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Category: Future Trading News

As a high risk trading type, futures trading is not for someone who is faint-hearted. Though there are a number of different ways of investing in futures , it is important to stick to what you know. Treading into unknown waters is not something that you should do when dealing in futures.

From managing margins to ordering trades to doing market analysis and more if you want to, you can do that all by yourself – but you may betaking double the risk. Therefore, when trading in futures, it may be better to seek advice from a professional trader.

Professional trading experts at Cannon Trading can help you with your futures trading. We are also there to keep you updated with the latest on futures trading and market news. All the news and latest articles on futures trading are published on our site under the category Archive Futures Trading News, which you are currently browsing through. Read more and the latest here and keep updated.

Metals Retreat, Stocks Drop 1.6%: Market Slump Amid Rate Speculation – Gold Hits Record High Before Pullback

Posted on by Ilan
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Gold T

Metals Off Highs, Stocks Fall 1.6%

By Mark O’Brien, Senior Broker

General / Indexes:

 

Stock index futures slumped today with the Dec. E-mini Dow Jones futures contract losing over 650 points (a ±$3,250 per contract move) at its intraday low around 1:00 Central Time.  The E-mini S&P 500 shed over 90 points (a ±$4,500 per contract move) at its lows and the E-mini Nasdaq lost over 450 points (a $9,000 move) intraday.  The latter erased two weeks of higher closing prices.

The rally in stocks has stalled as investors debate how quickly the Federal Reserve will cut interest rates over the next year and sowed worry of rates staying higher for longer.

 

Metals:

 

Gold futures are getting shinier by the day.  The price of the front month December contract touched another all-time record high overnight, trading briefly at $2,772.60 per ounce before heading on a ±$50 pull-back into its old 10:30 A.M., Central Time pit session close this morning.

 

Since the start of this year, gold prices have risen by a third, hovering over the $2,700 per ounce mark in the last few trading sessions.  Much of the credit for the increased demand can be tied to simmering tensions in the Middle East and the uncertainty over the upcoming presidential elections in the U.S.

 

The 2024 gains have unfolded after uninspiring price movement over the last ten years.  The price of gold reached the vicinity of $1,900 per ounce in 2011, swooned for nearly eight years trading not far from $1,000 per ounce much of the time, then started advancing back to ±$1,900 around mid-2020 where it vacillated little into 2022.  After being subdued for so long, gold prices shot up, delivering a 70% jump in the past two years.  Looking at the institutional interest in gold several large commercial banks have forecast the current upward price move continuing into next year.

Analysts at Citi raised their three-month forecast for gold prices to $2,800 per ounce.  They look for a move to $3,000 over the next 6–12 months.  J.P. Morgan has also proposed that gold’s fundamentals point to further upside.

 

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Daily Levels for Oct. 24th 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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Tomorrow’s Market Lineup: Existing Home Sales, Beige Book, and Crude Oil Reports

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Existing Home Sales, Beige Book, Crude Oil numbers heading tomorrow’s line up!

Ask a Broker: Futures Spreads Trading

 

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December 30 Year Treasury Bonds

December treasury bonds broke down into a new low where the chart satisfied its third PriceCount objective to the 118^14 area. It would be normal to get a near term reaction from this level in the form of a consolidation or corrective trade, at least. From here, IF you can susustain furuther weakness, we are left with a low percentage fourth count to aim for to the 114 area.

 

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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.

Daily Levels for Oct. 23rd 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

 

Introduction to Futures SP

Posted on by Ilan

Futures SP

Introduction to Futures SP

Standard & Poor’s 500 index futures, commonly referred to as SP futures, are financial contracts that allow traders to speculate on the future value of the S&P 500 Index, one of the most widely followed benchmarks of the U.S. stock market. These contracts are used by a diverse group of market participants, ranging from individual investors to institutional traders and hedgers. The S&P 500 Index itself consists of 500 of the largest publicly traded companies in the U.S., representing a wide array of industries, making it a comprehensive reflection of the U.S. economy.

The creation of S&P 500 futures contracts was revolutionary because it allowed for easier, more flexible participation in the market, enabling traders to leverage the value of the index to hedge against market volatility or speculate on market movements. Over time, several variations of these contracts have been introduced to cater to different trading needs and scales. This article will explore the various SP futures contracts, who trades them, and why they remain critical instruments in the futures market. Furthermore, we will discuss Cannon Trading Company, Inc., a futures brokerage firm known for its stellar reputation, and why institutional traders and hedgers should consider them as a top choice.

