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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.


Weekly Newsletter #1027 – Margins Update, Circuit Breakers – DOW Jones Chart – Trading Levels 11.02.2020

Cannon Futures Weekly Letter Issue # 1027

Dear Traders,

Like us on FaceBook!
Get Real Time updates and market alerts on Twitter!

MARGINS UPDATE:

Upcoming elections fear, COVID resurge and other factors really helped spike up volatility.
Most of Cannon clearing partners and risk managers have increased margins to full overnight or what we call 100% margins even during the day.
This does NOT apply to all platforms and clearing houses we work with. Some only raised margins for during the night session and some also raised margins through out the day.
Most platforms will provide a notice when you login regarding margins.
Cannon offers over 10 different platforms via 5 different clearing houses.
If you are a client who day trades and utilize day trading margins – PLEASE confirm with your broker what are the current margins based on the platform you use and the markets you trade.

During this Time:

*Expect the unexpected…
* Have an idea of what you are looking to do, keep in mind possible risk and have a game plan. Now more than ever, plan your trade and than trade your plan!
* Think money management, hedging risk while you are still trying to figure out how to profit.
  • Try to use preset brackets/ automated stops and limits etc. if you are able to with your software.
* Know what is going on, reports, current margins, current limits and more.
*Trade smaller. The bands are much larger. Watch the VIX. MICROS and smaller sized contracts like mini Silver and mini crude are good alternatives.
* DO NOT assume anything…if you are not sure, contact us and we will try our best to assist with the combined, vast experience we have here as a team.
* Wash hands, take this seriously and do your best to stay healthy….

Circuit Breakers:

I’ve received some questions about the price limits or circuit breakers we have seen mostly in stock index futures. Hopefully this explains things a bit better:
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 can occur depending on the product being traded. Markets may temporarily halt until price limits can be expanded, they may remain in a limit condition or they may stop trading for the day, based on regulatory rules.
This is for Stock Index futures but keep in mind MANY other markets are experiencing LARGE swings and moves.
Overnight limits (5:00 P.M. – 8:30 A.M., Central Time): the futures contract is limited to a 7% price move up or a 7% price move down, based on the futures contract’s prior day’s settlement price (3:15 P.M., Central Time).
If PRICE LIMITS hit 7% up or down and trading will cease until the NYSE cash market opens at 8:30am Central Time.
This is for Stock Index futures but keep in mind MANY other markets are experiencing LARGE swings and moves.
Overnight limits (5:00 P.M. – 8:30 A.M., Central Time): the futures contract is limited to a 7% price move up or a 7% price move down, based on the futures contract’s prior day’s settlement price (3:15 P.M., Central Time).
Further, if a contract market moves beyond +/- 3.5% within an hour during the overnight session, trading will be paused for two minutes.
If PRICE LIMITS hit 7% up or down and trading will cease until the NYSE cash market opens at 8:30am Central Time.
This applies to the main stock index futures contracts available, such as the ES, MES, NQ, etc.
What is so dangerous you may ask?
If you are long an ES during the night session and the market is limit down (7%) you can NOT get out. There is a chance that when the market opens up at 8:30 AM CDT that the market will then go down the 13% limit without you being able to exit. That means that on certain situations you can lose MORE than you have in your account.
If you don’t understand how the circuit breakers/ price limits work…make sure you call us and talk to a broker at + 1 310 859 9572
This only applies for the overnight session ending at 8:30 A.M. Central Time. At that point, a new set of rules kick in ONLY to the downside.

-7% Trading Halt 15 mins

-13% Trading Halt 15 mins

-20% Closed for rest of day

Trading 101: One of the Most Important (and often overlooked….) Aspects of Day Trading – Learn to Accept Losses

(I think this is a very important read during this time.)
I am frequently asked, (and many times I ask myself) about the keys to trading success in general and futures trading in specific. The list is long and, to be honest, it is not an exact science.
Successful trading is a mix of art and math, personality and discipline and much more in between. I have seen many different ways to make money in the futures and commodities world. I saw and still see clients trade and make money.
Yet, the list of clients who lose money is bigger than the ones who make money….Why?
Dow Jones Industrial Avg. Cash Index WEEKLY chart below. Notice the levels and notice the turning up in volatility on bottom of the chart.

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

11-02-2020

 

Weekly Levels

Economic Reports, source: 

https://mrci.com

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

Posted in: Future Trading News  

-


Margins UPDATE, NQ Daily Chart & Futures Levels 10.30.2020

_________________________________________________

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

_________________________________________________

Dear Traders,

Like us on FaceBook!
Get Real Time updates and market alerts on Twitter!
MARGINS UPDATE: Upcoming elections fear, COVID resurge and other factors really helped spike up volatility.
Most of Cannon clearing partners and risk managers have increased margins to full overnight or what we call 100% margins even during the day.
This does NOT apply to all platforms and clearing houses we work with. Some only raised margins for during the night time and some also raised margins through out the day.
Most platforms will have a notice when you login regarding margins.
Cannon offers over 10 different platforms via 5 different clearing houses.
If you are a client who day trades and utilize day trading margins – PLEASE confirm with your broker what are the current margins based on the platform you use and the markets you trade.
We will keep you posted to the best of our ability but make sure to reach out to your broker if you have ANY questions.

