitely not a good time to “fight the markets”.
Focus more on risk management and ways to protect certain positions as needed. Survive to trade another day.
Markets are moving extremely fast and at times quoting systems, platforms can’t even keep up.
The risk is MUCH GREATER than I have seen, yet some traders look for it.
That is ok, as long as you :
Know the rules, understand current margins, know where the circuit breakers are/ limit moves.
Figure out your max risk.
After you do all that, feel free to trade but jumping in and trying to trade without the basic knowledge above is like jumping into a stormy ocean without a life vest…..
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.
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.
With recent correction in Bitcoin, I am sharing the daily chart for your review below along with some levels to watch – notice the recent low and the FIB levels…..
41980 followed by 36760 sticks out as major support.
46650 will act as first resistance.
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.
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.
Sell off in Bitcoin, rally in gold and silver, very choppy action in stock indices to start the week.
Some of our morning excerpt below for a different type of insight into the markets – join our FB group for free to view these updates in real-time at https://www.facebook.com/groups/1105191589938254 :
GOOD MORNING.
NO NUMBERS THIS MORNING
TOMORROW
HOUSING STARTS & PERMITS
Money managers again had strong hands in looking for any weakness to buy. With the LONG END of the interest rate at negative and the FED’s Q.E. of
$80 billion a month / $1.44 TRILLION for the year, they’re forcing money managers to take risk. The only place for returns now is equities. Also the 1st nine to 12 months of inflation is positive for equities, then they turn the lights out.
The FED also has the stimulus money as an undercurrent for now.
M S&P
4159.50 OBJECTIVE has been met.
LOW was 4105.25 ****
Friday’s SUPPORT was 4106.25 ****
SUPPORT 4162.00
4093.75
CRITICAL KEY SUPPORT!!
CLOSE BELOW TRIGGERS
4017.50
MASSIVE SUPPORT
3976.75
M S&P
RESISTANCE:
4245.50
4217.25 Buy SCO
4193.00
M S&P Closed 4169.00 +62.00
SUPPORT:
4095.25
4067.25 Sell SCO
4034.75
M S&P
FIBONACCI RETRACEMENTS:
4238.25 to 3710.50
38.2% = 4037.00 *****
50.0% = 3974.50
61.8% = 3912.25
Money flow for M S&P’S:
Negative= N / Positive= P
M CRUDE -0.13 / Neutral
N COPPER +2.45 / P
M BONDS +0.01 / Neutral
M YEN + 0.155 / N
M PALLADIUM +2.40 / P
M US$ – 0.093 / P
M NASDAQ
MAJOR RESISTANCE 13,257.25
CLOSE ABOVE TRIGGERS SHORT COVERING UP TO 13,367.50
KEY RESISTANCE 13,523.00
MAJOR RESISTANCE 13,674.09
KEY PIVOT 13,368.75
M NASDAQ
RESISTANCE:
13,997.00
13,855.50 Buy SCO
13,733.75
M NASDAQ Closed 13,387.00 +286.75
SUPPORT:
13,318.50
13,217.75 Sell SCO
13,100.50
M NASDAQ
FIBONACCI RETRACEMENTS:
14,064 to 12,200
38.2% = 13,348.50
50.0% = 13,128.25
61.8% = 12,908.00 / LOW 12,915
Important: Trading commodity futures and options involves a substantial risk of loss.
The recommendations contained in this letter are of opinion only and do not guarantee any profits.
There is not an actual account trading these recommendations.
Past performances are not necessarily indicative of future results.
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.
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.
Are you trading any futures contracts that incorporate daily price limits?
A price limit is the maximum price range permitted for a futures contract in each trading session. When markets hit the price limit, different actions occur depending on the product being traded. Markets may temporarily halt until price limits can be expanded, remain in a limit condition or stop trading for the day, based on regulatory rules.
It’s important to know these price limits during the trading day to make sure your trades are never left hanging during a price limit halt.
Visit the CME Group web site for the price limits that apply to the markets you’re trading:
Beans daily chart for your review below. The big question…is this a simple profit taking pull back of a major bull run or the beginning of reversal to the downside? Time will tell but some levels to watch below. Click for LARGER IMAGE
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.
