Whether a person or a firm, a commodity broker is there to help you with your commodity trading needs. They either have a team of commodity traders under them or a platform that they manage electronically.
For all commodity trading beginners, commodity brokers are a point of contact that can be approached with individual commodity trading needs. To do good in commodity trading, it is important to take the advice of the commodity broker seriously. Under this category archive we discuss everything about commodity brokers and their expert skills.
We at Cannon Trading are there to help your commodity trading requirements. Whether you want to consult us and seek advice or to play a more active role for you in the markets, we are there to serve you with the best of our services. It is essential for you to choose only a certified broker and so, you can always trust us when it comes to qualifying on all quality parameters. No matter which commodity interests you, our trading experts give you the right and real-time advice always. Read our archive; share posts with your friends; or bookmark this page to stay up-to-date on commodity brokers.
Be ready to trade tomorrow and know what reports are coming and possible implications!
Today we saw a very volatile market with Powell speaking. More to follow tomorrow along with beige book, JOLTS and ADP and if you are an energy trader than you probably already know, its the weekly number that can really move the energy sector.
See full list of the reports below.
By the way Did you know you can trade EVENT CONTRACTS?
A Cannon broker will be able to assist, provide feedback and answer any questions.
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.
NFP ( non farm payrolls) or unemployment report will not come out tomorrow as it normally does on the first Friday of every month, however keep in mind that the anticipated and volatile ISM report will be out tomorrow right at 10:00 o’clock AM Eastern Time.
A Cannon broker will be able to assist, provide feedback and answer any questions.
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.
Below are the contracts which are entering First Notice or Last Trading Day for the upcoming month. Be advised, for contracts that are deliverable, it is requested that all LONG positions be exited two days prior to First Notice and ALL positions be exited the day prior to Last Trading Day.
A Cannon broker will be able to assist, provide feedback and answer any questions.
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.
While yesterday’s U.S. Consumer Price Index showed inflation continues to slow from its readings in 2022, CPI readings, the pace of declined slowed and a wide array prices stayed elevated, including food, clothes (women’s apparel dropped slightly), rent and hotel rooms. Once again, a key economic report has shown that the road back to 2.0% inflation, on which the Federal Reserve is committed to following, is going to be lengthy and rugged. It certainly leaves Fed in a hawkish posture.
Be alert: the release of the Bureau of Labor Statistics’ Producer Price Index is on deck for tomorrow. The report comes out at 7:30 A.M., Central Time.
Markets:
Metals:
Gold (April) has declined ±$130 (a ±$13,000 move) since its Feb. 1 intraday high of $1,970.80 / oz. Today’s $1839.30 intraday low sets it back to prices not seen since the first of the for the calendar year.
For most of the last few months, U.S. corn prices have justifiably focused on crop conditions, including obviously yield and quality, in Argentina and Brazil, which have continually come in far from ideal. As a result, the markets have priced in current and further crop damage coming into the South America harvest. That’s about to shift with the start of the crop year here in the U.S. Forecasts for planted acreage, demand, ending stocks, stocks/usage ratio – all tracked by the USDA and sized up by traders – are about to take center stage. As crops from the southern hemisphere are “made,” if little or no further surprises hit, look for CBOT corn prices to settle in for news of this year’s U.S. crop, starting with Prospective Plantings late next month.
Despite the uneven decline of crude oil prices over the last 8 months from their ±$105 per barrel highs of last June (basis March) down to a few recent forays to the low 70’s per barrel, crude oil looks to still be focused on growing Chinese demand. As we approach the traditional U.S. driving season in May, look for recent lows as meaningful signs of support.
A Cannon broker will be able to assist, provide feedback and answer any questions.
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.
Join our private Facebook group for additional insight into trading and the futures markets!
In this issue:
Important Notices – CME Fees Increase
Trading Resource of the Week – When to Exit a trade?
Hot Market of the Week – April Live Cattle
Trading Levels for Next Week
Trading Reports for Next Week
Important Notices – CME to raise fees on certain markets. Both MICROS and emini stock indices are being increased by 5 cents per side. See full list HERE.
Exiting a Trade might be more important than the entries….
“You Must Understand That There Is More Than One Path To The Top Of The Mountain.”- Miyamoto Musashi, A Book Of Five Rings: The Classic Guide To Strategy
Futures and futures options trading is a challenging activity. Moreso for those traders who look to trading as an occupation. So much thinking, contemplating, planning goes into trading – related to the markets you’re trading, the strategies that get implemented, the possible risk/reward outcomes. For someone new to trading, seeing the sum total of all the parts may be a lot to take in. Veteran traders will tell you the full picture keeps changing and can be daunting often.
