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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.

NFP – Non Farm Payrolls Tomorrow – Futures Trading on August 4th

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

NFP, Non Farm payrolls or Unemployment numbers will be released tomorrow at 7:30 AM central. This is currently he biggest report as fed policy depends quite a bit on the labor market.

Be aware of the report, what market is expecting and how the market reacts.

I normally like to be flat 2 minutes before and stay that way for few minutes after until the “smoke clears” but every trader is different.

Source: Bureau of Labor Statistics (latest release) Measures Change in the number of employed people during the previous month, excluding the farming industry;

Usual Effect ‘Actual’ greater than ‘Forecast’ is good for currency;

Frequency Released monthly, usually on the first Friday after the month ends; Next Release Sep 1, 2023

Notes: This is vital economic data released shortly after the month ends. The combination of importance and earliness makes for hefty market impacts;

Why Traders Care? Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity;

Also Called Non-Farm Payrolls, NFP, Employment Change

 

 

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.

Futures Trading Levels

08-04-2023

#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.

Rest of the Trading Week: What to Watch Out For + Trading Levels for August 3rd 2023

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

Rest of the Trading Week, by Mark O’Brien, Senior Broker

General:

 

The answer is: Germany, Denmark, Netherlands, Sweden, Norway, Switzerland, Luxembourg, Singapore and Australia.

The question is: name the remaining countries whose credit is rated AAA by all three ratings companies – S&P Global, Fitch and Moody’s – after Fitch downgraded the United States’ debt rating from its top-tier AAA, down to AA+.

 

Among the contributing factors leading to the downgrade, Fitch cited, “the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance . . . that has manifested in repeated debt limit standoffs and last-minute resolutions.”

 

Remember in 2011, even though at that time a debt-limit deal was reached, S&P Global lowered the U.S.’s credit rating from AAA down to AA+ and it has not recovered since.

 

Canada is rated AAA by two of the ratings companies.

 

Stock Indexes:

 

Probably not surprisingly, as of this typing, stock indexes reacted negatively to the ratings news with the E-mini Dow Jones losing more than 300 points, roughly a 2% haircut. The E-mini Nasdaq is off ±325 points, a similar 2% correction.

 

Energy:

 

As the stock market foundered, crude oil felt weak in the knees as well and by mid-session, the September contract had sold off $3.00 per barrel from its Sunday opening. This despite today’s EIA crude oil stocks report showing a 17 million barrel reduction in U.S. crude stocks; the largest drop in inventories since 1982.

 

Grains:

 

After trading within 13 cents of its April 2022 highs last week, November soybeans factored in an expected conga line of wet weather fronts moving broadly over the U.S. Midwest and sold off ±$1.00 down to ±$13.25/bushel, a $5,000 per contract move, the bulk of which comprised just three trading sessions. Estimates for this year’s crop are a virtual wild card given the approach of August, its most critical growing period, so expect volatile price movement throughout.

 

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.

Futures Trading Levels

08-03-2023

#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.

E-Mini S&P 500: Origins, Viability, and the Rise of Micro S&P Products

Posted on by Cannon Operations

Find out more about trading E-Mini S&P 500 contracts with Cannon Trading Company here.

The E-Mini S&P 500 is a widely traded stock index futures contract that provides exposure to the S&P 500 index. In this article, we will explore the history of the E-Mini S&P 500, understand its viability as a futures contract, and examine the evolution of micro S&P products. We will delve into the conception of trading the S&P 500 index as an E-Mini futures contract, the reasons behind its success, and the subsequent development of micro S&P contracts.

I.Origins of the E-Mini S&P 500:

The E-Mini S&P 500 came into existence as a response to market demands and advancements in technology. Its creation was driven by the Chicago Mercantile Exchange (CME), which sought to introduce a more accessible and cost-effective way for traders to gain exposure to the S&P 500 index.

