A Healthy Pullback — or the First Crack?

By Eli Gal Levy, Series 3 broker

After weeks of fresh all-time highs across SPX, SPXEW, DJI, COMP, this week handed us the largest one-day drop of the year in the NASDAQ. The blowout monthly jobs report did the work no one was expecting — yields spiked, the short end of the curve threatened to break containment, and traders used it as the excuse to take profits in the most crowded part of the market. The S&P 500 broke its 20-day moving average around 7,500 and is sitting below it. The next reference on the way down is the May low around 7,330 — and we are still above it. Above 7,320 this is a routine wobble inside an uptrend. Below 7,320 the conversation changes.

The damage was concentrated where the leadership has been. AMD was down more than 10% on the week. Micron was down 13%. Broadcom — the company whose lackluster guidance started this whole leg — dropped 20%. The PHLX Semiconductor Index pulled all the way back below its 20-day SMA, the same kind of test that brought buyers in around mid-May. Whether they show up again is the single most informative thing the chart can tell us next week. The VIX, which printed a four-month low of 15.18 the day before, snapped higher. Bitcoin is down roughly 20% on the week and traded below its February low (~$60,000) and below the 200-week SMA (~$62,000). The green on the day was confined to the most defensive parts of the tape — healthcare, staples, utilities. Healthcare was up on no real news; it was just under-owned relative to everything else everybody was holding.

There are real reasons to step back and respect both sides of this.

The bull side is the same one that has held this rally together. The economy is stronger than expected. Yields are rising in part for the right reason — growth is better than feared and that comes with some inflation. The AI capital expenditure cycle is enormous and broadening: the four biggest hyperscalers are on track to spend close to $800 billion on AI infrastructure this year and roughly $1.2 trillion next year. That is a food chain that runs far beyond the chips — data center builders, the equipment inside the data centers, the grid, the power. The backlogs are real. A pullback inside a CapEx cycle this big is exactly the kind of opportunity bulls have been waiting for to put a shopping list together — both within tech and in the parts of the market that had been left behind. From this side of the argument, what we just saw is the first healthy pullback since March 30. Nothing more.

The cautious side is also worth taking seriously. The leadership group was historically stretched coming into the week — large air underneath the chart, very crowded positioning, and very thin price discovery on the way up. Concentration is the part that should sit in the back of your mind: the ten most influential AI-related names have accounted for something like 40% of the S&P 500’s gains. That is the kind of concentration that has historically lined up with bubble-like environments. It does not always end badly — and there is no evidence yet that this one will — but it does raise the cost of being wrong. Add the supply side: Alphabet’s historic ~$85 billion equity raise to fund AI infrastructure, META reportedly preparing a raise, and a SpaceX IPO landing next Friday at around $1.75 trillion. That is real new supply hitting at a time when investors are also raising cash by selling winners to make room. Is that broad-based demand for opportunity, or is it exit liquidity? Both readings are fair.

Here is my bias, stated plainly. I follow the market — I do not lead it. The market sold off this week, but the larger trend has not broken. A short-term top usually behaves the same way: it sells off, builds back, and then either takes out the previous high or it doesn’t. If it does, the uptrend is still in charge and the dip-buyers were right. If it can’t, that is often the start of a more meaningful downturn, and the levels start mattering a lot. I am not going to call which one we get. I am going to let the levels tell me — SPX 7,330 on the downside, the prior high on the upside, SOX behavior at the 20-day SMA, and BTC behavior around the February low. The third option is finding support and consolidation.

READ THE REST and SEE CHARTS

Cannon Edge — Your Daily Futures Snapshot for June 9th

Daily Levels for June 9th, 2026

Economic Reports

provided by: ForexFactory.com

All times are Central Time ( Chicago)

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.

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Cannon Futures Weekly Letter

In Today’s Issue #1292

• The Week Ahead – CPI, WASDE,, Iran Uncertainty?
• Crypto Cup – $50,000 Total Prizes!!
• Futures 102 – The Daily Briefing – What The Pros Know Before Trading
• 10 Years Notes Chart & Outlook
• Cannon Edge – Your Futures trading Map for the week ahead!
• Trading Levels for Next Week
• Trading Reports for Next Week

What Futures Traders Should Watch This Week

Options

By John Thorpe, Senior Broker

The Week Ahead

The key futures market news for next week focuses on WASDE (grain markets to roil), inflation data (CPI and PPI) and Michigan consumer sentiment, all of which will strongly influence interest rate futures. Additionally, the SpaceX IPO roadshow kicks off, potentially becoming one of the largest public offerings in financial history. The investor roadshow for SpaceX is expected to shift market attention to the commercial space and tech sectors.

