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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.
DJIA Futures
Day Trading Tips and Pitfalls
Day trading DJIA futures offers an exciting opportunity to participate in one of the world’s most liquid and influential financial markets. DJIA futures, or Dow Jones futures, are derivatives that allow traders to speculate on the movement of the Dow Jones Industrial Average (DJIA). This article delves into the nuances of day trading DJIA futures, provides essential tips, lists key facts about the contracts, and highlights the services of Cannon Trading Company as a reliable futures trading partner.
What Are DJIA Futures?
DJIA futures contracts are standardized agreements to buy or sell the Dow Jones Industrial Average at a predetermined price on a specific future date. These contracts are traded on the Chicago Mercantile Exchange (CME) and offer high liquidity, making them a popular choice for traders looking to capitalize on short-term price movements.
Tips for Day Trading DJIA Futures
- Understand Market Dynamics
- Tip: Familiarize yourself with how DJIA futures are influenced by macroeconomic data, Federal Reserve announcements, and geopolitical events. For example, a positive nonfarm payroll report could lead to a spike in Dow Jones futures prices due to increased investor confidence.
- Use Technical Analysis
- Tip: Employ tools such as moving averages, Fibonacci retracements, and Bollinger Bands to identify potential entry and exit points. For instance, if the DJIA futures contract breaks above a key resistance level, it could signal a bullish trend.
- Set Realistic Goals
- Tip: Avoid chasing large profits and focus on consistent gains. For example, a trader targeting 20-30 points per trade on DJIA futures may have better success than someone aiming for hundreds of points in a single session.
- Manage Risk Effectively
- Tip: Always use stop-loss orders to protect against significant losses. A stop-loss placed 10 points below your entry price can limit potential downside while allowing room for market fluctuations.
- Monitor Market Opening and Closing Times
- Tip: The first and last 30 minutes of trading often see the most volatility. Savvy traders capitalize on this by placing trades during these windows while remaining cautious of sudden price swings.
- Avoid Overleveraging
- Tip: While trading futures offers leverage, excessive risk can lead to large losses. For example, trading one DJIA futures contract with a $10,000 account and proper risk management is more sustainable than overcommitting your capital.
- Stay Updated with News
- Tip: Major news events can lead to sudden spikes or drops in Dow Jones futures. For example, during a Federal Reserve announcement, DJIA futures might experience a 100-point swing in minutes.
- Practice Discipline
- Tip: Stick to your trading plan and avoid emotional decisions. For instance, if your strategy dictates exiting a trade after 20 points, resist the urge to hold out for more.
- Utilize a Reliable Trading Platform
- Tip: A robust platform ensures accurate execution and access to analytical tools. This is where companies like Cannon Trading shine, offering a wide selection of trading platforms tailored to traders’ needs.
- Learn from Experience
- Tip: Keep a trading journal to document successes and failures. Reviewing trades helps refine strategies, such as identifying patterns in winning and losing trades on DJIA futures.
Key Facts About DJIA Futures Contracts
- Standardized Contracts
- Example: The E-mini Dow futures (YM) contract represents $5 per index point, making it accessible for traders with smaller accounts.
- High Liquidity
- Case Study: A day trader executes multiple trades during a Federal Reserve announcement, benefiting from tight bid-ask spreads due to high liquidity in the DJIA futures market.
- Leverage Opportunities
- Hypothetical Scenario: A trader with $5,000 controls a DJIA futures contract worth $160,000, amplifying both potential gains and risks.
- Margin Requirements
- Example: Initial margin for E-mini Dow futures might be $1,500, allowing traders to enter the market with a fraction of the contract’s value.
- Market Hours
- Real-Life Trade: A trader monitors overnight market movements before placing a trade at market open, capitalizing on trends in Dow Jones futures.
- Tick Size
- Example: Each tick (minimum price movement) in the E-mini Dow is $5, making it critical for traders to calculate risk precisely.
- Settlement
- Fact: DJIA futures are cash-settled, meaning no physical delivery of underlying assets occurs at expiration.
- Correlation with the Dow Jones Index
- Case Study: A sharp drop in the Dow Jones index during a market correction leads to a corresponding decline in Dow futures, highlighting the close relationship.
- Volatility
- Hypothetical Scenario: During an unexpected interest rate hike, DJIA futures drop by 200 points within minutes, demonstrating the impact of volatility.
- Suitability for Day Traders
- Fact: High liquidity, low tick sizes, and tight spreads make DJIA futures ideal for day trading.
Common Pitfalls in Day Trading DJIA Futures
- Ignoring Risk Management
- Many traders fail to set stop-loss orders, leading to outsized losses. For instance, a 50-point drop in DJIA futures can translate to a $250 loss per contract if unmanaged.
- Trading Without a Plan
- Entering trades impulsively often results in losses. For example, chasing a price spike without analyzing support and resistance levels can lead to poor outcomes.
- Overtrading
- Excessive trading incurs higher transaction costs and increases the likelihood of errors.
- Misusing Leverage
- Overleveraging magnifies losses. A trader using 10x leverage on a $10,000 account risks losing the entire balance in a single bad trade.
- Falling for News Hype
- Acting on unverified news can lead to poor decisions. For instance, false rumors about corporate earnings might trigger unnecessary trades.
Why Choose Cannon Trading Company?
Cannon Trading Company stands out in the trading futures industry for several reasons:
- Wide Selection of Platforms
- Traders can choose from platforms like CQG, Rithmic, and others to match their trading style. These platforms are optimized for speed, reliability, and advanced analytics, essential for success in DJIA futures
- TrustPilot Ratings
- With dozens of 5-star reviews, Cannon Trading has established itself as a trusted partner in the Dow futures
- Regulatory Reputation
- Cannon Trading complies with stringent industry standards, ensuring transparency and reliability.
- Decades of Experience
- Established in 1988, Cannon Trading boasts deep market expertise, helping traders navigate the complexities of Dow Jones futures.
Examples of Real-Life and Hypothetical Trades
Real-Life Trade Example
A trader monitors the DJIA futures market during a Federal Reserve announcement. Spotting a bullish trend after dovish comments, they enter a long position at 34,500 and exit at 34,520, gaining $100 per contract. 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.
Hypothetical Trade Scenario
A day trader notices a double-bottom pattern on the 15-minute chart. They enter a long position at 34,300 with a stop-loss at 34,280 and a target at 34,350. The trade hits the target, netting a $250 profit per contract.
Day trading DJIA futures requires a blend of market knowledge, technical skill, and disciplined execution. Understanding the contract specifications, mastering risk management, and choosing a reliable trading partner like Cannon Trading Company are critical for success. With a robust platform selection, decades of expertise, and exceptional customer reviews, Cannon Trading offers the tools and support traders need to thrive in the competitive Dow futures market.
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
NQ Futures Contract
The NQ futures contract, also known as the Nasdaq-100 futures contract or the E-mini Nasdaq-100 futures contract, is a cornerstone of modern futures trading. Representing 100 of the largest non-financial companies listed on the Nasdaq stock exchange, this contract is highly favored for its liquidity, volatility, and utility in both speculative and hedging strategies. In this article, we delve into the origins, evolution, and impact of the NQ futures contract, exploring its top historical turning points, contract size evolution, hedging applications, and why Cannon Trading Company stands out as a premier choice among futures brokers.
The Top 5 Major Turning Points in the History of the NQ Futures Contract
- Introduction of the Nasdaq-100 Index and Futures Contracts (1985)
The foundation of the NQ futures contract began with the launch of the Nasdaq-100 index in 1985. This index represented a weighted basket of 100 non-financial companies, offering investors a way to track the performance of technology and growth-driven sectors. Shortly thereafter, the introduction of the Nasdaq-100 futures contract allowed investors to speculate on the index’s movement. At its inception, the contract size was much larger than the current E-mini Nasdaq-100 futures contract, catering primarily to institutional investors. - The Dot-Com Boom and Bust (1990s–2000s)
The late 1990s saw a surge in tech stock valuations, which dramatically impacted the Nasdaq-100 futures contract. During the dot-com boom, the NQ futures contract became a key vehicle for speculative trading, as traders sought to capitalize on the astronomical rise in tech stocks. However, the bust that followed in the early 2000s underscored the contract’s volatility. This era highlighted the need for smaller, more accessible contracts for retail traders, leading to the creation of the E-mini Nasdaq-100 futures contract in 1997. - Introduction of E-mini Nasdaq-100 Futures (1997)
The launch of the E-mini Nasdaq-100 futures contract marked a transformative moment in futures trading. Designed to be one-fifth the size of the original contract, the E-mini lowered the barrier to entry for individual traders and smaller institutional players. This innovation democratized trading and spurred a surge in participation, cementing the NQ futures contract’s reputation as a versatile tool for trading Nasdaq-linked securities. - Global Financial Crisis (2008)
During the 2008 financial crisis, the NQ futures contract experienced unprecedented volatility. Investors and fund managers turned to futures markets to hedge their equity positions against sharp declines. The crisis underscored the importance of liquidity and robust market access, which the E-mini contracts provided in abundance. This period also saw the introduction of advanced electronic trading platforms, enabling rapid execution of trades—a trend embraced by top futures brokers like Cannon Trading Company. - Rise of Algorithmic Trading and Micro E-mini Contracts (2019)
In 2019, the Chicago Mercantile Exchange (CME) introduced the Micro E-mini Nasdaq-100 futures contract, offering an even smaller notional value (one-tenth the size of the E-mini). This evolution catered to novice traders and those seeking greater precision in their trading strategies. Combined with advancements in algorithmic trading, this development has cemented the NQ futures contract’s role as a versatile instrument in modern markets.
Contract Size: Then and Now
At its inception, the Nasdaq-100 futures contract was designed with a larger notional value, making it suitable primarily for institutional investors. With the introduction of the E-mini Nasdaq-100 futures contract, the size was reduced to 20 times the index’s value, significantly increasing accessibility.
Today, traders can choose from multiple contract sizes:
- E-mini Nasdaq-100 Futures Contract: 20 times the index value.
- Micro E-mini Nasdaq-100 Futures Contract: 2 times the index value.
This tiered structure ensures that traders of all scales—from retail investors to institutional hedgers—can find a product that aligns with their risk tolerance and trading objectives.
Hedging with NQ Futures Contracts: Practical Applications
The NQ futures contract is not just for speculation—it’s a powerful hedging tool. For investors with significant exposure to Nasdaq-listed equities, trading the NQ futures contract or its options can mitigate potential losses during market downturns.
Example 1: Protecting a Technology-Heavy Portfolio
Imagine an investor with a $500,000 portfolio heavily concentrated in technology stocks like Apple, Microsoft, and Nvidia. If the investor anticipates a short-term decline in the tech sector, they can sell NQ futures contracts to offset potential losses. A single E-mini Nasdaq-100 futures contract moves in $20 increments for each point change in the index, offering precise risk management.
Example 2: Using Options on NQ Futures
Options on the Nasdaq-100 futures contract provide additional flexibility. For example:
- A call option can be purchased to speculate on a market rebound without committing to a full futures position.
- A put option can protect against significant downturns, acting as a form of insurance for the investor’s portfolio.
Options on E-mini Nasdaq-100 futures contracts are particularly popular due to their smaller contract size and manageable margin requirements, making them an excellent tool for hedging Nasdaq exposure.
Why Choose Cannon Trading Company?
When trading Nasdaq-100 futures contracts, selecting the right futures broker is critical. Cannon Trading Company consistently earns accolades from traders for several compelling reasons:
- Free Trading Platform
Cannon Trading offers a free, robust trading platform, ensuring that traders have access to advanced tools for charting, analytics, and trade execution. This cost-effective solution is particularly attractive for those trading the E-mini Nasdaq-100 futures contract or the Micro version. - 5-Star Ratings on TrustPilot
The company’s exceptional reputation is reflected in its perfect 5-star ratings on TrustPilot. From seamless customer service to efficient trade execution, Cannon Trading is consistently praised by clients for delivering a top-tier trading experience. - Dedicated Brokers with Decades of Experience
Unlike many futures brokers, Cannon Trading provides access to a team of seasoned professionals with decades of expertise in futures trading. These dedicated brokers guide clients through complex markets, ensuring informed decision-making and personalized support. - Regulatory Excellence
A stellar reputation with regulatory bodies ensures that traders can trust Cannon Trading to operate with integrity and transparency. Compliance and client protection are central to their operations, making them a trusted partner for trading Nasdaq-100 futures contracts. - Superior Customer Service and Resources
Cannon Trading excels in client education, offering webinars, market analysis, and one-on-one consultations. This commitment to client success sets it apart from other futures brokers, solidifying its reputation as a leader in the industry.
The NQ futures contract has evolved from its origins as a tool for institutional hedging to a versatile instrument accessible to all levels of traders. From the introduction of the Nasdaq-100 index to the launch of Micro E-mini contracts, the product’s history is marked by innovation and adaptation to market needs. Today, the combination of diverse contract sizes, robust hedging applications, and user-friendly platforms makes the Nasdaq-100 futures contract a cornerstone of futures trading.
For those seeking a reliable futures broker to navigate this dynamic market, Cannon Trading Company stands out. With its free trading platform, 5-star TrustPilot ratings, experienced brokers, and commitment to regulatory excellence, Cannon Trading offers unparalleled support for traders of E-mini Nasdaq-100 futures contracts and beyond. Whether hedging a portfolio or exploring speculative opportunities, partnering with a trusted broker like Cannon Trading ensures a seamless and rewarding trading experience.
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
Inflation Uptick and Bitcoin’s Surge: Navigating New Highs in Crypto and CPI
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How Trade Oil Futures
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
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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
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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!
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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.
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!
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
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.
Daily Levels for October 28th, 2024
Weekly Levels for the week of October 28th, 2024
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
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Oil Slumps on OPEC Demand Downgrade, Metals Rally as Fed Rate Cut Hopes Grow
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Weekly Newsletter: Free Trial to Advanced Daily Market Insight + Trading Levels for Oct. 14th
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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
-
Futures 101: Crude Oil – What’s in Store for the next 2 Weeks?
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.
-
- 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.
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!
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
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.
Daily Levels for October 14th, 2024
Weekly Levels for the week of October 14th, 2024
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
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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
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.
Daily Levels for April 24th, 2024
Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
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.
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