  1. Conception of E-Mini Futures: The concept of trading the S&P 500 index as an E-Mini futures contract was conceived by the CME. The exchange recognized the need for smaller-sized contracts that would allow individual traders to participate in stock market index trading without the capital requirements of full-sized contracts.
  2. Introduction of E-Mini S&P 500: In September 1997, the CME launched the E-Mini S&P 500 futures contract, marking a significant milestone in the evolution of stock index futures trading. The E-Mini S&P 500 contracts represented a fraction of the value and margin requirements of their full-sized counterparts, making them more accessible to a wider range of market participants.

II. Viability of the E-Mini S&P 500 Futures Contract:

Several factors contribute to the viability of the E-Mini S&P 500 as a futures contract:

  1. Broad Market Exposure: The S&P 500 index is widely regarded as a benchmark for the overall performance of the U.S. stock market. Comprising 500 large-cap U.S. companies, it represents a diverse range of sectors and industries. The E-Mini S&P 500 futures contract provides traders with exposure to this broad market index, allowing them to speculate on or hedge against market movements.
  2. Liquidity and Efficiency: The E-Mini S&P 500 is one of the most liquid futures contracts globally. Its popularity and high trading volume ensure ample liquidity and tight bid-ask spreads. This liquidity, combined with electronic trading platforms, allows for efficient price discovery and ease of trade execution.
  3. Market Influence and Visibility: The S&P 500 index’s importance in the financial industry contributes to the E-Mini S&P 500’s viability as a futures contract. The index is widely followed by investors, analysts, and market participants worldwide. Its performance influences market sentiment and serves as a reference point for various investment strategies.

III. Evolution of Micro S&P Products:

Building upon the success of the E-Mini S&P 500, the CME introduced micro S&P products to further enhance accessibility and cater to individual traders.

  1. Introduction of Micro E-Mini S&P 500: In May 2019, the CME launched Micro E-Mini S&P 500 futures contracts. These contracts are one-tenth the size of the E-Mini S&P 500, allowing traders to participate in the market with even smaller capital requirements. Micro E-Mini S&P 500 futures provide greater flexibility and precision for traders with limited capital or those seeking to fine-tune their exposure.
  2. Advantages of Micro S&P Products: Micro S&P products offer several advantages. They require lower margin requirements, making them more accessible to retail traders and smaller institutional investors. Additionally, they enable traders to more precisely tailor their positions, adjust risk levels, and scale their exposure based on their trading strategies and capital availability.
  3. Micro E-Mini Success: The introduction of micro E-Mini S&P 500 contracts has gained significant traction in the futures market. The smaller contract size, lower margin requirements, and high liquidity have made micro S&P products popular among individual traders and allowed for increased participation and diversity in the market.

The E-Mini S&P 500, conceived by the CME, revolutionized stock index futures trading by providing accessible and cost-effective exposure to the S&P 500 index. Its viability stems from the broad market exposure, liquidity, and market influence associated with the S&P 500 index. The subsequent introduction of micro S&P products, such as the Micro E-Mini S&P 500, further enhanced accessibility, flexibility, and precision for traders. The rise of micro S&P products has attracted retail traders and smaller institutional investors, fostering increased participation and diversification in the futures market. Overall, the E-Mini S&P 500 and micro S&P products have played instrumental roles in democratizing access to stock index trading and shaping the landscape of futures markets.

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.

Trading Week Ahead: What to Watch Out For + Trading Levels for August 1st 2023

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

The Week Ahead, by John Thorpe, Senior Broker

“Non Farm Payrolls and may the good Earnings continue.”

For roughly the half way mark in this earnings season, believe it or not, earnings are following expectations and declining for the third straight quarter.

Let me say that again, AS EXPECTED, earnings are declining for the third straight quarter. As expected, according to FACTSET the largest quarterly earnings decline since Q2 2020 is @ -7.3% projected this quarter for all combined reports. But Wait! the indices are high fliers? !! for the year the Nasdaq is up 36%, the S&P is up 20% and the Dow is up nearly 7%.