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 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.
No words of wisdom today…simply 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.
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.
Join our private Facebook group for early morning insight that relates both for shorter term traders as well as longer them traders.
With today’s Dow Futures high at 35,000 I could not help myself but share the following post from Mid March….
Needless to say, some of the insight we share is right and at times wrong but overall I feel this is valuable information and another useful point of view.
IMPORTANT PLEASE NOTE: TRADING COMMODITY FUTURES AND OPTIONS INVOLVE SUBSTANTIAL RISK OF LOSS. THE RECOMMENDATIONS CONTAINED IN THE LETTER IS OF OPINION AND DOES NOT GUARANTEE ANY PROFITS. THERE IS NOT AN ACTUAL ACCOUNT TRADING THESE RECOMMENDATIONS. THESE ARE RISKY MARKETS AND ONLY RISK CAPITAL SHOULD BE USED. PAST PERFORMANCES ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
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.
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.
With NFP ( non Farm Payroll) report tomorrow – monthly un employment, I thought the following article is worth featuring:
RISK
It is a four letter word. As traders it is something that we thrive on and dread. We chase and fear. We look for and look to avoid. It is RISK. Without it, there is no opportunity for profit. Without it trading lacks potential. With it, failure and heartache are the consequences when it is abused.
Risk itself is not a bad thing. When it is misused by traders, it becomes a problem. Controlled risk presents traders with exciting and profitable opportunities. Uncontrolled, it brings the end to the dreams and careers of many traders.
How should we as traders confront risk? The first step is to respect it. Realize the damage it can do to our account equities when it is abused. The two most important tools that we have to control risk are stops and position size. Oh, I know, you hate stops. We all do. We have all been stopped out at the high or low only to see the market immediately move in the direction that we thought it would. But without using stops on every trade that we enter, disaster will eventually prevail. I have a love/hate relationship with my stop orders. I hate to place them, but love how they save me from large, unacceptable account crushing losses. It is the same for all successful traders. Those foolish enough to trade without stop protection are risking disaster on every trade. Unless you as a trader have developed perfect discipline to exit a losing trade quickly, and according to your pre-entry criteria, stops are mandatory. And admit it, at least to yourself…..do you have perfect discipline? I think not.
The other critical element in controlling risk is position size. By this I mean the percentage of your equity that you are risking per trade. I do not risk more than 3.5% of my equity on any trade. Some traders are comfortable risking 5% of their equity. This amount for me is an amount of risk with which I am comfortable. It allows for aggressive trading, and it allows me to stay in the game ( financially and psychologically) even after a series of losses. This aspect of strategy building is often forgotten by the novice trader. These folks have dreams of “the big hit” or the monster trade that allows their account equity to soar to heights unimagined by mere mortals. The problem is, oops, what if you are wrong? This type of trading/thinking is out of control. It leads to broken dreams and short careers. You must always remember that this is a highly volatile, sophisticated business. Treat it as such. If you want to gamble, jump on an airplane and visit Las Vegas.
The futures markets are highly leveraged, as we all know. Those traders that abuse risk by not respecting its power will eventually join the long list of former futures traders. Risk must be treated like a beautiful, intelligent woman. Treated with respect, wonderful things can happen. But, abuse it, or disrespect it, and suffer the consequences.
As a futures trader you have to embrace taking risk. Understand its impact. Respect it. Stay in control of it. Develop a trading method that makes risk an asset to your account instead of an enemy of your account. Risk/reward analysis is an important part of our everyday lives. Can I make it thru the intersection before the light turns red? Do I need to re-apply my sunscreen? Should I have one more beer before driving home? In trading, always keep in mind your risk versus the reward. A 50% gain in your account is not equal to a 50% loss of equity. A 50% winning trade puts you up by one half. But a 50% loss means that you have to double your equity to get back to your starting point. Respect your risk levels. Trade only using a risk level that you, personally, are comfortable with.
