No matter how much time and attention you pay to the details of future trading and futures exchange, sometimes it can get difficult to understand what these things are. Otherwise also known as futures markets, a futures exchange is where people trade future contracts.
This contract is to buy certain specific quantities of a certain commodity and/or a financial instrument. Another thing about the futures exchange is that the contracts traded on it are always standardized. And, there are a number of elements that define the standardization of the contract. There is a list of futures exchanges or futures markets that you must read about before entering the futures exchange.
We at Cannon Trading are there to help you understand and assist in matters related to futures markets. Apart from our expert traders and brokers who can be reached at any time, our online knowledge base helps you get all the information possible on the latest about futures markets in different parts of the world. So, in order to be better informed, read through all the blogs in this category archive.
LONDON, April 2 (Reuters) – An OPEC+ ministerial panel is unlikely to recommend any oil output policy changes at a meeting on Wednesday, five OPEC+ sources told Reuters, as oil prices hit their highest this year.
The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, will hold an online joint ministerial monitoring committee meeting (JMMC) on April 3 to review the market and members’ implementation of output cuts they have already agreed to extend.
* 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.
* 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.
* 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.
Some clearing firms are increasing the day trade margin requirements, prior to and immediately following the release.
The market exhibits serious, sharp moves during some of these events, especially if the number falls outside the expectations of the market.
The Consumer Price Index likely rose 2.9% over the year ending January, the slowest year-over-year inflation since March 2021, forecasters predict.
Policymakers at the Federal Reserve are watching inflation data closely to determine how soon, and how quickly, to cut the Fed’s key interest rate.
The CPI, a widely-watched gauge of inflation compiled by the Bureau of Labor Statistics, likely rose 2.9% over 12 months ending January, the lowest in nearly three years, according to a survey of economists by Dow Jones Newswires and the Wall Street Journal.
Forecasters are anticipating January’s report to more than wipe out an unwelcome uptick in December.
This and other inflation data over the next few months could be key in determining how soon, and how quickly, the Federal Reserve will cut its benchmark interest rate.
* 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.
Understanding psychological biases at work that can affect your trading plan
List generated by By John Thorpe, Senior Broker
Technical analysis is not a flawless science, and it is susceptible to various biases that can impact trading decisions and performance. Recognizing and addressing these biases is essential for becoming a more disciplined and successful trader.
Here are some common technical analysis biases and strategies to avoid or overcome them:
Confirmation Bias:
Bias: This occurs when traders only seek or give importance to information that confirms their existing beliefs or positions.
Avoidance Strategy: Actively seek out information and technical signals that might contradict your initial analysis. Be open to changing your view based on objective data rather than personal bias.
Overfitting Bias:
Bias: Overfitting happens when traders use too many technical indicators, parameters, or complex strategies to fit historical data perfectly, but these strategies may not perform well in future markets.
Avoidance Strategy: Keep your technical analysis simple and use a limited number of well-established indicators and patterns. Focus on robust strategies that have demonstrated reliability over time.
Recency Bias:
Bias: Traders tend to give more importance to recent price movements and patterns, assuming they will continue, while ignoring longer-term trends or historical context.
Avoidance Strategy: Consider a longer time horizon and look at historical price data to gain perspective. Avoid making impulsive decisions based solely on recent price action.
Anchoring Bias:
Bias: This bias occurs when traders fixate on a specific price level or a reference point, often the entry price, and refuse to adjust their positions or exit strategies accordingly.
Avoidance Strategy: Regularly reassess your positions and set stop-loss and take-profit levels based on current market conditions rather than anchoring to an arbitrary point.
Availability Bias:
Bias: Traders might rely too heavily on readily available information or recent news, leading to biased analysis and decision-making.
Avoidance Strategy: Seek a variety of information sources and avoid making hasty decisions based solely on the latest news. Maintain a broader perspective on market fundamentals.