Options Workshop 201:

Inexpensive volatility structure: Long Straddle

Buying both a call and a put at the same strike price and expiration is called a long straddle.

On a daily-expiring futures option, a trader might do this when they expect a large move in the underlying futures contract but don’t know (or don’t want to bet on) the direction.

How it works

Suppose a futures contract is trading at 5,000 and you buy:

• A 5,000 call
• A 5,000 put

Both expire at the end of the day.

Your total cost is the combined premium paid for both options.

Profit scenario

At expiration:

• If futures rally sharply, the call gains more than the put loses.
• If futures fall sharply, the put gains more than the call loses.
• If futures stay near 5,000, both options lose value and can expire worthless.

Your maximum loss is the premium paid for both options.

Why use a daily expiration?

Daily expirations are often used around events that can cause large intraday moves, such as:

• Economic data releases (CPI, jobs report, Fed announcements)
• Earnings reports (for stock-index futures)
• Major geopolitical news
• Market-open volatility

A trader might think:

“I don’t know whether the market will jump up or crash down after the announcement, but I think it will move more than the options market is pricing in.”

The long straddle is a way to express that view.

Example

Assume:

• Futures at 5,000
• 5,000 call costs 10 points
• 5,000 put costs 10 points
• Total cost = 20 points

Break-even levels at expiration:

• Upside: 5,020
• Downside: 4,980

If futures finish at:

• 5,050 → call worth 50, put worth 0 → profit = 50 − 20 = 30
• 4,940 → put worth 60, call worth 0 → profit = 60 − 20 = 40
• 5,005 → call worth 5, put worth 0 → loss = 15

Other reasons

Besides directional uncertainty, traders may buy a straddle to:

• Trade expected volatility itself.
• Hedge a portfolio against a sudden move in either direction.
• Take advantage of perceived underpricing of short-dated options.
• Capture potential market reactions to scheduled announcements.

The key question is whether the actual move ends up being larger than the move implied by the option premiums. If the market doesn’t move enough before the daily expiration, the rapid time decay of same-day options can make the position lose money quickly.

Important: Trading commodity futures and options involves a substantial risk of loss.

The recommendations contained in this example are of opinion only and do not guarantee any profits.

Past performances are not necessarily indicative of future results.

We can trade either side of the market and prepare for volatility. On Monday, reach out to your broker for trading ideas. Bull or Bear, you really shouldn’t care.

Is the smoke clearing in the Mid-East and the markets have a renewed sense of confidence?

The energy and metals are swirling in the uncertainty of a lack of resolution in the attempted unwinding of the Iranian nuclear program.

Don’t let your guard down just yet, the fog continues, tune into the Sunday evening markets to witness reactions to the weekend news streams, manufactured or true.

Plan your trade and trade your plan!

Earnings Next Week:

·        Mon. Campbell Soup,

·        Tue. Cracker Barrel, Casey’s General Store

·        Wed. Oracle

·        Thu. Adobe Systems, Lennar

·        Fri.  Quiet

FED SPEECHES: (all times CDT)

·        Mon. Quiet

·        Tues. 8 day blackout period

·        Wed. Prior to Warsh’s first Public FOMC announcement

·        Thu.  Quiet

·        Fri.  Quiet

Econ Data: 

·        Mon. Consumer Inflation Expectations

·        Tue.  Balance of Trade, Redbook, Existing Home sales, Wholesale Inventories, API Crude Stock Change

·        Wed. CPI, ADP Employment Change Weekly, EIA Crude stock Change

·        Thu. PPI, Initial Jobless claims, EIA Nat Gas Stocks, WASDE

·        Fri. Mich. Consumer Sentiment, Baker Hughes Oil Rig Count

As a Cannon Trading client OR prospect, you’re invited to compete in the

Great Summer Escape Trading Competition featuring Coinbase Derivatives futures contracts!

From June 22 – July 2, trade in a simulated environment and compete for your share of $50,000 in prizes

Contracts include:

·    Etherium: Ether, nano Ether, nano Ether Perp-Style

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·    Solana: Solana, nano Solana, nano Solana Perp-Style

·    XRP: XRP, nano XRP, nano XRP Perp-Style

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Futures 102: The Daily Briefing by Cannon

Every morning, the world’s biggest banks and macro strategists publish where markets are headed. The rest of the world waits for the headline.

