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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.


Using Trailing Stops to Manage your Risk & Support and Resistance Levels 9.21.2021

Dear Traders,

Get Real Time updates and more on our private FB group!
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FOMC tomorrow. Do your homework, look at price action during the last few FOMCs.
Also we will have a LIVE WEBINAR with live price action post FOMC and see in real time what type of information price action and order flow provide. Register here.

A Trailing stop Tweak   by John Thorpe, Senior Broker:

When traders decide to deploy trailing stops, they may decide to take a look at avg truer range to determine volatility of the market so they have a better gauge of how much to risk on each trade and how likely, if they are correct about the direction, will they be to successfully set the trailing distance. Tweak your stops to reduce the risk to your Net Liquidating Value.
               Whatever indicator or set of indicators you like to use to determine how many points the market must travel before your stop automatically modifies and moves to your new “Protection Level”, I think all traders agree when this happens, we have a winning trade on the books., Typically the worst we will get filled when the market does change direction, with a little slippage is a trade that finishes in the black!
               What happens when the stop doesn’t trail, a hard stop is elected the market takes the position out, with a little slippage, below our breakeven? The trade ends in the red.
Whether you trail or use a hard stop, stops are part of risk management and in my opinion, essential to long range trading success: use stops or trailing stops.  If the stop never trails, the trade will end with a predetermined loss,(less slippage and fees) , Some people like to set stops after they enter the market, (some say they do but rarely will). I do.
The importance of using stops can not be understated. What I do once I have determined how many ticks I will use for my trailer, is to place the Trailing stop LESS THAN my hard coded distance E.g. hard coded trailing distance is 20, I will place the stop at 12 or 14. That way, if the market modifies the stop at least once, the trade will do better than break even by 6 or 8 points less fees rather than getting stopped at breakeven less fees.  If the stop modifies twice then I have the potential for a 34 to 36 point gain on this trade, less fees. If the position gets stopped I will not take a 20 point loss, rather a 14 to 16 point loss.
If we always place the trailing stop at the same distance when we initiate our entry trade, we will always do worse than breakeven if we get stopped out.  If you loosen your trailer and tighten your entry, you might just turn the account from red to black.
Our free platform, E-Futures Int’l offers trailing stops as one of the order types as you can see below. Sign up for a FREE, Realtime data demo here.

E-Futures Demo

 

Bookmap Real-Time Order Flow Analysis Webinar

 

 

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

9-22-2021

Support and Resistance Levels 9.21.2021

Economic Reports, source: 

 www.BetterTrader.co

BetterTrader Reports 9.21.2021

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.

Posted in: Future Trading News   | futures trading education  

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Large Swings & Big Intraday Moves, Reminder of Limit Moves & Circuit Breakers & Support and Resistance Levels 9.21.2021

Dear Traders,

Get Real Time updates and more on our private FB group!
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Some very large swings and intra-day moves across more than a few markets!
Volatility is increasing.
When that happens, my personal opinion says:
*Reduce trade size
*Be a bit more stubborn in entry points with the thought of, “No trade is better than a bad trade”
Just in case….Here is a refresher about limit moves and circuit breakers:
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.
CME Group U.S. equity index price limits (and corresponding CME and CBOT rules) are designed to coordinate with circuit breakers provisions as applied by the New York Stock Exchange (NYSE).
  • 7%, 13%, and 20% price limits are applied to the futures fixing price and are effective from 8:30 a.m. CT – 2:25 p.m. CT. Mondays through Fridays. From 2:25 p.m. to 3:00 p.m. CT, only the 20% price limit will be applied to the futures price fixing.
  • 7% up-and-down limits are effective 5:00 p.m. – 8:30 a.m. CT. Sundays through Fridays; and 3:00 p.m. – 4:00 p.m. CT, Mondays through Fridays. Between 3:00 p.m. – 4:00 p.m. the 7% price limit will not be allowed to breech the 20% daily limit.
  • The fixing price is the volume weighted average price, VWAP, calculated during the 30 seconds of trading from 2:59:30 p.m. – 3:00:00 p.m. CT. View Equity Index Fixing Prices page
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, feel free to reach out even if you are not a current client – we will be happy to assist.
So we went from 6 weeks of lower volatility, overall higher stock prices to Dow being down over 1000 points at one point today!!
This is MAJOR alert in my opinion that market sentiment may have changed.
Be aware and if the below applies, you are in a better spot….
If you know how to take a loss.
If you know how to reduce trading size based on volatility.
If you know how to trade spreads ( NQ vs ES?)
If you understand options spreads.
THAN there are some very interesting set ups out there ( STILL with HIGHER RISK than normal). However if none of the above applies to you, the risks outweighs the potential opportunities. – PERSONAL opinion
On a different note, if you are NOT a Cannon client yet, you may want to read this recent review!!