Any Questions? Call 1(800)454-9572

Types of SP Futures Contracts

Several variations of S&P 500 futures are traded on futures exchanges like the Chicago Mercantile Exchange (CME). These contracts differ in size, trading hours, and utility but serve the same purpose: allowing market participants to trade on the future direction of the S&P 500 Index. The main SP futures contracts include:

  1. Standard S&P 500 Futures (SP)
    The standard S&P 500 futures contract, known by its ticker symbol “SP,” was the largest and most widely traded version of the contract. Each contract was valued at 250 times the value of the S&P 500 Index. For example, if the S&P 500 Index is trading at 4,000, the value of one SP contract would be 250 x 4,000 = $1,000,000. This large notional value made the contract more suited for institutional traders, hedge funds, and large portfolio managers who need to hedge substantial stock portfolios or make significant market moves. This contract no longer exists because its value was too large since the S&P was moving higher and higher. The new contracts are below:
  2. E-mini S&P 500 Futures (ES)
    E-mini futures were introduced to make futures trading more accessible to a broader range of traders. The E-mini S&P 500 futures contract (ES) is a smaller version of the standard S&P 500 futures, with a contract value of 50 times the index value. So, if the S&P 500 Index is trading at 4,000, the value of one E-mini contract would be 50 x 4,000 = $200,000. This smaller size makes the contract more accessible to individual traders and smaller institutions while still offering the same benefits as the standard futures contract.The E-mini contract has become one of the most popular futures contracts globally, offering high liquidity, tight spreads, and around-the-clock trading hours. Its popularity stems from its flexibility, allowing traders to easily enter and exit positions with smaller capital requirements than the full-sized SP contract.
  3. Micro E-mini S&P 500 Futures (MES)
    In 2019, CME introduced the Micro E-mini S&P 500 futures contract to cater to retail traders and smaller investors. The Micro E-mini contract (MES) is one-tenth the size of the E-mini contract, with a contract value of just 5 times the index. If the S&P 500 Index is trading at 4,000, the value of one Micro E-mini contract would be 5 x 4,000 = $20,000.The Micro E-mini futures provide a way for traders with limited capital to gain exposure to the S&P 500 Index with less risk compared to the E-mini and standard contracts. Additionally, they are ideal for those who want to scale into positions gradually or hedge smaller portfolios.
  4. S&P 500 Total Return Index Futures (SPXT)
    The S&P 500 Total Return Index (SPXT) futures are designed to track the total return performance of the S&P 500 Index, including dividends. These contracts appeal to institutional investors looking for a more comprehensive measure of the index, as they consider both price changes and the income generated from dividends. While less popular than the SP or ES contracts, SPXT futures provide a unique opportunity for those specifically interested in dividend-inclusive performance.
  5. S&P 500 Dividend Index Futures
    This futures contract allows investors to trade based on the dividends of the S&P 500 companies. While not as widely traded as the price-based futures contracts, these contracts are valuable for income-focused institutional investors and portfolio managers seeking to hedge dividend exposures or speculate on future dividend changes.
  6. S&P 500 VIX Futures
    Although not directly based on the S&P 500 Index, VIX futures are closely related as they track market volatility and are often used in conjunction with S&P 500 futures. VIX futures allow traders to hedge or speculate on the future level of market volatility, which tends to be inversely correlated with the S&P 500 Index itself.

Why Trade SP Futures?

SP futures provide several key benefits that make them attractive to a wide range of market participants:

  1. Liquidity SP futures are among the most liquid futures contracts in the world, especially the E-mini and Micro E-mini contracts. High liquidity ensures tight bid-ask spreads, meaning traders can enter and exit positions with minimal cost and slippage. This liquidity is particularly valuable for institutional traders managing large positions and for high-frequency traders executing numerous trades daily.
  2. Leverage One of the main attractions of futures contracts is the ability to trade with leverage. With SP futures, traders only need to post a fraction of the total contract value as margin, enabling them to control large positions with relatively little capital. This leverage magnifies both potential gains and losses, making SP futures a high-risk, high-reward investment vehicle.
  3. Hedging SP futures are popular among institutional investors, portfolio managers, and hedgers due to their effectiveness in managing risk. By holding long or short positions in SP futures, investors can protect their portfolios from adverse market movements. For example, if an institution expects a market downturn, it can short S&P 500 futures to offset potential losses in its equity holdings.
  4. Speculation Many traders use SP futures to speculate on the direction of the S&P 500 Index. Since the S&P 500 is a broad market index, SP futures offer a straightforward way to bet on the overall performance of the U.S. economy. Traders can go long if they expect the market to rise or short if they anticipate a decline. The leverage offered by futures contracts enhances the potential for profit (or loss), making SP futures a popular choice for speculative traders.
  5. Portfolio Diversification Futures contracts based on broad market indices, such as the S&P 500, provide a way to diversify portfolios across different asset classes. Institutional investors often allocate a portion of their portfolios to SP futures to balance equity exposure or to implement specific trading strategies that reduce correlation with other assets.

Who Trades Futures SP?

