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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!

Back to Business: Key Reports Tomorrow and Contract Notices to Watch!

Posted on by Ilan

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Busy day tomorrow with JOLTS and ISM and many of the larger traders back to thwir trading desk!

Below are the contracts entering First Notice or Last Trading Day for the upcoming month. Be advised that 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. If you have any questions, please contact the Trade Desk
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Daily Levels for January 7th, 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.

AI Futures

Posted on by Ilan

The rise of artificial intelligence (AI) has significantly transformed various industries, and futures trading is no exception. From the earliest days of manually shouting orders on bustling trading floors to today’s sophisticated, algorithm-driven systems, the futures markets have undergone a seismic shift. Understanding this evolution sheds light on the advantages and disadvantages of automated and manual trading, while also highlighting why institutions like Cannon Trading Company remain pivotal for traders navigating these dynamic landscapes.

The Early Days of Futures Trading

Before the advent of AI, futures trading relied heavily on manual processes. Traders on the floor of exchanges like the Chicago Mercantile Exchange (CME) or the New York Mercantile Exchange (NYMEX) engaged in open outcry trading. Brokers shouted and used hand signals to execute trades in pits, creating a high-energy environment driven by human intuition, relationships, and rapid decision-making.

Manual trading in this era required a deep understanding of market fundamentals, technical analysis, and quick reflexes. For example, during the 1980s, crude oil futures saw dramatic price fluctuations driven by geopolitical tensions. Brokers had to assess global news, client positions, and technical charts almost instantaneously to execute profitable trades. The experience of a seasoned futures trader often made the difference between substantial gains and significant losses.

However, the manual system had its drawbacks. Human error, emotional decision-making, and inefficiencies in communication often resulted in missed opportunities or costly mistakes. As technology advanced, these limitations became apparent, paving the way for more sophisticated methods.

The Advent of Automated Futures Trading

The introduction of computers in the late 20th century marked the beginning of a new era for futures trading. Algorithms capable of processing vast amounts of data at incredible speeds began to replace manual processes. This evolution took a giant leap forward with the advent of AI and machine learning in the 21st century.

AI-driven futures trading systems leverage historical data, real-time market information, and predictive analytics to make split-second decisions. For example, in 2010, high-frequency trading (HFT) accounted for over 60% of all U.S. equity trading volume. These AI algorithms identify patterns and execute trades faster than any human trader could manage.

One notable anecdote involves the 2010 “Flash Crash,” where the Dow Jones Industrial Average plummeted nearly 1,000 points in minutes before quickly rebounding. AI algorithms played a significant role in this event. While their speed and efficiency can create liquidity, their interactions can also exacerbate market volatility. This dual-edged nature of AI trading underscores the importance of regulatory oversight and robust system design.

Advantages of AI in Futures Trading

AI futures trading offers numerous benefits:

  • Speed and Efficiency: AI algorithms process data and execute trades in milliseconds, providing a competitive edge in fast-moving markets. For instance, a futures trader using AI can capitalize on microsecond price discrepancies in commodities like gold or crude oil.
  • Data-Driven Decisions: AI systems analyze vast datasets, identifying trends and patterns that might be invisible to human traders. This ability allows for more informed decision-making.
  • Emotion-Free Trading: Unlike human traders, AI systems are immune to fear, greed, or panic, ensuring objective decisions even during volatile market conditions.
  • Scalability: AI can monitor and execute trades across multiple markets and instruments simultaneously, something no human can achieve.

Case Study: Renaissance Technologies, a hedge fund founded by mathematician James Simons, has consistently delivered high returns using AI-driven strategies. Their Medallion Fund, which employs machine learning algorithms, is one of the most successful trading funds in history, generating average annual returns of 39% before fees.

Disadvantages of Automated Trading

Despite its advantages, AI futures trading has its challenges:

  • Over-Reliance on Technology: Traders relying solely on AI risk significant losses if systems fail or encounter unforeseen market conditions.
  • Black Box Problem: Many AI algorithms operate as “black boxes,” meaning their decision-making processes are opaque. This lack of transparency can be problematic, especially during unexpected market events.
  • Market Volatility: The speed and volume of AI-driven trades can amplify market fluctuations, as evidenced by events like the “Flash Crash.”
  • High Development Costs: Building and maintaining AI systems require substantial investment in technology, data, and expertise.

