3 Main Types of Trading Days; 30 Year Bond Chart Review & Support and Resistance Levels 6.22.2021

Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog

Dear Traders,

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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

Futures Trading Levels

6-22-2021

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

Weekly Newsletter #1055 Day Trading Mind Traps & Trading Levels for Week Ahead

Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog

Cannon Futures Weekly Newsletter Issue #1055

Dear Traders,

Like us on FaceBook!

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Day Trading Mind Traps

“One way our brain helps keep us safe is to protect us from an awareness of our weaknesses. The brain believes that it is better to be falsely confident than recognize the real risks. This protective mechanism tends to work against us in trading.” Kenneth Reid, Ph.D

MINDING THE MIND

The mind can play tricks on us. Intuitive Trading is an attempt to mind read the market, which makes us susceptible to whipsaws. Hindsight Bias causes traders to underestimate the difficulty of trading, while Competency Bias causes us to over-estimate our abilities. These are mental banana peels that set us up for a fall.

INTUITIVE TRADING

Intuitive trading is a natural response to excessive randomness and non-linearity in the market. But making informed guesses is not the same as formulating a rule-based pattern-recognition system that gives a trader a true edge. Without a rule-based plan, intuitive traders expend a great deal of energy mindreading the market, which will not improve your odds of success. In fact, professional traders make a good living exploiting the emotionally-driven behavior of intuitive amateurs.

….Read More by clicking here

Good Trading

Futures Trading Levels

6-21-2021

Weekly Levels

Reports, First Notice (FN), Last trading (LT) Days for the Week:

https://mrci.com

Date Reports/Expiration Notice Dates

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts 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

Posted in: Future Trading News

Big Moves After FOMC; Join our Exclusive Facebook for up to Date Futures News & Support and Resistance Levels 6.18.2021

Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog

Dear Traders,

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Big moves across the board the day after FOMC.

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

Good Trading

Futures Trading Levels

6-18-2021

Economic Reports, source:

www.BetterTrader.co

Posted in: Future Trading News

ES Chart for Review & Support and Resistance Levels 6.17.2021

Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog

Dear Traders,

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FOMC lived up to it’s hype.

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…

Good Trading

Futures Trading Levels

6-17-2021

Economic Reports, source:

www.BetterTrader.co

Posted in: Future Trading News

Suggestions on Trading During FOMC Days & Support and Resistance Levels 6.16.2021

Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog

Dear Traders,

Like us on FaceBook!

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Tomorrow we have FOMC.

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

Futures Trading Levels

6-16-2021

Support & Resistance Levels

3 Main Types of Trading Days; 30 Year Bond Chart Review & Support and Resistance Levels 6.22.2021

Good Trading

Futures Trading Levels

Economic Reports, source:

Weekly Newsletter #1055 Day Trading Mind Traps & Trading Levels for Week Ahead

Cannon Futures Weekly Newsletter Issue #1055

Day Trading Mind Traps

MINDING THE MIND

INTUITIVE TRADING

….Read More by clicking here

Futures Trading Levels

Weekly Levels

Reports, First Notice (FN), Last trading (LT) Days for the Week:

Big Moves After FOMC; Join our Exclusive Facebook for up to Date Futures News & Support and Resistance Levels 6.18.2021

Good Trading

Futures Trading Levels

Economic Reports, source:

ES Chart for Review & Support and Resistance Levels 6.17.2021

Good Trading

Futures Trading Levels

Economic Reports, source:

Suggestions on Trading During FOMC Days & Support and Resistance Levels 6.16.2021

Good Trading

Futures Trading Levels

Economic Reports, source:

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