SP futures are traded by a diverse group of market participants, each with unique objectives and strategies. The main groups include:

  1. Institutional Investors Institutional investors, such as hedge funds, pension funds, and mutual funds, are some of the largest participants in the SP futures market. They use these contracts primarily for hedging purposes, to offset risks in their equity portfolios, or to speculate on market movements.
  2. Hedge Funds Hedge funds, in particular, are active traders of SP futures due to their ability to utilize leverage. These funds often employ complex strategies involving long and short positions, arbitrage, and other derivatives. SP futures allow them to execute large trades efficiently and adjust portfolio exposure quickly.
  3. Retail Traders Retail traders, ranging from day traders to longer-term speculators, frequently trade the E-mini and Micro E-mini contracts. These contracts are more accessible to individual traders due to their smaller size and lower margin requirements. Retail traders often use SP futures to capitalize on short-term market movements, taking advantage of volatility to generate profits.
  4. Market Makers Market makers provide liquidity in the SP futures market by continuously quoting bid and ask prices. They facilitate trading by ensuring that there is always a counterparty for those wishing to buy or sell contracts. Market makers typically earn profits from the spread between the bid and ask prices and are crucial for maintaining market liquidity.
  5. Arbitrageurs Arbitrageurs exploit price discrepancies between the S&P 500 Index and its futures contracts, or between different SP futures contracts. By taking advantage of these small inefficiencies, arbitrageurs contribute to market efficiency while earning low-risk profits.

Cannon Trading Company, Inc.: The Broker of Choice

Established in 1988, Cannon Trading Company, Inc. has been a leader in the futures brokerage industry for over three decades. With a stellar 5 out of 5-star rating on TrustPilot, Cannon Trading has earned its reputation for providing top-tier service, reliability, and expertise in the futures market. The firm has consistently catered to a wide range of traders, from retail investors to institutional hedgers and professional traders. Here’s why Cannon Trading is considered a top choice, especially for institutional traders and hedgers:

  1. Experience and Expertise With over 35 years of experience in the industry, Cannon Trading has built a deep understanding of the futures market. The firm’s brokers are seasoned professionals who offer valuable insights and personalized advice to clients, helping them navigate the complexities of futures trading. Their expertise is particularly valuable for institutional traders, who require sophisticated strategies and execution to manage large positions and complex portfolios.
  2. Tailored Services for Institutional Traders Cannon Trading excels in providing tailored services for institutional traders, offering customized solutions that meet the specific needs of hedge funds, asset managers, and large financial institutions. The firm understands the unique challenges faced by institutional clients, such as the need for precise execution, risk management, and access to deep liquidity. By offering direct market access and advanced trading platforms, Cannon Trading enables institutional traders to execute large orders with minimal slippage and maximum efficiency.
  3. Trust and Transparency Cannon Trading has built a reputation for trust and transparency in an industry where these qualities are critical. The firm’s commitment to clear communication and ethical business practices has earned it the loyalty of clients over the years. Institutional traders and hedgers, in particular, value a broker they can trust with large sums of capital and complex transactions, making Cannon Trading a reliable partner for high-stakes trading.
  4. Technological Excellence In the fast-paced world of futures trading, having access to cutting-edge technology is essential. Cannon Trading offers state-of-the-art trading platforms that provide direct market access, advanced charting tools, real-time data, and automated trading capabilities. These platforms are designed to meet the needs of both retail and institutional traders, ensuring that clients have the tools they need to succeed in today’s competitive market environment.
  5. Outstanding Customer Support One of the standout features of Cannon Trading is its commitment to customer support. The firm’s brokers are available to assist clients at all stages of the trading process, from account setup to trade execution and beyond. Institutional clients benefit from dedicated account managers who provide personalized service and ensure that their trading needs are met. This high level of support is reflected in the firm’s top ratings on platforms like TrustPilot.
  6. Focus on Education Cannon Trading is committed to empowering its clients through education. The firm offers a wide range of educational resources, including webinars, trading guides, and market analysis, designed to help traders improve their skills and make informed decisions. Institutional traders and hedgers appreciate this focus on education, as it enhances their ability to manage risk and execute sophisticated strategies.
  7. Regulatory Compliance Cannon Trading is a fully licensed and regulated futures brokerage firm, adhering to strict regulatory standards set by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Institutional traders and hedgers require a broker that operates with the highest levels of integrity and compliance, and Cannon Trading consistently meets these expectations.

SP futures, including the standard, E-mini, and Micro E-mini contracts, offer a versatile and powerful tool for traders of all types. Whether you’re an institutional investor looking to hedge a large portfolio or a retail trader speculating on short-term market movements, SP futures provide liquidity, leverage, and flexibility.

Cannon Trading Company, Inc. stands out as a premier broker for trading SP futures, particularly for institutional traders and hedgers. With decades of experience, a stellar reputation, and a commitment to delivering tailored services, advanced technology, and unparalleled customer support, Cannon Trading has earned its place as a trusted partner for those navigating the futures market.

