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Hidden Market Trends: Copper Joins Coffee and Gold in Notable Moves

Posted on February 10, 2025February 10, 2025 by Jenny Collins

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Coffee Anyone? Gold? Copper?

COFFEE

While most day traders focus on markets like mini SP, MICRO NQ, bonds and few others, some of the other markets have made some noticeable moves. Coffee, Gold and now Copper.

March copper is activating upside PriceCount objectives off the January lows. The first count projects a possible run to the 4.80 area which is consistent with a challenge of the fall high.

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Daily Levels for February 11th, 2025

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Economic Reports

provided by: ForexFactory.com

All times are Eastern Time ( New York)

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Find us on Trustpilot

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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or wherever you listen to podcasts!

Market Movers This Week: Options on Futures, Grains, Hedging, Powell Testimony, CPI & PPI, WASDE, and Earnings Reports

Posted on February 7, 2025February 7, 2025 by Jenny Collins

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Cannon Futures Weekly Letter

In Today’s Issue #1229

1099’s Are Available
The Week Ahead –
Futures 102 – Hedging With grains, Options on Futures
Hot Market of the Week – April Hogs
Broker’s Trading System of the Week – ES intraday System
Trading Levels for Next Week
Trading Reports for Next Week

1099’s:

1099 forms will be generated for all futures trading accounts held by US clients that placed any trades during the 2024 calendar year. Traders should expect to receive their 1099 forms via mail, email or through their portal in early February.

· 1099 forms will be provided directly from the FCM to the client.

· To login and retrieve your 1099 for your Cannon account via StoneX click here

· To login and retrieve your 1099 for your Cannon account via Ironbeam click here

· To login and retrieve your 1099 for your Cannon account via Dorman click here

For any other FCM’s please contact your broker directly.

Important Notices: The Week Ahead

By John Thorpe, Senior Broker

Humphrey Hawkins Testimony week, Fed Chair Powell gives testimony to the Senate Banking Committee beginning @ 9:00 am CST Tuesday the 11th, Wednesday he walks over to the House Financial Committee and answers questions for the congressional body. CPI,PPI! WASDE week! + 5Fed Speakers, 1000’s of midcaps reporting past earnings and future guidance.

Economic releases are relatively light this week with one exception: Consumer Price Index (CPI) pre-market Friday. The Fed Speakers will be at the podium for the foreseeable future as we don’t have another Fed rate decision until late March.

Earnings Next Week:

Mon. McDonalds
Tue. Coca-Cola, Softbank
Wed. Cisco
Thu. Applied materials
Fri. Quiet

FED SPEECHES:

Mon Quiet
Tues. Hammock 7:50 CST, Chair Powell Testimony 9amCST, Bowman and Williams 2:30pmCST
Wed. Chair Powell Testimony 9am CST, Bostic 11:00 am CST, Waller 4:05PM,
Thu. Quiet
Fri. Quiet

Economic Data week:

Mon. Consumer inflation expectations
Tue. WASDE Ag Numbers 9amCST, NIFB Optimism index
Wed. CPI
Thur. Initial Jobless Claims, PPI
Fri. Retail Sales, Capacity Utilization, Business Inventories

Futures 102: Hedging Grains with Options on Futures

Course Overview

Gain an understanding of how buyers and sellers of grains and oilseeds utilize futures and options to hedge their position to manage price risk. This course will enhance the hedger’s understanding of the different strategies available as well as how the basis affects prices.

Start Now

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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 and options on futures needs.

Free Trial Available

December 25 Corn

April Hogs satisfied a second upside PriceCount objective before turning sideways with a range bound trade. At this point, IF the chart can resume its rally with new sustained highs, the third count would project a potential run to the 100.96 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.

Brokers 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.

ES NZL

PRODUCT

Mini SP500

SYSTEM TYPE

Day Trading

Recommended Cannon Trading Starting Capital

$36,000

COST

USD 199 / monthly

Get Started

Learn More

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Would you like to get weekly updates on real-time, results of systems mentioned above?

Yes

Trading Levels for Next Week

Daily Levels for February 10, 2025

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Would you like to receive daily support & resistance levels?

Yes

Trading Reports for Next Week

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

www.mrci.com

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Find us on Trustpilot

Call Now

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!

Market Watch: Record Highs in Gold & Coffee, Oil Retreats Amid Trade Concerns

Posted on February 5, 2025February 5, 2025 by Jenny Collins

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New all-time highs in Gold!

