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Category: Futures Trading

Futures trading is done by two main parties, one of which is the hedger and the other one is the speculator. Where a speculator is there to trade for either their own accounts or that of their clients, a hedger always uses futures as a possible protection from losses. Hedgers can also be described as individuals or business owners who are more risk averse. Speculators and hedgers are likely to benefit from futures trading if the trader has a strong ability to analyze the markets and understands that future behavior. Though futures can behigh risk, they offer an equally high return and are thus very tempting.

In case you are new to futures trading you need to understand how things work. We at Cannon Trading are there to help with your understanding of all the elements of futures trading and also counsel and advise you with the same. Our knowledge base featured on our website, is a store house of information. In order to know every aspect of futures trading, you must read through these articles that have been listed in this category archive. Go through it and get better informed!

Futures Trading Levels, Uncertain Near Future Expectations

Posted on by Ilan

Another interesting option expiration day. Many changes in market direction, volatility in both sides of the market.

I have no idea of what to expect of this market for next week. Probably more volatility?

I guess I will wait and see price action Sunday night and Monday morning before forming an opinion.

Wishing you a great weekend and recharge for next week trading.

Mini Russell 2000 daily chart for your review below:

Daily Futures chart of the Mini Russell 2000 from August 19th, 2011

Daily Futures chart of the Mini Russell 2000 from August 19th, 2011

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. Continue reading “Futures Trading Levels, Uncertain Near Future Expectations”

Futures Trading Levels, It Is a Bear Market

Posted on by Ilan

Per my comments yesterday, we did see the market take the next leg after consolidating for a few days and it was a down leg….and again volume was significantly higher than we had during the bounce.

The trend is obviously down, but bear markets can also have powerful rallies, intraday and on daily chart basis. Separate the daily chart from your minute to minute trading action. Know what time frame you are trading and know your trading goals. If you are a swing trader then look at the daily chart AND hourly chart but don’t let the shorter time frame picture distort your longer term view. On the flip side, if you are a day trader who is using primarily 1 min chart or tick charts etc., understand what the daily and hourly picture looks like but make your trading decisions based on the time frame you are working with.

Daily chart for your review with some FIB extensions on the way down. 1206.75 is now the first MAJOR resistance, 1103 is the first defense before we visit the 1077 lows made August 9th

Daily Futures chart of the Mini S&P 500 from August 18th, 2011

Daily Futures chart of the Mini S&P 500 from August 18th, 2011

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. Continue reading “Futures Trading Levels, It Is a Bear Market”

Futures Trading Levels, Next Leg: Up or Down?

Posted on by Ilan

Stock indices are consolidating for the last 3 sessions, trading between 1176 and 1207 on the mini SP 500.

The fact that the consolidation is taking place after a big move down and on lesser volume suggests to me that we are about to see another big move. My guess is that if we break below 1180 on the way down, the next big leg is lower and if we break above 1212 then the next big leg will be towards the 1280 region. Only time will tell if my speculation is correct. In the mean time, know the time frame you are trading, the risk you are willing to take, calculate probabilities and risk / reward and then once you have planned your trade, trade your plan. And yes, I know, it is much easier said than done…..

Daily Mini SP500 chart for your review below with the levels I mentioned above

Daily Futures chart of the Mini S&P 500 from August 17th, 2011

Daily Futures chart of the Mini S&P 500 from August 17th, 2011

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. Continue reading “Futures Trading Levels, Next Leg: Up or Down?”

Futures Trading Levels, Resistance at the Fibonacci Level

Posted on by Ilan

Many of our International clients trade European indices, mostly the DAX and Euro Stoxx 50.

Daily chart of the EuroStoxx 50 for your review below, note that the recent rally has stopped right against the 38.2% FIB level. Short term resistance is 2348.5 , near term support is 2242.0

Daily Futures chart of the EuroStoxx 50 from August 16th, 2011

Daily Futures chart of the EuroStoxx 50 from August 16th, 2011

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. Continue reading “Futures Trading Levels, Resistance at the Fibonacci Level”

Futures Trading Levels, The Million Dollar Question

Posted on by Ilan

Market has bounced over the last few sessions but on much lower volume compare to the sell off.

My opinion is that this is just a bounce but then again, bear market rallies can be vicious….

The Million $$$ question is not just where the market is going but more important when and where to get in and how to manage the trade once you are in.
This applies if you are a day trader a long term trader and anything in between….

Daily chart of the Mini Sp 500 along with important levels for your review below:

Daily Futures chart of the Mini S&P 500 from August 15th, 2011

Daily Futures chart of the Mini S&P 500 from August 15th, 2011

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.

Continue reading “Futures Trading Levels, The Million Dollar Question”

Futures Trading Levels, Cautions Trading Principles for High Volatility Markets

Posted on by Ilan

Big volume and HUGE volatility over the past two weeks. DEFINITELY changed the day trading environment.