For more information, click here.

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

 

Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. Past performance is not indicative of future results. Carefully consider if trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

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

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

Follow us on all socials: @cannontrading

AI: The Next Gold Mine or Money Pit? Insights on Markets, Earnings, and Economic Trends

Posted on by Ilan
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Will AI be a gold mine or a money pit?

21 October 2024

By GalTrades.com

Oil went below $70 concern of commodity inflation receded somewhat

Markets are a little stretched on the upside SPX up for 6 weeks, investor sentiment is in favor of the bulls. Small caps appear to be playing catch-up Russell closed at a two-year high Wednesday, which may help sustain the recent uptrend. Next week the economic calendar is light so the focus will be on Q3 earnings, which have been strong so far. The path of least resistance still seems to be trending higher. If the benign earnings momentum doesn’t continue throughout next week perhaps this could provide enough of an excuse for investors to take profits, resulting in a modest pullback in stocks.

What happens with the FED what’s the next move? As long as data continues to validate the soft/no-landing thesis it seems that the bias will continue to remain higher.

 

Deutsche bank posted that 5-year inflation swaps spiked to the highest level since March 2023. Can we see another spike in inflation that can affect the fed’s next move?

At some point the huge debt levels that we’re running suppress growth and increase interest rates and that leads to higher inflation. The market is pricing in 6 rate cuts of 150 basis points and full-on expectations of $275 of earnings. What if any of the Mag 7 miss earnings? Last quarter they all delivered good earnings and were sold off, we saw profit taking. ASML missed and semies went down this past week. Then we saw positive earnings from Taiwan Semiconductor Manufacturing (TSM), the largest chipmaker in the world. TSM reported a 54% climb in annual profit, better than analysts had expected, driven by accelerating AI demand. I understood it as AI semies demand is there.

Piper Sandler said, “the S&P is overvalued by 8% but so what”.

Stifel said this week “we’re goanna go up another 8 to 10% and then we’re goanna crash 25% sometime next year”.

Bottom line anything is plausible but what’s actionable is now.

Nuclear energy: Mega companies are investing in energy to power their AI infrastructure. AMZN announced it has signed an agreement with Dominion Energy, Virginia’s utility company, to invest more than $500 million to develop small modular reactors. Stocks in nuclear energy space – CEG, VST, D, TLN, LEU, BWXT, OKLO, SMR.

We received solid earnings from Goldman Sachs (GS), Bank of America (BAC), and Citigroup (C). Another newsmaker was UnitedHealth (UNH), which saw shares drop sharply after the company shaved the top end of its guidance amid rising costs. It was the first outlook miss in years for the giant health company.

Treasury yields fell as inflation concerns eased amid sliding crude oil prices on media reports that Israel doesn’t plan to target Iran’s oil sector. Odds of a 25-basis-point Federal Reserve rate cut next month climbed in futures trading Tuesday.

The Russell 2000® Index (RUT) pushed above technical resistance intraday at the July peak near 2,260, though it settled below that. Strength there likely reflects the slight dip in Treasury yields that also lent support to “defensive” and yield-sensitive sectors including real estate, utilities, and consumer staples. The financial sector strength related to strong bank earnings also helps the RUT, which is heavily weighted toward that sector.

Walgreens Boots Alliance jumped more than 15% after the company said it will shut 1,200 stores over the next three years. The company’s earnings beat Wall Street’s estimates. Shares were down about 70% year to date.

Data-wise, October New York Fed Empire State Manufacturing, which provides insight into New York’s manufacturing climate, was much worse than expected at –11.9, with anything under zero indicating contraction. Analysts had expected a reading of 3.6, down from 11.5 a month ago. On a positive note, the report’s six-month outlook rose to its highest in three years, and employment numbers looked strong.

On Thursday we had retail sales. They climbed 0.4%, compared with the 0.2% consensus and 0.1% in August. Excluding autos, one very strong category in retail sales was restaurants and bars, which saw a 1.05% monthly increase.

Retail sales figures indicate consumers are still doing well and spending, which means gross domestic product growth is likely to be in the 3% plus region again.

Ongoing softness in manufacturing and falling commodity prices—reducing inflation expectations, Lower crude prices can help company margins across many industries and keep a lid on inflation.

Before retail sales, the thinking was that the Fed would cut rates 25 basis points in November but consider pausing in December if data remained strong. It’s unclear if a massive jobs report, a warm Consumer Price Index(CPI) and now a very hot retail sales report, would be enough for the Fed to think about a pause at either of its remaining meetings this year. Markets have lowered expectations about the number and size of rate cuts in 2024 due to the strength in the economic data.