Futures Markets Highlights by Mark O’Brien, Senior Broker

General:

The big one! 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 and the report is released at 7:30 A.M., Central Time on the first Friday of the month.

Softs

New all-time highs in coffee! The relentless coffee price rally continued today as the March futures contract on the ICE exchange hit a new intra-day record above $4.00 per pound on extremely tight supplies and fears over the outlook for the coming crop. High: $401.10, settle: $397.75

The ICE coffee futures contract is considered the benchmark to price deals around the world and has moved up more than 15% this year.

Energy:

Crude oil futures were in retreat on broader demand concerns, tit-for-tat import taxes between the U.S. and China and the prospect of an extended trade war with China, Mexico, Canada and more broadly. Prices already were on the defensive after the EIA revealed U.S. commercial crude oil inventories soared by 8.7 million barrels from the previous week.

Closing at $71.03 per barrel today, the March contract is down over $7.00 per barrel ±10% in two weeks

Not “plugged in” to crude oil? There are three different futures contracts to trade West Texas Intermediate crude oil Traded on the CME Group’s NYMEX, the WTI crude futures contract is the largest energy futures contract in the world by volume.

Metals:

New all-time highs in gold! April gold futures – the most-active futures contract – hit a new all-time high – breaching $2,900 per ounce intraday as the dollar pushed lower. The ongoing sentiment among traders: concerns over the new U.S. administration’s tariff measures. Investors are increasingly turning to gold as a store of value amid fears of potential economic slowdowns, inflationary pressures, and trade disruptions. April gold settled up 2.7% at $2,893.00 per ounce, marking a 2.7% gain for the day and reinforcing gold’s strong upward momentum in the face of ongoing market volatility.

Daily Levels for February 6th, 2025

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Economic Reports

provided by: ForexFactory.com

All times are Eastern Time (New York)

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Find us on Trustpilot

Call Now

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!

Russell 2000 Futures

Posted on January 29, 2025April 20, 2025 by Ilan

The Russell 2000 Futures contract is a cornerstone of the futures trading world, providing traders with a robust tool to speculate on or hedge against movements in small-cap equity markets. Since its inception, the Russell 2000 Futures, often abbreviated as RUT 2000 Futures, has undergone significant evolution, becoming a vital component of modern futures trading. This piece explores its origins, development, and role in the market, while highlighting why trading futures with Cannon Trading Company is an exceptional choice for traders at all experience levels.

The Birth of the Russell 2000 Futures Contract

The Russell 2000 Index, launched in 1984 by the Frank Russell Company, tracks the performance of the smallest 2,000 stocks within the Russell 3000 Index, representing U.S. small-cap companies. The introduction of the Russell 2000 Futures Contract followed shortly after, in response to increasing demand for products enabling investors to trade on the performance of small-cap stocks in a standardized, liquid manner.

The Key Figures Behind the Inception

Several financial pioneers were instrumental in bringing the Russell 2000 Futures to life. William F. Sharpe, a Nobel laureate and consultant to the Frank Russell Company, helped refine the methodology for index construction. His contributions ensured that the Russell indices offered an accurate reflection of market segments.

The Chicago Mercantile Exchange (CME), a leading futures exchange, played a central role in facilitating the trading of these contracts. Key figures at CME, such as Leo Melamed, known as the “father of financial futures,” were advocates for innovation in derivatives markets. Under Melamed’s leadership, the CME expanded its offerings, including equity index futures like the RUT 2000 Futures.

Early Trading Anecdotes and Challenges

When trading began, many small-cap companies featured in the Russell 2000 were relatively unknown. Traders found the RUT 2000 Futures offered an efficient way to manage exposure to this high-risk, high-reward market segment. Anecdotes from early trading sessions illustrate the volatility of small-cap stocks and the corresponding opportunities in the futures market. For instance, a trader who identified a trend in burgeoning tech startups in the early 1990s could leverage RUT 2000 Futures to magnify returns or hedge against broader market risks.

One notable early trade occurred during the dot-com boom. A hedge fund manager, anticipating a bubble in small-cap tech stocks, used Russell 2000 Futures contracts to short the index. When the bubble burst, this strategic use of futures resulted in substantial profits for the fund, solidifying the contract’s reputation as a powerful tool for both speculation and risk management.

Evolution and Modern-Day Use

Over the decades, the Russell 2000 Futures have evolved in terms of accessibility, technology, and utility. Originally traded in open-outcry pits, the advent of electronic trading platforms revolutionized futures trading. CME’s Globex platform, introduced in 1992, allowed traders worldwide to access RUT 2000 Futures, increasing liquidity and efficiency.