Why? The economic data continues to surprise to the upside, When Bad is not as bad as expectations”? and after street pundits have been calling for a recession over the past 18 months and the Labor market still characterized as “tight” by Fed Chair Powell last week we have a dichotomy in Fiction vs Fact that is driving prices higher as a “softlanding” with perhaps nary a recession will result from all the fed tightening when the Fed Board declares inflation whipped is gaining traction with some economists.

The tight labor market is keeping the recession from creeping into our economy,  BTW earnings expectations have been largely muted and the bar substantially lowered however, earnings so far, even though the lowest since Q@ 2020, have exceeded analysts expectations over 80% of the time this quarter.

This week AMD, CAT PFEW SBUX report after the close on Tuesday. AAPL and AMZN report Thursday after the close.

On the Economic Data front the biggest reports are employment based, JOLTS 9AM CDT Tuesday, ADP 7:15 CDT Wednesday, Jobless Claims at 7:30 am CDT and the big Monthly NonFarm Payrols on Friday @ 7:30 CDT

 

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.

Futures Trading Levels

08-01-2023

#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.

E-Mini Futures: Function, Creation, Popularity, and Trading Volume

Posted on by Cannon Operations

Find out more about trading E-Mini Futures with Cannon Trading Company here.

E-Mini futures are popular financial instruments that provide market participants with exposure to various stock market indexes. In this article, we will explore the function and purpose of E-Mini futures in the futures market, delve into their creation and the circumstances that led to their inception, analyze why they are widely traded by futures traders, and examine the factors contributing to their high trading volume. Specifically, we will focus on E-Mini S&P, E-Mini Nasdaq, E-Mini Dow, and E-Mini Russell contracts.

I. Function and Purpose of E-Mini Futures:

E-Mini futures serve several key functions in the futures market:

  1. Index Exposure:
    E-Mini futures allow traders to gain exposure to stock market indexes without physically owning the underlying stocks. They track the performance of the respective indexes, providing investors with a convenient way to speculate on or hedge against broad market movements.
  2. Risk Management:
    For institutional investors, E-Mini futures serve as essential risk management tools. These contracts enable portfolio managers to protect their equity holdings by hedging against potential market downturns.
  3. Portfolio Diversification:
    E-Mini futures provide an avenue for diversifying investment portfolios. By incorporating exposure to multiple stock market indexes, investors can spread their risk and potentially benefit from different market dynamics.

II. Creation of E-Mini Futures:

E-Mini futures were created by the Chicago Mercantile Exchange (CME) in the late 1990s in response to changing market dynamics and investor demands.

  1. Circumstances Leading to Creation:
    Prior to the introduction of E-Mini futures, trading full-sized contracts of stock market indexes required substantial capital and presented barriers to entry for individual traders. The CME recognized the need for smaller-sized contracts that would be more accessible and cost-effective for a wider range of market participants.
  2. Introduction of E-Mini Contracts:
    To address these concerns, the CME launched the E-Mini S&P 500 futures contract in September 1997, followed by the introduction of E-Mini Nasdaq 100, E-Mini Dow, and E-Mini Russell contracts. These contracts represented a fraction of the value and margin requirements of their full-sized counterparts.

III. Popularity of E-Mini Futures:

E-Mini futures have gained widespread popularity among futures traders for several reasons:

  1. Accessibility: E-Mini futures lowered the entry barriers for individual traders, allowing them to participate in stock index trading with smaller capital requirements compared to full-sized contracts. This accessibility attracted a broader range of market participants, including retail traders and smaller institutional investors.
  2. Liquidity: E-Mini futures contracts are highly liquid, offering traders ample opportunities to enter and exit positions without significant market impact. The combination of active market participants and electronic trading platforms enhances the liquidity and efficiency of these contracts.
  3. Diverse Market Exposure: E-Mini futures cover multiple stock market indexes, providing traders with a range of choices to suit their investment strategies and preferences. This diversity allows traders to focus on specific sectors or take a broader market approach.
  4. Leverage and Margin Efficiency: E-Mini futures offer leverage, enabling traders to control a larger notional value with a smaller amount of capital. The margin requirements for these contracts are typically lower than their full-sized counterparts, making them more attractive to traders seeking increased leverage and capital efficiency.

