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Category: Financial Futures

If one has to define financial futures, it is pretty simple. A financial future is basically a futures contract agreed upon on a short term or long term rate of interest. There are a number of representative financial futures contracts. Financial futures trading also requires you to understand some typical financial terms and terminology. Most popular are the treasury bonds futures in this category. Under this category archive, you will be able to learn and understand the different aspects of financial futures, through the write-ups we have listed for the readers.

Cannon Trading can provide assistance. We can provide you with professional advice and help. Whether you approach us for consultation on day trading, crude oil trading or for advice on financial futures, we can give you the answers and solutions that qualify us as one of the best. Another resource that we help you out with is information and knowledge based category archives. This particular category of blogs features extensive and exclusive information on financial futures. Read about it and equip yourself!

Hedging with Futures and Speculating with Futures in Futures Trading

Posted on by Ilan

Futures trading is a powerful financial mechanism that plays a crucial role in global markets. It provides market participants with tools to manage risks and seize opportunities in volatile market conditions. The two primary strategies employed by market participants in futures trading are hedging and speculating. Understanding these strategies and their application in the context of futures trading is essential for anyone involved in or considering involvement in the financial markets.

Futures in Futures Trading

What is Futures Trading?

Before delving into the specifics of hedging and speculating, it’s important to understand what futures trading entails. A futures contract is a standardized legal agreement to buy or sell a specific commodity or financial instrument at a predetermined price at a specified time in the future. These contracts are traded on futures exchanges and cover a wide range of underlying assets, including commodities (like oil, gold, and wheat), financial instruments (such as interest rates and currencies), and stock indices.

Futures trading involves both the buyer and the seller agreeing to the terms of the contract. However, unlike traditional buying and selling of assets, futures trading often does not result in the physical delivery of the underlying asset. Instead, many traders close their positions before the contract’s expiration, settling the difference between the purchase and sale prices.

Hedging with Futures

Definition and Purpose of Hedging

Hedging with futures is a risk management strategy used by individuals and businesses to protect themselves against adverse price movements in the market. The primary goal of hedging is not to make a profit but to reduce or eliminate the risk of price fluctuations that could negatively impact a company’s financial performance or an investor’s portfolio.

How Hedging Works

Hedging with futures involves taking a position in the futures market that is opposite to one’s current position in the cash market. For example, a wheat farmer expecting to harvest 10,000 bushels of wheat in six months may be concerned about the possibility of falling wheat prices. To hedge this risk, the farmer can sell wheat futures contracts now. If the price of wheat declines, the loss in the cash market (selling the harvested wheat) is offset by gains in the futures market (selling futures contracts at a higher price than the eventual market price).

Types of Hedging Strategies
  1. Short Hedge: This strategy is used by producers or sellers of a commodity who want to protect against the risk of falling prices. They sell futures contracts to lock in a future selling price for their commodity. If prices drop, the losses from selling the actual commodity are offset by the gains in the futures market.
  2. Long Hedge: This is used by buyers who want to protect against rising prices. For instance, a company that needs to purchase raw materials in the future might buy futures contracts now to lock in the current price. If the market price rises, the company benefits from the futures contracts, offsetting the increased cost of purchasing the raw materials.
Advantages of Hedging with Futures
  • Price Protection: Hedging allows businesses to lock in prices, providing certainty and stability in their financial planning.
  • Cost Control: By fixing future costs, companies can better manage their budgets and financial forecasts.
  • Risk Management: Hedging reduces the risk of unfavorable price movements, protecting profit margins.
Disadvantages of Hedging with Futures
  • Opportunity Cost: If the market moves in favor of the hedger, they miss out on potential profits because their position in the futures market offsets gains.
  • Complexity: Hedging requires a good understanding of the market and the ability to accurately predict future price movements. Improper hedging can lead to increased losses.
  • Margin Requirements: Hedging with futures involves margin calls, which require maintaining a certain amount of capital in the trading account. This can tie up funds that could be used elsewhere.
Real-World Examples of Hedging with Futures
  • Agricultural Hedging: A corn farmer concerned about falling corn prices might sell corn futures contracts to hedge against this risk. If corn prices drop, the loss from selling the corn at a lower price is offset by the profit from the futures contracts.
  • Currency Hedging: A U.S. company that expects to receive payment in euros in six months might hedge against the risk of the euro depreciating against the dollar by selling euro futures contracts. If the euro’s value drops, the loss from the currency exchange is offset by the gain in the futures market.