Contract Specifications

The modern Russell 2000 Futures contract has standardized terms that make it attractive to a broad range of traders. Key specifications include:

Contract Size: $50 times the Russell 2000 Index value.
Tick Size: 0.10 index points, equivalent to $5 per tick.
Settlement: Cash-settled to the final index value.

These attributes make it suitable for individual traders and institutional investors alike. Additionally, the introduction of E-mini and Micro E-mini RUT Futures has lowered barriers to entry, enabling smaller traders to participate without excessive capital requirements.

Hypothetical Trading Scenario

Consider a trader bullish on small-cap stocks due to favorable economic conditions. With the Russell 2000 Index trading at 1,800 points, the trader buys two RUT 2000 Futures contracts at this level. Each contract’s notional value is $90,000 ($50 × 1,800), requiring a margin deposit of roughly $6,000 per contract.

The index rises to 1,850, yielding a gain of 50 points. For two contracts, the profit is $5,000 ($50 × 50 points × 2 contracts). This example demonstrates how RUT 2000 Futures enable traders to amplify returns with minimal upfront capital, though the risks of leveraged losses must also be acknowledged.

The Role of Futures Brokers

The evolution of futures trading platforms and brokerage services has been crucial in shaping the market. Futures brokers serve as the backbone of trading, offering access to platforms, market data, and educational resources.

Cannon Trading Company: A Premier Futures Broker

Cannon Trading Company has established itself as a top-tier futures broker, earning 5-star ratings on TrustPilot and accolades for its decades of experience. Here’s why Cannon Trading is a standout choice for trading futures contracts:

Diverse Platform Selection: Cannon Trading provides access to industry-leading platforms such as NinjaTrader, TradeStation, and CQG. Each platform is tailored to different trading styles, ensuring both novice and seasoned traders have the tools they need.
Educational Resources: Cannon Trading offers extensive resources for futures traders, including market analysis, webinars, and trading guides. This focus on education empowers clients to make informed decisions.
Regulatory Excellence: With a stellar reputation among regulatory bodies like the NFA and CFTC, Cannon Trading emphasizes transparency and compliance, giving traders peace of mind.
Personalized Service: Unlike generic online brokers, Cannon Trading provides personalized service, pairing clients with experienced brokers who understand their unique needs.

Real-Life Case Studies

Case Study 1: Hedging Risk with RUT 2000 Futures

In 2020, a small-cap mutual fund manager faced uncertainty amid the COVID-19 pandemic. Concerned about potential market downturns, they used RUT 2000 Futures to hedge their portfolio. By selling futures contracts, the manager mitigated losses as the index fell, demonstrating the contracts’ value for risk management.

Case Study 2: Leveraged Gains

An individual futures trader, recognizing strong earnings growth in small-cap companies in 2021, decided to go long on E-mini RUT Futures. With precise entry and exit strategies, the trader achieved a 25% return on initial margin, highlighting the profit potential of leveraged futures trading.

The Future of Russell 2000 Futures Trading

As technology advances, the Russell 2000 Futures market will continue to grow. Innovations like AI-driven trading algorithms and blockchain-based clearing systems promise to enhance efficiency and transparency. Moreover, the increasing globalization of markets means more traders from diverse backgrounds will access RUT 2000 Futures, further boosting liquidity.

The Russell 2000 Futures contract has evolved from a niche product into a vital instrument for traders worldwide. With its origins rooted in the vision of financial pioneers, the RUT 2000 Futures now serve as a powerful tool for hedging and speculation in the small-cap equity market. For traders seeking an exceptional futures broker, Cannon Trading Company stands out for its unparalleled platform selection, regulatory excellence, and client-focused approach. Whether you are a novice futures trader or an experienced market participant, Cannon Trading provides the resources and support necessary to succeed in the dynamic world of futures trading.

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.