Rome wasn’t built in a day. Neither will your account be built in a day, or a week. Respect risk. Enjoy it’s benefits and your trading in rest of this year and in 2011 will produce profits and satisfaction. Enjoy the ride.
IMPORTANT PLEASE NOTE: TRADING COMMODITY FUTURES AND OPTIONS INVOLVE SUBSTANTIAL RISK OF LOSS. THE RECOMMENDATIONS CONTAINED IN THE LETTER IS OF OPINION AND DOES NOT GUARANTEE ANY PROFITS. THERE IS NOT AN ACTUAL ACCOUNT TRADING THESE RECOMMENDATIONS. THESE ARE RISKY MARKETS AND ONLY RISK CAPITAL SHOULD BE USED. PAST PERFORMANCES ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
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.
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 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.
NASDAQ 100 has shifted into short term bear mode for now while SP 500 is still holding above key levels ( IMO).
Spread chart of NQ-ES below for your review. It is a daily chart of NQ prices MINUS ES prices. As you can see last few trading days the ES is keeping more strength versus the NQ.
As I mentioned in previous blog posts, may ways to try and “skin the cat”….day trading or scalping INDEX futures is only one.
Some traders will trade spreads like the ES/ NQ on an intraday basis or longer, some traders will look at other markets like gold, crude and bonds ( versus focusing on the indices only) and some traders will trade a basket of products, being active based on where they feel opportunities are like Micro Bitcoin.
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.
On March 30, a CME Group press release announced that it would introduce a new Micro BTC futures contract. Monday, May 3rd will be the futures contract’s first day of trading. This new futures contract reflects CME Group’s expansion of crypto derivatives that includes their Bitcoin futures contract launched in 2017, Bitcoin options in early 2020 and their Ether futures contract just last February.
When its open-sourced software was released in 2009, Bitcoin became the very first digital asset, or cryptocurrency to work as a medium of exchange. Since then, approximately 1800 other cryptocurrencies have been created with a market capitalization that topped $2 trillion this month. Strikingly, Bitcoin comprised approximately half that market cap.
The current Bitcoin futures contract’s underlying asset is 5 Bitcoin and with Bitcoin currently trading between $50K-$60K, the futures contract’s base value is ±$250K-$300K. And unlike nearly all other futures contracts whose margins are set and adjusted fairly infrequently by their exchanges, Bitcoin’s Initial Margin Requirement is recalculated every day based on its closing price, currently at roughly 40% of its base value – over $125K, currently.
The new Micro Bitcoin futures contract’s underlying asset is 1/10 Bitcoin (1/50 the size of the current 5-Bitcoin futures contract).
Needless to say, at 1/50th the leverage of the current Bitcoin futures contract, the smaller-sized Micro BTC futures contract will give traders the ability to fine-tune Bitcoin exposure. And it goes without saying, these contracts trade on a regulated exchange where all participants see the same prices and quotes. Participants enjoy true market transparency and price discovery.
The Micro Bitcoin futures contract builds on the strength and liquidity of CME Bitcoin futures by giving you more choice and flexibility to manage your Bitcoin exposure and add versatility to your trading strategies.
For more information or a professional consultation, or to try a futures trading platform demo, contact Cannon Trading Co.
Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. 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.
In between, lets take a look at the 30 minute chart of MICRO BTC from its first trading day.
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.
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 Trading & CME Group invite you to attend a webinar on Wednesday, May 5, about the NEW CME Group Micro BTC Futures. Join John Bria, CME Group’s Director of Client Development & Sales, as he discusses the growth of crypto, how this micro product has come to fruition and the opportunities that lie ahead for the active trader community.
An Introduction to Micro BTC Futures
Join us for an interactive session where John Bria, CME Group’s Director of Client Development & Sales, as he covers the fundamentals of Micro BTC Futures, while exploring ways in which active individual traders can use these products to diversify their portfolio.
In This Webinar You Will Learn:
• The evolution of cryptocurrency
• CME Group Micro Bitcoin product overview
• Explanation of Bitcoin Reference Rate and real-time index
Risk: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time
Hogs weekly chart below. Market is a bit overbought and may have a small correction however the trend and bias are still bullish and we finished Friday limit up basis the June contract.
