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Category: Commodity Trading

Investment is a game of money of securing future money by taking a risk today. Trading therefore comes with a list of rules to play by. Commodity trading in particular offers tremendous potential for becoming a completely different asset class.

However, before investing in any kind of commodity, you must do an in depth research and also ask your broker as many questions as possible. Through this category archive we provide you as much information and valuable insights into the world of commodity trading.

We at Cannon Trading are here to help you with your commodity trading needs. You as a trader should select your commodity trading advisor only after performing a due diligence on him/her. We in fact do that for you. This way, you get only the best advice to help you with your commodity trading.

We’ve got the information that you might need at every step of commodity trading, and you’ll find it all right here in the commodity trading section of our blog. Read up, and read on to get equipped!

Russell 2000 Futures Chart & Economic Reports 9.18.2015

Posted on by Ilan

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1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Friday September 18, 2015

 

Hello Traders,

For 2015 I would like to wish all of you discipline and patience in your trading!

This much anticipated FOMC lived up to expectations….tremendous volatility for sure. I hope some of you read my tips YESTERDAY about lowering trading quantities and widening stops etc.

That’s history but one thing I recommend, is write down notes from today. market behavior, your behavior etc. Keep it as part of your trading journal. Might help you the next FOMC…..What’s next? To be honest I am not sure at this point.

Here is my daily chart for the mini Russell 2000. Confused market in my opinion.

PS:
1. Many times the big move happens the DAY AFTER FOMC
2. Tomorrow is quadruple witching….

TFE - Russell 2000 Index Mini, Equalized Active Daily Continuation : Heikin-Ashi
TFE – Russell 2000 Index Mini, Equalized Active Daily Continuation : Heikin-Ashi

FOMC Week & Economic Reports 9.16.2015

Posted on by Ilan

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1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Wednesday September 16, 2015

 

Hello Traders,

For 2015 I would like to wish all of you discipline and patience in your trading!

Big FOMC this week! Meeting takes place tomorrow and Thursday with much anticipated announcement and language on Thursday, 2 PM EST.

Futures Options 101:

Market Strategies

1. Bullish Market Strategies

Futures Options Trading
Spread Strategy		 Description Reason to Use When to Use
Buy a call Strongest bullish option position Loss limited to premium Undervalued option with volatility increasing
Sell a put Neutral bullish option position Profit limited to debt Small debit, bullish market
Vertical Bull Calls Buy call, sell call of higher strike price Loss limited to debt Small debit, bullish market
Vertical Bull Puts Buy put, sell put of higher strike price Loss limited to price difference Large credit, bullish market

2. Bearish Market Strategies

Futures Options Trading
Spread Strategy		 Description Reason to Use When to Use
Buy a put Strongest bearish option position Loss limited to premium Undervalued option with volatility increasing
Sell a call Neutral bearish option position Profit limited to premium Option overvalued, market flat, bearish
Vertical Bear Calls Buy at the money put, sell out of the money put Loss limited to debt Small debit, bearish market
Vertical Bear Puts Sell call, buy call of higher strike price Loss limited to stroke price difference minus credit Large credit, bearish market

3. Neutral Market Strategies

Futures Options Trading
Spread Strategy		 Description Reason to Use When to Use
Strangle Sell out of the money put and call Maximum use of time value decay Trading range market with volatility peaking
Arbitrage Bull and sell similar simultaneously Profit limited to debt Any time credit received
Calendar Sell near month, buy far month, same strike price Near month time value decays faster Small debit, trading range market
Butterfly Buy at the money call (put), sell 2 out of the money calls (puts), buy out of the money call (put) Any time credit received
Guts Sell in the money put and call Receive large premium Futures Options have time premium and market in trading range
Box Buy at the money put, sell out of the money put Small debit, bearish market
Ratio Call Buy call, sell calls of higher strike price Neutral, slightly bullish Large credit and difference between stroke price of option bought and sold
Conversion Buy futures, buy at the money put, and sell out of the money call Any time credit received

Futures Options Writing

Have you ever wondered who sells the futures options that most people buy? These people are known as the option writers/sellers. Their sole objective is to collect the premium paid by the option buyer. Option writing can also be used for hedging purposes and reducing risk. An option writer has the exact opposite to gain as the option buyer. The writer has unlimited risk and a limited profit potential, which is the premium of the option minus commissions. When writing naked futures options your risk is unlimited, without the use of stops. This is why we recommend exiting positions once a market trades through an area you perceived as strong support or resistance. So why would anyone want to write an option? Here are a few reasons:

Rollover Notice for Stock Index Futures 9.10.2015

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

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1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Thursday September 10, 2015

Hello Traders,

For 2015 I would like to wish all of you discipline and patience in your trading!