Speculating with Futures

Definition and Purpose of Speculating

Speculating with futures involves buying or selling futures contracts with the goal of making a profit from changes in the price of the underlying asset. Unlike hedging, where the primary objective is risk management, speculating is about taking on risk in the hopes of earning a return. Speculators have no intention of taking delivery of the underlying asset; they are only interested in profiting from price movements.

How Speculating Works

Speculators analyze the market and make predictions about the direction of future price movements. Based on their analysis, they take positions in the futures market:

  • Going Long: A speculator buys futures contracts if they believe the price of the underlying asset will increase. If the price does rise, the speculator can sell the contract at a higher price and profit from the difference.
  • Going Short: Conversely, if a speculator believes the price will decline, they sell futures contracts. If the price falls, they can buy back the contract at a lower price and profit from the difference.
Types of Speculators
  1. Day Traders: These are speculators who hold positions for a very short period, often just minutes or hours. They aim to profit from small price movements and typically close all positions by the end of the trading day.
  2. Swing Traders: These speculators hold positions for several days or weeks, aiming to profit from short-term price trends.
  3. Position Traders: Position traders take longer-term positions, holding contracts for months, based on broader economic or market trends.
Advantages of Speculating with Futures
  • High Leverage: Futures trading offers high leverage, allowing speculators to control large positions with a relatively small amount of capital.
  • Liquidity: Futures markets are highly liquid, meaning that speculators can enter and exit positions easily without significantly impacting the market price.
  • Potential for High Returns: Due to leverage and market volatility, speculators can potentially earn significant returns in a short period.
Disadvantages of Speculating with Futures
  • High Risk: The same leverage that allows for high returns also amplifies losses. Speculators can lose more than their initial investment.
  • Market Volatility: Futures markets can be highly volatile, and prices can change rapidly. This volatility can lead to significant losses if the market moves against a speculator’s position.
  • Complexity and Expertise: Successful speculation requires a deep understanding of the market, technical analysis, and economic factors. It is not suitable for inexperienced traders.
Real-World Examples of Speculating with Futures
  • Commodity Speculation: A speculator might buy crude oil futures if they believe a geopolitical event will cause oil prices to rise. If their prediction is correct, they can sell the contracts at a higher price and make a profit.
  • Stock Index Futures: A speculator who expects the stock market to decline might sell S&P 500 futures contracts. If the market falls, they can buy back the contracts at a lower price and profit from the difference.

Hedging vs. Speculating

Objectives

The primary objective of hedging is risk management. Hedgers use futures contracts to protect themselves from unfavorable price movements in the cash market. In contrast, the main objective of speculating is to profit from price changes. Speculators are willing to take on risk in hopes of earning a return.

Market Participants

Hedgers are typically producers, manufacturers, exporters, or importers who have a direct interest in the underlying asset. For example, a farmer, oil company, or multinational corporation might hedge their exposure to price changes in commodities or currencies. Speculators, on the other hand, include individual traders, hedge funds, and proprietary trading firms that have no interest in the underlying asset but are looking to profit from price fluctuations.

Risk Tolerance

Hedgers are generally risk-averse. Their goal is to reduce risk, not take it on. They use futures contracts to lock in prices and ensure stability in their financial performance. Speculators, however, are risk-takers. They seek out risk because they believe they can profit from it. The potential for high returns comes with the acceptance of high risk.

Time Horizon

Hedging is typically done with a longer-term perspective, as the goal is to protect against price changes that could impact the business or investment over time. For example, a company might hedge its currency exposure for the next six months. Speculators, however, often operate with shorter time horizons, ranging from a few minutes to several months, depending on their trading strategy.