Hypothetical Scenario: Imagine an AI system designed to trade soybean futures based on weather data. A sudden, unprecedented weather anomaly—not included in the training data—leads to erroneous predictions and significant losses. This scenario highlights the importance of continuous monitoring and improvement of AI systems.

Manual Trading: Strengths and Weaknesses

While AI dominates modern futures trading, manual trading still has its place. Human traders bring intuition, experience, and the ability to adapt to unique market conditions. For example, during the COVID-19 pandemic, some experienced futures brokers successfully navigated unprecedented market turmoil by relying on their deep understanding of fundamentals and client needs.

Advantages of manual trading include:

  • Flexibility: Human traders can quickly adapt strategies based on evolving market conditions or unexpected events.
  • Relationship Building: Successful futures brokers often cultivate strong relationships with clients, providing personalized advice and support.
  • Intuitive Decision-Making: Experienced traders can make judgment calls that AI systems might miss.

However, manual trading also has drawbacks:

  • Emotional Bias: Fear, greed, and other emotions can cloud judgment, leading to poor decisions.
  • Slower Execution: Human traders cannot match the speed of AI systems, particularly in high-frequency trading environments.
  • Limited Scalability: Managing multiple markets and instruments simultaneously is challenging for even the most skilled traders.

Why Cannon Trading Company Excels in Futures Trading

For traders seeking the best of both worlds, Cannon Trading Company stands out as an ideal partner. Here’s why:

  • Wide Selection of Platforms: Cannon offers access to top-performing trading platforms, catering to both manual and automated trading preferences. Their platforms support advanced charting, algorithm integration, and real-time market data.
  • Trust and Reputation: With a 5-star rating on TrustPilot and decades of experience, Cannon Trading Company has earned the trust of its clients. Their exemplary reputation with regulatory bodies ensures that traders can operate with confidence.
  • Expertise Across Experience Levels: Whether you’re a seasoned futures trader or a novice exploring the markets, Cannon’s team of experienced futures brokers provides personalized guidance and support.
  • Regulatory Compliance: Cannon adheres to stringent National Futures Association (NFA) guidelines, ensuring transparency and ethical practices in futures contract trading.

Case Study: A client of Cannon Trading Company reported transitioning from manual trading to a hybrid approach using AI-driven platforms. With Cannon’s support, they successfully implemented an algorithm to trade E-mini S&P 500 futures, achieving consistent returns while retaining the ability to override trades based on market insights.

The Future of AI in Futures Trading

Looking ahead, the integration of AI in futures trading will only deepen. Innovations like natural language processing (NLP) and reinforcement learning will enable systems to interpret news articles, social media sentiment, and even geopolitical developments to inform trading decisions.

For instance, an AI system analyzing weather patterns and crop reports might predict a supply shortage in wheat, prompting traders to enter long futures contracts. Alternatively, advances in quantum computing could revolutionize the speed and accuracy of predictive models, giving traders an unprecedented edge.

However, as AI continues to evolve, ethical and regulatory considerations will remain critical. Ensuring fairness, transparency, and accountability in AI-driven markets will be paramount to maintaining trust and stability.

The evolution of AI futures trading has revolutionized the industry, offering unparalleled speed, efficiency, and data-driven insights. While automated systems have their advantages, the human touch remains invaluable, particularly in navigating complex or unprecedented market scenarios.

For traders of all experience levels, choosing the right partner is essential. Cannon Trading Company’s combination of advanced platforms, stellar reputation, and personalized support makes it an ideal choice for anyone engaged in futures trading. Whether you’re leveraging cutting-edge AI or relying on the expertise of seasoned futures brokers, Cannon provides the tools and guidance needed to succeed in today’s dynamic markets.

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

Advice for New Traders Selecting a Future Trading Broker

Posted on by Ilan

Navigating the dynamic world of futures trading begins with a critical decision: selecting the right futures broker. This choice can make or break your trading experience for new futures traders. A futures trading broker is more than just an intermediary; they’re your partner in navigating complex markets, providing essential tools, and ensuring compliance with regulatory standards. Here are the top things to look for and ask about when choosing your future trading broker, with real-life examples and case studies to illustrate key points.