Greetings! 

I personally start trading the December mini SP this Friday but most traders will rollover tomorrow:
Rollover Notice for Stock Index Futures
Important notice: For those of you trading any stock index futures contracts, i.e., the E-mini S&P, E-mini NASDAQ, E-mini Dow Jones, the “Big” pit-traded S&P 500, etc., it is extremely important to remember that tomorrow, Thursday, September 10th, at 8:30 am CDT  Time is rollover day.
Starting September 10th, the December 2015 futures contracts will be the front month contracts. It is recommended that all new positions be placed in the December 2015 contract as of September 10th. Volume in the September 2015 contracts will begin to drop off until its expiration on Friday Sept. 18th.
The month code for December is Z5.
Traders with electronic trading software should make sure that defaults reflect the proper contract as of Thursday morning.

Top 50 Futures Trading Rules & Economic Reports 9.09.2015

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Wednesday September 9, 2015

Hello Traders,

For 2015 I would like to wish all of you discipline and patience in your trading!

Greetings! 

Top 50 Futures Trading Rules

Most Common Pitfalls To Avoid When Trading Futures-Commodity Futures Continue reading “Top 50 Futures Trading Rules & Economic Reports 9.09.2015”

Mini S&P Daily Chart & Economic Reports 9.04.2015

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Friday September 4, 2015

Hello Traders,

For 2015 I would like to wish all of you discipline and patience in your trading!

Greetings! 

From my colleague John Thorpe below:

The market structure has changed if you hadn’t noticed.

Does this change create more or less volatility?

ESUS-Daily(Default):6Hours 3minites 49 seconds
ESUS-Daily(Default):6Hours 3minites 49 seconds
The past few weeks of volatility in the equity and bond markets have been absent of major players from previous market volatility.
Major banks, National banks (other than certain limited-purpose trust banks), federal savings associations, and federal branches and agencies of foreign banks (collectively, banks) are required to fully conform their activities and investments to the requirements of the final regulations by the end of the conformance period, which the FRB has extended to July 21, 2015 (please see footnote below)

Futures Trading Levels & Economic Report 8.20.2015

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Wednesday August 19, 2015

Hello Traders,

For 2015 I would like to wish all of you discipline and patience in your trading!

Jim Wyckoff Discusses Entry & Exit Strategies

From our friend Jim Wyckoff
I have received several email messages from my readers asking about how to best determine entry and exit strategies when trading markets. Here are just a few of their quotes:
  • “Though my success rate has been high, I am only breaking even financially, due to getting out too early in profit and letting my losses run too far.”
  • “Many articles are written showing when and where to enter trades… but how many articles are written about “running” positions? Where to exit surely has to be the biggest key to trading success!”
  • “I would appreciate some advice or tips on how to and when to enter a market and when to exit.”
Of course, if a trader knew exactly when to get into a market and when to get out, wouldn’t trading be easy! But even the most successful traders in the world can’t do that. The best they can strive for is to catch a bigger part of any move (trend) in the market, and then get out with a good profit before the market turns against them.
I’ve written past articles on trading with the trend and not against it, on the perils of trying to pick tops and bottoms, on support and resistance, and on letting profits run and cutting losses short, as well as trading the “breakouts.” I won’t repeat all those trading tenets here, but if you’ve missed some of my articles, drop me an email and I can attach some of them in an email to you.

Futures Levels & Economic Reports 8.18.2015

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Tuesday August 18, 2015

Hello Traders,

For 2015 I would like to wish all of you discipline and patience in your trading!

Hello Traders,

Today I must share an observation that may help many of you.

So many times as a broker I see clients who know how to make money…I see it in the daily statements, good winning %, consistent profits UNTIL….something happens. Either the client who is normally a day-trader decides to carry his/hers losing position and make it into a swing trade…..OR the trader is down and refuses to accept the fact it may be a losing day and decides to double down and get more aggressive because if this trade is a winner he will have another winning day….the examples go on and no I am not referring to anyone specific although many of you probably think I am talking about them.
I have done it before as a trader. It is the inability to accept a loss that creates this snow ball.
I am not a psychologist nor a professional writer ( English is my second language if you did not tell by now (-:

Top 50 Futures Trading Rules 8.14.2015

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Friday August 14, 2015

Hello Traders,

For 2015 I would like to wish all of you discipline and patience in your trading!

Hello Traders,

Most Common Pitfalls To Avoid When Trading Futures-Commodity Futures

Separator

500 experienced futures brokers were asked what caused most futures traders to lose money when comes to trading futures.

