“I Use Mental Stops…..” & Support and Resistance Trading Levels 3.10.2022

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“I use mental stops”…..Said the trader who just blew up his account day trading crude oil the wrong way…..

By Mark O’Brien
As futures brokers, we’ve heard clients share their thoughts on trading and truly, their strategies are as unique as the individual trader. With that said, there are a number of “nuts and bolts” to trading that all traders can employ – or not. One example of these is the STOP order. We as brokers hear a variety of assertions from our clients as to the virtues or evils of employing STOP orders in their trading.
In this blog we’re going to showcase today’s price activity in April crude oil to make a case for the virtues of employing STOP orders.
Notwithstanding the almost unheard-of ±$23/$23,000 per contract price range, at one point, the April crude oil contract fell ±$10 per barrel/$10,000 per contract in the span of five minutes.
As we’ve spelled out in recent blogs, with the Russian attack on Ukraine and all the geopolitical moving parts now involved in the conflict, commodity price volatility has reached remarkable heights across several asset classes – energies in particular. So be it, but this provides us with low hanging fruit, as it were, to advocate for the use of STOP orders. Price moves like this literally scream for the implementation of STOP orders, lest you find your proverbial trading legs cut off at the knees – or worse. If you find yourself eyeing crude oil, unleaded gas, gold, wheat, any stock index, just to list the recent headliners, transpose those mental stops to actual orders. Trade safely and sanely.
5 min chart of crude oil from today when the news on OPEC send crude oil tumbling over $15 in minutes. If you were long, with “mental stops”….good luck.
Crude Oil Futures 5 minute Chart
Sierra Charts, Teton Order Routing
Contact us for a demo and/ or more information here!

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

Futures Trading Levels

03-10-2022

 

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Economic Reports, Source: 

http://BetterTrader.Co

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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.

Size does Matter & Support and Resistance Levels 3.08.2022

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Size does Matter

By John Thorpe, Senior Broker
 In an effort to keep up with appropriate volatility scans, the CME is again increasing the good faith deposits required to trade WTI Crude, Heating oil and RBOB Gasoline futures.
Recently the margins have increased for Wheat and Gold futures as well as the stock indices for good reason. Geopolitical risk has put these markets on notice that the margins, already low, were not sufficient to protect clients and firms from the extreme price action these commodities have been experiencing.
The intraday moves have been nothing short of jaw dropping; with opportunity comes risk.
Many are aware of the smaller sized Micro Emini stock indices for the S&P 500 MES, Nasdaq 100 MNQ , Dow30 MYM and Russell 2000 M2K
(all indices roll from March to June this Thursday and Friday)
Did you know there were also other Micro contracts to take advantage of many of these futures contracts outsized price swings? And they are liquid too!
For the WTI Crude, the Comex Gold, Crypto Currencies and EuroCurrency contracts.
 The WTI Contracts overnight margin requirement is now going to be set tonight @ $13,500.00 and most clearing firms would rather not give a break for Day trading margins
The answer to participate in the crude market if the current volatility is too rich for your blood, you may take a look at the Micro’s :
The exchange has increased the margin several times over the past week and today’s increases are here and currently no break for Daytrading..
MORE CME energy margin increases:
You do however, have two smaller sized contracts that are plenty liquid,  the QMj22 that is a 500bbl contract and trades in .025 increments      110.025, 110.050, 110.075 and so on.. the margin is ½ the full size contract or $6750.00
And you also have the micro WTI Crude Oil MCLJ22 a 100 bbl contract  1/10 the size      that trades in minimum increments like the full size.   100.02,100.03,100.04 and so on.. the margin is 1/10th or 1320.00 per contract  The micro’s also give you the ability to trade as many crude contracts incrementally in 100 barrel units.
Would you like to contact John or any of our brokers for more feedback? We are happy to help!
Sierra + Teton Available through Cannon Trading along with other data feeds such as CQG and Rithmic.
Sierra Charts, Teton Order Routing
Contact us for a demo and/ or more information here!

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

Futures Trading Levels

03-08-2022

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Economic Reports, Source: 

http://BetterTrader.Co

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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.