1. Regulatory Compliance and Reputation

The first step in evaluating a futures trading broker is to ensure they are properly regulated to minimize risk. The best future broker will comply with the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) guidelines to provide security for futures traders. For example, Cannon Trading Company’s exemplary reputation with regulatory bodies ensures traders can confidently trade futures. A trader once shared how their previous broker’s lack of transparency led to losses, reinforcing the importance of working with futures trading brokerage professionals like Cannon Trading, which has decades of experience with futures contracts.

Key Questions to Ask:

  • Are you registered with the NFA? CFTC?
  • Can you provide information about your regulatory record?

2. Platform Performance and Usability

Your futures trading platform is the nerve center of your operations. A top-performing futures trading platform is reliable, intuitive, and equipped with advanced features and meets key criteria. For instance, Cannon Trading offers various platforms tailored to various trading styles, from day trading and options trading to swing trading and micro e mini trading. One user highlighted how a platform’s seamless integration with advanced charting and other powerful tools significantly improved their decision-making process over other trading platforms.

Key Features to Evaluate:

  • Does the free platform support advanced charting and real-time data?
  • Are there mobile and desktop versions?
  • What customization options are available?

3. Data Feeds and Market Insights

Real-time data is crucial for executing trades of futures contracts. Delayed or inaccurate market data can lead to missed opportunities or potential losses. A hypothetical scenario involves a trader relying on outdated price data to execute a soybean futures trade, resulting in substantial losses. Cannon Trading’s consistent delivery of accurate and timely market data helps traders avoid such pitfalls as a result of market fluctuations.

Key Considerations:

  • What data feeds are included with the account?
  • Are additional market insights or analysis tools provided to help trade futures?

4. Commission Structure and Fees

Understanding the cost structure of trading is essential. Futures Brokers with high commissions or hidden fees can erode funds, especially for active traders. Cannon Trading’s transparent pricing model ensures traders are fully informed about all costs upfront. For example, a trader who switched to Cannon from a broker with exorbitant margin fees reported saving thousands of dollars annually.

Questions to Ask:

  • What is your commission/contract with current brokers?
  • Are there any hidden fees or inactivity charges?
  • What are the initial margin account requirements or minimum amounts to pay?

5. Educational Resources and Support

For new traders, a broker’s educational offerings can be invaluable. Trading tools such as webinars, guides, and market analysis reports can provide the foundation for informed trading of futures products. Cannon Trading excels in this area, with comprehensive training resources that cater to beginners and seasoned day traders alike. One case study involves a novice at day trading who leveraged Cannon’s great platform to understand margin rates and risk management, enabling them to grow their account steadily over time with information always available and easily accessible.

Resources to Seek:

  • Are educational tools included in the platform?
  • Do you offer live support or one-on-one coaching?

6. Customer Support and Responsiveness

Responsive and knowledgeable customer support can be a lifeline when issues arise. Whether it’s a technical glitch or a question about a specific futures market, having a reliable account support team is crucial. Cannon Trading’s 5-star ratings on TrustPilot often highlight their exceptional customer service and the securities they have in place. For example, during a volatile trading session, a Cannon representative’s quick intervention helped a trader resolve a platform issue and avoid account losses.

Support Features to Verify:

  • What are the customer support hours?
  • Is support available via phone, chat, and email?
  • How quickly do you respond?

Benefits of Trading Futures

Stock Market Graph

Top 10 Questions to Consider

To summarize, here are the top ten questions every trader should ask:

  1. Are you regulated by the NFA and CFTC?
  2. What trading platforms do you offer?
  3. Do you provide real-time market data?
  4. What are your commissions and margin rates?
  5. Are there hidden market data fees or charges?
  6. What educational tools are available?
  7. What is your reputation among other traders?
  8. How comprehensive is your money risk management toolset?
  9. What types of futures contracts do you specialize in?
  10. How can I reach customer support during trading hours?

