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Category: Crude Oil

A naturally found substance, crude oil is also one of the most traded commodities. It is crude oil that is further refined so as to make petroleum products. Just like with every other commodity, crude oil too has its specific ticker symbol, contract value and margin.

The margin is variable as it keeps changing as per the volatility in the market as well as according to the current value of the contract. If you are interested in crude oil trading or are already trading in this commodity, it is important for you to know that over the past 50 years the price of this commodity has been denominated in U.S. Dollars.

At Cannon Trading we help you trade crude oil at some of the best day trading margin rates. Our brokers will do their best to keep you aware of the market happenings to help you exercise call and put options carefully. In order to get more information on crude oil and commodities, read this category archive blog. Please feel free to share this information.

How Trade Oil Futures

Posted on by Ilan

The oil market is one of the most significant and dynamic global markets, with crude oil futures representing one of the most actively traded commodities worldwide. For both new and experienced traders, understanding how to trade oil futures is key to gaining exposure to the oil market, which is impacted by a multitude of factors, from geopolitics to technological advancements. In this guide, we’ll explore the history of crude oil futures trading, why they are so popular, and the advantages and disadvantages for various types of traders, including retail traders, institutional traders, and hedgers. We’ll conclude with an analysis of oil price forecasts for the end of the year, addressing relevant factors that may impact these predictions.

The Origins of Oil as a Tradable Commodity

Oil, often referred to as “black gold,” has been a critical resource in the global economy since its discovery as a fuel source. The journey of oil from its early use to becoming a dominant global commodity on the futures trading market is complex. Originally, oil was traded in physical markets, where buyers and sellers would negotiate contracts for delivery. However, as global energy demand grew, especially in the 20th century, oil became an essential commodity, fueling industries, economies, and transport systems worldwide.

To facilitate oil trading and address the volatility in oil prices, crude oil futures were introduced in the 1980s, allowing for price stabilization and hedging. The New York Mercantile Exchange (NYMEX) launched the first crude oil futures contract in 1983, followed by similar offerings from the Intercontinental Exchange (ICE) and other exchanges. These contracts allowed market participants to buy or sell oil at a predetermined price on a future date, bringing a significant degree of predictability and security to the volatile oil market.

Why Crude Oil Futures are Popular

Crude oil futures are among the most popular futures contracts, and there are several reasons why traders are drawn to crude oil futures trading:

  • Liquidity: The oil futures market is one of the most liquid markets globally. High liquidity means that there is always a buyer or seller at any given time, making it easier for traders to enter and exit positions.
  • Volatility: Oil prices are highly sensitive to changes in supply, demand, geopolitical tensions, and economic shifts. This volatility presents opportunities for traders to profit from price movements, whether they are upward or downward.
  • Transparency: Unlike other markets, where information may not always be easily accessible, the oil market is relatively transparent, with data on supply, demand, inventory levels, and geopolitical developments widely available.
  • Global Significance: Oil is essential for transportation, manufacturing, and energy production, making it a critical commodity globally. Consequently, oil futures are a popular contract for speculation and risk management, given the reliance of the world economy on oil.

How Trade Oil Futures

To successfully engage in crude oil futures trading, traders should familiarize themselves with the trading process, understand market terminology, and stay informed on global events. Below are key steps for how trade oil futures:

  • Choosing a Brokerage: Selecting the right brokerage is the first step. Brokers that offer crude oil futures trading, such as E-Futures.com or Cannon Trading, provide platforms, tools, and guidance specifically tailored for futures traders.
  • Understanding Contracts: The most widely traded crude oil futures contracts are West Texas Intermediate (WTI) on the NYMEX and Brent crude oil on the ICE. These contracts specify the quantity (typically 1,000 barrels) and the quality of oil to be delivered, along with the future delivery date.
  • Leverage and Margin Requirements: Oil futures are leveraged products, meaning that a trader only needs to put down a fraction of the contract’s value (margin). While leverage can amplify profits, it also increases risk, as even a slight price movement against a trader’s position can result in significant losses.
  • Strategies: Some common trading strategies include day trading, swing trading, and position trading. Day trading involves capitalizing on intraday price fluctuations, while swing trading captures short-term trends over several days. Position trading, on the other hand, is suitable for those looking at long-term trends.
  • Monitoring Influences: Global events, weather patterns, and geopolitical tensions in oil-producing regions are critical to monitor, as they have direct impacts on oil supply and demand.
  • Risk Management: Setting stop-loss orders, understanding margin requirements, and using technical and fundamental analysis are essential risk management techniques in how trade oil futures effectively.