It will be a pretty light week of economic data. However, there are two major updates on the state of the housing market, with September’s existing home sales out on Wednesday and September’s new home sales out on Thursday. Housing is a key watch item for investors and the Federal Reserve because it represents a large, unavoidable cost for most Americans, and it’s proven to be a sticky source of inflation. Last week, September housing starts were slightly better than expected, though they were down month over month. We’re unlikely to see a sustained material improvement in the housing market until bond yields come down, which will help pull mortgage rates lower and, in turn, make monthly payments more affordable.

Bonds:

Expect the sideways churning in the bond market to continue until there is a catalyst for the next move. Credit spreads will likely remain tight. The U.S. dollar, having rebounded again from the low end of its two-year trading range, looks like it has some room to move higher as weakness in global growth relative to the United States keeps it firm.

Currently, Bloomberg probabilities suggest a 92% chance of a 25-basis point cut at the November FOMC versus 89% last Friday. Through 2025, the probabilities are suggesting 150 basis points of cuts, which is consistent with the September dot plots from the Fed.

Before the next Federal Reserve meeting November 6–7, key data include September’s Personal Consumption Expenditures (PCE) price index on October 31 and October nonfarm payrolls on November 1.

The European Central Bank (ECB) cut rates 25 basis points for the third time this year.

Futures:

#SLV highest since November 2012. #GLD continues its record run.

As of Tuesday, looking at the daily chart for the Gold Futures December 2024 (/GCZ24) contract we can see significant buying pressure as the contract climbed to new all-time highs. The contract has consistently traded off the 20-Day Simple Moving Average which was tested yesterday on below average volume. /GCZ24 is currently trading well above the 50-Day and 200-Day SMA price points.

According to the CFTC Commitment of Traders report released October 8th managed money traders have decreased their long position by -20,271 contracts and increased their short position by +132 contracts. Managed money traders are net long 194,059 contracts. The 14-Day Relative Strength Index at 59.17% indicates more buyers than sellers.

Chinese stocks are under pressure lately, with declines this month eroding gains from the massive rally sparked by China’s stimulus announcement in September.

Investors appear to have lost faith that the government’s stimulus will be the answer to that economy’s problems,” Yardeni Research said in its Wednesday briefing note. “The quick knee-jerk rally in Chinese equities already looks like it’s getting a leg cramp.”

China’s third-quarter GDP rose 4.6% on an annual basis between July and September, inching just above the Reuters consensus view of 4.5%. Retail sales also climbed more than analyst had expected. Chinese stocks popped more than 3.5% Friday on stimulus hopes despite GDP falling sequentially from 4.7% in the second quarter.

European and Asian stocks mostly climbed this week, and Japan saw inflation dip, which could ease concerns about another rate hike there.

Conclusion from this week:

The decline in oil and solid retail sales this past week point to an economy with moderating inflation and resilient growth.

discipline mandates that we consider lightening up our stock exposure in an overbought market. We’re not there yet but still close.

You need a catalyst for the sector and stock that you’re trading to move higher. The markets were missing a catalyst this week for further upside. Some of the economic reports this week suggest that the FED may slow down further cuts. SPX price-to-earnings (P/E) ratio of nearly 22 remains historically elevated.

Earnings:

  • Monday     (10/21): Sandy Springs Bancorp Inc. (SASR), SAP SE (SAP), Nucor Corp.     (NUE), WR Berkley Corp. (WRB), Alexandria Real Estate Equities Inc. (ARE),     AGNC Investment Corp. (AGNC), Zions Bancorp (ZION). Logitech (LOGI).
  • Tuesday     (10/22): GE Aerospace (GE), Danaher Corp. (DHR), Verizon Communications     (VZ), Philip Morris International Inc. (PM), RTX Corp. (RTX), Lockheed     Martin Corp. (LMT), Texas Instruments (TXN), Baker Hughes Co. (BKR),     Seagate Technology Holdings (STX), Enphase Energy (ENPH), Norfolk Southern     Corp. (NSC), General Motors (GM), Freeport-McMoRan (FCX), 3M (MMM),
  • Wednesday     (10/23): Coca-Cola Co. (KO), Thermo Fisher Scientific Inc. (TMO), Nextera     Energy Inc. (NEE), AT&T Inc. (T), Boeing Co. (BA), General Dynamics     Corp. (GD), Tesla (TSLA), T-Mobile US (TMUS), International Business     Machines Corp. (IBM), ServiceNow Inc. (NOW), Lam Research Corp. (LRCX)
  • Thursday     (10/24): S&P Global Inc. (SPGI), Union Pacific Corp. (UNP), Honeywell     International Inc. (HON), United Parcel Services Inc. (UPS), Northrop     Grumman Corp. (NOC), Carrier Global Corp. (CARR), Capital One Financial     Corp. (COF), Digital Realty Trust Inc. (DLR)
  • Friday     (10/25): Sanofi SA (SNY), HCA Healthcare Inc. (HCA), Colgate-Palmolive Co.     (CL), AON PLC (AON), Centene Corp. (CNC)

Technical Analysis:

NDX is less than 2% away from it’s all time high 20,675. NDX remains in an uptrend and price has been converging over the past two months in triangle trend. mega-cap tech earnings, which we’ll get the week after next, will likely determine whether we can make new all-time highs or not.