IV.High Trading Volume of E-Mini Futures:

E-Mini futures contracts consistently trade at high volumes, driven by several factors:

  1. Index Importance: The stock market indexes represented by E-Mini futures, such as the S&P 500, Nasdaq 100, Dow Jones Industrial Average (Dow), and Russell 2000, are widely recognized and closely followed by investors and market participants worldwide. The relevance and significance of these indexes contribute to the high trading volume of their associated E-Mini futures contracts.
  1. Market Volatility and Price Discovery: Stock market indexes often experience periods of heightened volatility, attracting active traders seeking profit opportunities. E-Mini futures contracts provide a liquid and efficient avenue for participants to capitalize on price movements and engage in speculative trading. The trading volume increases during periods of market volatility, as traders react to news events and changing market conditions.
  2. Algorithmic and High-Frequency Trading: The rise of algorithmic and high-frequency trading has significantly impacted trading volume in E-Mini futures contracts. These automated trading strategies thrive in liquid markets, capitalizing on small price differentials and exploiting short-term trading opportunities. The high liquidity of E-Mini futures contracts makes them ideal for algorithmic and high-frequency trading, further boosting their trading volume.

 

E-Mini futures play a vital role in the futures market, offering market participants index exposure, risk management tools, and portfolio diversification. Created by the CME in response to market demands, E-Mini futures provide accessibility, liquidity, and diverse market exposure. Their popularity stems from their accessibility, broad market appeal, and lower margin requirements. The high trading volume of E-Mini futures can be attributed to the significance of the underlying stock market indexes, market volatility, and the participation of algorithmic and high-frequency traders. Overall, E-Mini futures have become key instruments for traders seeking exposure to stock market indexes and actively participating in the futures market.

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.

Weekly Newsletter: Price Confirmation Filters out “bad trades”? + Levels for July 31st

Posted on by Ilan

Cannon Futures Weekly Newsletter Issue # 1156

 

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

Have a safe Memorial Day Weekend. Trading Schedule HERE

In this issue:

  • Trading Resource of the Week – Filter Noise with Price Confirmation
  • Broker’s Trading System of the Week – ZB Day Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

  • Trading Resource of the Week – Entering futures using stop orders as “price confirmation”

By Ilan Levy-Mayer, VP
Watch video below on how you can possibly filter out some of the losing trades by using STOP orders as a way to ENTER trades ( rather than the typical stop loss use).
Entering Futures Using Stop Orders as "Price Confirmation"
Try a FREE demo of the platform used to show the charts in this educational article. The platform is FREE and has charts, news, DOM, T&S, Alerts, advanced order entry, options and MUCH MORE!
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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
$10,000
COST
USD 65 / 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.

  • Trading Levels for Next Week

Daily Levels for July 31st, 2022
#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
Would you like to receive daily support & resistance levels?
Yes
S
No
S

Weekly Levels

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  • Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week: www.mrci.com 

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.

Quick Videos on Trading Techniques + Futures Trading Levels for July 28th 2023

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

Trading Videos

Watch a series of short videos, where our VP, Ilan Levy-Mayer shares his personal preferences and opinions on different trading topics.
  • Ever wondered when to exit a trade? Take a look at what Ilan has to share on Bollinger Bands and a study called PARABOLICS
  • Some common uses you can make of support and resistance levels.
  • Filter out the noise with range bar charts
  • “Price Confirmation”

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.