Advantages and Disadvantages of Trading Oil Futures

For Retail Traders

Advantages:

  • Access to Leverage: Retail traders can control large positions with relatively small amounts of capital due to leverage, allowing for potentially high returns.
  • Profit from Volatility: Retail traders often look for quick returns, and the volatility in the crude oil market can provide these opportunities.
  • Diverse Strategies: From day trading to holding long-term positions, retail traders can employ a variety of trading strategies to benefit from both short and long-term price movements.

Disadvantages:

  • High Risk: Leverage can be a double-edged sword. High volatility in oil prices, combined with leverage, can lead to significant losses.
  • Complex Market Factors: The oil market is influenced by numerous complex factors, including geopolitical tensions, natural disasters, and supply chain disruptions, which can be challenging for retail traders to analyze.
  • Margin Calls: If the market moves against a leveraged position, the trader might receive a margin call, requiring additional funds or leading to forced liquidation of the position.

For Institutional Traders

Advantages:

  • Risk Management: Institutional traders can hedge against other investments in energy or oil-dependent industries, allowing them to mitigate risks in their broader portfolios.
  • Access to Superior Data: Institutional traders have access to advanced trading platforms, market data, and analysis tools, giving them a competitive advantage in crude oil futures trading.
  • Liquidity and Execution: Institutional traders benefit from enhanced liquidity and can execute large trades with minimal slippage due to their established relationships with brokerages and exchanges.

Disadvantages:

  • High Costs: Institutional trading often involves high costs, including transaction fees, data feeds, and sophisticated trading technology.
  • Regulatory Scrutiny: Institutional traders are subject to regulatory requirements, which can restrict certain trading activities and require additional compliance.

For Hedgers

Advantages:

  • Price Stabilization: Companies in oil-dependent industries use crude oil futures to lock in prices, allowing them to stabilize costs and protect against price volatility.
  • Enhanced Budgeting and Planning: By locking in prices, hedgers can budget more effectively, making it easier to forecast costs and profits.
  • Reduced Exposure to Geopolitical Events: Oil prices are often sensitive to global political events, and hedgers can reduce their risk of exposure to such events by securing future oil prices.

Disadvantages:

  • Opportunity Costs: By locking in prices, hedgers may miss out on favorable price movements if the oil market shifts unexpectedly.
  • Initial Costs and Margins: Hedgers need to meet margin requirements, which may tie up capital that could be used elsewhere.
  • Complexity: Effective hedging requires a deep understanding of futures markets, as well as continuous monitoring of global oil trends.

Speculation on Oil Prices for the End of the Year

The price of crude oil futures heading into the end of the year is likely to be influenced by several critical factors, including global demand recovery, OPEC+ production decisions, and geopolitical issues.

  • Global Economic Recovery: As economies recover from global events, the demand for oil is expected to rise, pushing up prices. However, any setbacks, such as renewed economic slowdowns or shifts in energy policies, could temper demand.
  • OPEC+ Production Policies: OPEC+ decisions on production quotas will continue to be a key factor in crude oil futures trading. Tightening or loosening production levels could have an immediate impact on oil prices, as these decisions directly affect global supply.
  • Energy Transition Policies: The ongoing shift toward renewable energy may gradually dampen long-term oil demand, but in the short term, supply constraints and increased demand for conventional energy sources could drive prices higher.

Based on current market conditions, analysts predict that oil prices could remain relatively high through the end of the year, with potential spikes if any supply disruptions occur. Crude oil futures may see increased buying pressure, but price sensitivity to unforeseen disruptions could cause fluctuations. Retail and institutional traders, as well as hedgers, should remain vigilant, monitoring relevant indicators and adjusting their strategies accordingly. Given these factors, how to trade oil futures effectively will require a close watch on economic reports, OPEC announcements, and geopolitical developments.

Understanding how to trade oil futures requires a grasp of market mechanics, key influences, and the reasons behind the popularity of crude oil futures trading. With high liquidity, volatility, and a strong influence from global factors, oil futures present unique opportunities and risks for traders of all kinds. For retail traders, the potential for high returns is met with significant risk. Institutional traders benefit from data and scale, but face regulatory challenges, while hedgers achieve price stability at the cost of flexibility.