That intelligence stays locked inside trading desks, institutional terminals, and private client portals — accessible only to the few who pay for the privilege, and even they only get what they pay for.

This briefing changes that (100% FREE on Cannon’s website!!). Every morning we scour the open web and aggregate everything that matters — pulling from publicly available sources so you never have to — and distill it into one clear, readable edition you can get through before your first coffee is finished.

No terminals. No subscriptions. No private portals. Just everything the market is saying, gathered in one place, every morning before the bell.

Read the Latest Briefing HERE and make sure to Bookmark this page!

Sept. 10 year treasury notes

The September 10 year treasury note chart satisfied its second downside PriceCount objective last month and corrected. At this point, if we can resume the break with new, sustainable lows, the chart could project a possible slide to the 106-04 area

The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved.

It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk.

Learn more at www.qtchartoftheday.com

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.

FREE TRIAL TO QT MARKET Center – Access to analysis, tools, news & much more!

Highly recommended for HEDGERS!

Cannon Edge — Your Daily Futures Insight for the Next Trading Day! Cannon Edge for June 8st, 2026

Cannon Edge is our new daily feature designed to give traders a fast, actionable overview of key futures markets. Each post delivers:

• Current price and daily % change

• 30‑day and 52‑week highs/lows

• PROPRIETARY Short‑term and long‑term trend signals

• Coverage across equity indices, metals, energies, currencies, and ags

Whether you’re scanning for breakout setups, trend reversals, or just staying informed — Cannon Edge puts the data in your hands before the open.

Built for speed. Backed by insight. Powered by CQG.

Daily Levels for June 8th, 2026

Trading Reports for Next Week

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

www.mrci.com

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.

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon

or wherever you listen to podcasts!

Cannon Futures Weekly Letter

In Today’s Issue #1254

• The Week Ahead – Jackson Hole, FOMC Minutes, Earnings

• Futures 101 – Recorded Webinar on Futures Trading

• Hot Market of the Week – September Brazilian Dollar

• Broker’s Trading System of the Week – Gold Day Trading System 

• Trading Levels for Next Week

• Trading Reports for Next Week

Important Notices: The Week Ahead

By John Thorpe, Senior Broker

Jackson Hole Economic Symposium, 6th inning of the Earnings season, Fed Speakers, FOMC minutes

Retailers report earnings next week, WMT, TGT, Home Improvement Icons HD and Lowes

A three-day annual global symposium Begins Wednesday with Fed Chair Powell who is expected to be at the podium at 9:00 am CDT Friday.  The theme?  “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy.”.

I find Jackson Hole every year has the same effect, Powell by necessity cannot tell us he is going to cut or not going to cut at the next Fed Meeting in September. According to the CME FEDWATCH tool the current probability of a ¼ bps cut is hovering around 88%. The Fed Has 2 mandates Inflation @ 2% and a stable workforce.  If Inflation is above their target 2%, , following the mandate rule, the committee should not cut borrowing rates. If a rate cut is announced, then a rate cut should be taken as the economy is not performing well and needs the lubrication offered by a lower borrowing rate.  What is confusing to the layperson is the words of the past don’t match the actions taken. Inconsistency.

The last 3 Fed Rate reductions were 9/2024 when the rate of inflation as measured by CPI was 2.9 the month prior. (Hight) Rate moved down ½ bps. Next, 11/2024 when the prior month CPI was 2.6. (Better) Rate moved down ¼ bps. Finally, 12/2024 when the prior month CPI was 2.7. (Sameas the past 2 months)  Rate reduced an additional ¼ bps.

Since the last rate decrease to 4.25-4.5%, the CPI Monthly rates have been as follows: 3.0 (jan ’25) then each subsequent month 2.8%, 2.4% ,2.3%,2.4% ,2.7% and this Past July ,2.7%. and no new Fed Borrowing rate reductions.

Tariff impacts are creating volatility in commodity markets for prices moving both up and down. (industrial metals, Orange Juice, Coffee, Grains) the news about China (extending negotiations out another 90 days ) is calming to our many markets. The on again off again nature of the talks has created golden opportunities for breakouts in some markets, rangebound trades in others. (see gold commentary below)

The Trump-Putin meeting has become the main commodity market news of this week, with analysts speculating about the likelihood of a comprehensive deal and the impacts this could have on oil markets. ICE Brent has been gradually sliding closer to $65 per barrel as lower sanction risks on Russia could further erode the market’s in-built risk premium, however a potential failure in the talks could spark another price rally above $70.  Remember that current market drivers for Equities are hard data on Jobs, Inflation, Trump tweets and Geopolitics. There is a high probability the results of the meeting will not be public until after the markets’ close today.