The winning philosophy in market environment like this, is to be VERY picky with entry points that will provide for good risk / reward entry. That means that sometimes you will need to be able to risk NOT getting in a trade / “miss the trade” rather than chase the trade and let the high voltality “shake you out of the market”. Another method to cope with increased volatility is to simply reduce your trading size. Wishing everyone a good, relaxing weekend and recharge for another wild week to come!

Hourly Futures chart of the mini S&P 500 from August 12th, 2011

Hourly Futures chart of the mini S&P 500 from August 12th, 2011

Would you like to have access to my DIAMOND ALGO as shown above and be able to apply for any market and any time frame? The screen shot above is of the Mini S&P 500.

If so, please send me an email with the following information:

  1. Are you currently trading futures?
  2. Charting software you use?
  3. If you use sierra or ATcharts, please let me know the user name so I can enable you.
  4. Markets you currently trading?

Continue reading “Futures Trading Levels, Cautions Trading Principles for High Volatility Markets”

Futures Trading Levels, High Volatility Futures Markets See Gain Today

Posted on by Ilan

Big up day after what I feel was short term oversold conditions. Daily chart of the BIG SP 500 ( pit session ) for your review below. I think that the 1194 to 1200 psychological level will be the first test to see if this bounce is just a bounce or if it has legs to become a more meaningful recovery. Time will tell…..Either way I think tomorrow, being Friday, before the weekend after a volatile week, will be another high volatility day.

Daily Futures chart of the Big S&P 500 from August 11th, 2011

Daily Futures chart of the Big S&P 500 from August 11th, 2011

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.

Continue reading “Futures Trading Levels, High Volatility Futures Markets See Gain Today”

Trading the High Volatility Futures Markets

Posted on by Ilan

In this post:

1. Market Commentary
2. Support and Resistance Levels
3. December Mini S&P 500 Continuous Futures chart
4. Economic Reports
5. Highlighted Earnings Releases

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1. Market Commentary

What platforms hold up during high volatility futures market trading sessions?

Over the last few weeks and particularly the last 4-5 trading sessions, we have witnessed unprecedented volatility, volume and market speed.

I want to share some of my experience as I have been trading with clients and definitely following the second-to-second moves. I have two very powerful machines along with multiple internet connections that are very fast. I must admit that during these times when the SP moved as much as 20 points in minutes and 10-12 points in seconds, two platforms stood out in keeping up with market data without any delays.

On my two machines I run CQG, eSignal, NINJA, PFG best, MFGlobal and couple more. All very solid, respectable trading and charting packages. However the two that ranked the highest in my opinion in regards to speed, no latency and reliability are TransactAT (TransactAT demo here), and E-Futures (E-Futures demo here). I welcome you to contact us for more information/ feedback and/ or to try a free demo if you not already using one of these two.

On a different note, below you will see a screen shot from today’s live trading signals webinar I hold DAILY. If you have not had the trial before, feel free to register and come visit the live charts and the set ups I share real time.

You can also sign up for my real time intraday charts service. Continue reading “Trading the High Volatility Futures Markets”

Futures Trading Levels, Huge Market Moves

Posted on by Ilan

Wow…what moves, ranges and volatility and I am pretty sure it is not over yet….

The Dow had over 800 points range from high to low!!!

In these Extraordinary and Volatile market conditions it is imperative that you understand the type of risk you are exposed to when entering each trade BEFORE you start your trading day and before you enter your trade….not after…

While the market fear/greed and fundamentals will be the most important factors, all I can go by is my technical indicators. Using the indicators I have confidence in, I will look for a meaningful bounce on the Dow if the cash index can break above 11360. If it can not or fail against this level, I will look for the market to continue lower.

Daily Chart of the Dow Jones from August 9th, 2011

Daily Chart of the Dow Jones from August 9th, 2011

Would you like to have access to my DIAMOND ALGO as shown above

and be able to apply for any market and any time frame? The screen shot above is of the Dow Jones CASH INDEX.

If so, please send me an email with the following information:

  1. Are you currently trading futures?
  2. Charting software you use?
  3. If you use sierra or ATcharts, please let me know the user name so I can enable you.
  4. Markets you currently trading? Continue reading “Futures Trading Levels, Huge Market Moves”

Futures Trading Levels, High Volatility and High Volume

Posted on by Ilan

May be a record volume day, if not pretty close to it. We traded over 6 million contracts of the emini SP 500. We did over 5 Mil yesterday. Market has sold off quite a bit over the last few days. While my medium to longer term view is still bearish, short term I think we might be due for a bounce.

Daily Chart of the Mini S&P 500 from August 5th, 2011

Daily Chart of the Mini S&P 500 from August 5th, 2011

When markets trade with such high volatility, one must understand the enviroment he or she are trading in, which is quite different from the enviroment of few weeks ago.

Ranges are wider, speed is faster and volume is higher. You must take that into account, adjust your trading accordingly and make sure that you set limits as far as your daily risk is concerned and not allow for one trade or one trading day to wipe your trading account.

I wrote more about the topic in an article called: “Survivor day-trading“.

Have a great weekend!! Continue reading “Futures Trading Levels, High Volatility and High Volume”

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.