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

10-30-2020

Economic Reports, source: 

 www.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  

-


Dow Jones Cash Daily Chart, Price Limits & Futures Levels 10.29.2020

_________________________________________________

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

_________________________________________________

Dear Traders,

Like us on FaceBook!
Get Real Time updates and market alerts on Twitter!
Upcoming elections fear, COVID resurge and other factors really helped spike up volatility.
Dow Jones is sitting on a MAJOR and IMPORTANT support level. Chart below.
*While I have no idea were the market is going from day to day, minute to minute, week to week etc. I feel the following may help….
*Expect the unexpected…
* Have an idea of what you are looking to do, keep in mind possible risk and have a game plan. Now more than ever, plan your trade and than trade your plan!
* Think money management, hedging risk while you are still trying to figure out how to profit.
  • Try to use preset brackets/ automated stops and limits etc. if you are able to with your software.
* Know what is going on, reports, current margins, current limits and more.
*Trade smaller. The bands are much larger. Watch the VIX. MICROS and smaller sized contracts like mini Silver and mini crude are good alternatives.
* DO NOT assume anything…if you are not sure, contact us and we will try our best to assist with the combined, vast experience we have here as a team.
* Wash hands, take this seriously and do your best to stay healthy….
__________________________________________________
I’ve received some questions about the price limits or circuit breakers we have seen mostly in stock index futures. Hopefully this explains things a bit better:
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 can occur depending on the product being traded. Markets may temporarily halt until price limits can be expanded, they may remain in a limit condition or they may stop trading for the day, based on regulatory rules.
This is for Stock Index futures but keep in mind MANY other markets are experiencing LARGE swings and moves.
Overnight limits (5:00 P.M. – 8:30 A.M., Central Time): the futures contract is limited to a 7% price move up or a 7% price move down, based on the futures contract’s prior day’s settlement price (3:15 P.M., Central Time).
If PRICE LIMITS hit 7% up or down and trading will cease until the NYSE cash market opens at 8:30am Central Time.
This is for Stock Index futures but keep in mind MANY other markets are experiencing LARGE swings and moves.
Overnight limits (5:00 P.M. – 8:30 A.M., Central Time): the futures contract is limited to a 7% price move up or a 7% price move down, based on the futures contract’s prior day’s settlement price (3:15 P.M., Central Time).
Further, if a contract market moves beyond +/- 3.5% within an hour during the overnight session, trading will be paused for two minutes.
If PRICE LIMITS hit 7% up or down and trading will cease until the NYSE cash market opens at 8:30am Central Time.
This applies to the main stock index futures contracts available, such as the ES, MES, NQ, etc.
What is so dangerous you may ask?
If you are long an ES during the night session and the market is limit down (7%) you can NOT get out. There is a chance that when the market opens up at 8:30 AM CDT that the market will then go down the 13% limit without you being able to exit. That means that on certain situations you can lose MORE than you have in your account.
If you don’t understand how the circuit breakers/ price limits work…make sure you call us and talk to a broker at + 1 310 859 9572
This only applies for the overnight session ending at 8:30 A.M. Central Time. At that point, a new set of rules kick in ONLY to the downside.
-7% Trading Halt 15 mins
-13% Trading Halt 15 mins
-20% Closed for rest of 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.

 

Futures Trading Levels

10-29-2020

Economic Reports, source: 

 www.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  

-


Buy & Sell Signals (NQ Chart) & Futures Trading Levels 10.28.2020

_________________________________________________

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

_________________________________________________

Dear Traders,

Like us on FaceBook!
Get Real Time updates and market alerts on Twitter!
Little example of how I set my intraday NQ chart screen, using 54 range ticks chart along with what I call “turning points” indicators.
Red diamonds = possible sell, green diamonds = possible buy.
You can try this for yourself, if you like – for FREE TRIAL.

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

10-28-2020

 

Economic Reports, source: 

 www.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  

-


Volatility in Stock Index Futures Extremely High & Futures Levels 10.27.2020

_________________________________________________

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

_________________________________________________

Dear Traders,

Like us on FaceBook!
Get Real Time updates and market alerts on Twitter!
Volatility in stock index futures is extremely high.
You may want to consider the following:
Reduce trading size.
Adjust stops and entries based on volatility ( ATR/ Parabolics).
Be extra picky on entries without chasing trades.
No trade is better than a bad trade.

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

10-27-2020

Economic Reports, source: 

 www.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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