The outlook for crude oil futures remains complex, with oil prices predicted to face various pressures that may drive prices higher or, conversely, cause corrections. As oil remains essential to the global economy, futures trading in this sector will continue to be a focal point for market participants. For anyone engaging in crude oil futures trading, maintaining a strategic approach and staying informed of global events are essential for navigating the unpredictable and profitable world of oil futures.

For more information, click here.

Ready to start trading futures? Call us at 1(800)454-9572 – Int’l (310)859-9572 (International), or email info@cannontrading.com to speak with one of our experienced, Series-3 licensed futures brokers and begin your futures trading journey with Cannon Trading Company today.

Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. Past performance is not indicative of future results. Carefully consider if 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.

Important: Trading commodity futures and options involves a substantial risk of loss. The recommendations contained in this article are opinions only and do not guarantee any profits. This article is for educational purposes. Past performances are not necessarily indicative of future results.

This article has been generated with the help of AI Technology and modified for accuracy and compliance.

Follow us on all socials: @cannontrading

Weekly Newsletter: Bean Oil Outlook, Crude Oil System+ Trading Levels for Oct. 28th

Posted on by Ilan
Get Real Time updates and more by joining our Private Facebook Group!
Subscribe to our YouTube Channel

C86

Cannon Futures Weekly Letter Issue # 1214

In this issue:

  • Important Notices – Earnings & NFP, Consumer Confidence
  • Futures 102 – Recognizing Chart Patterns
  • Hot Market of the Week – December Bean Oil
  • Broker’s Trading System of the Week – Crude Oil Swing Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices – Next Week Highlights:

 

The Week Ahead

By Mark O’Brien, Senior Broker

 

We’re a week away from the Labor Dept.’s release of its monthly Non-farm payrolls report. It’s widely considered to be one of the most important and influential measures of the U.S. economy. The report is released at 7:30 A.M., Central Time on the first Friday of the month.

U.S. Election Day (Nov. 5th) countdown: 11 days

 

Next week’s earnings include some of the largest U.S. companies by market cap.:

 

Apple, Microsoft, Alphabet (Google), Amazon, Meta (old Facebook), Berkshire Hathaway, Visa, Exxon Mobile, Chevron, Merck, McDonalds, Caterpillar, Uber

 

Apple and Microsoft each boast a market cap. of over $3 trillion. That’s 3,000,000,000,000. Google and Amazon come in at about $2 trillion.

 

Tuesday, Oct. 29th:

 

9:00: Consumer Confidence

 

Wednesday, Oct 30th:

 

7:30: Gross Domestic Product (3rd qtr.)

ADP Employment

 

Thursday, Oct. 31st:

 

7:30: Personal Income / Spending

7:30: Personal Consumption & Expenditures – Index & year-over-year

8:45: Chicago Purchasing Managers Index

 

Friday, Nov. 1st:

 

Non-Farm Payrolls / U.S. Unemployment Report

 

Futures 101: Ask a Broker!!

Ask a Broker: Why Trade Bitcoin Futures?

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Before Your next Trade, learn to recognize charts and patterns!

Learning the different types of charts and patterns will be another arsenal in your Trading Tools!

  • What is an Ascending Triangle Futures Chart Pattern?

What is an Ascending Triangle Futures Chart Pattern?

An ascending triangle is a bullish futures pattern that can indicate a breakout in the upwards direction.

How do I Recognize an Ascending Triangle Futures Chart Pattern?

An ascending triangle is formed when resistance remains flat and support rises.

What Does a Ascending Triangle Chart Pattern Mean?

The price will rise and fall within the triangle until support and resistance converge. At that point, the apex, breakout occurs, usually upwards.

  • What is a Broadening Top Futures Chart Pattern?
  • Head & Shoulders?
  • Bull Flags?
  • Bear Flags?
  • Rectangle Bottoms?
  • Rectangle Tops?
  • See ACTUAL Charts Patterns images AND many more patterns you should know as a trader!

LEARN THE REST

 

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    • Hot Market of the Week – December Hogs

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

    FREE TRIAL AVAILABLE

    December Bean Oil

    December bean oil is attempting to break out as it challenges the October highs. New sustained highs would open up the chart to take aim at its upside PriceCount objectives where the first count would project a run to the 46.29 area.