Demand from China has slowed down a bit, however, summer is seasonally friendly for hogs. Should be an interesting price action next week. Experienced traders may look into selling vertical call spreads with 45 days left to expiration.
To access a free trial to the ALGOS shown in the chart along with other tools? (Arrows possible buy, squares = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
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
5-03-2021
Weekly Levels
Reports, First Notice (FN), Last trading (LT) Days for the Week:
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
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.
Looks like possible rotation from NASDAQ ( hi tech) to Russell a broader index.
Today’s action was a “typical Federal Open Market Committee day as of late….” choppy action all the way to the decision and then even more choppiness just with larger “bands”.
I know some day traders who DO NOT trade on Federal Open Market Committee days but I myself was never able to find a strong correlation one way or the other.
July silver and July copper are front months now – May is heading into delivery period. Same with Sugar, coffee, cotton.
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.
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.
FOMC rate/ language will be out tomorrow! Be ready, know the times reports are coming and look at your notes/ past market behavior for any clues.
This is a MARKET MOVING EVENT!!
Trading Videos 101: 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 Bollinger 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.
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.
Grains have made some large upside moves as well as coffee and sugar recently if you are not following. Some of it is on the heels of US$ being weaker.
get info/ insight like this below which was posted around 5 AM this morning Pacific Time:
GOOD MORNING.
NEW LOW CLOSE US$ @ 90.839
DOWN 0.482.
BULLISH for S&P’s, COPPER,
GOLD CRUDE, GRAINS, SOFTS, ETC.
PARADOXICALLY, GOLD & SILVER
ARE NOT REACTING.
M EUROCURRENCY MADE A NEW HIGH CLOSE, BREAKING OUT ABOVE
**100 DAY MA @ 120.915**
CLOSED @ 121.05 UP 0.85
LOOK FOR M CRUDE TO RALLY
REFLATIONARY pressures continues
GRAINS & LUMBER.
LUMBER Closed limit up again 48.00
COPPER still parabolic!
Very bullish underlying indicator
for economy!
Secular BULL market in S&P’s until a 4090.50 occurs.
M S&P objective 4205.00
DOW 35,000
GERMAN BUNDS:
10) -0.252%
20) +0.034%
30) +0.293%
U.S. RATES:
FED FUNDS WINDOW:
(K) CLOSED 0.1825% -0.50
02) 0.151%
10) 1.542%
30) 2.222%
2/10 Yield Curve Closed 1.391%
5/30 Yield Curve Closed 1.428%
M US$ / Closed 90.839 0.482
RESISTANCE:
91.31
91.19 Buy SCO
91.09
M DOW / Closed 33,941 +232
SUPPORT:
33,997
33,896 Sell SCO
33,810
M S&P / Closed 4171.50 +43.75
SUPPORT:
4152.00
4139.00 Sell SCO
Money flow for M S&P’S:
Negative= N / Positive= P
M CRUDE -0.92 / N
K COPPER +8.15 / P
M BONDS -0.16 / N Nasdaq
M YEN +0.09 / N
M PALLADIUM +38.0 / P
M US$ -0.031 / P
K LUMBER closed 1372.50 +48.00 LIMIT
M CRUDE / Closed $62.14 +$0.71
SUPPORT:
60.48
59.84 Sell SCO
59.08
RESISTANCE:
64.00
63.34 Buy SCO
62.77
M BONDS / Closed 158.09. -0.05
SUPPORT:
158.04
RESISTANCE:
158.24
158.12 Buy SCO
K COPPER / Closed $4.3360 +6.30
SUPPORT:
4.2880
4.2660 Sell SCO
4.2410
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.
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.
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.
News move the markets. Are you Curious About The Futures Market Now?
Take a look at the ES 15 min chart below when the news on Biden and proposed taxes came out…. Market dropped 20 points in approx. 2 minutes…Right around noon central.
To stay on top of the news in real-time, both visually and audibly, I personally use a few sources. One of them is Bettertrader.co
To access a free trial to the ALGOS shown in the chart along with other tools? (Slanted arrows possible buy, Diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
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.