Three weeks ago, I wrote this: Watch for the gold market to maintain its rangebound stance, close below 3350 (basis December) or above 3500 should denote a breakout, begin trading the December(Z) contract next week.    Two weeks ago, I wrote:  Dec gold traded below 3350 today and the past three days but never closed meaningfully below 3350.0 (3348.60 Thurs.) Today we have breached $3500.00 oz with a high in the $3543.00 area per oz. while currently trading @$3493.00 oz as of this writing. Look for a close above $3500.00 on successive days to again accumulate longs. This may be the break from this range we are looking for. Manage your downside risk according to your account size, risk no more than 15-20% whether with options or futures.   Today, August 15th as of this writing that 3500.00 oz did not hold, always wait for confirmation prior to taking a position, several consecutive closes above or below a range is a start. We are teasing the bottom of the range today Dec gold in the 3380’s, I see psychological support @ 3350.00

Continued volatility to come as next week all markets will be reacting to whatever comes out of U.S. Govt leadership relating to conflicts cessation and trade deals, especially with China, India and Russia, remember that Mexico’s extension will end October 29.

 Earnings Next Week: 

• Mon. Quiet
• Tue.  Home Depot, Medtronic, Toll Brothers
• Wed.  TJX Companies, Lowes Analog Devices Inc., Target
• Thu. Walmart, Intuit, Workday, Ross Stores
• Fri.   Quiet

FED SPEECHES: (all times CDT) 

• Mon.  Quiet
• Tues.  1:10 pm Bowman
• Wed.  10 am Waller, 2 PM Bostic
• Thu.    Quiet
• Fri.      9am Fed Chair Powell

Economic Data week: 

• Mon.  NAHB Housing MKT index.
• Tue.    Bldg Permits, Housing Starts, Redbook,
• Wed.  EIA Crude Stocks, 17-week Bill auction, FOMC Minutes, Jackson Hole begins
• Thur. Philly Fed, Jobless claims, EIA NAT GAS Storage, S&P PMI Composite, Existing Home sales    Fed Balance sheet, Jackson Hole continues
• Fri.  Fed Chair Powell

Insights into Futures Trading Webinar

By Ilan Levy-Mayer, VP

Advanta IRA’s Larissa Greene and Ilan Levy-Mayer of Cannon Trading Company break down the basics of futures trading and how it can fit into a self-directed IRA strategy.

Learn what futures trading is, who may not be a good fit for this investment type, and the different ways you can trade futures using your SDIRA funds.

Additionally, Ilan explains the aspects of:

·    Trading with a broker

·    Managing trades yourself

·    Using automated algorithmic trading

·    Working with a managed account

Watch the webinar recording below!

Hot Market of the Week

Hot market of the week is provided by QT Market Center, A Swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.

Free Trial Available

The weekly Brazilian real chart established a long-term low last fall. Now, on the correction higher, we have activated upside PriceCount objectives to aim for.

The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved.

It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors.

Past performance of actual trades or strategies is not necessarily indicative of future results.

Brokers Trading System of the Week

Swing71PlusIntr v.22L _ Gold GC

Markets Traded:   Gold Futures GC

System Type: Day Trading

Risk per Trade: varies

Trading Rules: Partially Disclosed

Suggested Capital: $30,000

Developer Fee per contract: $150 Monthly Subscription

Get Started

Learn More

IMPORTANT RISK DISCLOSURE

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.

The returns for trading systems listed throughout this website are hypothetical in that they represent returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real-time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on backadjusted data (backadjusted).

Please read carefully the CFTC required disclaimer regarding hypothetical results below. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING.

FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS.

THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

Please read full disclaimer HERE.

Trading Levels for Next Week

Daily Levels for August 18th, 2025

Trading Reports for Next Week

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

www.mrci.com

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.

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon

or wherever you listen to podcasts!

Daily Levels for Aug 15th, 2025

Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day! 

Click here for quick and easy instructions.

Economic Reports

provided by: ForexFactory.com

All times are Eastern Time ( New York)

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.

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon

or wherever you listen to podcasts!

December Meal

December meal created an interim low last month and now has activated upside PriceCount objectives on the correction. The first count projects a possible run to the $301 area which would require a break out above the downtrend and a constructive shift in the chart formation.

