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.
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.
Trading Resource of the Week – : When and Where Do I exit My Trade?
Whether you’re a day trader, a position trader, a spread trader, or an option trader, some of the mental challenges and the questions to go with them are constant:
Where, When and how do I enter a trade?
How do I define risk and implement any type of risk control, like placing stop orders, or implementing some sort of option protection?
Where and how do I exit a trade, both in the event of a profitable trade and an unsuccessful one?
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.
December Cotton satisfied its first upside PriceCount objective recently and corrected. At this point, if the chart can resume its rally with new sustained highs, the second count would project a possible run to the 95.74 area.
PriceCounts – Not about where we’ve been , but where we might be going next!
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.
Broker’s Trading System of the Week
Are you interested in seeing how two different intraday trading systems perform in real time, live trading?
Cannon Trading offers you weekly updates on the results of these systems, which trade the MNQ (micro mini Nasdaq) and the ES (mini SP) respectively.
You can compare and contrast their strategies, risks, and returns, and decide which one suits your trading goals better. All you need is a minimum account size of $10,000 for the MNQ system and $25,000 for the ES system.
Questions about the markets? trading? platforms? technology? trading systems? Get answers with a complimentary, confidential consultation with a Cannon Trading Company series 3 broker.
Trading Levels for Next Week
Daily Levels for August 28th, 2023
Would you like to receive daily support & resistance levels?
First Notice (FN), Last trading (LT) Days for the Week: www.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 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.
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.
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.
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.
Cycle Detrending: Can you use Cycles to fortify your trading acumen?
by John Thorpe, Senior Broker
I have accumulated a small library of important works in the study of futures trading over the years so instead of writing about the week ahead as I normally do on Mondays, I thought I would change pace ( I was enjoying a long weekend out of town ) so today, based on the work of Walt Bressert and The Foundation for the study of Cycles (Cycles.org) ,Jake Bernstein and others, I thought it would be important to briefly discuss another layer of technical analysis we all could use when trading becomes too myopic. The study of Cycles, simply put Cycle study is dedicated to the study of recurring patterns in the economy, markets, natural sciences and the Arts. We are not looking to trade the big bottoms and tops that occur as the trend reverses, but the bottoms and tops of the shorter-term cycles occurring in the direction of TREND. One tool to identify the cycles within a trend is called “Centered Detrending” With “CD” you can visibly observe cycle bottoms and tops. Because this takes the mystery out of cycles you can look back over a considerable amount of time(History) and see the consistency and tradability of cycles. Most trading cycles in the futures markets tend to cluster between 18 and 22 bars. What we want to do is CD the chart and calculate a moving average the same length as the potential trading cycle. But instead of plotting the Moving Avg. (MA) from the last day it should be centered in the middle of the cycle; for instance if it is a 20 day MA, move it back 10 days from the most recent close. this will show you a linear representation of the cycles relative to price movement.
You are half way home now, since this will only show historical cycles it can’t be used for real-time trading. You now will need an Oscillator to overlay. To use an oscillator to identify cycle tops and bottoms look for three characteristics: (there are a number of oscillators on your trading platform, play around with a few)
The oscillator turns when prices turn
The oscillator does not “wiggle” much at cycle tops and bottoms
The oscillator has amplitude moves that take it to the extremes of an allowable range as the cycles bottom and top.. I hope this gives you a different perspective to learn best how to trade a trend. My compliments to the decades of analysis put out there by Bressert, Bernstein , Edward Dewey Chief Economist for the Hoover admins Dept. of Commerce.
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.
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 the duel between the United States and China continues, seemingly on several fronts, a new sign emerged the first half of the year: China’s imports to the U.S. accounted for the smallest percentage of goods arriving here in 20 years. Just 13.3% of all imports to the U.S. came from China the first half of 2023. Compare that to its peak of 21.6% for all of 2017 and its low point of 12.1% in 2013. The downturn is not due to any list of stand-out products or industries, nor has any country or small number of countries jumped up to import a bigger share of anything. Rather, slow-moving supply chain shifts across dozens of industries and nations are driving the trend. When the dollar values of exports and imports are combined, Mexico is now America’s no. 1 trading partner, followed by Canada, pushing China to third place.