Real-Life Anecdote: Switching to Cannon Trading

A trader named John shared his experience of switching to Cannon Trading after facing repeated issues with his previous broker. He emphasized the ease of transitioning to Cannon’s advanced futures trading platform, which provided superior data feeds and intuitive tools for managing margins. John’s trading experience and confidence were elevated within months, largely due to the enhanced trading environment and low commissions.

Case Study: Risk Management Tools

Consider a trader entering the crude oil futures market, notorious for its price fluctuations. Without proper risk management tools, such as stop-loss orders, significant losses are inevitable. Cannon Trading’s platforms are equipped with advanced risk management features, helping traders protect their capital. The trader’s ability to use advanced order entry such as trailing stop along with access to an experienced interactive broker who assisted with answers was huge in helping the trader understand risks and try to mitigate crude oil volatility.

Why Choose Cannon Trading Company?

Cannon Trading Company stands out for several reasons:

  1. Wide Selection of Platforms: Catering to diverse trading styles, their platforms offer tools for day traders, swing traders, and long-term investors.
  2. 5-Star Ratings: TrustPilot reviews consistently praise Cannon’s reliability and customer focus.
  3. Experience: With decades in the futures markets, Cannon provides a wealth of institutional knowledge.
  4. Regulatory Excellence: Their excellent record with the NFA and CFTC ensures traders can operate in a secure environment.

The Importance of Due Diligence

Due diligence in the futures markets is a critical process for managing risk and ensuring sound investment decisions. It involves a thorough investigation of market conditions, regulatory requirements, and the specific financial instruments being traded. Futures trading is inherently speculative, and the leverage involved amplifies both potential gains and losses. This makes due diligence an indispensable step for traders and investors alike.

Key aspects of due diligence include understanding the underlying asset of the futures contract, whether it is a commodity, financial instrument, or currency. Market participants should analyze historical price trends, volatility, and factors influencing supply and demand. Reviewing the liquidity of the futures market is also crucial, as illiquid markets can pose significant challenges for entering or exiting positions.

Regulatory compliance is another vital component. The best futures broker must verify that the futures exchange and clearinghouse are reputable and adhere to the relevant legal frameworks. This helps to minimize counterparty risk and potential fraud while keeping your funds safe.

As a new future contract trader, your trading often hinges on the broker you choose. While it’s tempting to rush into trading, taking the time to evaluate brokers like Cannon Trading can provide a significant edge when you trade futures. Real-life stories and case studies highlight the importance of selecting a broker with robust platforms, transparent fees, and reliable support. By asking the right questions and prioritizing key features, you can set a strong foundation for your trading journey.

Additionally, evaluating the costs associated with futures trading, including commissions, margin requirements, and potential slippage, is essential for accurate financial planning. By conducting comprehensive due diligence, traders can make informed decisions, mitigate risks, and enhance the likelihood of achieving their financial goals in the dynamic futures markets.

Crude Stocks

For more information, click here.

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

Weekly Newsletter: New Year’s Schedule, Order Flow Booklet & Trading Levels for Dec. 30th

Posted on by Ilan

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Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon, or wherever you listen to podcasts!
New Years 2025

In this issue:

  • StoneX/E-Futures Platform Updates
  • Important Notices – New year’s Trading Schedule
  • Hot Market of the Week – March Bean Oil
  • Trading Levels for Next Week
  • Trading Reports for Next Week
To our clients whose accounts are with StoneX and currently using the E-Futures Platform:

  • The new StoneX Futures platform will be up and running Monday, Dec. 16th.

 

  • Your existing LIVE user name and password will be accepted.

 

  • Your existing exchange data subscriptions will migrate to the new platform.
  • To login to the new trading interface please login here:

https://m.cqg.com/stonexfutures

  • If you like a demo ( and did not have a demo of StoneX Futures yet) CLICK HERE
  • In the mean time, your E-Futures platform will stay active until a date no earlier than Fri., Dec. 27th, with a firm decommission date to be announced
Important Notices – Next Week Highlights:

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The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved. It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com
Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.
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Would you like to get weekly updates on real-time, results of systems mentioned above?
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stars

Daily Levels for December 30, 2024

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Weekly Levels

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Trading Reports for Next Week

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

Markets Close Early Tomorrow! & Trading Levels 12.24.2024

Posted on by Ilan

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Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon, or wherever you listen to podcasts!
Christmas Banner2

Modified Trading schedule tomorrow!