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.
Today’s action in Silver, gold, SP and NQ lead me to write the quick piece below.
Few words on BREAKOUT trading.
The concept is one of many different traders use.
Some like to use COUNTRER TREND trading.
others look at ORDER FLOW, some will use support and resistance mainly and hopefully more traders will master a few different techniques and use the appropriate one depending on the type of trading day that is developing in front of their eyes.
The concept of break out trading looks for the market to “snap out” of a certain trading range and continue moving in that direction. The toughest part is to filter out the “fake breakouts” and recognize early enough which breakouts have the potential to be a powerful one.
A few tips to explore:
Look for a breakout on a smaller time frame that will coincide with a longer time frame CURRENT trend. So you may look at a daily trend and look for a breakout on the hourly chart?
You may trade smaller time frames and look for breakouts that will coincide with the 30 minute chart time frame.
Last but not least ( for today only of course as I am sure there are MUCH more than the short few pointers I am sharing….) try utilizing different type of charts and do your homework in regards to which breakouts seem to work better than others. Look at RANGE BAR charts, explore VOLUME charts, maybe even take a look at Renko bars and other types as well.
To access a free trial to the ALGOS shown in the chart along with other tools? (Slanted arrows possible buy, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
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.
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.
Spoke with a client today I have not spoken with in a while and was happy to hear from him that his own day trading improved once he SWITCHED over from NQ to ZB ( mini NASDAQ to T bonds).
Why am I happy you may ask?
Always good to hear your clients trading is improving
I am in believe that different markets are better for different traders and that it is worth while to explore other markets for trading. I personally like to mix and match 3-5 markets . Sometimes even moving from NQ to MNQ can help.
When it comes to short term trading my favorites ( personally) are: ES/MES, MNQ ( I feel NQ can be too much at these price levels and you probably need $30k to day trade 1 NQ ), CL, GC, ZB, ZS
Here is something I wrote on bonds a while back and worth sharing:
Each market has a different personality, different behavior along with different times of the day when it is most active. If you are finding that the ES (mini SP) is not giving you enough OR too much risk/opportunities then start monitoring a couple of other markets and perhaps explore them in demo / simulated mode.
I think that there are more than a few markets that are suitable for day-trading. Below you will find some observations, tips along with what are unique about these markets, personality and most active trading hours (interest rates, mostly the ten year and 30 year).
In most platforms, the symbols are ZB for 30 year bonds and ZN for 10 year notes.
Product Symbol
ZB
Contract Size
The unit of trading shall be U.S. Treasury Bonds having a face value at maturity of one hundred thousand dollars ($100,000) or multiples thereof
Price Quotation
Points ($1,000) and 1/32 of a point. For example, 134-16 represents 134 16/32. Par is on the basis of 100 points.
Product Symbol
ZN
Underlying Unit
One U.S. Treasury note having a face value at maturity of $100,000.
Deliverable Grades
U.S. Treasury notes with a remaining term to maturity of at least six and a half years, but not more than 10 years, from the first day of the delivery month. The invoice price equals the futures settlement price times a conversion factor, plus accrued interest. The conversion factor is the price of the delivered note ($1 par value) to yield 6 percent.
Price Quote
Points ($1,000) and halves of 1/32 of a point. For example, 126-16 represents 126 16/32 and 126-165 represents 126 16.5/32. Par is on the basis of 100 points.
Tick Size
(minimum fluctuation)
One-half of one thirty-second (1/32) of one point ($15.625, rounded up to the nearest cent per contract), except for intermonth spreads, where the minimum price fluctuation shall be one-quarter of one thirty-second of one point ($7.8125 per contract).
Contract Months
The first five consecutive contracts in the March, June, September, and December quarterly cycle.
These contracts are often affected by many of the economic reports that come out at 8:30 AM Eastern and there is very active volume between the hours of 8 AM EST and 3 PM EST
Volume on both contracts is very good. Ten years will often have 1 million contracts traded per day (might be the second most active US futures market after the mini SP 500) and the bonds will avg. around 300,000 contracts.