Outcome Expectations

For hedgers, the best outcome is that the hedge effectively reduces or eliminates the risk of adverse price movements. They are not seeking to profit from the hedge itself, but rather to maintain financial stability. Speculators, on the other hand, expect to make a profit from their trades. Their success is measured by the accuracy of their market predictions and their ability to execute trades at the right time.

Hedging with futures and speculating with futures are two fundamental strategies in futures trading, each serving distinct purposes. Hedging is a vital tool for managing risk and ensuring financial stability, particularly for businesses and investors who have direct exposure to the underlying asset. It allows them to protect against adverse price movements and secure predictable financial outcomes. On the other hand, speculating with futures is about taking on risk in pursuit of profit. Speculators play a crucial role in the market by providing liquidity and helping to discover prices, but their activities are driven by the potential for high returns, which also comes with the possibility of significant losses.

Both strategies require a deep understanding of the futures markets, as well as the underlying assets, and they involve careful analysis and decision-making. For those involved in futures trading, whether they are hedging or speculating, the key to success lies in their ability to accurately assess market conditions, manage risk, and execute trades effectively. Futures trading, with its potential for both risk management and profit generation, continues to be an essential component of the global financial system, offering opportunities for a wide range of market participants.

For more information, click here.
Ready to start trading futures? Call us at 1(800)454-9572 (US) or (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 E-Futures.com 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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Weekly Newsletter: FOMC next Week, Bonds Outlook & Trading Levels for April 29th

Posted on by Ilan
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Subscribe to our YouTube Channel

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Cannon Futures Weekly Letter Issue # 1191

In this issue:
  • Important Notices – FOMC & NFP Next Week
  • Futures 101 – Understanding Volume
  • Hot Market of the Week – June Bonds
  • Broker’s Trading System of the Week – ES intraday System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices – Next Week Highlights:

    • FOMC Rate Announcement Wed.
    • Heavy Earnings, AMZN and AMD Tues, AAPL Thur. all after the close
    • Heavy Data, Chicago PMI, Consumer Confidence, Construction Spending, ISM Manufacturing PMI, Jobless Claims.
    • NON FARM Payrolls to cap off the week on Fri. , preopening

 

 

Futures 101 : Understanding VOLUME

Volume is reported for all futures contracts. It is calculated by counting the number of contracts that have been bought and sold over a given time. You can track volume using different time intervals like daily or intraday.
When a futures contract is traded, whether bought or sold, it counts towards volume for that contract.
For example, a trader closes a short position in the E-mini S&P 500 (ES) futures contract by buying one contract in the ES, so volume will increase by 1.
Traders often use and interpret the rise or decline of volume in a futures contract to help make trading decisions.
Volume can give important information to traders such as:
  • Indicate the price levels at which traders are more or less interested in trading a futures contract
  • During the roll, indicate to traders when to switch to trading the front month futures contract as volume decreases in the expiring contract
  • Identify the times of day when a futures contract is most liquid
Price Levels
When volume changes as price of a futures contract moves towards certain levels, this can indicate to a trader that a change in direction may occur. Some traders may use this information to indicate whether to buy or sell at those key levels.
­Contract Roll
During the futures rollover, traders pay attention to the contract that is taking the higher levels of volume. Traders use this information to determine when to start trading the next month contract. As volume decreases in the expiring contract, trading will shift to the next available month contract.
For example, say the June ES (E-mini S&P 500) futures contract is about to expire and September will become the new front month. On the Thursday of rollover week, watch how the June contract starts to lose volume and the September contract begins to pick up volume. When the September contract has more volume than the June contract, it is time to switch to the September contract.
Active Periods
Traders typically prefer higher volume times to trade, as it means that more traders are actively interested in buying and selling. When volume is high, the bid-ask spread is typically smaller, orders are filled faster and less gaps may exist between ticks.
For example, markets can have lower volume between the hours of 12:00 p.m.-2:00 p.m. ET, before major economic releases; conversely, market often see higher volume around the open and close of the trading day.
Traders also can look at average daily volume over a longer time period, such as a few weeks or months, to see if the markets currently are in a lower or higher volume than is typical.
Summary
What volume can’t show however, is whether traders are buying or selling, or opening or closing a position.
For example, if the ES contract is trading at 2375 and suddenly pushes down to 2360 while volume increases, the volume that comes into the market could be from traders opening new long positions at key levels of support. That could indicate a bullish sentiment. Volume also can be generated by liquidation of exiting long positions or opening of new short positions, a possible bearish indication.
A spike in volume at 2360 doesn’t necessarily mean that buyers are coming into the market and that the price will bounce.
Volume data is readily available for each futures contract and for the market as a whole. Although traders may use volume in different ways to interpret how to trade, volume can be an important factor to help inform your trading decisions.