Weekly Newsletter #1081 Day Trading Commodities with Crude Oil Futures & Support and Resistance Levels for the Week Ahead

Cannon Futures Weekly Letter Issue # 1081

Dear Traders,

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Trading 102: Day Trading Commodities with Crude Oil Futures

Crude Oil Futures Volatility Offers A “Different Market Personality” Than Stock Index Futures. Here Is Some Of The Things You Need To Know About Day Trading Crude Oil Futures:
By: Ilan Levy-Mayer, Cannon Trading Commodities Broker & VP
Crude Oil is one of MY favorite futures market for day trading. Before I dive in and share with you how the volatility in crude oil fits my risk tolerance for day trading and provide a couple of chart examples, we should review some of the specifications of Crude Oil Futures.
Crude Oil Futures have monthly expiration. So each month we trade a different contract month, so one needs to know when is the first notice day and last trading day for crude oil futures in order to always make sure we are trading the proper month with the most liquidity and avoid any chance of getting into delivery situation.
Next is the contract size. Crude Oil futures are based on 1000 barrels. To be honest from a day trading perspective all I care is that each tick or 1 cent fluctuation is $10 against me or in my favor per contract. That means that a move from 92.94 to 92.74 = $200.
Another factor is trading hours. At the time I am sharing my thoughts with you, April 8th 2013, crude oil futures trade on the CME Globex platform and trade from 5 PM CDT until the next day at 4 PM CDT. That is 23 of straight trading hours. I definitely don’t recommend day trading this market 23 hours…but it is good to know the trading hours.
Volume in crude oil futures is pretty good to trade in my opinion. Averaging about 300,000 contracts per day.
One last pointer to touch on is the API (American Petroleum Institute) report that normally comes out Wednesday at 9:30 CDT (on short weeks, holidays etc. , this report will be pushed to Thursday at 10 AM CDT). I tell my clients that this report is way too volatile and I like to be out 5 minutes before and not resume trading 5 minutes until after the report comes out. This report by itself deserves a writing but on short, the report provides information on how our stock pile is doing ( = supply/demand) and the market will move based on the numbers versus what was expected. Again as a day trader, your main job is to know about this report, when it comes out and in my opinion stay out of the market during this time..Fill out the form below to read the full article.
WorldCup Trading Championships 2022

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

 

Futures Trading Levels

01.10.2022

Support and Resistance Levels 1.10.2022

 

Weekly Levels

Weekly Support and Resistance Levels

 

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

https://mrci.com

Date Reports/Expiration Notice Dates

 

MRCI Reports 1.10.2022

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

Crude Oil Futures Market Review and Daily Chart Analysis & Support and Resistance Levels 11.18.2021

Dear Futures Trader,

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Crude Oil Futures Market Review and Daily Chart Analysis

Looking at both price and time FIB analysis, on the daily crude oil chart below (click here for LARGE IMAGE) I am showing a potential for crude oil to find support and have a short term reversal to the upside. I wont fight the short term trend and will look for a buy signal using 30 minute chart before I jump in front of this downward train…
What do I mean by that?
Daily chart still showing a good strength on the LONGER term scale ( see both Elliott Wave counts and trend strength). Short term we can see the strong sell of the highs made towards the end of October.
I ran both a Fibonacci retracement on prices from lows to high, as well as Fibonacci TIME retracement from the time of lows to highs to see the next TIMING window to look at.
We are getting close to a match on both time and price ( concept I was made aware of by Carolyn Boroden Strategies for Intraday Trading Fibonacci Retracements | Fibonacci Queen) so I will now look for a bullish trigger in the form of MACD cross over on the 30 minutes chart or possible turning up of RSI on the 30 minutes chart before simply trying my luck…..
As always the key will be risk and trade management if/when set up happens.
Keep in mind FRONT month for crude oil is now January! CLF22
If you are looking for other reference material please contact your Cannon Broker for lists of solid, informative and helpful trading tomes
Crude Oil Futures Daily Chart

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

 

Futures Trading Levels

11-18-2021

Support and Resistance Levels 11.18.2021

 


Economic Reports, source: 

https://bettertrader.co/ 

BetterTrader Economic Indicators 11.17.2021

 

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

Gold Chart Review and Outlook & Support and Resistance Levels 10.29.2021

Dear Traders,

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*Heads up: Start trading January beans – November beans entering first notice day.
You should be already trading December natural gas.