Gambler’s Fallacy:
Bias: Traders may believe that past events, like a series of losses, increase the likelihood of future events, such as a win, even though markets are not governed by probability in the same way as games of chance.
Avoidance Strategy: Trade based on sound technical and fundamental analysis rather than expecting a change in luck. Each trade should be evaluated independently.
Emotional Bias:
Bias: Emotional responses, such as fear and greed, can cloud judgment and lead to impulsive decisions.
Avoidance Strategy: Develop a trading plan with predefined entry and exit points, risk tolerance, and position sizing. Stick to your plan and avoid letting emotions drive your actions.
Hindsight Bias:
Bias: After a trade has concluded, traders may believe they knew the outcome all along, leading to overconfidence in their abilities.
Avoidance Strategy: Keep a trading journal to record your analysis, decisions, and outcomes. This will help you learn from your experiences and avoid hindsight bias.
Self-Attribution Bias:
Bias: Traders may attribute successful trades to their skill and unsuccessful trades to external factors or bad luck.
Avoidance Strategy: Be honest with yourself about your strengths and weaknesses as a trader. Analyze both winning and losing trades to identify areas for improvement.
Anxiety Bias:
Bias: Anxiety can lead to hesitation or overtrading, causing traders to miss opportunities or make impulsive decisions.
Avoidance Strategy: Implement stress-reduction techniques, maintain discipline, and stick to a well-defined trading plan to mitigate anxiety-related biases.
Being aware of these biases is the first step toward becoming a more rational and disciplined trader. It’s also beneficial to continuously educate yourself, practice risk management, and seek feedback from mentors or peers to improve your trading skills and reduce the impact of these biases on your performance.
* 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.
Important Notices – 1099 Forms, CME Fees, FN & LT Days
Trading Resource of the Week – Futures Hedging Self Study Guide
Hot Market of the Week – March Copper
Broker’s Trading System of the Week – ES Day Trading System
Trading Levels for Next Week
Trading Reports for Next Week
Important Notices –
1099 forms will be generated for all futures trading accounts held by US clients that placed any trades during the 2023 calendar year. Traders should expect to receive their 1099 forms via mail, email or through their portal in early February.
1099 forms will be provided directly from the FCM to the client.
CME Fees Increase Update:
In a Special Executive Report released by the CME Group, it was announced that effective February 1, 2024, a number of transaction fees will see amended (increased) exchange / transaction fees.
Effective February 1, the CME Group is raising the exchange fees for a number of futures contracts.
For the COMEX metals products: Gold (GC), Silver (SI), Copper (HG) and Platinum (PL) fees are going up by 5 cents, from $1.55 to $1.60
For the COMEX E-mini metals products: miNY gold (QO), miNY silver (QI), miNY copper (QC) fees are going up by 25 cents, from $0.75 to $1.00
566 earnings reports next week
WASDE Report
Below are the contracts which are entering First Notice or Last Trading Day for the upcoming month. Be advised, for contracts that are deliverable, it is requested that all LONG positions be exited two days prior to First Notice and ALL positions be exited the day prior to Last Trading Day.
Trading Resource of the Week : Futures Hedging Self Study Guide!
Self-Study Guide to Hedging with Grain and Oilseed Futures and Options. Regardless if you are a farmer, rancher or simply looking to trade grains and livestock futures, this guide will help you understand the ins and outs of trading and hedging using futures and options.
Hot market of the week is provided by QT Market Center, A Swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.
March copper completed its first upside PriceCount objective and has settled into a range bound trade. IF the chart can resume its rally with new sustained highs, it would project a possible run to the second count in the 4.03 area, consistent with a challenge of the August high.
PriceCounts – Not about where we’ve been , but where we might be going next!
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.
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?
* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.
The 2024 World Cup Trading Championships® are just around the corner.
You are invited to enter the ultimate trading challenge, where some of the world’s best Futures and Forex traders compete.