 

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  • Hot Market of the Week – June Bonds
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.
June 30 Year T-Bonds
The June 30 Year T-Bond break found temporary stability at its second downside PriceCount objective recently. Now, the chart has resumed its slide into new lows which, if sustained, would project a run to the third count in the 109^20 area.
PriceCounts – Not about where we’ve been , but where we might be going next!
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The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved. It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com
Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.

  • Broker’s Trading System of the Week

With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.
PRODUCT
SYSTEM TYPE
Intraday
COST
USD 110 / monthly
Recommended Cannon Trading Starting Capital
$10,000
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The performance shown above is hypothetical in that the chart represents returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real‐time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on back adjusted data. Please read full disclaimer HERE.
Would you like to receive daily support & resistance levels?
Yes
S
No
S

 

Daily Levels for April 29th 2024

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Trading Reports for Next Week

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

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

Explore trading methods. Register Here

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

CPI, FOMC Minutes + Futures Trading Levels for 04.10.2024

Posted on by Ilan
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CPI and FOMC minutes Tomorrow

CPI Tomorrow! The CPI will be critical to the inflation outlook for Fed policymakers.

 

Previous CPI reports have created velocity logic events in the stock indices at the CME.

 

Please read more details about velocity logic and price banding HERE.

 

The above reports will Bookend the FOMC minutes release @1pm CT on tomorrow.

My previous notes suggest to do the following if you are an index day trader:

Get out before the 730 AM CPI.

Wait for the smoke to clear.

Resume trading.

Look at market volume and behavior after 9:30 AM Central time to decide if and how to resume trading.

I usually stop trading and resume after 1 PM once FOMC minutes are out.

AGAIN…This is just my PERSONAL preferences…

 

 

 

 

 

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Daily Levels for April 10th, 2024

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

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

Explore trading methods. Register Here

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

Micro Treasury Yield Futures + Futures Trading Levels for 02.09.24

Posted on by Ilan
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C12

 

4 MIN READ

US TREASURY

Spreading Treasury Yield Futures

By CME Group

05 FEB 2024

Although the Federal Reserve (the Fed) has been on pause when it comes to interest rate hikes since the summer of 2023, economic uncertainty still looms. The Fed is reducing the size of its balance sheet by decreasing holdings of Treasury and mortgage backed securities, and it is ambiguous on when the first rate cuts will take place.

Given the uncertain economic environment, it is as important as ever to manage Treasury yield curve risk.

Treasury yields

The United States Treasury market stands as one of the largest and most crucial financial markets globally, playing a pivotal role in the functioning of the global economy. The magnitude of the U.S. Treasury market reflects its significance as a safe haven for investors, central banks and institutions seeking low-risk assets. Treasury maturities across the yield serve as an important reference point for risk management across various markets.

➜ Finish Article

 

 

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Daily Levels for February 9th, 2024

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

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

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

Explore trading methods. Register Here

3b644da2 2bee 4d39 8d98 5208a20bec39

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

The Week Ahead: Federal Reserve Board Black Out Period + Futures Trading Levels for 12.05.23

Posted on by Ilan
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The Week Ahead: Federal Reserve Board Black Out Period Dec 2-14

By John Thorpe, Senior Broker

 

March (H24) Interest rate products, U.S. T-Bond Futures ZB, Ultra T-Bond Futures UB, 10-Year T-Note Futures ZN, 5-Year T-Note Futures ZF, 2-Year T-Note Futures ZT. are now front month

Earnings watch, Tuesday 12-5 Toll Brothers Builders NYSE (TOL), Thursday 12-7 chipmaker Broadcom NYSE (AVCO)

Reports a variety, Main Focus Friday, NFP 7:30am, WASDE 10am and 1st day of Hanukkah all times CST

The Role of Expectations for the NFP report

Expectations are typically baked into future prices. Rarely can a more direct correlation to this reality be found than in our futures markets as they are affected by expectations of NFP .