When trading goes well, the trader’s energy and overall outlook is powerful, optimistic and energizing for other aspects of life. When trading goes unsuccessfully, most traders feel the pain in many ways outside of the obvious financial consequences.
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.
PriceCounts – Not about where we’ve been , but where we might be going next!
April Live Cattle have resumed their rally into new highs. The 2nd upside PriceCount objective is near $165.
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.
Questions about the markets? trading? platforms? technology? trading systems? Get answers with a complimentary, confidential consultation with a Cannon Trading Company series 3 broker.
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
Tomorrow we have BOTH NFP (unemployment) followed by ISM.
Curious on an indicator that can help you with EXITS? How about using a certain indicator as a trailing stop?
Watch the latest trading videos we have posted and see if you can pick a tip or two on trading smarter!
In this week’s newsletter we are sharing four videos, each a few minutes long. The videos discuss practical tips for trading and sharing our experience with you
1. Using Bolinger Bands as a possible tool for exiting trades
2. One way you can use the Parabolics study ( also known as PSAR) to manage current positions, possibly as a trailing stop
A Cannon broker will be able to assist, provide feedback and answer any questions.
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.
Tomorrow is Wednesday, the first trading day in February 2023 as well as FOMC day.
To add some fuel to the fire, we will have ADP, JOLTS and ISM PMI earlier in the day as well as crude oil numbers!!
Busy day to say the least……
The market is expecting a hike of 25 basis points.
4111 is a MAJOR resistance level for the March SP 500.
Trading on FOMC days
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!!
A Cannon broker will be able to assist, provide feedback and answer any questions.
Chart below 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.
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.
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.
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.
PriceCounts – Not about where we’ve been , but where we might be going next!
March Sugar has revived its rally with the chart poised for potential challenge of the December highs if sustained, would project a run for the low percentage fourth upside priceCount objective near 23 cents.
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.
Questions about the markets? trading? platforms? technology? trading systems? Get answers with a complimentary, confidential consultation with a Cannon Trading Company series 3 broker.
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
“The Week Ahead” next F.O.M.C. meeting is to be held Next Tuesday and Wednesday Jan. 31st – Feb . 1 as such we have entered the FOMC Board of Governors Blackout time frame. As discussed previously, no members may discuss policy until the rate announcement on Feb. 1st. so there shouldn’t be too many surprise moves that occur in the financial markets usually generated from speaking engagement commentary. Fed Chairman Powell had tested positive for Covid19 but is expected to attend the meeting either in person or remotely as his symptoms are mild.
Of note this week is Q4 GDP on Thursday @ 7:30 am CST and perhaps jobless claims for the week at the same time. This, if a surprise, could shake the financial markets a bit in the short run. Earnings will be the main cause of market movement until next weeks FED Meeting. The Busy Calendar includes Microsoft Tesla, IBM, Intel, American Airlines, Valero, Chevron and Haliburton. This is the Golden Week as China is celebrating it’s lunar New Year, the impact on volume may or may not be seen in some markets but not all. Plan your trade and trade your Plan
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.
One of the most overlooked Trading Ingredient: Learn to Lose!
Many different factors go into trading. Too many to discuss efficiently in one blog post. Some relate to trading techniques, other to money management, mental aspect, risk capital and much more.
But one that sticks in my eyes is the inability to accept a loss. I see many clients who can make money and have days where they make money but when they lose, they lose much more, sometimes even losing control and losing a big portion of their account.
I am not sure how a trader can embed this into their trading mind, BUT in my opinion if you train your brain to expect losses, understand losses and that losing days will happen, you will increase your chances of surviving in this business, which in return will actually give you a chance to succeed….
Losses are part of trading and as long as your losses are part of the plan and are quantified in advance and you can adhere to your rules, then you have a chance. I think it’s easy when traders are winning…making money etc. Much harder when you lose or down. your brain starts playing tricks on you…it tells you to double down, maybe reverse even though your analysis does not say so….all of a sudden you start pulling trades out of instinct, fear rather than a calculated plan that has solid risk/ reward.
If a trader learns how to lose, to accept losses, to have realistic expectations, then he/ she can avoid having one of those terrible days when traders can lose almost of all their account.
Also, while a bit easier in my mind, a day trader should also step away when he/she reached a predefined profit target for the trading day. In my humble opinion, the more you day trade, the more fatigued you become and larger chances for errors. Somewhat like a pro basketball player managing their playing minutes….
I went into this subject and detailed day-trading money management in an article I wrote a few years back for SFO magazine.
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.