Daily Levels for Aug 14th, 2025

Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day! 

Click here for quick and easy instructions.

Economic Reports

provided by: ForexFactory.com

All times are Eastern Time ( New York)

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.

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon

or wherever you listen to podcasts!

Daily Levels for Aug 13th, 2025

Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day! 

Click here for quick and easy instructions.

Economic Reports

provided by: ForexFactory.com

All times are Eastern Time ( New York)

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.

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon

or wherever you listen to podcasts!

September – December KC Wheat Spread

The Sept–Dec KC wheat spread corrected after it completed the third upside PriceCount objective at the beginning of the month. Now, the chart has resumed its rally into a new high which, if sustained, projects a possible run to the low-percentage fourth upside count to the -11 area.

Daily Levels for Aug 12th, 2025

Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day! 

Click here for quick and easy instructions.

Economic Reports

provided by: ForexFactory.com

All times are Eastern Time ( New York)

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.

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon

or wherever you listen to podcasts!

Cannon Futures Weekly Letter

In Today’s Issue #1253

• The Week Ahead – Sanctions, Tariffs, CPI, WASDE and more earnings

• Futures 101 – Day Trading MES vs MNQ?

• Hot Market of the Week – September Natural Gas

• Broker’s Trading System of the Week – Mini NASDAQ Day Trading System

• Trading Levels for Next Week

• Trading Reports for Next Week

WEBINAR: Futures trading offers exciting opportunities—but it’s not for everyone. In this informative webinar, Advanta IRA’s Larissa Greene is joined by Ilan Levy-Mayer, an Associated Person with Cannon Trading Company, to break down the basics of the concept and how it can fit into a self-directed IRA strategy.

This webinar takes place at 12 pm ET on Tuesday, 8/12, don’t miss out! Register now.

https://www.advantaira.com/event/futures-trading/

#FuturesTrading #InvestingForRetirement #InvestingWebinar #AdvantaIRA

Important Notices: The Week Ahead

By John Thorpe, Senior Broker

Sanctions, Tariffs, CPI, WASDE and more earnings, predominantly tier 2.

Aside from a big Tuesday CPI report and World Agricultural Supply and Demand Estimates, Tariff impacts are creating volatility in commodity markets (industrial metals, Orange Juice, Coffee, Grains) look for news about China, Canada Tariffs in addition to whatever rumblings are leaked about Russia/US talks. The on again off again nature of the talks has created golden opportunities for breakouts in some markets, rangebound trades in others. (see gold commentary below)

The potential Trump-Putin meeting has become the main commodity market news of this week, with analysts speculating about the likelihood of a comprehensive deal and the impacts this could have on oil markets. ICE Brent has been gradually sliding closer to $65 per barrel as lower sanction risks on Russia could further erode the market’s in-built risk premium, however a potential failure in the talks could spark another price rally above $70.  Remember that current market drivers for Equities are hard data on Jobs, Inflation, Trump tweets and Geopolitics. Two weeks ago, I wrote this: Watch for the gold market to maintain its rangebound stance, close below 3350 (basis December) or above 3500 should denote a breakout, begin trading the December(Z) contract next week.  Last week I wrote:  Dec gold traded below 3350 today and the past three days but never closed meaningfully below 3350.0 (3348.60 Thurs.) Today we have breached $3500.00 oz with a high in the $3543.00 area per oz. while currently trading @$3493.00 oz as of this writing. Look for a close above $3500.00 on successive days to again accumulate longs. This may be the break from this range we are looking for. Manage your downside risk according to your account size, risk no more than 15-20% whether with options or futures.

Continued volatility to come as next week all markets will be reacting to whatever comes out of U.S. Govt leadership relating to conflicts cessation and trade deals, especially with China, India and Russia, remember that Mexico is currently under a  90-day extension.

 Earnings Next Week:

• Mon. Quiet
• Tue.  Sea Limited, CoreWeave
• Wed. Cisco
• Thu. Alibaba, Applied Materials, Ross Stores
• Fri.   Quiet

FED SPEECHES: (all times CDT) 

• Mon.   Quiet
• Tues.  9 am Barkin, 9:30 am Schmid
• Wed.  6:30 am Barkin, Noon Goolsbee, 1:30 pm Bostic
• Thu.   1 pm Barkin,
• Fri.     Quiet

Economic Data week: 

• Mon.  Quiet
• Tue.    CPI, Redbook,  WASDE
• Wed.  EIA Crude Stocks,  17-week Bill auction
• Thur.  PPI, Jobless claims, EIA NAT GAS Storage, Fed Balance sheet
• Fri.  Empire State data, Retail sales, Cap Utilization, Business inventories, Mich. Consumer Sentiment

Day trading futures using correlated markets for spread strategies

By Ilan Levy-Mayer, VP

Day trading futures using correlated markets for spread strategies—such as trading the Micro Nasdaq (MNQ) against the Micro S&P 500 (MES)—offers a powerful way to manage directional risk while capitalizing on relative performance.