There are a number of indicators the Federal Reserve Board and investors watch prior to the NFP release, these all become reflected in asset prices and if there is a surprise NFP release, the market can adjust violently to the new perception of the health of the economy and therefore the affect on future Interest rate decisions. For instance, The Labor Department’s JOLTS report tracks monthly change in job openings and offers rates on hiring and quits. The reporting period lags other employment data including the employment situation report. Then there is the ADP report The national employment report from Automated Data Processing Inc. and is computed from ADP payroll data and offers advance indications on the U.S. private workforce. Are to name but two. Contact your broker for more detail.

This Friday @ 7:30 a.m. CST the BLS will release it’s monthly employment update called the NFP which stands for Non-Farm Payroll and this specific economic event is always released on the first Friday of every month. Rarely, the NFP figure may be postponed to the second Friday if the first Friday is the first of the month or a public holiday. This Friday is one of those rare exceptions. The NFP figure is a report which shows how many individuals are employed within the US but excludes specific industries such as agriculture.

Why is it important to the Dollar?

DXH24, 6EH24 (eurocurrency)

When individuals wish to invest in stocks, bonds and a currency, they prefer currencies backed by a strong economy with a robust employment sector. In addition, if employment is high, the Federal Reserve is also likely to increase interest rates or keep them high; again, this can support demand for the Dollar.

A higher-than-expected NFP figure is positive for the Dollar.

A lower-than-expected NFP figure is negative for the Dollar. The inverse would be true for the Euro currency

Why is it important to the US Stocks?

ESH24,NQH24,RTYH24,YMH24 + micros

The NFP figure can affect the US Stock Market in 2 ways. A higher-than-expected NFP figure can indicate a resilient economy and higher consumer demand. As a result, companies perform better; earnings are higher, as is investor confidence. This can cause the stock market to rise. But be wary as it can also trigger current belief by the FED that interest rate increases will be necessary to cool the employment trend.

On the other hand, if the Federal Reserve is increasing interest rates, positive employment figures may support a further increase. Interest rates can significantly pressure the stock market. A lower than expected figure during the current environment may rally stocks as the FED would NOT need to raise rates further yet as they wait and see if their tight money policy is being effective

Why is it important to the Gold?

GGCG24, GCG24 + micros

The price of Gold is largely inversely correlated with the cost of the Dollar. As a result, the NFP can influence the price of gold. Whether the horse leads the cart or the cart leads the horse is for you to determine as you lock those contracts onto your trading screens.

Why is it important to Interest Rates?

UBH24,ZBH24,ZTH24,FFF24 + minis

If the NFP is stronger than expectations Bond prices will go lower as the concern of “higher for Longer” persists

If the NFP is weaker than expected Bond Prices will go higher as anticipation for rate cuts sooner wash over the interest rate markets

Plan your trade and trade your plan.

 

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

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Futures Trading Levels

12-05-2023

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

 

 

Improve Your Trading Skills

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


Economic Reports,

Source: 

Forexfactory.com

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

Weekly Newsletter: Text Alerts, Silver Daily Chart + Futures Trading Levels for Dec. 4th

Posted on by Ilan

Cannon Futures Weekly Newsletter Issue # 1173

 

Join our private Facebook group for additional insight into trading and the futures markets!