Futures Trading Levels

07-28-2023

#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

97bf6f13 e92f 470f a4f1 ec587f3a27ed

 

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.

Highlights, Announcements + Trading Levels for 7.27.2023

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

Bullet Points, Highlights, Announcements

By Mark O’Brien, Senior Broker

General:

 

As expected, today Federal Reserve officials raised interest rates by 25 basis points. This puts the Federal Funds Rate – the central bank’s key borrowing rate – at a range of 5.25 to 5.50. This is the highest level at which Fed Funds have been set since 2001. The vote was unanimous among the Fed governors to take this latest step in the bank’s efforts to rein in inflation and cool the economy. This increase is the latest in the fed’s months-long effort to rachet up borrowing costs resulting in a reduction in demand for goods, services and labor in the economy.

 

WTI crude oil has been repeatedly plumbing its lows of the year between $67 and $70 per barrel the entire second quarter. Yesterday it traded within 10 cents of $80.00 per barrel intraday (basis Sept.) to 3-month highs – a solid ±$12 per barrel move this month; a ±$12,000 per contract move. Analysts largely attribute the increase to recently announced output cuts by Saudi Arabia and Russia.

 

September soybeans traded up 21 ¼ cents today to this crop year’s and life-of-contract highs, closing at $15.56 ½ per bushel. The current rally off it’s late-May lows just above $12.00 per bushel (a ±$17,500 per contract move) reflect the continued sentiment that U.S. soybean crop conditions will continue to deteriorate as harvest approaches.

Plan your trade and trade your plan.

 

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.

Futures Trading Levels

for 07-27-2023

#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

3b644da2 2bee 4d39 8d98 5208a20bec39

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.

Gold Futures: A Comprehensive Analysis

Posted on by Cannon Operations

Find out more about trading gold futures with Cannon Trading Company here.

Gold futures represent an essential segment of the global financial landscape, attracting investors, traders, and central banks seeking to manage risk and speculate on the precious metal’s price. This comprehensive analysis delves into the world’s top producers of gold, central banks holding gold reserves, exchanges where gold is traded globally, and the historical evolution of gold futures. Additionally, we explore gold’s unique status as a safe-haven asset and compare it to other precious metals, particularly platinum.

Top Producers of Gold in the World

  1. China: China consistently ranked as the largest producer of gold, with significant mining operations throughout the country.
  2. Russia: Russia stood as the second-largest producer, with vast gold reserves and mining activities in Siberia and the Far East.
  3. Australia: Australia was a major player in the gold mining industry, with substantial deposits in Western Australia.
  4. United States: The US boasted significant gold reserves, with mining operations in states like Nevada, Alaska, and South Dakota.
  5. Canada: Canada held substantial gold reserves, with mining activities in provinces like Ontario and Quebec.
  6. Peru: Peru was a prominent gold producer, with mining operations in the Andes region.
  7. South Africa: South Africa, historically a major gold producer, faced challenges due to declining production and increased depth of mining operations.
  8. Ghana: Ghana was a leading gold producer in Africa, with rich deposits and well-established mining operations.

Central Banks Holding Gold Bullion in Reserves

Central banks have historically viewed gold as a reliable store of value and a means to diversify their reserve assets. As of September 2021, some of the largest holders of gold bullion in their reserves included:

  1. United States: The United States held the largest gold reserves among central banks, primarily stored at the Fort Knox Bullion Depository and other secure locations.
  2. Germany: Germany was the second-largest holder of gold reserves, with significant portions stored domestically and abroad.
  3. Italy: Italy ranked among the top holders of gold bullion in its central bank reserves.
  4. France: France also held considerable gold reserves, stored in various locations.
  5. China: China had been steadily increasing its gold reserves in recent years, aiming to diversify its foreign exchange holdings.
  6. Russia: Russia significantly increased its gold reserves, strategically diversifying away from traditional reserve currencies.