     

    PriceCounts – Not about where we’ve been , but where we might be going next!

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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

With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.

Position Trading Cont v.22 _ CRUDE

PRODUCT

CL – Crude Oil

 

SYSTEM TYPE

Swing Trading

 

Recommended Cannon Trading Starting Capital

$25,000

 

COST

USD 165 / monthly

 

Get Started

Learn More

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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.
Would you like to receive daily support & resistance levels?
Yes
S
No
S

Daily Levels for October 28th, 2024

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Weekly Levels for the week of October 28th, 2024

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Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week:
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Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

Explore trading methods. Register Here

* 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.

Action-Packed Thursday: Key Economic Data & Energy Reports; CME Increases Impact Day Trading Margin Requirements

Posted on by Ilan
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C67

Busy day ahead! Natural Gas, Crude Oil numbers, weekly unemployment, retail n umbers, housing numbers, few Fed speakers…., Thursday, Oct. 17th!

On a different note, as the CME raises margins, the day trading margins may be higher as well.

Depending on the trading platform you are using, your day trading margins may be a percent of the overnight margins. If you are using the E-Futures International, then your day trading margins between 7:45 AM central and 3:30 PM central are as below:
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Any questions, please reach out to your broker.
Ask a Broker: What is Futures Margin?
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Daily Levels for Oct. 17th 2024

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Economic Reports
provided by:ForexFactory.com
All times are Eastern Time ( New York)
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Good Trading!
About: Cannon Trading is an independent futures brokerage firm established in 1988 in Los Angeles. Our mission is to provide reliable service along with the latest technological advances and choices while keeping our clients informed and educated in the field of futures and commodities 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.
Contact
S
Cannon Trading Company
12100 Wilshire Boulevard
Suite 1640
Los Angeles, CA 90025
(800) 454-9572
Follow Us
Facebook  Twitter  Instagram
Visit Our Website

 

Oil Slumps on OPEC Demand Downgrade, Metals Rally as Fed Rate Cut Hopes Grow

Posted on by Ilan
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C67

Movers and Shakers

By John Thorpe, Senior Broker

Oil took another $3 .40 nosedive when OPEC announced a smaller than expected demand growth forecast for 2025 for the Third time!

Updated: October 14, 2024 8:43 am

For the third time OPEC slashed its 2024 and 2025 worldwide crude oil demand growth rate. This year’s demand was lowered to 1.93 mln bpd, down from last month’s projection at 2.03 mln mt. Analysts noted much the downgrade came from lower expected Chinese demand. Next year’s demand growth is seen at 1.64 mln bpd down from 1.74 mln bpd previously forecast.

 

Flirting with the low end of the 25 month old range, November crude held it’s ground around $69.75/bbl level , a mere 3 dollars from the springtime 2023 lows.

Equity markets were upset by poor United healthcare Group end of year Guidance although they beat EPS estimates, Buy the rumor sell the fact? UNH shares down 48.25 per share or nearly 8%.

Metals cruised higher today with the CME FedWatch tool reflecting a solid 90% chance the FED will lower rates .25-50 in its November meeting is again fueling speculative buying in the Yellow Metal.

The All time high in the December contract is 2708.70 , are we flirting with that number?, yes, as of this writing GCZ24 is @ 2678.00 can we take that out? Stay tuned…

Sympathetic Silver is recouping it’s bullish stance, 1.80 away from it’s contract high @ 31.70 /oz +.37 for the day

 

Watch Tomorrow’s Movers and Shakers:

No Fed Speakers, No Economic Data, very few ,if any earnings that would make headlines.
Ask a Broker: What is Futures Margin?

thumbnail?url=https%3A%2F%2Fi.ytimg.com%2Fvi%2F2VQwRHHIQ8Y%2Fhqdefault

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Daily Levels for Oct. 16th 2024

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Economic Reports
provided by:ForexFactory.com
All times are Eastern Time ( New York)
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Good Trading!
About: Cannon Trading is an independent futures brokerage firm established in 1988 in Los Angeles. Our mission is to provide reliable service along with the latest technological advances and choices while keeping our clients informed and educated in the field of futures and commodities 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.
Contact
S
Cannon Trading Company
12100 Wilshire Boulevard
Suite 1640
Los Angeles, CA 90025
(800) 454-9572
Follow Us
Facebook  Twitter  Instagram
Visit Our Website