In this issue:

  •  Important Notices – Trade March bonds, Feb. gold
  • Trading Resource of the Week – Trade Alerts
  • Hot Market of the Week – March Silver
  • Broker’s Trading System of the Week – CL (Crude) Day Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

  • Important Notices

    • Federal Reserve Board Black Out Period Dec 2-14
    • March (H24) Interest rate products, ZB, UB,ZN,ZF,ZT. are now front month
    • Front month for gold is February
    • March (H24) front month for silver
    • Earnings watch, Tuesday 12-5 Toll Brothers Builders NYSE (TOL), Thursday 12-7 chipmaker Broadcom NYSE (AVCO)
    • Reports a variety, Main Focus Friday, NFP 6:30am, WASDE 10am and 1st day of Hanukkah all times CST

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  • click above for a LIVE demo, streaming prices

 

  • Trading Resource of the Week 

Real Time Text Alerts

Directly to your Phone!
  • You will receive a text and email each time there is an entry or exit in a simple language along with the current price for that specific market.
  • A licensed series 3 broker at your fingertips
  • Text alerts available to US and Canada residents. Int’l clients will receive the alerts via email. No obligation
  • Alerts available for: Stock Indices, Grains, Metals, Rates, Currencies and Meats
  • Open an account* and receive the Trade Alerts free for 3 months ($357 value)

.

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.
March Silver stabilized its break last month and activated upside PriceCount objectives on the correction higher. Now, the chart is taking aim at its first upside target in the 26.41 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.
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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.
PRODUCT
SYSTEM TYPE
Intraday
Recommended Cannon Trading Starting Capital
$15,000.00
COST
USD 115 / monthly
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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.
Sign Up for a Free Personalized Consultation with a Broker from Cannon Trading Company
Questions about the markets? trading? platforms? technology? trading systems? Get answers with a complimentary, confidential consultation with a Cannon Trading Company series 3 broker.
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  • Trading Levels for Next Week

Daily Levels for December 4th, 2023
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
Trading Reports for Next Week
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First Notice (FN), Last trading (LT) Days for the Week: www.mrci.com 
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This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein 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 judgment in trading.

 

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

Black-Scholes Webinar + Futures Trading Levels for Nov. 15th

Posted on by Ilan
Get Real Time updates and more on our private FB group!

Advanced Options Workshop!

We look forward to having you join the CME tomorrow for Black-Scholes workshop.

View last week’s session here to see what kind of discussions you can expect.

Please read the below information for the session on November 15 and add the event to your calendar below.

Joining Instructions:

To join the online event, please use the following link:

Black-Scholes Webinar

Webinar number: 248 142 79084

Webinar password: d2GPM8kZc42 (32476859 from phones and video systems)

Helpful Tips:

  • Please plan to join 10 minutes in advance to ensure no technical difficulties.
  • For optimal audio/video quality, disconnect from your company’s VPN.
  • We recommend using Google Chrome as your browser.
  • Please test audio prior to the start of the online event. Ensure that you are using headphones for optimal sound quality and that audio is not muted.
  • If your internet audio and/or video experience does not work, use the dial-in numbers to join by phone

Recording Disclaimer:

This online event will be recorded for the purposes of archived viewing for attendees unable to attend the live session. By participating in this online event, you are considered to have consented to the recording. All video and audio communications must remain professional and relevant to the topic and purpose of the online event. Personal views or opinions expressed during the online event are those of the participants and may not necessarily reflect the official policy or position of CME Group.

Plan your trade and trade your plan.

 

 

 

 

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

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Futures Trading Levels

11-15-2023

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

Improve Your Trading Skills

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


Economic Reports, Source: 

Forexfactory.com

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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.

New Micro Nat Gas, Crude Oil Chart + Futures Trading Levels for Nov. 9th 2023

Posted on by Ilan
Get Real Time updates and more on our private FB group!

Updates and Bullet Points:

By Mark O’Brien, Senior Broker

 

General: 

We have a new futures contract.  It started trading on Monday.  This is the Micro Henry Hub Natural Gas futures contract and corresponding options.

 

To quote directly from the CME Group web site, “The introduction of Micro Henry Hub Natural Gas futures and options responds directly to customer demand for a smaller, more precise instrument for managing natural gas price exposure. At one-tenth the size of the benchmark Henry Hub (NG) contract, Micro Henry Hub Natural Gas futures and options offer more granularity and smaller margin requirements with the same robust transparency and price discovery of the larger Henry Hub contracts.”