Exchanges Where Gold is Traded Around the World

Gold is actively traded on various exchanges worldwide, providing a liquid and accessible market for participants. Some of the prominent exchanges for gold trading include:

  1. COMEX (Commodity Exchange, Inc.): Located in the United States and part of the CME Group, COMEX is one of the largest and most influential exchanges for gold futures trading.
  2. London Bullion Market Association (LBMA): The LBMA is an over-the-counter market based in London, where gold is traded through a network of dealers.
  3. Shanghai Gold Exchange (SGE): The SGE, based in China, has gained significance as a major exchange for physical gold trading.
  4. Tokyo Commodity Exchange (TOCOM): TOCOM facilitates gold futures trading in Japan.
  5. Dubai Gold & Commodities Exchange (DGCX): DGCX serves as a significant platform for gold futures trading in the Middle East.

History of Gold Futures

The concept of gold futures traces back to ancient civilizations, where contracts for future delivery of gold were used to facilitate trade and secure prices. However, the modern history of gold futures can be traced back to the 1970s when the US officially ended the convertibility of the US dollar into gold (the gold standard).

This pivotal moment marked the beginning of a new era for gold futures, as the precious metal shifted from being the basis of currency to a financial instrument for investment and hedging. In 1974, the first-ever gold futures contract was launched on the COMEX exchange, revolutionizing the way gold was traded and priced.

Since then, gold futures have evolved to become a cornerstone of global financial markets. Investors and traders use gold futures to speculate on price movements, hedge against inflation and currency risk, and diversify their portfolios. Gold futures remain popular due to their high liquidity, ease of trading, and their status as a safe-haven asset in times of economic uncertainty.

Gold as a Safe Haven

One of the most enduring attributes of gold is its role as a safe-haven asset. In times of economic and geopolitical uncertainty, investors often flock to gold as a store of value and a hedge against market volatility. The precious metal has a historical track record of preserving purchasing power during periods of inflation and financial crises.

During the 2008 global financial crisis, for example, gold prices surged as investors sought refuge from the turmoil in traditional financial markets. Similarly, during the COVID-19 pandemic in 2020, gold experienced a significant rally as central banks implemented stimulus measures and investors sought safety amid economic uncertainty.

Gold vs. Platinum

Gold and platinum are two of the most valuable and sought-after precious metals globally. While they share certain characteristics, they also exhibit key differences.

  1. Supply and Demand: Gold has a long history as a store of value and is highly liquid due to its wide acceptance as a monetary asset and jewelry component. Platinum, on the other hand, has a more limited history as a precious metal and is primarily used in industrial applications, particularly in catalytic converters for vehicles.
  2. Price and Market Dynamics: Gold generally commands a higher price per ounce than platinum. The gold market is more extensive and active, with higher trading volumes and more significant price fluctuations.
  3. Safe Haven Status: Both gold and platinum can act as safe-haven assets, but gold’s status is more established and widely recognized.
  4. Industrial Demand: Platinum’s primary industrial applications give it some exposure to economic cycles and industrial demand, which can impact its price.
  5. Jewelry and Investment Demand: Gold has a stronger association with jewelry and investment demand, making it more appealing to a broader range of investors and consumers.

Gold futures have a rich historical legacy that stretches back centuries, from facilitating trade to becoming a financial instrument for hedging and speculation. As one of the top producers of gold, the United States plays a significant role in the global gold market. Central banks across the world hold substantial gold reserves, recognizing the precious metal’s enduring value. Gold’s status as a safe-haven asset cements its place in investors’ portfolios during times of economic uncertainty. While platinum shares some attributes with gold, it remains primarily associated with industrial applications. As global financial markets evolve, gold futures will continue to be a critical component, offering participants an avenue for risk management and investment diversification.

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 at 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.

Customized Trading Signals + Futures Trading Levels for July 26th 2023

Posted on by Ilan
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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.

Futures Trading Levels

for 07-26-2023

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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.

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.