Russell appears to be forming a bull flag formation on the charts. This bullish pattern would be confirmed if the index closes above the upper trendline of the flag, or some technicians look for a close above the top of the flagpole which is at Wednesday’s 2,286 close.

KWEB ETF China, retraced 50% according to Fibonacci numbers.

Memoirs of a trader:

For the past two years I added trading options as opposed to just trading stocks. Trading options is very risky we’re paying for time value (every day that passes on your option without the option moving in the direction of your trade, the option loses time value). And if the stocks you’re trading aren’t moving, trading the options is a losing bet. Another thing that caught my attention, 20 years ago options premiums were much cheaper than they are today, The only options trade that worked for me this week was selling a put, taking the other side of the trade (which can be very risky) but works when the underlying stock doesn’t move or moves in your direction. Conclusion stick to trading stocks when the stock isn’t moving you aren’t losing and add options only once the volatility gets going.

Trading stocks, commodity futures and options involves a substantial risk of loss. The information here is of opinion only and do not guarantee any profits. Past performances are not necessarily indicative of future results.

 

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Daily Levels for Oct. 22nd 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
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Weekly Newsletter: Hogs Outlook, Mini Russell System+ Trading Levels for Oct. 21st

Posted on by Ilan
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Hogs

Cannon Futures Weekly Letter Issue # 1213

In this issue:

  • Important Notices – Earnings & Fed Speakers
  • Futures 101 – Ask a Broker: Day trading Futures? Margins?
  • Hot Market of the Week – December Hogs
  • Broker’s Trading System of the Week – Mini Russell Day Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices – Next Week Highlights:

 

The Week Ahead

By John Thorpe, Senior Broker

 

A fair amount of Speakers, Data and Earnings .

Just 2 ½ weeks to the U.S. Presidential Election. Nov 5th.

 

Economic Data:

Mon. CB Leading Indicators

Tue. Redbook, Richmond Fed

Wed. Mortgage Index

Thu. Chicago Fed Activity Index, Weekly Initial Jobless Claims, New Home Sales

Fri. Durable Goods, Michigan Consumer Sentiment.

 

Fed and ECB Speakers:

Mon. Logan, Kashkari, Schmid

Tue. 9A.M. Central ECB President Lagarde,  Harker

Wed. Bowman, LaGarde 9 A.M. Central, Barkin

Thu. Hammack

Fri. quiet

 

Earnings: 608 3rd QTR. Reports this week

Prominent Companies reporting

Wed. Tesla, IBM, Coca-Cola

  • Thu. UPS

 

Futures 101: Ask a Broker!!

What is Futures Margin?
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What is Day Trading Futures?

 

“Trading Around Key Economic Reports” FREE SHORT Course you will learn:

  • What is GDP?
  • About the Retail Sales Report
  • What is NFP ( non farm payroll) Report?
  • Understanding US housing Data
  • FOMC
  • Understanding Oil Data Report
  • Importance of Consumer Confidence Survey

ACCESS THE COURSE

 

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    • Hot Market of the Week – December Hogs

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

    FREE TRIAL AVAILABLE

    December Hogs

    December hogs satisfied their first upside PriceCount objective early this month and have consolidated their trade. At this point, the second count would project a possible run to the 82.15 area IF you can resume the rally and break out above resistance at the April high.

     

    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.

MVA 998 RTY 208

PRODUCT

RTY – Mini Russell 2000

 

SYSTEM TYPE

Day Trading

 

Recommended Cannon Trading Starting Capital

$10,000

 

COST

USD 80 / monthly

 

Get Started

Learn More

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The performance shown above is hypothetical in that the chart represents returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real‐time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on back adjusted data. Please read full disclaimer HERE.
Would you like to receive daily support & resistance levels?
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Daily Levels for October 21st, 2024

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Weekly Levels for the week of October 21st, 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.

Gold Futures Hit All-Time Highs: Margin Updates and Chart Review

Posted on by Ilan
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Gold Futures

All time highs on gold futures today!

See both daily and weekly charts below.

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

Depending on the trading platform you are using, your day trading margins may be a percent of the overnight margins. If you are using the E-Futures International, then your day trading margins between 7:45 AM central and 3:30 PM central are as below:
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Any questions, please reach out to your broker.

Gold Daily and Weekly Charts below for review:
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Any questions, please reach out to your broker.