Gold Daily Chart below…..

Potential long signal was generated today( based on personal technical factors I use) – Looking at the quote below, my biggest battle in this hypothetical example would be:
  1. Entry level ( market? wait for lower price? enter if price breaks above?)
  2. Exit in case of loss
  3. Exit in case of profit
  4. Trade size?
  5. If at a loss will I exit all? or in parts?
  6. If profit achieved will I exit part of the trade? ( assuming I am trading more than 1 contract or perhaps MICROS)
  7. Do I need to bring stop to breakeven at any point ( if certain profit achieved?)
Obviously the answer to all of the above will change from trader to trader but bringing these points up can hopefully help you approach trading from a different angle.
“Every battle is won or lost before it is ever fought.”
Sun Tzu
The Art of War
This passage – dating back the 6th century B.C. – can aptly be applied to trading futures. Prepare for each trade. Set your risk. If the initial outcome is favorable, use your enemy’s resources (move your stop) to sustain your trading.
Don’t engage in extended battles (over trade) and consume your resources (money, time, mental energy).
Your “enemy,” (the market) only has the power to destroy your account if you let it.
Gold Futures Chart

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

 

Futures Trading Levels

10-29-2020

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Economic Reports, source: 

https://bettertrader.co/ 

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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.

Free Course – An Introduction to Crude Oil & Support and Resistance Levels 10.13.2021

Dear Traders,

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🙂

Trading 101: Free Course – An Introduction to Crude Oil

Today’s energy crude oil market is truly global. From West Texas Intermediate (WTI) to Brent and DME Oman, the crude oil market fuels many of the world’s leading economies and impact nearly every nation. Energy crude oil futures and options provide the tools the industry needs to manage risk. Explore the key concepts and structure of today’s energy markets, including the factors that affect supply and demand and move prices. Learn how to use these instruments to hedge exposure and unlock opportunities
  • WTI Overview
  • Understanding Crude Oil in the USA
  • Importance of Cushing, Oklahoma
  • Understanding European Crude Oil
  • Understanding Crude Oil Across Asian Region
  • And Much More!

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

 

Futures Trading Levels

10-13-2020

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Economic Reports, source: 

https://bettertrader.co/ 

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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.

Crude Oil Leading Many Markets? & Support and Resistance Levels 10.06.2021

Dear Traders,

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Separator

Crude Oil Leading Many Markets?

I was doing some homework last night, back testing different entry signals etc.
By mistake I plugged in a system that takes crude oil signals and applies it to the current market I was testing – Seems that these past 2 years or so, signals taken based on crude oil were more accurate ( using this specific trend following formula I was using) than signals based on the underlying contract!! To clarify I am testing longer term model using the DAILY chart.
Cotton, Coffee, Corn, beans, Gold and SP500 all did better based on price action/ signals using crude oil prices than their own data!!
Obviously this requires more in depth work, statistical analysis and forward testing but I thought it was interesting enough to share with you and give you some ideas perhaps even something to look into on intra day basis?
Speaking on crude pay attention to inventory report tomorrow.

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

 

Futures Trading Levels

10-06-2021

Support and Resistance Levels 10.06.2021

Economic Reports, source: 

 www.BetterTrader.co

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This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading as well as options on futures.

Natural Gas, Crude Oil, Stocks and Rates, Support & Resistance Levels 10.05.2021

Dear Traders,

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Separator
Natural Gas, Crude Oil, Stocks and Rates
They all work together with a strong relationship. At times with direct correlation, at times with inverse correlation.
Do some homework, overlay some charts, look for clues that can help you while trading and provide even the smallest edge.
Natural gas, Crude oil have been on a bullish stretch lately. See a weekly chart of Natural gas below.
Other commodities like cotton and oats are also experiencing strong bull runs – is this due to in inflation? Supply chain fears? New “COVID world” environment?
Current levels to watch for on the major markets mentioned above:
Nov. Natural Gas:
Pivot 5.72
Support 5.14
Resistance 6.80
Nov. Crude Oil:
Pivot 74.72
Support 74.02
Resistance 79.25
Dec. 30 year bonds:
Pivot 161.12
Support 158.22
Resistance 164.02
Dec. Mini SP500:
Pivot 4437.00
Support 4251.00
Resistance 4540.00
Natural Gas Weekly Chart Cannon Trading