Their answers reflected the trading experience of more than 10,000 futures traders.  Download the PDF and find out what they said. Continue reading “Top 50 Futures Trading Rules 8.14.2015”

Futures Support and Resistance Levels & Economic Reports

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Thursday August 13, 2015

Hello Traders,

For 2015 I would like to wish all of you discipline and patience in your trading!

Hello Traders,

There will be no commentary today.  Thank you!

Did you know Cannon offers FOREX trading including the MT4 platform?

Check out our Trading Systems/ALGO Trading and Managed Accounts section!

Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains. If you need help creating a trading plan, visit our broker assist services.  

Continue reading “Futures Support and Resistance Levels & Economic Reports”

25 Strategies to Trade Futures Options 8.12.2015

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Wednesday August 12, 2015

Hello Traders,

For 2015 I would like to wish all of you discipline and patience in your trading!

Hello Traders,

25 Proven Strategies for Trading Options

by CME Group

25 Proven Options Trading StrategiesIf you are currently trading options on futures or are interested in exploring them further, check out our newly updated trading guide, featuring 25 commonly used options strategies, including butterflies, straddles, strangles, back spreads and conversions. Each strategy includes an illustration demonstrating the effect of time decay on the total option premium involved in the position. Options on futures rank among our most versatile risk management tools, and are offered on most of our products. Whether you trade options for purposes of hedging or speculating, you can limit your risk to the amount you paid up-front for the option while maintaining your exposure to beneficial price movements. To learn more about CME Group options, you can also visit our Options page.

Complete the simple form below and you will receive a link to download the 25 Proven Strategies brochure immediately. This eBook is free to you and no-obligation. Learn about the 25 Proven Strategies for trading options on CME Group Futures for FREE!

Don’t wait… Download the eBook “25 Proven Strategies for Trading Options” NOW!

 

Did you know Cannon offers FOREX trading including the MT4 platform?

Check out our Trading Systems/ALGO Trading and Managed Accounts section!

Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains. If you need help creating a trading plan, visit our broker assist services.  

 

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.

If you like Our Futures Trading Daily Support and Resistance Levels, Please share!

Futures Trading Levels

Contract Sept. 2015 SP500 Nasdaq100 Dow Jones Mini Russell Dollar Index
Resistance 3 2128.58 4667.08 17759 1233.53 98.35
Resistance 2 2115.17 4625.92 17654 1226.17 98.00
Resistance 1 2097.58 4567.83 17506 1216.93 97.61
Pivot 2084.17 4526.67 17401 1209.57 97.26
Support 1 2066.58 4468.58 17253 1200.33 96.87
Support 2 2053.17 4427.42 17148 1192.97 96.52
Support 3 2035.58 4369.33 17000 1183.73 96.13
Contract Dec. Gold Sept. Silver Sept. Crude Oil Sept. Bonds Sept.   Euro
Resistance 3 1146.1 15.75 47.61 160 30/32 1.1234
Resistance 2 1132.6 15.56 46.47 160 4/32 1.1163
Resistance 1 1120.3 15.43 44.96 159 15/32 1.1106
Pivot 1106.8 15.25 43.82 158 21/32 1.1035
Support 1 1094.5 15.12 42.31 158 1.0978
Support 2 1081.0 14.93 41.17 157 6/32 1.0907
Support 3 1068.7 14.80 39.66 156 17/32 1.0850
Contract Dec. Corn Sept. Wheat Nov Beans Dec. SoyMeal Sept. Nat Gas
Resistance 3 407.4 539.9 997.25 351.30 2.93
Resistance 2 403.3 532.1 990.50 347.10 2.89
Resistance 1 395.4 519.7 981.00 339.60 2.87
Pivot 391.3 511.8 974.25 335.40 2.83
Support 1 383.4 499.4 964.8 327.9 2.8
Support 2 379.3 491.6 958.00 323.70 2.77
Support 3 371.4 479.2 948.50 316.20 2.75
Economic Reports

source:http://www.forexfactory.com/calendar.php

All times are Eastern time Zone (EST)

Date 4:34pm Currency Impact Detail Actual Forecast Previous Graph
WedAug 12 4:00am EUR Italian Trade Balance 2.81B 3.98B 4.14B
5:00am EUR Industrial Production m/m -0.4% -0.1% -0.2%
5:32am EUR German 10-y Bond Auction 0.61|1.3 0.88|1.1
8:30am USD FOMC Member Dudley Speaks
10:00am USD JOLTS Job Openings 5.25M 5.33M 5.36M
10:30am USD Crude Oil Inventories -1.7M -1.6M -4.4M
1:01pm USD 10-y Bond Auction 2.12|2.4 2.23|2.7
2:00pm USD Federal Budget Balance -149.2B -133.5B 50.5B

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 judgment 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.