 

Weekly Newsletter: Free Trial to Advanced Daily Market Insight + Trading Levels for Oct. 14th

Posted on by Ilan
Get Real Time updates and more by joining our Private Facebook Group!
Subscribe to our YouTube Channel

Crude Oil2

Cannon Futures Weekly Letter Issue # 1212

In this issue:

  •  Important Notices – Quiet Reports Week & Iran/Israel in background
  • Futures 101 – Advanced Market Insight – Free trial
  • Hot Market of the Week – December Heating Oil
  • Broker’s Trading System of the Week – Unleaded Swing Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices – Next Week Highlights:

 

The Week Ahead

By John Thorpe, Senior Broker

 

 

A relatively Quiet Data week next week, Geopolitics may be the only driver of volatility. One Caveat: the Fed Speakers dialogue may be given much more weight by investors as there will be a lot less noise in the form of Economic Data and earnings from prominent “Magnificent Seven” stocks to drive market volatility.

 

Prominent Earnings this Week:

  • Tues, pre-open United Healthcare, B Of A, Goldman Sachs, Citi Group, Johns and Johnson
  • Wed. Abbott Labs,
  • Thu. NetFlix Post-Close

 

FED SPEECHES:

  • Mon. Kashkari, Waller, 2nd Kashkari.
  • Tue. Kugler, Bostic
  • Wed. QUIET
  • Thu. QUIET
  • Fri. Bostic, Waller, Kashkari, Bostic

 

Big Economic Data week:

  • Mon. BANKS CLOSED-Columbus Day National Holiday
  • Tues. Quiet
  • Wed. Quiet
  • Thur. Bus. Inventories, Jobless Claims.
  • Fri. Housing Starts, Building Permits

 

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Would you like to have access to research like shown above and MORE?

Here is what you will receive DAILY:

  • Specific price points for shorter term, medium term and longer term
  • Detailed chart analysis
  • Audio brief summary as well as more detailed PDF summary
  • View insight into Gold, Mini SP, Crude Oil, Corn, feeder Cattle, Live Cattle, Wheat, Hogs and more!

To sign up and get two weeks FULL access, start by requesting the free trial below.

START YOUR FREE TRIAL

 

 

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    • Hot Market of the Week – Heating Oil

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

    FREE TRIAL AVAILABLE

    December Heating Oil

    December heating oil Rallied to its second upside PriceCount objective before correcting. At this point if the chart can resume its rally with new sustained highs, the 3rd count would project a possible run into the 2.59 area

     

    PriceCounts – Not about where we’ve been , but where we might be going next!

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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

With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.

Swing61B Cont v.3 _ RBOB Gasoline

PRODUCT

RB – RBOB ( unleaded gasoline)

 

SYSTEM TYPE

Swing Trading

 

Recommended Cannon Trading Starting Capital

$25,000

 

COST

USD 160 / monthly

 

Get Started

Learn More

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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.
Would you like to receive daily support & resistance levels?
Yes
S
No
S

Daily Levels for October 14th, 2024

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Weekly Levels for the week of October 14th, 2024

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Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week:
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Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

Explore trading methods. Register Here

* 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.

Bullet Points, Highlights, Announcements  + Levels for April 24th

Posted on by Ilan
Get Real Time updates and more by joining our Private Facebook Group!
Subscribe to our YouTube Channel

 

C37

Bullet Points, Highlights, Announcements    

by Mark O’Brien, Senior Broker

General:  

 

Futures traders with positions in deliverable futures contracts keep an eye on the calendar for important dates at the end of the month. First Notice Day (FND) and Last Trading Day (LTD) for many futures contracts are close at hand. Make sure you steer safely clear of receiving delivery notices for physical commodities (FND), or greatly reduced liquidity (LTD). If you’re unsure, contact your Cannon Trading Co. broker.

 

The economic calendar for the rest of the week is scarce with Thursday’s Q1 GDP report taking center stage.

 

Prospects for a fed rate cut announcement at the Fed’s 4/30-5/1 meeting, as well as its mid-June meeting have all but evaporated and many Fed watchers expect the central bank to keep its “higher for longer” mantra in place for most and possibly all of 2024.