 

Follow the link below to the contract’s full contract specifications on the CME Group web site:

 

https://www.cmegroup.com/markets/energy/natural-gas/micro-henry-hub-natural-gas.contractSpecs.html

 

Heads up: most FCM’s / clearing firms, including the five FCM’s Cannon Trading Co. partners with, will monitor a new futures contract for sufficient liquidity before making it available to its clients.  Give Cannon Trading a call to find out the availability of the contract.

 

Energy: 

Incidentally, natural gas (basis Dec.) dropped ±50 cents (a ±$5,000 move) over the last six trading sessions to ±$3.10 /mmBtu. down to new 2-year lows on forecasts for above-normal temps. across the U.S. for the next fifteen days and continental U.S. production remaining near all-time highs,”

 

Financials: 

Stock index futures are struggling today to extend their longest winning streak in two years – clocking seven straight daily gains – as we approach the close of trading.  At this typing, the E-mini S&P 500 is trading just a few ticks either side of unchanged, while the E-mini Dow Jones and E-mini Nasdaq are slightly off.

 

More energy: 

Crude oil extended its more than 2-week sell-off to its lowest level in over three months.  From an intraday high of $89.85 per barrel on Oct. 20, the front month traded through $75.00 per barrel this morning – a ±$15.00 per barrel / $15,000 per contract move.

 

DAILY CHART BELOW

 

News pushing prices south include global demand worries, record U.S. production and ebbing supply concerns surrounding the Gaza conflict.

 

Given its ability to create a ripple effect, the ±15% price decline dragged U.S. pump prices down to levels not seen since March.  It has also helped rein in inflation expectations and worrisome bond yields.

 

While this paints a picture that fears are subsiding that a wider conflict could be emerging in the Middle East and disrupt supplies, traders should remain on high alert for signs to the contrary.

Plan your trade and trade your plan.

 

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

3b644da2 2bee 4d39 8d98 5208a20bec39

Futures Trading Levels

11-09-2023

 

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

Improve Your Trading Skills

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


Economic Reports, Source: 

Forexfactory.com

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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.

The Week Ahead: Earnings, Govt Reports, Powell Speech + Futures Trading Levels for Nov. 7th

Posted on by Ilan
Get Real Time updates and more on our private FB group!

The Week Ahead: Earnings, Govt Reports, Powell Speech and any geopolitical developments

By John Thorpe, Senior Broker

 

Earnings, Govt Reports, Powell Speech and any geopolitical wrangling’s, events or additional crises always have the potential to move markets away from their trading ranges.

First up are the earnings reports, This week, due to the fact we don’t have any big names ( FAANG) reporting. Those 5 stocks individually can swing the markets violently on their respective earnings days with any surprises.

Instead, this week, we have 1400 plus earnings reports out on some names you would certainly be familiar with like Disney. The market is looking this week at sector earnings since there is no large cap phenom reporting the week.

IF the biomedical group stumbles with earnings this week, or the retail sector shows signs of weakening, construction sector, finance, the market will be looking at the health of sectors this week as earnings are pumped out before the open, during and after the trading sessions. So don’t expect sharp movements in the stock index prices this week from Earnings, but you can expect markets turning over in a more measured manner as reports flow.

Governmental Reports: yes we have a few but they tend to by a bit more fringe than say NFP or CPI, we do have a Jobless claims number this week on Thursday @ 7:30 CST.

Claims for November 4 week are expected @ 220K vs 217K the week prior.  If you are looking for strong undercurrents in the markets you may find that Wednesday and Thursday will be your best bets. FRB Chair Powell will be speaking both days at separate events, Wednesday very early @8:15 CST followed by a later 1PM CST Thursday talk.

Plan your trade and trade your plan.

 

 

 

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

3b644da2 2bee 4d39 8d98 5208a20bec39

Futures Trading Levels

11-07-2023

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

Improve Your Trading Skills

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


Economic Reports, Source: 

Forexfactory.com

5dce0b42 bd1f 4173 b724 282870869a47

 

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.