Fed Holds Rates Steady Amid Persistent Inflation; Markets React with Volatility

Posted on January 29, 2025 by Jenny Collins

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What you need to know before trading futures on Jan. 30th:

By Mark O’Brien, Senior Broker

General:

Going into the fed’s meeting this month, financial markets widely expected the central bank to hold interest rates steady, breaking a streak of three consecutive rate cuts. Pointing to stubborn inflation readings and an economy hardly in need of rescuing, the Fed. did just that: nothing. “We feel like we don’t need to be in a hurry to make any adjustments,” Fed Chairman Jerome Powell said. The Fed’s policymaking committee voted unanimously to maintain their target for the federal-funds rate today, at a range of 4.25%-4.5%. The FOMC announcement noted unemployment “has stabilized at a low level” and “inflation remains somewhat elevated,” which noticeably removed a reference from its prior rate decision of inflation making “progress” toward the 2% target. Inflation has remained above the Fed’s 2% target for 45 consecutive months and counting.

Stock Indexes:

Stock index futures started oscillating immediately after the fed announcement at 1:00 Central Time, and through Fed chairman Jerome Powell’s 1:30 press conference with the March E-mini S&P 500 trading to daily contract lows just shy of 6040.00 between those events then swinging up over 40 points above 6080 within 30 minutes.

Energy:

Oil prices fell today, with the U.S. benchmark West Texas Intermediate touching a multi-week low after today’s weekly API report showed crude stockpiles rose more than expected last week.

The March crude oil futures contract fell to $72.33 a barrel intraday today, a ±$7.00 per barrel / $7,000 per contract move over just nine trading sessions and the lowest level since Jan. 2.

Grains:

Tightening global corn supplies have had investors’ attention for months and March corn futures have steadily made a bullish move. Today’s intraday high of $4.97½ per bushel marks a ±80-cent gain since its $4.14 intraday low back on Oct. 17.

Daily Levels for January 30th, 2024

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Economic Reports

provided by: ForexFactory.com

All times are Eastern Time ( New York)

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.

Weekly Newsletter: Week Ahead+ World Cup Championship, Trading Levels for Jan 13th

Posted on January 10, 2025 by Ilan

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Subscribe to our YouTube Channel

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

In this issue:

StoneX/E-Futures Platform Updates
Important Notices – Earnings, CPI, PPI, Housing
Futures 102 – World Cup Trading Championship
Hot Market of the Week – March 10 Year Notes
Broker’s Trading System of the Week – ES 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

766 corporate earnings reports as the season swings into action with the largest U.S. Banks! A number of meaningful Economic data releases including CPI, PPI and There will be a series of FED Speakers throughout the week.

Earnings Next Week:

Mon. Quiet (59rpts mid and smallcaps)
Tue. Quiet (25rpts Mid and smallcaps)
Wed. (162 rpts) Pre-Open JP Morgan Chase, Wells Fargo, Goldman Sachs, Black Rock, Citigroup, Bank of NY, Oracle after the close
Thu. ( 186 rpts) Pre-open Tiawan Semiconductor, United HealthCare, BofA, Morgan Stanley, US Bank.
Fri. Quiet (108 mid and small caps rpts)

FED SPEECHES:

Mon. Quiet
Tues. Schmid 9 am CST, Williams 2:05 CST
Wed. Barkin 8:20 CST, Kashkari 9 am CST, Williams 10 am CST, Goolsbee 11 am CST
Thu. Quiet
Fri. Quiet

Economic Data week:

Mon. Consumer Inflation Expectations,
Tues. RedBook, PPI
Wed. CPI, NY Empire State Manufacturing Index
Thur. Jobless claims, Philly Fed, Retail Sales, Business Inventories, NAHB Housing Market Index
Fri. Building Permits, Housing Starts, Industrial Production

Futures 102: World Cup Trading Championship

Minimum Starting Balance

The minimum starting account balance is $10,000 for Futures and $5,000 for Forex.

Win a Bull & Bear Trophy

1st place finishers win a coveted pewter bull and bear trophy. 2nd and 3rd place finishers win beautiful crystal bull and bear trophies.

Global media exposure.

Prove your abilities on the world’s stage and build credibility.

Launch Your Trading Career

Top finishers may be invited to have their trading featured on WorldCupAdvisor.com. Subscribers may pay to follow their trades automatically.

ENTER NOW

Hot Market of the Week

FREE TRIAL AVAILABLE

March 10 Year Treasury Notes

The March 10 year treasury notes have resumed their break into a new low. At this point the chart is taking aim at its third downside PriceCount objective to the 106^24 area.

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

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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.

ES NZL

PRODUCT

Mini SP500

SYSTEM TYPE

Day Trading

Recommended Cannon Trading Starting Capital

$36,000

COST

USD 199 / monthly

Get Started

Learn More

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 get weekly updates on real-time, results of systems mentioned above?

Yes

Daily Levels for January 13th, 2025

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