 

Worries over a wider Middle East conflict have subsided and traders are discounting the risk of further escalations. Case in point, June gold lost ±67 per ounce (±2%) yesterday after posting its latest all-time record high close of $2,413.80/ounce on Friday. Iran downplayed Israel’s retaliatory drone strike against it, in what appeared to be a move aimed at averting regional escalation.

 

Energies: 

 

  • The ±$2.50/barrel selloff in May crude oil and the ±¢9.75/gallon May RBOB gasoline futures last week likely signaled the markets do not see an Iranian supply disruption in the near future, so the markets will be given to focusing on global energy demand going forward

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Softs:  

 

May Cocoa futures declined sharply yesterday and today, down nearly $1,300/ton (a $13,000 per contract move) marking its worst two-day slump since February. This after a 3-day / Wed.-Fri. rally of $1,635/ton to its all-time record high close of 11,878/ton on Friday. ICE U.S. has set the initial margin requirement to $11,260 per contract.

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Daily Levels for April 24th, 2024

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thumbnail?url=http%3A%2F%2Fi.ytimg.com%2Fvi%2FJnHAMUGdNoM%2Fhqdefault

Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
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Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

Explore trading methods. Register Here

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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: May Crude Oil on the Move? & Trading Levels for April 15th

Posted on by Ilan
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Cannon Futures Weekly Letter Issue # 1189

In this issue:
  •  Important Notices – Earnings, Gold all time Highs & More
  • Trading Resource of the Week – Trading Videos
  • Hot Market of the Week – May Crude Oil
  • Broker’s Trading System of the Week – NQ Swing System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices –

    • Earnings Tues- JNJ,BAC ,Morgan Stanley MS, Wed. -ABT, Thu.- AXP, NFLX
    • Econ Data  Mon- Retail Sales , Tues Housing Starts, Bldg Permits , Thu. Jobless claims, Existing home sales..
    • quiet on the fed speaker front
    • No Congressional action to speak of
    • The U.S. dollar index this morning forged another higher high and reached the highest level since early November.
    • With the June gold futures contract breaking a string of new all-time highs (eight straight days) yesterday, the market is facing the first definitive corrective environment since the middle of last month.
    • The bearish sentiment in financial futures (30-yr. T-bond, 10-yr. T-note) is escalating dramatically and could become overdone soon with some chatter in the market suggesting there might not be a single rate cuts this year.
    • Crude oil may see support this week from renewed talk of an imminent Iranian retaliation (as per U.S. officials) for the Israeli attack in Syria. U.S. officials have openly suggested Iranian retaliation against Israel is likely soon. Fears of disrupted supply remain front and center.

 

 

 

 

Trading Resource of the Week: Trading Videos, Instant Viewing

Watch a series of short videos, where our VP, Ilan Levy-Mayer shares his personal preferences and opinions on different trading topics.
·    Ever wondered when to exit a trade? Take a look at what Ilan has to share on Bollinger Bands and a study called PARABOLICS
·    Some common uses you can make of support and resistance levels.
·    Filter out the noise with range bar charts
·    “Price Confirmation”

 

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  • Hot Market of the Week – May Crude Oil
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.
The March 20th Chart of the Day highlighted May crude oil had completed its first upside PriceCount objective. Now, the chart is consolidating after satisfying its second upside PriceCount objective. A this point, IF the chart can sustain further gains, the third count would project a possible run to the 94.82 area.
PriceCounts – Not about where we’ve been , but where we might be going next!
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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

With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.
PRODUCT
SYSTEM TYPE
Swing
COST
USD 299 / monthly
Recommended Cannon Trading Starting Capital
$75,000
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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.
Would you like to receive daily support & resistance levels?
Yes
S
No
S

 

Daily Levels for April 15th 2024

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Trading Reports for Next Week

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First Notice (FN), Last trading (LT) Days for the Week:
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Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

Explore trading methods. Register Here

* 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.

Markets Post CPI + Levels for April 11th

Posted on by Ilan
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Subscribe to our YouTube Channel

 

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Life After CPI …..

by Mark O’Brien, Senior Broker

General:

 

It’s been ten months since the central bank paused its rate hike cycle.  It seems as though Jay Powell’s motto throughout his entire tenure as chairman of the Fed has been, “The data will guide our decisions,” and today the Bureau of Labor Statistics released another chunk of data: its March Consumer Price Index (CPI) report, which measures the prices paid by consumers for a basket of consumer goods and services.  The consumer-price index rose 0.4% in March and 3.5% on an annual basis.  Economists had expected 0.3% and 3.4%.  Core CPI, which removes the volatile food and energy categories, was up 0.4% from February, topping an expected 0.3%.  Now, after strong prints in January and February, are these new readings stronger evidence of a “sticky” inflation situation?