Last Thursday, the Labor Department reported the consumer-price index increased 0.2% in July, the same as in June. That is down sharply year-over-year looking at the 1.2% gain in June 2022. If the downward trend continues – now over a year from its June 2022 peak reading of 9.1%, inflation is on a path to draw near the Federal Reserve’s 2% target by late 2023 or early 2024.
What could stand in the way of that trend? Geopolitical events and weather could impact food and energy prices.
After Saudi Arabia and Russia announced reductions in their oil production last month, unleaded gas prices, which tend to lag behind crude oil prices, traded to 1-year highs on Friday (basis September) within less than two cents of $3.00 per gallon.
Further regarding Russia, last month it withdrew from a deal that allowed Ukraine to export grain through the Black Sea and has since attacked key port facilities in Odesa. Ukraine is one of the world’s largest grain suppliers including 13% of global corn exports and the 12% of wheat.
Add to all this, scientists watching the periodic climate pattern called El Niño are now anticipating it arriving this winter more likely as “moderate,” and possibly a “strong” event than how they assessed conditions in May. Ocean surface temperatures in the central Pacific Ocean have warmed enough off the coast of South America to trigger an El Niño, meaning possibly a warmer, dryer winter here in the U.S. and higher temperatures globally. This can cause disruptions to crops in some of the world’s most important commodities sources.
Keltner Channels, Volume Charts, Algo Signals – Trade Set Up
Watch the 5 minute video below in which I share a trading set up I like, using volume charts, candle sticks, Keltner Channels and proprietary ALGOs for trading signals.
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.
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.
Trading Resource of the Week – Filter Noise with Price Confirmation
Broker’s Trading System of the Week – ZB Day Trading System
Trading Levels for Next Week
Trading Reports for Next Week
Trading Resource of the Week – Entering futures using stop orders as “price confirmation”
By Ilan Levy-Mayer, VP
Watch video below on how you can possibly filter out some of the losing trades by using STOP orders as a way to ENTER trades ( rather than the typical stop loss use).
Try a FREE demo of the platform used to show the charts in this educational article. The platform is FREE and has charts, news, DOM, T&S, Alerts, advanced order entry, options and MUCH MORE!
With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.
The performance shown above is hypothetical in that the chart represents 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 back adjusted data. Please read full disclaimer HERE.
Questions about the markets? trading? platforms? technology? trading systems? Get answers with a complimentary, confidential consultation with a Cannon Trading Company series 3 broker.
First Notice (FN), Last trading (LT) Days for the Week: www.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 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.
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.
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.
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.
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.
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.
Watch the video below for ideas if using VOLUME and/or RANGE bar charts while day trading can help you filter out the noise and get signals FASTER when volume and price action are active?
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.
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.
Govt Reports, Earnings and the Fed Blackout period.
On the close of Business June 16th the S&P was at 4453.00, today we have a hi as of this writing, with 3.5 more hours to go in the session, of 4553.50 Up 100 points and of course, not in a straight line.
This does illustrate a continued bullish undertone. S&P + .022%, The NQ is up .035% and the broadest market index, the Russell index, the winner over this time period, up .041% .
This brings us to a number of questions: can the rally that begin in March continue through the summer? What factors is the market watching for clues and direction?
This week the most meaningful economic numbers to be released should be the June data on retail and food services sales at 7:30am CT on Tuesday. Inflation expectations are overall well-anchored, if at levels a bit above where they were before the current episode began in 2021.
Earnings season has arrived. Last week the JPM and C released their numbers, This week the Regional Banks will start reporting results in addition to B of A, Morgan Stanley and Goldman Sachs, the Tech and consumer stocks the market will be very interested with are Tesla and Netflix. United Airlines reports as well.
Expectations are certainly muted from a year ago, and the lowered expectations have already been inserted on the game board by most analysts and ratings firms. Therefore, any good news should have a positive impact on the indices continued grind higher.
Of note this week is the Fed Black out period in advance of the July 25-26 meeting where traders are currently expecting another .25 rate hike after the last sessions pause.
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.
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.
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.