Exploring a Multitude of Futures Trading Platforms at Cannon Trading

Posted on by Cannon Operations

Read more about futures trading platforms offered by Cannon Trading Company here.

Futures trading platforms have evolved significantly over the years, offering traders a plethora of options to cater to their specific needs. Cannon Trading, a prominent brokerage firm, recognizes the importance of providing a wide array of futures trading platforms to its clients. In this comprehensive overview, we will delve into the various futures trading platforms available at Cannon Trading, offering traders a comprehensive understanding of their options.

Futures Trading Platforms

Sierra Charts
Sierra Charts is a renowned name in the futures trading industry. It is highly regarded for its advanced technical analysis tools, customizable charting options, and extensive historical data. Traders can execute orders, perform technical analysis, and backtest strategies efficiently with Sierra Charts.

Cannon Pro (Mac Compatible)
Cannon Pro is designed for Mac users, ensuring that traders using Apple devices have access to a powerful trading platform. It offers real-time market data, advanced charting tools, and order execution capabilities.

Volumetrica Trading
Volumetrica Trading is a specialized platform for traders focused on order flow and volume analysis. It provides detailed insights into market dynamics, helping traders make informed decisions based on order book data.

MultiCharts
MultiCharts is a popular trading platform known for its extensive back testing and automated trading capabilities. It supports multiple data feeds and brokers, making it a versatile choice for traders.

Tradingview
Tradingview is a web-based platform that offers advanced charting and social networking features. Traders can share ideas, collaborate with others, and access a wide range of technical indicators and drawing tools.

Overcharts
Overcharts is a user-friendly platform known for its intuitive design and advanced charting capabilities. It provides access to various data sources and features seamless order execution.

Bookmap
Bookmap is a unique platform that visualizes order book data in a clear and insightful manner. Traders can analyze market liquidity and order flow to make precise trading decisions.

MarketDelta
MarketDelta is designed for traders who focus on order flow analysis. It offers tools to track market profile, volume, and Delta, providing valuable insights into market sentiment.

MotiveWave (Mac Compatible)
MotiveWave is a Mac-compatible trading platform known for its advanced technical analysis tools, Elliott Wave analysis, and options trading capabilities.

Trade Navigator
Trade Navigator is a comprehensive platform that offers real-time data, advanced charting, and customizable indicators. It is suitable for both novice and experienced traders.

MT5 (MetaTrader 5)
MetaTrader 5, commonly known as MT5, is a versatile platform that supports not only futures trading but also forex and CFDs. It features automated trading options, customizable charts, and a wide range of technical indicators.

Additional Trading Platforms
Cannon Trading also provides access to several other trading platforms, each with its unique features and capabilities. These platforms include API (Application Programming Interface), Quantower, E-Futures, FireTip (Mac Compatible), CQG Trader, RTrader/Rithmic, CTS T4 (Future Spreads), AgenaTrader, eSignal, Ensign Software, QT Market Center, BarChart Trader, iSystems Automated Trading Platform, Investor/RT, Corn Futures, and Nasdaq Futures.

Futures & Options Trading
Cannon Trading’s platform offerings extend beyond futures trading to include options trading as well. Traders can explore a variety of options strategies and execute trades seamlessly on these platforms.

Cannon Trading’s commitment to offering a diverse range of futures trading platforms reflects its dedication to meeting the diverse needs of traders. Whether you are an advanced trader seeking in-depth technical analysis tools or a beginner looking for a user-friendly platform, Cannon Trading has a solution for you. The platforms mentioned above cover a wide spectrum of features, catering to traders with various trading styles and preferences. By providing access to these platforms, Cannon Trading empowers traders to make informed decisions and navigate the complex world of futures trading with confidence.

Ready to start trading futures? Call 1(800)454-9572 and speak to one of our experienced, Series-3 licensed futures brokers and start your futures trading journey with Cannon Trading Company today.

Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  Past performance is not indicative of future results. 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.

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.