Futures Trading Levels

10-05-2021

Support & Resistance Levels 10.05.2021
Did you know?
Cannon offers over 10 TRADING PLATFORMS CLICK HERE for a demo

Economic Reports, source: 

 www.BetterTrader.co

Better Trader Report 10.05.2021

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading as well as options on futures.

Pay Attention to Energy Futures & Support and Resistance Levels 9.29.2021

Dear Traders,

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Separator

Pay Attention to Energy Futures

(There’s More to Trading Than the S&P 500, Nasdaq and Dow Jones)
By Mark O’Brien, Senior Broker
Every country in the world depends on energy. For some, energy production is the backbone of their economies. Energy products as a percentage of all that a country exports can be as high as 90% or more. Kuwait, Libia and Iraq are notable examples. For others, energy is a scarce resource within their borders making it necessary to import it. Countries like South Korea, Ireland and Japan import over 80% of their needed energy. Governments, multinational corporations, international consortiums (think OPEC) often vigorously compete for control of energy production and distribution – and the revenue that comes from them. Energy resources have literally fueled wars for their control. Without doubt, oil, its refined products and natural gas are among the world’s most valued commodities.
Not surprisingly, energy futures contracts like crude oil, heating oil, unleaded gas and natural gas are some of the largest futures contracts in the world by volume. The CME Group’s NYMEX Exchange offers trading on some of the energy sector’s benchmark products, including West Texas Intermediate (WTI) Crude, Henry Hub Natural Gas, Brent Crude and RBOB Gasoline.
Like stock index futures, energy futures trade 23 hours a day (5:00 P.M. – 4:00 P.M., Central Time), Sunday through Friday. Both crude oil and natural gas offer mini contracts and crude oil even offers a micro contract.
If you’re trading is solely focused on stock indexes, think about adding energy futures to your watch list and expanding your trading power (pun intended) with energy futures contracts.

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

 

Futures Trading Levels

9-30-2021

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Economic Reports, source: 

 www.BetterTrader.co

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This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading as well as options on futures.

Weekly Newsletter 1068: Day Trading Mind Traps & Intro to Crude Oil Futures Course & Trading Levels for the Week Ahead 9.27.2021

Cannon Futures Weekly Letter Issue # 1068

Dear Traders,

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Day Trading Mind Traps

“One way our brain helps keep us safe is to protect us from an awareness of our weaknesses. The brain believes that it is better to be falsely confident than recognize the real risks. This protective mechanism tends to work against us in trading.” Kenneth Reid, Ph.D
MINDING THE MIND
The mind can play tricks on us. Intuitive Trading is an attempt to mind read the market, which makes us susceptible to whipsaws. Hindsight Bias causes traders to underestimate the difficulty of trading, while Competency Bias causes us to over-estimate our abilities. These are mental banana peels that set us up for a fall.
INTUITIVE TRADING
Intuitive trading is a natural response to excessive randomness and non-linearity in the market. But making informed guesses is not the same as formulating a rule-based pattern-recognition system that gives a trader a true edge. Without a rule-based plan, intuitive traders expend a great deal of energy mindreading the market, which will not improve your odds of success. In fact, professional traders make a good living exploiting the emotionally-driven behavior of intuitive amateurs.

Watch a recording of a recent webinar held with Bookmap on the topics of:

  • Order Flow
  • Where are the large orders?
  • Heat Map?
  • Tools for day-traders
  • More….
Crude Oil Futures

Trading 101: Free Course – An Introduction to Crude Oil

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

 

Futures Trading Levels

09-27-2021

Futures Trading Support and Resistance Levels 9.27.2021

 

Weekly Levels

Futures Support and Resistance Levels

 

Trading Signals for commodities

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

https://mrci.com

Date Reports/Expiration Notice Dates

Futures Economic Reports

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading