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Category: E-Mini Futures

Weekly Newsletter: Rollover, Levels for Monday, Sugar Outlook & More!

Posted on by Ilan
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Cannon Futures Weekly Letter Issue # 1221

In this issue:

  • StoneX/E-Futures Platform Updates
  •  Important Notices – Earnings, FOMC, Rollover, The Week Ahead.
  • Futures 102 – SP500 Outlook + Premium Daily Research Trial
  • Hot Market of the Week – March Sugar
  • Broker’s Trading System of the Week – NQ intraday System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

 

To our clients whose accounts are with StoneX and currently using the E-Futures Platform:

  • The new StoneX Futures platform will be up and running Monday, Dec. 16th.

 

  • Your existing LIVE user name and password will be accepted.

 

  • Your existing exchange data subscriptions will migrate to the new platform.
  • To login to the new trading interface please login here:

https://m.cqg.com/stonexfutures

  • If you like a demo ( and did not have a demo of StoneX Futures yet) CLICK HERE
  • In the mean time, your E-Futures platform will stay active until a date no earlier than Fri., Dec. 27th, with a firm decommission date to be announced

 

 

Important Notices – Next Week Highlights:

 

The Week Ahead

By John Thorpe, Senior Broker

 

  • 122 corporate earnings reports and a number of meaningful Economic data releases including Core Personal Consumption and Expenditures Index (PCE) a closely watched Data point for the FED.Additionally, The final fed funds rate decision of 2024 will be announced on Wed. Dec. 18th, to be followed by Chairman Powell’s presser 30 minutes later.Below are the Rate change Probabilities as of this morning from the CME Fedwatch tool.

     

     

    Prominent Earnings Next Week:

    • Mon. Quiet (32 rpts)
    • Tue. Quiet (19 rpts)
    • Wed. Micron, Lennar Homes Post close
    • Thu. Quiet (30 rpts)
    • Fri. Quiet (18 rpts)

     

     

    FED SPEECHES:

    • Wed. 1:30 P.M. CST FOMC Chair Jerome Powell, leads Fed Presser on Rate decision.

     

    Economic Data week:

    • Mon. NY Empire State Manu. Index, S&P Global PMI Composite,
    • Tues. Retail Sales , Redbook, Industrial Production, Business Inventories, Housing Market Index,
    • Wed. Bldg Permits, Housing Starts, FOMC Rate Decision, Economic projections
    • Thur. Jobless claims, Core PCR, GDP Final, Philly Fed, Conference Board Leading Economic Indicators, Existing Home Sales
    • Fri. Core PCE Price Index, Personal Income
    •  For stock index futures traders, it’s time to “roll over” and start trading the March ’25 futures contracts. This Friday, Dec. 20th at 8:30 A.M., Central Time, the Dec. ’24 futures contracts will officially halt trading and the exchange will cash settle all open positions. 

 

 

Futures 102: Daily Research Free Trial

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Get Personalized Trading Reports Like the One Above Directly to your Inbox!

SIGN UP FOR A FREE TRIAL

  • Get qualified support and resistance levels for precise risk management on different commodity markets.
  • Get pivot points that highlight shifts in the futures market momentum.
  • Get technical forecasts to keep you on the right side of a specific commodity trading market.
  • One on One “Daily Digest” with a dedicated series 3 professional.

 

 

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    • Hot Market of the Week 

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

March Sugar

The rally in March sugar ran out of momentum and the chart has been trending lower since. If the chart can sustain its break from here, the second downside PriceCount projects a possible run to the 20.16 area. It would take a trade below the September reactionary low to formally negate the remaining unmet upside count which would also be consistent with targeting the third downside count.

 

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.

Fusion NQ

 

PRODUCT

Nasdaq 100 Mini

 

SYSTEM TYPE

Swing Trading

 

Recommended Cannon Trading Starting Capital

$50,000

 

COST

USD 150 / 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.
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Daily Levels for December 16th, 2024

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Weekly Levels for the week of

December 16th, 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.

Futures Broker

Posted on by Ilan

The futures trading market, known for its high risk and high reward potential, is not only a game of skill and strategy but also one that requires choosing the right futures broker. For novice and seasoned traders alike, navigating the world of future brokers can be fraught with challenges, especially when determining who to trust. With so much at stake—both financially and emotionally—it is crucial to recognize the signs of a reliable futures broker versus the red flags of an unreliable one. This guide will dive into the top ten signs of a trustworthy broker and the ten glaring warning signs to avoid, drawing on real-world cases, hypotheticals, and practical advice. We will also explore how traders can minimize their risks and why firms like Cannon Trading Company stand out as exceptional choices in the futures trading landscape.

Top Ten Signs of a Reliable Futures Broker

  1. Regulatory Compliance and Transparency A trustworthy futures broker is always registered with reputable regulatory bodies, such as the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) in the U.S. These registrations ensure compliance with stringent standards. Look for clear disclosures on their website, including license numbers and links to verification tools.

Case Study: A trader working with a broker fully licensed by the NFA avoided significant losses when the broker promptly alerted clients to regulatory changes affecting margin requirements. This transparency showcased the firm’s commitment to protecting its clients’ interests.

  1. Comprehensive Educational Resources Reliable futures brokers invest in educating their clients. They provide webinars, tutorials, and market analyses tailored to both beginners and experienced traders. Access to free trading platforms for practice is another strong indicator of a broker’s credibility.

Hypothetical: A beginner is torn between two brokers. One offers a free demo account and extensive learning material, while the other provides no educational resources. The beginner chooses the former and gains valuable experience in futures trading without risking real money.

  1. Fair and Transparent Fee Structures Reputable brokers clearly outline their fee structures, including commissions, margin rates, and withdrawal fees. Hidden charges are a sign of a broker to avoid.

Real Example: Cannon Trading Company is known for its transparency, offering clients detailed breakdowns of trading costs, ensuring there are no surprises.

  1. Quality Customer Service Trustworthy future brokers provide responsive and knowledgeable customer service, available across multiple channels, including phone, email, and live chat. Look for brokers with highly rated customer support.

Hypothetical: A trader faces a platform error during a critical market movement. The broker’s 24/7 support resolves the issue within minutes, preventing significant losses.

  1. User-Friendly Platforms A good broker provides intuitive and reliable trading platforms that cater to various levels of expertise. Features like advanced charting tools, real-time data, and easy execution of trades are essential.

Case Study: A trader using a platform provided by a reliable broker successfully executed a stop-loss order during a market crash, avoiding catastrophic losses thanks to the platform’s reliability.

  1. Access to a Wide Range of Markets Reliable futures brokers offer access to various markets, from commodities and indices to currencies and energy. This diversity allows traders to build robust portfolios.
  2. Strong Online Reputation High ratings on platforms like TrustPilot and positive reviews across forums and social media reflect a broker’s trustworthiness. Cannon Trading Company, for example, boasts numerous 5-star reviews, highlighting its reliability.
  3. Risk Management Tools Trustworthy brokers emphasize the importance of risk management by providing tools like stop-loss orders, margin calculators, and alerts.
  4. Industry Longevity Experience matters in futures trading. Brokers with decades of operation have weathered market changes, proving their resilience and reliability.

Example: Cannon Trading Company, with over 30 years in the industry, has built a stellar reputation for reliability and integrity.

  1. Ethical Practices Trustworthy brokers never pressure clients into excessive trading, upsell unnecessary products, or promise unrealistic profits. Their goal is long-term partnerships, not short-term gains.

Top Ten Red Flags of an Unreliable Futures Broker

  1. Lack of Regulatory Oversight Brokers without registration with major regulatory bodies are immediate red flags. Always verify their credentials.

Hypothetical: A trader works with an unregulated broker who disappears overnight with their funds—a devastating yet avoidable situation.

  1. Unrealistic Profit Guarantees Promising guaranteed returns in futures trading is a major red flag. The futures market is inherently volatile, and no broker can ensure profits.
  2. High-Pressure Sales Tactics Brokers that pressure clients into making quick decisions or investing more than they’re comfortable with are not to be trusted.

Case Study: A novice trader was persuaded to over-leverage their account, resulting in significant losses when the market turned against them.

  1. Hidden Fees Shady brokers often bury exorbitant fees in the fine print, from withdrawal charges to “maintenance fees.”

Example: One trader discovered after a year that their broker charged monthly inactivity fees, eroding their profits.

  1. Poor Customer Support Brokers that are difficult to reach or provide vague responses to inquiries are signs of trouble. A lack of support can be disastrous during market volatility.
  2. Unreliable Platforms Frequent outages, execution delays, or lack of robust security measures are clear signs of a broker to avoid.
  3. Fake Reviews and Endorsements Be wary of brokers with overly polished or suspiciously similar online reviews. Genuine testimonials are diverse and specific.
  4. Limited Account Transparency Reliable brokers offer full visibility into account activity. Lack of transparency may signal mismanagement or fraud.
  5. Excessive Leverage Offers Brokers offering extremely high leverage may be enticing but are often designed to capitalize on inexperienced traders’ losses.
  6. Unverified Claims of Longevity Brokers claiming decades of experience without proof or clear histories are likely unreliable.

Navigating Pedestals and Pitfalls as a Beginner

For those new to trading futures, separating the reliable from the questionable can be daunting. Follow these steps to minimize financial and emotional risk:

  1. Do Your Homework Research brokers extensively. Use resources like the NFA’s BASIC system to verify registrations.
  2. Start Small Begin with small trades to learn the mechanics of futures trading without risking significant capital.
  3. Leverage Demo Accounts Take advantage of brokers offering free trading platforms and demo accounts to practice.
  4. Understand the Market Educate yourself on futures trading, including market terminology, strategies, and risk management.
  5. Ask Questions A reliable broker will answer all questions openly. If a broker seems evasive, look elsewhere.
  6. Avoid High-Pressure Sales Walk away from brokers pushing you into decisions without providing ample time for consideration.

Why Cannon Trading Company Excels in Futures Trading

Cannon Trading Company exemplifies the qualities of a reliable futures broker. With over 30 years in the industry, it is regulated by the CFTC and a proud member of the NFA. The company is renowned for its transparency, offering clear fee structures and a range of account options. Its free trading platform allows beginners to learn the ropes without financial pressure, while its exceptional customer service ensures clients receive timely support.

Moreover, Cannon Trading Company’s stellar reputation on TrustPilot, with numerous 5-star ratings, speaks volumes about its reliability. The firm prioritizes client education through webinars and detailed market analyses, enabling traders to make informed decisions. Its dedication to ethical practices and robust regulatory compliance sets it apart in a crowded market.

The future trading market is filled with opportunities, but success begins with choosing the right futures broker. Recognizing the signs of a reliable broker—such as regulatory compliance, transparent fees, and quality support—while avoiding red flags like hidden charges, poor customer service, and unregulated operations can save traders from costly mistakes. For beginners, starting small, asking questions, and leveraging educational resources can help navigate this challenging yet rewarding field. Brokers like Cannon Trading Company stand out for their decades of experience, ethical practices, and commitment to client success, making them a top choice for trading 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

Movers and Shakers: Inflation Data, Market Highs, and Commodity Surges

Posted on by Ilan

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Movers and shakers! 

By Mark O’Brien, Senior Broker

 

General:  

 

Fresh inflation data was released this morning, giving Federal Reserve officials one last glimpse at how their battle against inflation is progressing as they prepare for their final interest rate decision of 2024 next week.  The November Consumer Price Index climbed 2.7% percent year-over-year.  While this was in line with economists’ expectations, the report was a reminder that the central bank has yet to achieve a full victory.

Fed policymakers will decide whether or not to cut interest rates for a third and final time this year at their Dec. 17-18 gathering, and they will also release a fresh set of economic projections for 2025.

The Fed aims for 2 percent yearly inflation, although they define that goal using a separate but related index, the Personal Consumption Expenditures measure. That will come out on Dec. 20, so this is the last big inflation report officials will have in hand before their meeting.

 

Stock Indexes:   

 

Today, the Dec. E-mini Nasdaq futures rose over 400 points – an $8,000 per contract move – and above 21,800 to its latest all-time high.  Still yet to close above 6100 despite trading intraday above that mark five of the last six sessions, including today, the E-mini S&P 500 is within single-digit points of closing at its own all-time high, surpassing the 6096.75 close last Friday, Dec. 6.

 

Crypto:   

 

December Bitcoin futures once again pierced the $100,000 level with today’s ±$5,000/±5.25 move up and is set to post its latest all-time closing price after closing at $101,580 last Friday, Dec. 6.  As of this typing, Dec. Bitcoin is trading at $102,150.

 

Energy: 

 

January natural gas jumped over 20 cents per million British thermal units (MMBtu) – a $2,000 per contract move) in its largest single-day move in months.  The rally coincides with colder weather sweeping across the Midwest and Northeast.  Overnight and 3-5-day forecasts are trending colder and boosting near-term demand.

 

Softs: 

 

Yesterday, March coffee futures traded up to all-time highs – above a 1977 price point – as analysts and traders expect crops in Brazil and Vietnam – the world’s two largest producers – to shrink.  Brazil experienced one of its worst droughts in 70 years during August and September, followed by heavy rains in October, raising fears that the flowering crop could fail.  Vietnam’s crops experienced a similar weather cycle.  One of the most heavily leveraged futures contracts: each one-cent move is $375, the March contract has sot up ±$1.00 per pound – from its $2.42 close on Nov. 1 to its $3.34 close yesterday, a ±$34,500 per contract move.  Coffee is the world’s second most traded commodity by volume, after crude oil.

 

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Daily Levels for December 12, 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.

Movers and Shakers: Political Turmoil, Market Highs, and Economic Indicators

Posted on by Ilan

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Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon, or wherever you listen to podcasts!
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Movers and shakers! 

By Mark O’Brien, Senior Broker

 

General: 

 

Leaders of two staunch U.S. allies, South Korea and France, are facing their ouster today.  French Prime Minister Michel Barnier faces a pivotal no-confidence vote that risks toppling his government and derailing France’s efforts to get its public finances back on track.  This is the result of a monthslong battle over France’s 2025 budget. Mr. Barnier’s proposed budget demands 60 billion euros – equivalent to $63.1 billion – in spending cuts and tax increases to narrow France’s deficit, which is projected to reach more than 6% of gross domestic product this year, double the European Union’s limit.

 

One day after declaring martial law – a type of military control that had been avoided in South Korea for more than four decades, its president, Yoon Suk Yeol, is now facing the prospect of impeachment, creating more political instability for this close Asian U.S. ally.  Mr. Yoon’s move to declare martial law late Tuesday night stunned South Korea’s political establishment and caught U.S. officials by surprise. Within about six hours, Mr. Yoon reversed course after lawmakers voted 190-0 against the measure, a group that included nearly 20 lawmakers from Yoon’s own party.

 

More General: 

 

It’s that time of the month again: we’re a couple of days from when the Labor Dept. releases 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.

 

Stock Indexes: 

 

Today, the Dec. E-mini S&P 500, the E-mini Nasdaq and the E-mini Dow Jones futures contracts traded to new all-time highs, with the E-mini S&P 500 piercing 6100, the Dow over 45,000 and the Nasdaq above 21,500.

 

Crypto: 

 

December Bitcoin futures retained its lofty valuation, moving up ±$3,000 / ±$3%, above 99,000 and within striking distance of its second highest all-time close after closing at 100,815 on November 22.

 

Soy Complex: 

 

After dropping nearly 8 cents today, January soybeans, the futures’ front month for another few weeks, closed at $9.83¾ per bushel and remains mired within striking distance of its intraday life-of-contract low at 973½ per bushel posted back on August 14th.

 
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Daily Levels for December 5, 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.

SP500 Index Futures

Posted on by Ilan

The S&P 500 Index Futures, also known as standard & poor’s 500 index futures, is a financial derivative that allows traders to speculate on the future value of the S&P 500 Index, one of the most widely followed stock market indices in the world. These futures contracts serve as a means of managing risk, offering both hedging capabilities and speculative opportunities. The s and p 500 futures contract provides exposure to the U.S. stock market’s performance without requiring traders to hold the actual underlying stocks. This contract’s prominence has made it one of the most traded assets globally, reflecting trends, economic indicators, and market sentiment.

Origins and Initial Trading

The standard and poor’s 500 futures contract has its roots in the financial markets of the early 1980s. Developed by the Chicago Mercantile Exchange (CME), it was officially introduced for trading in 1982. The concept was initially designed to give institutional and retail investors an efficient way to hedge their portfolios against fluctuations in the S&P 500, which represents approximately 80% of the total U.S. market capitalization.

In the late 1970s, U.S. markets were becoming increasingly volatile due to various economic factors, such as inflation and changes in monetary policy. The S&P 500 index, established decades earlier, had gained a solid reputation for accurately representing the U.S. economy’s performance. As a result, financial professionals and individual investors alike were seeking new ways to protect their investments. The development of spx index futures was a direct response to these demands, providing an innovative tool for managing equity risk.

Historical Price Movements

Since its inception, standard & poor’s 500 index futures have experienced significant price fluctuations, reflecting changes in market sentiment, macroeconomic factors, and global events. Initially, these futures contracts began trading at levels near the index’s value, allowing investors to gain exposure to the market’s performance with minimal capital. Throughout the 1980s and 1990s, the S&P 500 index experienced steady growth as the economy expanded, with notable milestones in the technology and internet boom of the late 1990s.

The early 2000s, however, marked a significant downturn in the market due to the dot-com bubble. This period saw the s and p 500 futures contract decline sharply as technology stocks collapsed. The S&P 500 index futures reached their lowest levels during the early 2000s recession, but the market eventually rebounded due to monetary policy changes and renewed investor confidence. The 2008 global financial crisis led to another significant decline in standard and poor’s 500 futures, reflecting the uncertainty and economic strain at the time. However, aggressive fiscal policies and quantitative easing measures helped stabilize the market, leading to a prolonged recovery.

In the 2010s, the s&p 500 futures index saw remarkable growth, reaching new highs as technology stocks led the way and economic conditions improved. The introduction of automated and algorithmic trading contributed to increased liquidity and trading volume, propelling the futures contracts’ popularity further. Most recently, futures s&p 500 experienced unprecedented volatility due to the COVID-19 pandemic, which led to sharp declines and a rapid recovery as governments and central banks around the world implemented economic stimulus measures. By 2024, the futures sp trades at an impressive level of 5,994, reflecting the resilience and sustained growth of the U.S. economy.

Factors Influencing Price Movements

Several factors have influenced the price movement of sp500 index futures, including:

  • Economic Data and Indicators: Data such as GDP growth, unemployment rates, and inflation significantly impact standard & poor’s 500 index futures prices. Positive economic data often leads to an increase in futures prices, while negative data can trigger declines.
  • Corporate Earnings Reports: The s and p 500 futures contract represents the collective performance of 500 large U.S. companies, so quarterly earnings reports can lead to substantial movements in the futures market. Strong earnings across major sectors drive the futures higher, while weak earnings can lead to declines.
  • Federal Reserve Policies: Interest rate changes and other monetary policies by the Federal Reserve impact the entire economy, influencing the standard and poor’s 500 futures. Rate hikes typically lead to downward pressure on futures prices as borrowing costs rise, while rate cuts can boost prices.
  • Global Events: Geopolitical tensions, wars, pandemics, and other global events also contribute to fluctuations in spx index futures. For instance, during the COVID-19 pandemic, uncertainty about the virus’s economic impact caused unprecedented market volatility.
  • Market Sentiment and Speculation: The futures market is influenced by sentiment-driven buying and selling. Investors’ reactions to news and forecasts can create short-term price fluctuations in standard & poor’s 500 index futures.

Key Milestones in the History of S&P 500 Index Futures

  1. Introduction in 1982: The launch of standard & poor’s 500 futures marked a significant step in futures trading, providing institutional investors and retail traders a way to hedge equity risk.
  2. 1987 Black Monday Crash: This market crash highlighted the need for risk management tools, with s&p 500 futures index contracts becoming an essential component for institutional investors managing large portfolios.
  3. Dot-Com Bubble Burst (2000-2002): The decline of technology stocks impacted the entire market, demonstrating the S&P 500 futures’ sensitivity to specific sectors.
  4. 2008 Financial Crisis: The crisis showcased the contract’s value as a hedging tool and highlighted its susceptibility to broad economic downturns.
  5. COVID-19 Pandemic (2020): The pandemic caused rapid declines in futures sp prices, but aggressive monetary policy intervention led to a remarkable recovery, underscoring the S&P 500 futures’ role in reflecting the broader market’s health.

Current Trading Level and Market Position

As of now, futures s&p 500 are trading at approximately 5,994. This level represents years of market growth driven by strong corporate performance, advances in technology, and accommodative monetary policies. The current price level also suggests investor optimism and confidence in the U.S. economy’s resilience, despite recent economic challenges.

Why Choose Cannon Trading Company for S&P 500 Futures Trading

Cannon Trading Company stands out as an ideal broker for trading spx index futures due to several key factors:

  • Decades of Experience: With a legacy of excellence in the futures industry, Cannon Trading Company has earned the trust of traders and investors seeking stability and expertise. Their years of experience in handling futures s&p 500 trading give clients the advantage of informed guidance and support.
  • Free Trading Platform: Cannon Trading offers a complimentary trading platform that is highly regarded for its ease of use, sophisticated tools, and reliability. This platform enables traders to make informed decisions when trading s and p 500 futures contract and other futures products, regardless of experience level.
  • Exceptional Customer Service: With a 5 out of 5-star rating on TrustPilot, Cannon Trading is recognized for outstanding customer service. Their team is knowledgeable, responsive, and dedicated to ensuring a seamless trading experience for those trading standard & poor’s 500 futures.
  • Regulatory Reputation: Cannon Trading maintains a stellar reputation with regulatory bodies, adhering to the highest standards of transparency, compliance, and ethical business practices. This trustworthiness is crucial for traders, particularly when engaging in high-stakes markets like futures sp.
  • Advanced Trading Tools and Resources: Cannon Trading Company provides advanced tools, data feeds, and educational resources to enhance trading in s&p 500 futures index contracts. These tools are essential for tracking market trends, performing technical analysis, and making timely trading decisions.

For traders looking to navigate the complexities of this market, Cannon Trading Company stands as a reliable partner, offering decades of experience, a free trading platform, exceptional customer service, and a stellar regulatory reputation. With Cannon Trading, traders can confidently access the s and p 500 futures contract, making it an excellent choice for those seeking a robust and reputable brokerage.

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

DJIA Index Futures

Posted on by Ilan

The Dow Jones Industrial Average (DJIA), commonly known as the Dow, has long served as a benchmark for American stock market performance, capturing the movement of 30 prominent U.S. companies across various sectors. Since the inception of DJIA Index Futures, often referred to as Dow futures or Dow Jones futures, traders have had unique opportunities to speculate on the index’s movements, providing a way to manage risk and potentially earn profits based on the future value of the Dow. As the futures market evolved, DJIA Index Futures established themselves as some of the most versatile tools in a trader’s portfolio.

This article explores why DJIA Index Futures have remained a mainstay in the futures market, the key players involved in the development of the Dow Jones futures contract, and why Cannon Trading Company is an excellent brokerage for trading these futures contracts. With decades of expertise in futures trading and a reputation for exceptional customer service, Cannon Trading Company has earned its place as a premier option for traders looking to invest in DJIA Index Futures and emini Dow futures.

The Versatility of DJIA Index Futures for Futures Traders

DJIA Index Futures have demonstrated remarkable versatility since their introduction to the market. This versatility stems from several key factors:

  • Hedging Opportunities: One of the primary uses of DJIA Index Futures is to hedge against potential losses in the stock market. Institutional investors and portfolio managers use Dow futures to manage risk. For example, if a fund holds a large portfolio of U.S. stocks, a decline in the Dow could lead to losses. By holding short positions in DJIA Index Futures, fund managers can offset these losses, thereby protecting their assets and minimizing risk.
  • Leverage Potential: Futures contracts are highly leveraged instruments, allowing traders to control large amounts of underlying assets with a relatively small amount of capital. This characteristic makes DJIA Index Futures particularly attractive to traders who want to maximize their returns. Since futures leverage can amplify both gains and losses, traders are advised to approach it with caution and employ risk management strategies.
  • Speculative Opportunities: Beyond hedging, DJIA Index Futures offer substantial potential for speculation. By accurately predicting the direction of the Dow Jones Industrial Average, traders can capitalize on price movements. This is particularly valuable for day traders who look to profit from intraday volatility, as well as swing traders who seek to capture longer-term trends.
  • Liquidity and Market Access: DJIA Index Futures are among the most actively traded futures contracts globally, providing deep liquidity for traders. High liquidity enables traders to enter and exit positions quickly, with minimal slippage, enhancing the efficiency of trading strategies. The popularity of emini Dow futures, a miniaturized version of the standard contract, has further increased market accessibility, allowing smaller retail traders to participate in Dow futures trading.
  • Flexibility in Trading Hours: The DJIA Index Futures market operates nearly 24 hours a day, offering traders more flexibility than the traditional stock market. This round-the-clock trading access allows traders to react instantly to geopolitical events, economic data releases, or other market-moving factors. Thus, the ability to trade Dow Jones futures outside standard stock market hours makes them ideal for managing global events’ impact on U.S. markets.

The Inception of DJIA Index Futures

The idea of creating futures contracts based on major stock indices emerged in response to increased demand for risk management tools in the 1980s. The Chicago Board of Trade (CBOT) was instrumental in bringing this concept to life. The late Leo Melamed, a visionary in financial futures and a key figure at the Chicago Mercantile Exchange (CME), recognized the potential of introducing futures on financial indices. Working alongside industry pioneers, Melamed helped to popularize index futures as a way for investors to protect their portfolios from adverse movements in stock prices.

The initial success of the S&P 500 futures contract set the stage for further innovation in the market. The creation of DJIA Index Futures was a natural progression. In 1997, the CBOT launched the DJIA Index Futures contract, providing investors a means to speculate or hedge on the movements of one of the most well-known indices in the world. This product allowed for a diversified approach to futures trading, as it reflected the performance of the Dow Jones Industrial Average, a cornerstone of American financial markets.

While Melamed was a pivotal figure, the development and launch of DJIA Index Futures were collaborative efforts that involved input from regulators, financial institutions, and industry experts. Their goal was to create a futures product that mirrored the Dow Jones index and offered accessible, transparent, and efficient trading for institutions and retail investors alike.

Cannon Trading Company: An Ideal Partner for Trading DJIA Index Futures

With its reputation for excellence and over three decades of experience in futures trading, Cannon Trading Company has become a trusted broker for traders interested in DJIA Index Futures. Known for its high ratings on platforms like TrustPilot, where it maintains a 5-star rating, Cannon Trading Company has earned a solid reputation for customer service and reliability. Here’s why Cannon Trading Company is a standout choice for trading DJIA Index Futures and other futures contracts.

  • Expertise and Experience: Cannon Trading Company has specialized in futures markets for over 30 years, gaining expertise in navigating the complexities of futures trading. The brokerage’s deep industry knowledge is invaluable to traders, especially those trading Dow futures, who may require guidance on market trends, trading strategies, or risk management techniques.
  • Regulatory Compliance and Reputation: Cannon Trading Company adheres to strict regulatory standards, holding an excellent reputation with industry regulatory bodies. Compliance with industry regulations ensures that Cannon Trading Company maintains transparency, accountability, and protection of client funds—critical factors when choosing a brokerage for Dow Jones futures trading.
  • High-Quality Customer Service: Cannon Trading Company’s customer service team receives high praise for responsiveness, knowledge, and reliability. The brokerage’s dedication to client support, combined with its stellar TrustPilot ratings, reflects its commitment to providing a seamless trading experience. Whether traders need technical assistance, market insights, or guidance on emini Dow futures, Cannon’s customer service team is equipped to offer prompt and expert support.
  • Advanced Trading Platforms: Cannon Trading Company offers advanced trading platforms designed to meet the diverse needs of futures traders. From sophisticated charting tools to real-time data feeds, Cannon provides the resources necessary for traders to make informed decisions when trading DJIA Index Futures. Many of these platforms are customizable, allowing traders to tailor their trading interface to their unique preferences.
  • Educational Resources: For traders looking to improve their futures trading skills, Cannon Trading Company offers educational resources that cover a wide range of topics, including Dow Jones futures trading, emini Dow trading strategies, and risk management principles. This focus on education helps both novice and experienced traders make well-informed decisions when trading DJIA Index Futures.

Emini Dow Futures: A Popular Choice for Retail Traders

In addition to standard DJIA Index Futures, the introduction of emini Dow futures has expanded accessibility for retail traders. These miniaturized contracts represent a fraction of the size of traditional Dow futures, allowing traders with smaller capital to participate in Dow Jones futures trading. Emini Dow futures retain many of the features of standard contracts, including liquidity, leverage, and round-the-clock trading. Cannon Trading Company provides access to emini Dow futures, enabling retail traders to benefit from the versatility of Dow Jones futures without the large financial commitment of full-sized contracts.

Why Choose DJIA Index Futures?

As a futures trading instrument, DJIA Index Futures offer several advantages that make them popular among traders worldwide:

  • Diversification and Exposure to U.S. Markets: DJIA Index Futures offer exposure to 30 major U.S. companies, providing a diversified entry point into the U.S. stock market. For international traders, Dow futures present an efficient way to gain exposure to the American economy.
  • Adaptability to Different Trading Strategies: DJIA Index Futures can be used in various trading strategies, including hedging, speculation, and arbitrage. This adaptability makes them suitable for both institutional and retail traders, regardless of their investment objectives.
  • Ease of Trading During Market Downturns: Unlike traditional stock trading, which is challenging in declining markets, futures traders can easily take short positions in DJIA Index Futures, enabling them to profit from downward price movements.
  • Low Transaction Costs: Futures trading, including trading DJIA Index Futures, often has lower transaction costs compared to other types of financial instruments. Lower costs mean traders can focus more on their strategies without worrying as much about high commissions or fees.
  • Transparency and Standardization: DJIA Index Futures contracts are standardized, meaning that contract specifications, including expiration dates and contract sizes, are set by the exchange. This standardization provides transparency and simplifies the trading process for participants.

Since their inception, DJIA Index Futures have proven to be a valuable asset in the futures trading landscape. These contracts offer traders a unique combination of leverage, liquidity, and flexibility, making them suitable for a wide range of strategies, including hedging, speculation, and arbitrage. The versatility of Dow futures, combined with their close association with the U.S. stock market, has made them a go-to choice for traders seeking exposure to the American economy.

Cannon Trading Company’s dedication to providing a top-tier trading experience, combined with its 5-star TrustPilot rating, extensive experience, and regulatory compliance, makes it a highly recommended broker for trading DJIA Index Futures. With access to advanced trading platforms, educational resources, and high-quality customer service, Cannon Trading Company empowers traders to capitalize on opportunities in DJIA Index Futures and emini Dow futures with confidence.

Whether you’re a seasoned futures trader or just starting your journey with Dow Jones futures, the support and expertise offered by Cannon Trading Company make it a trustworthy partner for achieving your trading goals. DJIA Index Futures, with their unique attributes and market appeal, remain an indispensable tool for futures traders worldwide.

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.

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Post-Election Market Surge: Commodities, Equities Rally Ahead of FOMC Rate Decision

Posted on by Ilan
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US Elections, FOMC

By Mark O’Brien, Senior Broker

 

General: 

 

On the heels of the U.S. Election Day results, commodities futures moves – up and down – have taken center stage in the financial world.  Topping the charts – literally – the E-mini S&P 500 and E-mini Dow Jones vaulted to new all-time highs with 130+ and 1400+ point upward moves, respectively.  Even the scrubby Russell 2000 took flight to new highs: up over 100 points, making it the stock index league leader in percentage gain at ±5.25%.

 

Outsize moves occurred across asset classes.  Dec. gold gave up ±$80 per ounce (an $8,000 per contract move), silver lost over $1.60 per ounce (also an $8,000 per contract move) and copper shed over 20 cents per pound – a ±5% / $5,000 per contract move.

 

Marking the biggest one-day move in eight years – going back to the U.K. vote for Brexit in June 2016, the ICE U.S. Dollar Index jumped 1.8%, hammering other currency futures like the Euro, Japanese Yen, Swiss Franc and Mexican Peso, the latter sinking to its weakest level against the dollar this year.

 

In terms of percentage movement, the day’s titleholder will likely be Bitcoin futures with the December contracts – full-sized and micro contracts – increasing over 9% with a ±$7,000 move up to its own all-time high, touching 76,000 for the first time.

 

More General: 

 

While the U.S. Election Day results have taken center stage, the futures markets are still keeping an eye on the rest of the upcoming potential market movers and that includes the conclusion of the most recent FOMC meeting tomorrow.  The Fed is expected to reduce the benchmark policy rate by 25 basis points after it slashed its benchmark rate by 50 basis points, delivering its first rate cut since 2020 after their last meeting in September.  The U.S. federal funds rate currently sits at 4.75%–5%. In September’s policy meeting, Fed policymakers anticipated the fed funds rate falling by additional 50 basis points by the end of this year, then another full percentage point through 2025, and a final half-point reduction in 2026, to end near the 2.75–3.00 per cent range.

 

 

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Daily Levels for November 7th 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.
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Countdown to NFP: High Volatility Brings New Opportunities for Traders

Posted on by Ilan
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C100

 

All Roads lead to NFP

 

Heads up:  Highly anticipated NFP (non farm payrolls) report tomorrow.

 

It’s that time of the month again: Tomorrow the Labor Dept. releases 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 and the report is released at 7:30 A.M., Central Time on the first Friday of the month.

 

To review, the Labor Dept.’s Bureau of Labor Statistics surveys about 141,000 businesses and government agencies, representing approximately 486,000 individual work sites. The report excludes farm workers, private household employees, domestic household workers and non-profit organization employees. The report also includes other detailed industry data including the overall unemployment rate as a percentage of the total labor force that is unemployed but actively seeking work, wages, wage growth and average workday hours.

 

 

Volatility is quite high. This requires one to evaluate their stops? targets? Trading size?

 

With the micros Trading such good volume across the board a trader now has the option of trading one 3, 6 micros for example rather than trading one Single mini SP or mini Nasdaq This is especially true on volatility as as high as we have seen the last few days And may help certain traders adapt to the volatility.

 

If you like feedback, discuss ideas – let us know and we will do our best to assist.

 

Mini SP 240 min chart (4 hours) for your review below with possible support levels. Click image below for larger image.

 

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Daily Levels for November 1, 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
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Visit Our Website

 

Fed Easing Cycle Fuels Market Rally Amid Earnings Season and Economic Uncertainty

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C89

The FED is your friend…..

14 October 2024

By GalTrades.com

The FED is your friend plus the trend is your friend. The Federal Reserve is in an easing cycle which is a positive for the markets. I would like to see that trend continue and there be no change in the Fed’s stance, we don’t want to see economic reports which would hint at inflation creeping back up. Federal Reserve officials debated whether to lower interest rates by a quarter or half of a percentage point last month. Almost all participants agreed that the upside risks to inflation had diminished, and most remarked that the downside risks to employment had increased. Inflation is broadly trending down. Markets had to digest a warmer-than-expected CPI report and a one-year high print in initial claims, rising geopolitical risks, along with higher oil prices and yields, yet stocks have been able to make new highs.

With markets at all-time highs, earnings season can be a boost or a test of lower support zones. All eyes will be on the earnings numbers and what executives have to say about their outlooks. In the week ahead, a number of influential companies are set to report. While the trend in stocks remains bullish, the environment is not without its risks and valuation is full. The forward P/E on the S&P 500 currently stands at roughly 22 versus the 10-year average of 17.7, per FactSet. Elevated valuation is largely driven by expectations for strong earnings growth and easing monetary policy from the Federal Reserve. Therefore, Q3 earnings season, which unofficially kicked off, will likely need to deliver strong results to keep this bull market going. High earnings valuations are fully priced in this growth story, any miss on overall earnings can generate a valuation re-set and a pullback. I would also like to look at Thursday’s Retail Sales report. The last couple of Retail Sales reports have been stronger than expected, so this data point will provide a good read on the state of the U.S. consumer. Friday CNBC/NRF Retail Monitor showed a 0.3% month/month drop in consumer spending, which could suggest a soft Retail Sales report. If so, this could be enough to trigger a profit-taking pullback in stocks.

If NVDA can obtain a new all-time high, or the small cap’s Russell can break out to fresh two-year highs next week, these would likely be near-term bullish catalysts. I would like to see a continuation of the uptrend; However, I am very cautious as any negative news from earnings or the retail’s report can change the momentum until the next catalyst.

S&P fifth straight weekly gain. The market is hitting this level without much help from tech stocks and the Magnificent 7 as the rally broadens out to the financials in response to positive third-quarter numbers from Wells Fargo, JPMorgan, and BlackRock.

Multiples are high and portfolio managers are saying they’re uncomfortable buying at these levels, but there is a lot of money coming in from the sidelines therefore they feel that they have to participate. The index level feels expensive as well, I hear analysts are looking for mid cap size companies.

Banks delivered earnings on Friday and their prices went up, which is a good start for earnings season. Year to date; JPM is up 31%, C 28%, GS 33%, BAC 25%, WFC 24%. That’s higher than the S&P YTD.

Cybersecurity: is making new highs, see ETF – BUG.

Money is coming out of China-related stocks on some disappointment around stimulus. Those dollars are rotating out of China tech names such as Alibaba and moving into the U.S. tech giants.

Bond yields rose this week, primarily driven by the warmer-than-expected inflation data. Two-year Treasury yields increased to 3.955% from 3.923% while 10-year yields tacked on roughly 10 basis points to 4.085% from 3.981%

Earnings & Economic reports this week: Monday, Oct.14: Charles Schwab (SCHW)

Tuesday, Oct. 15: Walgreens Boots Alliance(WBA), UnitedHealth (UNH), Citigroup (C), Bank of America (BAC), Johnson & Johnson (JNJ) and Goldman Sachs (GS) United Airlines (UAL), Interactive Brokers (IBKR) and JB Hunt(JBHT) Interactive Brokers Group Inc. (IBKR), Omnicom Group Inc. (OMC), J.B. Hunt Transport Services (JBHT)

Wednesday, Oct.16: Morgan Stanley (MS), Abbott Labs (ABT), ASML (ASML), US Bancorp (USB), Citizens (CFG) and Prologis (PLD) Alcoa (AA), PPG Industries(PPG), CSX (CSX), Kinder Morgan (KMI), Discover (DFS) and Crown Castle (CCI) Discover Financial Services (DFS), Equifax Inc. (EFX)

Thursday, Oct. 17: Initial Jobless Claims, Retail Sales, Industrial Production & Capacity Utilization

Taiwan Semi (TSM), Travelers (TRV), Elevance (ELV), Huntington Bancshares (HBAN), Blackstone (BX), Truist (TFC) and KeyCorp(KEY) Netflix (NFLX), Intuitive Surgical (ISRG) and Crown Holdings (CCK) Elevance Health Inc. (ELV), Travelers Companies Inc. (TRV),

Friday, Oct. 18: Housing Starts & Building Permits. American Express (AXP), SLB (SLB) and Procter & Gamble (PG) Fifth Third Bancorp (FITB), Regions Financial Corp. (RF), Ally Financial Inc. (ALLY), Comerica Inc. (CMA),

Technical Analysis:

While the SPX and DOW made new all-time highs, the Nasdaq 100 did not. But it continued to trend higher this week and is on pace to close less than 2% below the all-time closing high of 20,675, hit back on July 10th. If Nvidia sets fresh all-time highs this could signal to markets that the AI trade is alive and well and should help the NASDAQ, but other AI plays are trading well as well, such as ORCL, AVGO, PLTR.

Small caps: the Russell is heavily weighted on regional banks and health care. The Russell 2000 was the relative outperformer Friday (+1.64%), assisted by several strong earnings reports out of the financial sector Friday. The index trading range is roughly 2,050-2,260. If the Index can notch a fresh two-year closing high this could send a bullish technical signal to the markets that small caps are finally ready to join the party.

Market breadth:closed out the week strongly, with roughly 75% of SPX components trading above their respective 200-day moving averages. No change in market breadth. On a week-over-week basis, the SPX) breadth ticked down to 75.75% from 76.35%, the CCMP ticked up to 44.66% from 44.09%, and the RTY is flat at 55.87% from 55.76%.

Overseas: rates are in the news ahead of the European Central Bank’s (ECB) decision Thursday. The ECB has cut rates twice in 2024, and analysts expect a third one next week and a fourth in December, Reuters reported.

Bonds: Economy defies gravity, sending bond yields higher. The U.S. economy continues to defy expectations by growing faster than expected. Despite all of the constraints —tightening Federal Reserve monetary policy, weak global growth, wars in the Middle East and Ukraine, and low consumer confidence. GDP growth has been running at about a 3% annualized pace over the past four quarters. The major driver behind the growth is consumer spending. Supported by steady job and income growth, consumers are spending at a pace that is keeping the economy buoyant. In the Treasury bond market, yields, which generally move inversely to prices, have rebounded on these signs of strength.

XLK, XLI, XLF, MAGS, KRE, IJR, MSFT, NVDA, ORCL, IBM, CSCO, MU, DELL, CMG, WFC, BLK, GS, EBAY, VRT, ABNB, PINS, OGN, GOOGL, NXT, MBLY, FROG, AFRM, PANW, CRWD, GXO, HD, CLF, GLW, LEVI, DD.

What stands out to me: ever since the Microsoft Constellation energy deal, I have been looking for plays in the Energy sector particularly in nuclear power plants. Listen to Brad Gerstner podcast on BG2. I welcome any insight and news on the subject from any of you.

futures I am watching this week:

Have an amazing week.

The outlook contained in this article are of opinion only and do not guarantee any profits. Futures trading is risky and suitable for everyone.
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Daily Levels for Oct. 15th 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
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Visit Our Website

 

Weekly Newsletter: Understanding Margins, May Bean Meal Outlook and Automated NQ System

Posted on by Ilan
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C31

Cannon Futures Weekly Letter Issue # 1186

In this issue:
  •  Important Notices – Good Friday Trading Schedule
  • Trading Resource of the Week – Understanding Margins
  • Hot Market of the Week – May Bean Meal
  • Broker’s Trading System of the Week – NQ Intraday System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices –

  • 4 Day Trading week, All Mkts closed Good Friday (MKTS closed from Thursday afternoon until Sunday Afternoon)
  • 6 Data releases: New home sales, Durable Goods, Consumer Confidence, GDP (Q4 final), Jobless Claims, Chicago PMI
  • Grain traders! Big Prospective plantings report Thursday Morning.
  • Night Traders, WATCHOUT for volatility Wednesday and Sunday. Fed Speaker Waller: Econ. Outlook 6PM EDT. Jerome Powell Friday Morning 11:30 EDT @SF Monetary Policy Conference.

 

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Trading Resource of the Week : Understanding Margins by CMEgroup.com

Understanding Margin

Securities margin is the money you borrow as a partial down payment, up to 50% of the purchase price, to buy and own a stock, bond, or ETF. This practice is often referred to as buying on margin.
Futures margin is the amount of money that you must deposit and keep on hand with your broker when you open a futures position. It is not a down payment and you do not own the underlying commodity.
Futures margin generally represents a smaller percentage of the notional value of the contract, typically 3-12% per futures contract as opposed to up to 50% of the face value of securities purchased on margin.

Margins Move with the Markets

When markets are changing rapidly and daily price moves become more volatile, market conditions and the clearinghouses’ margin methodology may result in higher margin requirements to account for increased risk.
When market conditions and the margin methodology warrant, margin requirements may be reduced.

Types of Futures Margin

Initial margin is the amount of funds required by CME Clearing to initiate a futures position. While CME Clearing sets the margin amount, your broker may be required to collect additional funds for deposit.
Maintenance margin is the minimum amount that must be maintained at any given time in your account.
If the funds in your account drop below the maintenance margin level, a few things can happen:
  • You may receive a margin call where you will be required to add more funds immediately to bring the account back up to the initial margin level.
  • If you do not or can not meet the margin call, you may be able to reduce your position in accordance with the amount of funds remaining in your account.
  • Your position may be liquidated automatically once it drops below the maintenance margin level.

Summary

Futures margin is the amount of money that you must deposit and keep on hand with your broker when you open a futures position. It is not a down payment, and you do not own the underlying commodity.
The term margin is used across multiple financial markets. However, there is difference between securities margins and futures margins. Understanding these differences is essential, prior to trading futures contracts.

 

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  • Hot Market of the Week – May Bean Meal
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.
May Bean Meal
May meal satisfied its first upside PriceCount objective and is correcting lower. At this point, IF the chart can resume its rally with new sustained highs, the second count would project a possible run to the 356.5 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
Mini NASDAQ 100
SYSTEM TYPE
Intraday
COST
USD 55 / monthly
Recommended Cannon Trading Starting Capital
$20,000
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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
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Daily Levels for March 25th 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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* 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.