Bookmap Real-Time Order Flow Analysis Webinar

 

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

9-21-2021

Support & Resistance Levels 9.21.2021

Economic Reports, source: 

 www.BetterTrader.co

BetterTrader Economic Reports 9.21.2021

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.

Posted in: Future Trading News   | futures trading education   | Index Futures  

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Weekly Newsletter 1067: Intro to Crude Oil Futures and Financials & Bookmap Real-Time Order Flow Analysis Webinar & Trading Levels for Week Ahead 9.20.2021

Cannon Futures Weekly Letter Issue # 1067

Dear Traders,

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Get Real Time updates and market alerts on Twitter!

 

Trading 101: Free Course – An Introduction to Crude Oil

Today’s energy crude oil market is truly global. From West Texas Intermediate (WTI) to Brent and DME Oman, the crude oil market fuels many of the world’s leading economies and impact nearly every nation. Energy crude oil futures and options provide the tools the industry needs to manage risk. Explore the key concepts and structure of today’s energy markets, including the factors that affect supply and demand and move prices. Learn how to use these instruments to hedge exposure and unlock opportunities

Crude Oil Futures

ACCESS THE COURSE NOW By Clicking Here

 

Bookmap Real-time Order Flow Analysis

In this session, we’ll take a look at how to utilize Real-Time Order Flow Analysis while trading variety of futures with a focus on the liquid, smaller MICRO products.
Bruce Pringle, has been trading a variety of markets for over 10 years. He leads Bookmap’s trading education department and supports traders and professional educators.
Bruce has developed expertise in reading order flow and market microstructure.
In this webinar you will learn and see live examples:
• Learn how to read Order Flow
• See Stops and Iceberg transaction
  • How to Trade E-Micros from the E-Mini chart

Register Now as Seats are limited!

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

09-20-2021

Futures Support and Resistance Levels 9.20.2021

 

Weekly Levels

Weekly Support and Resistance Levels

 

Trading Signals for commodities

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

https://mrci.com

Date Reports/Expiration Notice Dates

MRCI Reports

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: Crude Oil   | Future Trading News   | Weekly Newsletter  

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Quadruple Witching Tomorrow & Support and Resistance Levels 9.17.2021

Dear Traders,

Get Real Time updates and more on our private FB group!
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Quadruple witching tomorrow….

Futures, futures options, stock options and single stocks all expire tomorrow morning right on the open of the stock market.
Keep in mind that September mini SP and it’s relatives ( mini Dow, mini Nasdaq etc.) EXPIRE tomorrow and cash settle based on special settlement price….Markets can get volatile tomorrow morning right before and around the open.
The September contract will simply cease to trade. If you have not switched to December yet, now is the time…..
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…..

 

Bookmap Real-Time Order Flow Analysis Webinar

 

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

9-17-2021

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 as well as options on futures.

Posted in: futures trading education   | Index Futures   | Indices  

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October Natural Gas Rally and Review & Support and Resistance Levels 9.16.2021

Dear Traders,

Get Real Time updates and more on our private FB group!
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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.
Natural Gas Futures 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

9-16-2021

Support and Resistance Levels 9.16.2021

 

Futures Trading And Commodity Trading Daily Insight and Information via Facebook group
Did you know?
Cannon offers over 10 TRADING PLATFORMS CLICK HERE for a demo

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 as well as options on futures.

Posted in: Energy Futures   | Future Trading News  

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Watch 4 short videos on the topics of:
  • Using Bollinger Bands and Parabolics
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  • The concept of Price Confirmation
  • How to Use Support & Resistance Levels
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