These markets can experience very volatile movements during and right after different reports but then will often trade smooth or in an intraday trend the rest of the day.
30 MINUTES chart of ZB ( t-bond futures) for your review below
To access a free trial to the ALGOS shown in the chart along with other tools? (Slanted arrows possible buy, pink squares = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
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.
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.
Bitcoin seem to be the driving force behind some of the moves to start the week…..
Daily chart of the BRTI, the index of Bitcoin below for your review.
Notice the Index tested major support level ( red line) and for NOW was able to bounce of it…..
MICRO bitcoin futures contracts are coming soon!! May 3rd. We will send more info before hand but feel free to reach out to your cannon broker/ contact if you have any questions.
To access a free trial to the ALGOS shown in the chart along with other tools? (Slanted arrows possible buy, pink squares = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
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.
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.
The speed of the move and the slope of the move starting to slow down…..
Next objective S&P’S is 4205.
However, If S&P’s relax, we could retrace back
to 4102.00. Then 4088.75 becomes SUPPORT. Finally, 4079 must HOLD.
A CLOSE below neutralizes the SECULAR BULL TREND.
Last SUPPORT is 4068.00.
The market speed, intraday behavior, volatility and more are MUCH different than what we saw prior to Good Friday. Almost as if someone flipped the switch….
Hourly SP500 chart for your review below, notice no “red bars”, mostly signals of trend resuming ( blue arrows) with a couple of possible “profit taking” in the form of red diamonds…..:
To access a free trial to the ALGOS shown in the chart along with other tools? (Slanted arrows possible buy, pink squares = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
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.
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.
One Way to Eliminate Fear and Greed While Day Trading
Disclaimer
The methods described in this article are for educational purposes only. Past results are not necessarily indicative of future results. The author and the publisher assume no responsibility for your trading results. Trading involves a high degree of risk. No recommendation is being made to buy any stock, commodity, option or other financial instrument. Consult your financial advisor before starting any investment system.
It is a known fact that fear and greed can be a trader’s worst enemies.
I’ve found one way that has helped some clients deal with fear and greed and their cousin, “getting out of winners too soon and staying in losers too long.”
What is it?
Entering multiple contracts. Now with the MICROS, this trading approach is more feasible for many more traders than before.
Entering Multiple Contracts: Philosophy
In order to enter multiple contracts while day trading, one has to have the appropriate risk capital and margin requirements. But the advantage of trading more than one “unit” or splitting your trading size into two or more parts is as such:
If you enter a trade with one contract (or if you are treating your trading size as one unit, meaning you enter a trade with 4 contracts and exit the trade with 4 contracts), you can face a very quick dilemma, especially when day-trading. Consider the two following scenarios:
1. You get in and very quickly you are up 2 mini SP points…what do you do? Do you take profit? Bring your stop loss closer? How do you avoid getting out too early or too late?
2. You enter a trade and it goes against you rather quickly…if you get out then it is a loser…but the little voice in your head says “what if the market goes back up?”
In the first case scenario, when market decided to be nice to us and moved in our direction, I like to exit half of my positions relatively quickly. In the case of the mini SP, this would be around 11 ticks profit.
What I’ve found is that this will allow me to manage the rest of the trade in a much more relaxed manner. Since I’ve already locked profits in, now I can look for a proper stop close to my break-even level. I can analyze my next target more realistically and, if the market provides room for additional gains, be there to participate.
In the second case scenario, I can choose to risk a smaller amount or use a tight stop on the first half of my position and a bit wider stop on the other half of the position. This can help prevent the scenario when one does not get out of a trade because mentally one does not want to accept the loss.
Of course, there is much more to trading and day trading. Entry signals, exit techniques, why and when to get in a trade, and so on — all of these are key.
But I hope that this tip will assist you while trading and will prevent some of the instances where you get out of a trade too late or too early.
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.
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.
No commentary today – just levels and reports below to help you plan better for the next trading day!
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.
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.
To access a free trial to the ALGOS shown in the videos along with other tools? (Slanted arrows possible buy, pink squares = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
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.
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.