These two indices often move in tandem, but subtle divergences can emerge intraday due to sector weightings, earnings reports, or macro headlines. By going long one and short the other, traders can isolate relative strength or weakness between tech-heavy Nasdaq and broader-market S&P exposure. This approach reduces exposure to broad market swings and instead focuses on the spread between the two instruments, which tends to revert to a mean over time.

To execute this effectively, traders should monitor correlation metrics, use synchronized charting (e.g., Renko or range bars), and define clear entry/exit rules based on spread behavior rather than outright price movement. It’s important to size positions proportionally—since MNQ and MES have different volatility profiles—and to track the spread ratio rather than individual P&L. Economic releases, Fed commentary, and sector rotation can all influence spread dynamics, so staying nimble and avoiding over-leverage is key.

This strategy works best in liquid hours (8:30 AM–11:30 AM EST) when volume and volatility are high but more predictable.

Next steps for exploring and refining your MNQ vs MES spread strategy:

Step-by-Step Exploration of the MNQ/MES Spread Strategy

To begin, monitor both MNQ and MES in real time using side-by-side charts and DOMs (Depth of Market) to observe how they move in relation to each other. Pay attention to divergences during key market events, such as economic releases or sector rotations. Start in a simulated environment to test your thesis without capital risk. Try creating an order ticket that treats the spread as a unified trade—some platforms allow custom spread orders, while others may require manual execution through two DOMs. Compare both methods to see which offers better control and execution efficiency.

Refinement Through Data and Journaling

Track daily price movements and note how the spread behaves—record the dollar value difference between MNQ and MES and how it would have impacted your P&L if traded as a spread. Consider experimenting with different ratios, such as 2 MES contracts versus 1 MNQ, to balance volatility and margin requirements. Keep a detailed journal of your observations, trade setups, and emotional responses. This will help identify patterns and refine your edge.

Finally, reach out to to our series 3 licensed brokers with ANY questions! who specialize in index spreads—they can offer insights on execution, risk management, and platform-specific tips that accelerate your learning curve.

Hot Market of the Week

Hot market of the week is provided by QT Market Center, A Swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.

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September natural gas broke down into a new contract low where it satisfied its third downside PriceCount objective. It would be normal to get a near-term reaction in the form of a consolidation or corrective trade, at least. At this point, IF the chart can resume its break with new sustained lows, we are left with the low-percentage fourth count to the 1.77 area that we view as highly unlikely.

The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved.

It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors.

Past performance of actual trades or strategies is not necessarily indicative of future results.

Brokers Trading System of the Week

Sentinel E-mini Nasdaq 15′

Markets Traded:  Mini NASDAQ Futures NQ

System Type: Swing Trading

Risk per Trade: varies

Trading Rules: Partially Disclosed

Suggested Capital: $20,000

Developer Fee per contract: $120 Monthly Subscription

Get Started

Learn More

IMPORTANT RISK DISCLOSURE

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.

The returns for trading systems listed throughout this website are hypothetical in that they represent returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real-time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on backadjusted data (backadjusted).

Please read carefully the CFTC required disclaimer regarding hypothetical results below. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING.

FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS.

THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

Please read full disclaimer HERE.

Trading Levels for Next Week

Daily Levels for August 11th, 2025

Trading Reports for Next Week

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

www.mrci.com

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.

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or wherever you listen to podcasts!

September Coffee

September coffee stabilized its slide and corrected after it completed its third downside PriceCount objective last month. At this point, IF the chart can resume its break with new sustained lows, we are left with the low percentage and unlikely fourth count to aim for in the 149.55 area.

Daily Levels for Aug 8th, 2025

Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day! 

Click here for quick and easy instructions.

Economic Reports

provided by: ForexFactory.com

All times are Eastern Time ( New York)

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.

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon

or wherever you listen to podcasts!

Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day! 

Click here for quick and easy instructions.

Economic Reports

provided by: ForexFactory.com

All times are Eastern Time ( New York)

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.

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon

or wherever you listen to podcasts!