The World Cup Trading Championships have been held since 1983 and are the most prestigious trading competitions in the industry. The winners of each division will prove that they are the best of the best.
The top profitable Entrants will be eligible to receive a magnificent pewter Bull and Bear trophy or a beautiful crystal Bull and Bear Trophy.
Real-money competitions based on net returns – no entry fee required.
Take on traders from across the globe to compete for coveted Bull & Bear trophies, glory, and new career opportunities.
Contact us at 1-310-859-9572 or Visit Us on the Web
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.
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.
A week of uncovering and discovering the reality rather than the hypothesis of market moving data events.
Sell the rumor and Buy the Fact? Or is it Buy the Rumor and sell the fact?
If you know what the market has been discounting, both statements can be true.
Trillions in Market Cap from Q4 report earnings this week
Mainly banks, perhaps the market had already corrected anticipating the earnings?
How will these stocks affect the current 2 month stock rally?
How will CPI affect the overall trend with this week’s release early Thursday ?
According to Fact set:
“The Financials sector will be a focus for the market during the next two weeks, as more than 70% of the S&P 500 companies that are scheduled to report earnings for the fourth quarter over this period are part of this sector. Companies in this sector expected to report earnings during these two weeks include Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo. The Financials sector is predicted to report the fourth-highest (year-over-year) earnings decline of all 11 sectors for Q4 at -3.1%”
For our Grain and Meat traders, THE PIVOTAL Crop Production report is going to be released this Friday @11 am CST.
The seasoned analysts believe this is the biggest report of the year as 2023 came to an end and could make for the grandest market moves as well.
Make it a fantastic trading year!
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.
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.
As has been the case in prior years, this week we’re seeing reduced daily trade volume across the futures markets. Adding to this environment, Last Trading Day for Jan. ’24 Natural gas is tomorrow the 27th, and both First Notice Day for January ‘24 CBOT soy complex futures and Last Trading Day for January ‘24 RBOB gasoline and ULSD Heating oil is this Friday the 29th.
Both natural gas and crude oil numbers are out tomorrow due to the short trading week.
Just what is a Troy ounce, anyway? For those trading precious metals futures like gold, silver, platinum and palladium, it’s the unit of weight by which those physical products are measured.
Turns out, a small town about 110 miles southeast of Paris and situated within the Champagne wine region was major intersection for parts of the Roman-era trade highways and then an important international trading hub during the Middle Ages (± 500 AD to 1500). The town’s name: Troyes (pronounced: troy). Right around the 12th and 13th centuries – call it the middle of the Middle Ages – an annual cycle of 2- to 3-week trade fairs flourished in the region and it was likely then that the unit of weight was standardized and first used. It essentially beat out other systems of weight developed in other parts of Europe and eventually it was made the official weight for gold and silver by England in 1824, called the British Imperial system. Four years later, the United States adopted it as an official weight standard for United States coinage. And today, your precious metals are still measured using this system.
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.
This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.
The tea leaves in recent weeks – measures of the U.S. economy and beyond – were already indicating the Fed. would leave interest rates alone for the third straight time, maintaining the target range of 5.25% to 5.5%, after holding its last FOMC meeting of the year today. So was the benchmark prediction gauge: the Fed Funds futures contract. Yes, there were a handful of softer data: household net worth and job openings declined, overdue loan payments and credit card balances rose, European data pointed to that region’s recovery easing off and China’s is still stuck in a ditch. At the same time, the monthly non-farm payrolls report came in better than expectations with average hourly earnings and working hours rising and the unemployment rate falling. The disposition of the Fed’s individual members’ expectations for future rate policy, commonly referred to as its “dot plot,” projected that they will lower borrowing costs to 4.6 percent by the end of 2024. That call for lower rates was widespread: not a single Fed official expected interest rates to be higher at the end of next year. Still, policymakers did not firmly declare victory. They kept alive the possibility of further rate increases if inflation should prove stubborn.
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.
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.