And just like that…..Sp500 Futures made an all-time high.
The stimulus by the FED is the driving force….
Below is what I PERSONALLY consider valuable insight every morning by our friend, Al Bicoff. This was posted this morning on our FB group at https://www.facebook.com/groups/1105191589938254 :
GOOD MORNING.
We discussed these scenarios last month. HISTORY can repeat itself.
No two Bull or Bear markets are alike. This pandemic is similar to 1918 (post WW1), which originated in China, unfortunately killing 50 million globally. The pent up demand led to the Roaring 20’s, which is the cycle we’re presently in. With the FED all in with unprecedented stimulus, we could see a 8-9% GDP number!
Q.E. is $120 billion a month, coupled
with the 3 stimulus packages and the new $2.2 trillion infrastructure in the pipeline. Also, the FED is allowing inflation to run hot, above their 2% target, using a weak US$, as its main catalyst. Lastly, the SHORT END may remain untouched for 2 years.
Eventually, the FED will lose control of the LONG END of the curve!
Future CAVEAT, is that we all know how the Roaring 20’s ended on Oct. 29, 1929.
M S&P’s objective is 4,101 until a close
below 4023.50 occurs.
M DOW 35,000
WEEKLY mini SP chart for your review below.
To access a free trial to the ALGOS shown in the chart along with other tools? (Slanted arrows possible buy, pink squares = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.
Good Trading
Sp500 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.
Different rhythm to the market this week with Emini Russell versus what we saw last week before Good Friday.
Almost like two different animals all together…
Market rhythm, correlation between markets, money flow between assets, scheduled reports, longer term picture as well as volatility cycles all affect the intraday price action as well.
As far stock index futures, the emini Russell, RTY, has been a little smoother to trade in my opinion than the mini SP and MINI NASDAQ.
30 min chart for your review 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.
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.
Different rhythm to the market this week versus what we saw last week before Good Friday.
Market rhythm, correlation between markets, money flow between assets, scheduled reports, longer term picture as well as volatility cycles all affect the intraday price action as well.
Do your homework each day before you start trading and keep notes.
If you like to have access to “wisdom nuggets” like the ones below shared BEFORE the market open, then join our private FB group at:
taking some insurance over the long weekend against EQUITIES.
Someone is wrong. BONDS or S&P.
Educated guess, BONDS. Therefore,
BONDS will break and S&P’S will rally.
DOW objective 35,000
GERMAN BUNDS:
10) -0.322%
20) -0.028% / negative again
30) +0.229%
U.S. RATES:
FED FUNDS WINDOW:
(J) CLOSED 0.1825% UNCH
02) 0.162%
10) 1.673%
30) 2.334%
2/10 Yield Curve Closed 1.511%
5/30 Yield Curve Closed 1.428%
M US$ / Closed 92.947 -0.289
SUPPORT:
92.92
92.81 Sell SCO
92.70
M DOW / Closed 33,037 +139
SUPPORT:
32,962
32,887 Sell SCO
32,804
M S&P / Closed 4010.00 +42.50
SUPPORT:
3995.50
3983.50 Sell SCO
3970.50
Money flow for M S&P’S:
Negative= N / Positive= P
K CRUDE down 1.01 / N
K Copper up 11.35 / P
M BONDS down 0.06 / P
M YEN up 0.115 / N
M PALLADIUM down 22.80 / N
M US$ down 0.046 / P
K LUMBER closed 1012.60 +3.50
K CRUDE / Closed $61.45 +$2.29
RESISTANCE:
65.86
64.52 Buy SCO
63.36
SUPPORT:
58.98
57.78 Sell SCO
56.39
M BONDS / Closed 156.07 +1.20
RESISTANCE:
158.11
157.23 Buy SCO
157.06
SUPPORT
155.06
154.21 Sell SCO
154.01
K COPPER / Closed $3.9905 -0.50
RESISTANCE:
4.1815
4.1415 Buy SCO
4.1070
SUPPORT:
3.9935
3.9685 Sell SCO
3.9400
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.
YM= Mini Dow 30 minute chart for your review 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.
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.
RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.
