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Support & Resistance Levels

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.


S&P 500 Futures are almost 40!

SP 500 FuturesDon’t look now, the S&P Futures market is almost 40 years old! Prepare the over the hill jokes. On April 20th 1982, following winning a lawsuit to prevent the opening, regulators at the CFTC and SEC agreed to allow the contract, with the condition that it be settled using cash instead of delivering stocks. This was a revolution to the Commodity Sector, which was founded on delivering physical commodities like Live Cattle, Soy Beans and Silver. The move was expected to begin the merge between the equity and commodity sectors.

On April 21st 1982 at the CME “The Spoos” began trading futures based off the S&P 500 stock market index. Using 500 broad ranged stocks, S&P 500 Futures has since become the gauge for the economy. According to the April 22nd edition of the New York Times, “Indeed, the first trade was executed by a prominent gold trader, Maury A. Kravitz, who said he bought a contract for a client with a substantial stock portfolio. The seller was another floor trader, George I. Segal, who normally trades frozen pork bellies futures. Mr. Segal also said he was trading for a client with a large stock holding.” In the same year Paul Volcker and the Federal Reserve increased interest rates to nearly 20% successfully curbing inflation that kept the market suppressed since the late 1960s highs. The opening price was 116.35 and traded at $500 a point with a 1.5-point range. There were almost 4,000 contracts traded the first day. The notional value was about $58,500 and $3,200 margin.

In September 1997 S&P 500 Futures got its license to drive; opening on the online trading roads called GLOBEX. S&P Futures split in half making it $250 a point (moving to tenths from twentieths) while creating the E-mini (ES) 1/5 size contracts. The E-mini is traded exclusively on GLOBEX in quarter point increments allowing for the first time -traders to place their own trades instead of having to call it down to the floor. In 1998 the market closed over $1,000 for the first time. The volume was about 100,000 per day and the Notional value was $250,000 for the full size and $50,000 ES. The margin was about $5,000 per contract for the ES.

In May 2019 the ES E-mini S&P Futures at 37 years old had offspring of its own when the CME launched Micro Futures on the ES. The Micro ES, symbol MES, is 1/10 the size of the ES and 1/50 the size of the full size and 1/100 of the original contract. The original S&P Futures have all been but phased out with the closing of the physical pit a few years ago. The E-mini (ES)- now becoming known as the new “standard-size” S&P, is trading over price 3,300 making a nominal value of $165,000 per contract. This is 3x the size of the original futures contract’s nominal value while using the contract that was 1/10 of the size, using the $500 per point vs the $50 per point. Comparing apples to apples; the nominal value would have grown from $58,500 to $1,650,000 per contract. The volume is typically between 1 million and 2 million contracts traded per day and the margin is currently $7,290 for the ES contract, with many Brokers offering $500 day margins. If the cycle continues, the MES Micro ES futures will grow in size and who knows might become “standard- size” one day.

Celebrate the evolution by registering for a free Demo below to try the New Micro S&P Futures.

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.

Posted in: Commodity Trading   | Future Trading News   | S&P 500  

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Hedging Futures Price Risk Through the Futures Market & Trading Levels 1.24.2020

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Read this article about hedging using futures and it will provide you an additional perspective regardless if you are a speculator or a hedger.
Written by John Thorpe, Senior Broker
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?
Explore our trading systems center and when ready to consult a broker simply call us at + 1 310 859 9572 or reserve a FREE consultation 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.

 

Futures Trading Levels

1-24-2020

 

Futures Trading


Economic Reports, source: 

https://bettertrader.co/ 

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

Posted in: Future Trading News  

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Private colleges usually have rather substantial costs for tuition and costs.

Typically, essay writing is made up of easy formulaic structure. In these kinds of essays, the author should attempt to include the audience. Writing essays could be employed! Clearly, a engineering composition isn’t different from a few additional documents, additionally it has the exact educational writing design too. Regrettably, there exists simply no surefire step-by-action approach to creating an excellent essay. The most critical for creating a fantastic essay is content of the article. This site discusses the sorts of essays. Read the rest of this entry »

Posted in: Uncategorized  

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This could signify they’ve been enjoying the lottery more frequently than every other sales team.

The straightforward goal of a plan might be to remind the writer what demands to be mentioned inside the composition and what’s not too vital. Compose the introduction. Now you’ve created your thesis and the absolute human body of your own composition, you should write an introduction. You’ve just composed a distinguished article. Firstly, you got to get an awareness of why it’s you’re writing this composition. Read the rest of this entry »

Posted in: Uncategorized  

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Crude Oil & Natural Gas Numbers Tomorrow & Trading Levels 1.23.2020

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Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!  

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Dear Traders,

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Both crude oil and natural gas numbers will be published tomorrow due to Monday being MLK holiday.
Normally crude oil numbers come out Wednesday 9:30 AM central time and Natural gas come out Thursday 9:30 AM Central time.
Tomorrow Nat gas will be out as normal 9:30 AM CDT and Crude oil numbers will follow at 10:00 AM CDT.
On a different topic, have you looked at some of our automated trading systems recently?
Explore our trading systems center and when ready to consult a broker simply call us at + 1 310 859 9572 or reserve a FREE consultation 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.

 

Futures Trading Levels

1-23-2020

Futures Trading


Economic Reports, source: 

https://bettertrader.co/ 

 

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

Posted in: Future Trading News  

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