 

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Daily Levels for Oct. 18th 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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Action-Packed Thursday: Key Economic Data & Energy Reports; CME Increases Impact Day Trading Margin Requirements

Posted on by Ilan
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C67

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

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

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

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Economic Reports
provided by:ForexFactory.com
All times are Eastern Time ( New York)
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Good Trading!
About: Cannon Trading is an independent futures brokerage firm established in 1988 in Los Angeles. Our mission is to provide reliable service along with the latest technological advances and choices while keeping our clients informed and educated in the field of futures and commodities trading.
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
Contact
S
Cannon Trading Company
12100 Wilshire Boulevard
Suite 1640
Los Angeles, CA 90025
(800) 454-9572
Follow Us
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Visit Our Website

 

Futures SP and its Smaller Contracts

Posted on by Ilan

S&P 500 Futures – A Futures Trading Guide

Futures contracts have become a fundamental tool for market participants looking to hedge risk or speculate on price movements. Among the many futures contracts available, the S&P 500 Futures (commonly referred to as futures SP, Standard & Poor’s 500 Index Futures, or SP500 Index Futures) are some of the most widely traded. The S&P 500 Futures contracts, along with their smaller counterparts like the E-Mini S&P 500 and the Micro S&P 500, offer a unique and efficient way to trade the broader U.S. stock market. They serve as key financial instruments for both institutional and retail traders, providing liquidity and exposure to the U.S. equity markets.

This article will explore the various aspects of futures SP, delve into the intricacies of the smaller-sized contracts like the E-Mini S&P 500 and Micro S&P 500, discuss where these contracts are traded, explain why institutional investors and hedgers use them, and highlight the motivations of retail traders who speculate on these futures.

  1. What are Futures SP?

The term futures SP refers to the Standard & Poor’s 500 Index Futures, which are derivatives contracts that track the performance of the S&P 500 Index. The S&P 500 Index is one of the most widely followed benchmarks of U.S. equities, representing the performance of 500 of the largest publicly traded companies in the United States. It is often seen as a barometer for the overall health of the U.S. economy and stock market.

S&P 500 futures contracts are agreements to buy or sell the S&P 500 Index at a predetermined future date and price. The contracts are standardized, meaning that the terms are set by the exchange on which they are traded. Traders can use these contracts to gain exposure to the broader stock market without owning the individual stocks that comprise the S&P 500.

  1. Where are S&P 500 Futures Traded?

S&P 500 futures are traded primarily on the CME Group’s Chicago Mercantile Exchange (CME). The CME is one of the largest and most prominent derivatives exchanges in the world, offering a wide range of futures and options contracts across various asset classes, including equities, commodities, and currencies. The S&P 500 futures contracts can be traded electronically via CME’s Globex platform, making them accessible to traders around the globe, 23 hours a day, five days a week.

  1. Understanding the Smaller Contracts: E-Mini S&P 500 and Micro S&P 500

In addition to the standard S&P 500 Futures contract, there are smaller versions that have been introduced to accommodate different types of traders:

E-Mini S&P 500 Futures

The E-Mini S&P 500 Futures contract (ticker symbol: ES) was introduced in 1997 by the CME Group to make futures trading more accessible to a broader audience. The E-Mini contract represents 1/5th the size of the standard S&P 500 Futures contract, making it more affordable for individual traders and smaller institutions.

Key features of the E-Mini S&P 500 include:

  • Each contract represents a notional value of $50 times the S&P 500 Index.
  • The contract trades electronically on the CME’s Globex platform, providing liquidity and tight bid-ask spreads.
  • The smaller contract size allows traders to participate in the S&P 500 market with less capital than is required for the standard contract.

Micro S&P 500 Futures

In 2019, the Micro E-Mini S&P 500 Futures contract (ticker symbol: MES) was launched as a further reduction in contract size. The Micro S&P 500 Futures contract is just 1/10th the size of the E-Mini S&P 500 contract, making it an even more accessible product for retail traders.

Key features of the Micro S&P 500 Futures include:

  • Each contract represents a notional value of $5 times the S&P 500 Index.
  • Like the E-Mini, the Micro S&P 500 Futures trades electronically on the CME Globex platform.
  • This contract enables traders with smaller accounts to participate in the movements of the S&P 500 with a lower level of financial commitment and risk.

The introduction of the E-Mini and Micro S&P 500 Futures has dramatically increased participation in the S&P 500 Index Futures market, allowing retail traders and smaller institutions to engage in the futures market without the large capital outlay required for the full-sized contract.

  1. Why Do Hedgers and Institutions Use S&P 500 Futures?

Institutional investors, fund managers, and large corporations often use S&P 500 futures to hedge their positions and manage risk. The Standard & Poor’s 500 Index Futures provide a cost-effective way to gain or reduce exposure to the U.S. equity market. Below are the primary reasons why hedgers and institutions use S&P 500 futures:

Portfolio Hedging

Many institutional investors hold large portfolios of U.S. equities. By using S&P 500 futures, these investors can hedge against market downturns without having to sell their individual stock holdings. For example, if an investor believes that the market may decline in the short term, they can short SP500 Index Futures to offset potential losses in their portfolio. This is an effective way to protect against downside risk without liquidating core stock positions.