 

At their March meeting, according to its minutes released later this morning, Federal Reserve officials expressed concern that inflation wasn’t moving lower quickly enough.  The CPI report likely didn’t moderate those concerns and the timing for the first long-anticipated rate cut has presumably drifted further out on the calendar.

 

Energies: 

 

Speaking of inflation, the first three months of 2024 saw crude oil jump ±$17 per barrel – a ±$17,000 move for the main 1,000-barrel futures contract – with the front-month May contract trading to the year’s high of $87.63 intraday just last Friday.

 

Softs: 

 

After a one-day 321-point/$3,210 move up on March 12 to close above $7,000/ton – its latest all-time high – May cocoa continued its “no top in sight,” rally, closing today at $10,476/ton, a staggering ±$34,700 per contract move in twenty trading sessions.

 

Metals:  

 

While cocoa retained its “king of the all-time highs” crown for the month, gold did not disappoint bulls in this market, setting its own new all-time high yesterday, trading up to $2,384.50/oz. intraday (basis the June futures contract).  This is a $199.00/oz. move ($19,900 per contract for the standard 100-oz. futures contract) over the same 20-sesson span as the move in cocoa referenced above.

 

Grains: 

 

Keep an eye out for tomorrow’s U.S. Department of Agriculture’s two main reports: its monthly Crop Production and World Agricultural Supply and Demand Estimates (WASDE). These serve as the primary informers of the fundamentals underlying domestic and global agricultural futures markets.

 

 

 

 

 

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Daily Levels for April 11th, 2024

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thumbnail?url=http%3A%2F%2Fi.ytimg.com%2Fvi%2FJnHAMUGdNoM%2Fhqdefault

Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
a6273151 d609 4ded 8856 a663e620f095

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

Explore trading methods. Register Here

3b644da2 2bee 4d39 8d98 5208a20bec39

* 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 Outlook, Crude Oil & Nat Gas Numbers Tomorrow! +Futures Trading Levels for 01.18.24

Posted on by Ilan
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Join our Private Facebook group

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Talking Gold Futures

By Mark O’Brien, Senior Broker

A six-month decline followed by a two-month rally of almost equal price movement. On April 4, Feb gold traded to its all time high of $2,140.30 per ounce. Almost six months to the day, on Oct. 6, the benchmark precious metal had declined ±$300 per ounce (a ±$30,000 move) to $1,842.50. Then, within almost an exact two-month span, on the Sunday Dec. 4th opening of trading, Feb. gold capped a ±$300 per ounce rally, trading briefly up to a new all-time high of $2,152.50. Today, gold prices fell to a more than one-month low, trading intra-day to $2,004.60 per ounce. Credit strong economic data that strengthened dollar and Treasury yields and lowered market expectations of a U.S. rate cut in March. The Commerce Department reported a more-than-expected rise in U.S. retail sales for December. This followed the strong gains in employment and wage gains reported earlier this month and an uptick in inflation last week.

 

The U.S. Consumer Price Index last week did not persuasively indicate under-control inflation,

but with energy and grain prices remaining significantly below last year’s highs, the prevailing

direction of inflation points down with economic conditions improving.

Heads up: Both Natural Gas and Crude Oil numbers come out tomorrow due to MLK holiday this past Monday and the short trading week.

 

 

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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

01-18-2024

 

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

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Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports,

Source: 

Forexfactory.com

 

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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.

Video on Projecting Levels, Christmas Modified Trading Schedule + Levels for 12.20.23

Posted on by Ilan
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Join our Private Facebook group

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March is front month for stock indices and currency futures.

Symbol for March is H, so example ESH24

February is front month for crude oil.

Christmas Modified trading schedule below.

 

Video: Projecting possible targets when trading futures

 

Projecting possible targets when trading futures

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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

 

12-20-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports,

Source: 

Forexfactory.com

 

62584dc1 3e63 45e3 a29b ee6378ed7743

 

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.