Efficient Market Exposure

For institutions looking to gain quick and efficient exposure to the U.S. stock market, S&P 500 futures offer a highly liquid and cost-effective solution. Instead of buying hundreds of individual stocks, institutions can simply buy S&P 500 futures contracts to achieve the same exposure. This can be particularly useful for pension funds, hedge funds, and mutual funds that need to adjust their market exposure rapidly.

Leverage

One of the key advantages of trading Standard and Poor’s 500 futures is leverage. Futures contracts allow traders to control a large notional value of the underlying asset (the S&P 500 Index) with a relatively small amount of capital. This leverage can enhance returns for institutions but also increases risk, which is why it must be used with caution.

  1. Why Retail Clients Speculate on Futures SP?

Retail traders are increasingly drawn to S&P 500 futures, especially the smaller E-Mini S&P 500 and Micro S&P 500 contracts, as they offer several advantages for speculating on the direction of the stock market. The following are some of the reasons why retail clients speculate on futures SP:

Liquidity

The SPX Index Futures market is one of the most liquid futures markets in the world. High liquidity means that traders can enter and exit positions with ease, even during volatile market conditions. For retail traders, liquidity is crucial because it ensures that they can execute trades quickly and at favorable prices.

Low Capital Requirements

The smaller-sized contracts like the E-Mini S&P 500 and Micro S&P 500 have lower capital requirements, making them ideal for retail traders who want to speculate on the direction of the broader stock market. The lower margin requirements mean that traders can open positions with a fraction of the capital required for traditional stock trading.

Leverage and Margin

Retail traders are often attracted to the leverage offered by S&P 500 futures. Futures contracts allow traders to control a significant amount of the underlying index with a small amount of margin. For example, a retail trader can use leverage to potentially amplify returns, though it is important to note that this also increases the risk of losses.

24/5 Trading

SP500 Index Futures trade almost around the clock, giving retail traders the ability to react to news and events as they happen, even outside of regular stock market hours. This extended trading window is particularly appealing to those who want to trade during off-hours or in response to global market movements.

Short-Selling Opportunities

Unlike traditional stock trading, where short-selling can involve additional complexity, futures contracts are inherently designed for both long and short positions. This allows retail traders to speculate on both rising and falling markets without the need for additional borrowing or fees, making S&P 500 futures an attractive choice for those looking to take advantage of bearish market conditions.

Diversification

S&P 500 futures provide retail traders with exposure to a diversified portfolio of 500 of the largest companies in the United States. This diversification reduces the risk associated with trading individual stocks, as the performance of the index reflects a broad cross-section of the economy.

The Standard & Poor’s 500 Index Futures are some of the most important and widely traded financial instruments in the world. They offer institutional and retail traders alike an efficient way to gain exposure to the U.S. equity markets, hedge portfolios, and speculate on market movements. With the introduction of smaller contracts like the E-Mini S&P 500 and Micro S&P 500, these futures have become even more accessible, enabling a wide range of market participants to engage in futures trading.

For institutional investors, S&P 500 futures provide an efficient and cost-effective means of managing risk and adjusting market exposure. For retail traders, the liquidity, leverage, and low capital requirements of SP500 Index Futures and their smaller counterparts make them ideal for speculative trading.

Whether you’re a hedger looking to protect a portfolio or a speculator aiming to profit from market movements, S&P 500 futures offer a versatile and powerful tool for navigating the complexities of the financial markets. The combination of liquidity, leverage, and broad market exposure makes them a cornerstone of modern trading strategies.

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

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

Posted on by Ilan
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Movers and Shakers

By John Thorpe, Senior Broker

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

Updated: October 14, 2024 8:43 am

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

 

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

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

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

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

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

 

Watch Tomorrow’s Movers and Shakers:

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

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Daily Levels for Oct. 16th 2024

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Economic Reports
provided by:ForexFactory.com
All times are Eastern Time ( New York)
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Good Trading!
About: Cannon Trading is an independent futures brokerage firm established in 1988 in Los Angeles. Our mission is to provide reliable service along with the latest technological advances and choices while keeping our clients informed and educated in the field of futures and commodities trading.
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
Contact
S
Cannon Trading Company
12100 Wilshire Boulevard
Suite 1640
Los Angeles, CA 90025
(800) 454-9572
Follow Us
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Visit Our Website

 

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

Posted on by Ilan
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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
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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
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Cannon Trading Company
12100 Wilshire Boulevard
Suite 1640
Los Angeles, CA 90025
(800) 454-9572
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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.