Markets close early.

Make sure you are aware of the closing times for the markets you trade and we wish you Happy Holidays!!
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stars

Daily Levels for December 24, 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.

Weekly Newsletter: Xmas Schedule, Dollar Index Outlook & Trading Levels for Dec. 23rd

Posted on by Ilan

Pass the Knowledge – Feel Free to Forward to a Friend!

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon, or wherever you listen to podcasts!
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In this issue:

  • StoneX/E-Futures Platform Updates
  •  Important Notices – Christmas Trading Schedule
  • Hot Market of the Week – March US Dollar Index
  • Trading Levels for Next Week
  • Trading Reports for Next Week
To our clients whose accounts are with StoneX and currently using the E-Futures Platform:

  • The new StoneX Futures platform will be up and running Monday, Dec. 16th.

 

  • Your existing LIVE user name and password will be accepted.

 

  • Your existing exchange data subscriptions will migrate to the new platform.
  • To login to the new trading interface please login here:

https://m.cqg.com/stonexfutures

  • If you like a demo ( and did not have a demo of StoneX Futures yet) CLICK HERE
  • In the mean time, your E-Futures platform will stay active until a date no earlier than Fri., Dec. 27th, with a firm decommission date to be announced
Important Notices – Next Week Highlights:

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  • Hot Market of the Week

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

March US Dollar Index

The November 25th QT Chart of the Day alerted readers that the US dollar index had completed its first upside PriceCount objective. The chart proceeded to correct lower which is normal reaction. Now, we are attempting to resume the rally where new sustained highs would project a possible run to the second count to the 109.98 area.

 

PriceCounts – Not about where we’ve been , but where we might be going next!
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The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved. It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com
Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.
Would you like to get weekly updates on real-time, results of systems mentioned above?
Yes
No
stars

Daily Levels for December 23, 2024

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Weekly Levels

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Trading Reports for Next Week

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

December Futures Expiration and March Rollover: Key Dates and Holiday Schedule

Posted on by Ilan

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Listen to our podcast: Subscribe on Apple, Spotify, Amazon, or wherever you listen to podcasts!
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Stock Index December contracts (i.e., the E-mini and Micro S&P, Nasdaq, Dow Jones and Russell 2000.) expire Friday, December 20th (8:30 A.M., Central Time). At that point, trading in these contracts halts. Stock index futures are CASH SETTLED contracts. If you hold any December futures contracts through 8:30 A.M., Central Time on Friday, Dec. 20th, they will be offset with the cash settlement price, as set by the exchange.

FRONT MONTH IS NOW MARCH , the symbol is H25, example for Micro mini SP is MESH25

The month code for March is ‘H.’  Please consider carefully how you place orders when changing over.
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Christmas Holiday trading Schedule!

 

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Daily Levels for December 20, 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.

Post-FOMC Moves: Markets React to Rate Cut and Outlook

Posted on by Ilan

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Listen to our podcast: Subscribe on Apple, Spotify, Amazon, or wherever you listen to podcasts!
C24

The Day After FOMC – What will the Markets Do?

By Mark O’Brien, Senior Broker

 

General:

The Federal Reserve lowered interest rates by a quarter percentage point today, lowering the Fed’s benchmark federal-funds rate to a range between 4.25% and 4.5%, a two-year low.

“Today was a closer call but we decided it was the right call,” Powell told reporters at its post-announcement press conference. “It was the best decision to foster achievement of both of our goals,” referring to price stability and maximum employment.

The Fed cut rates at its two previous meetings, beginning with a half-percentage-point reduction in September and a quarter-point cut last month.

The Federal Reserve downgraded its view of how inflation will progress next year.  Back in September officials had penciled in around four cuts next year.  New projections released Wednesday show officials expect to make fewer rate reductions next year.  Most penciled in two cuts for 2025 if the economy grows steadily and inflation continues to decline.

Stock Indexes:

The Dec. E-mini Dow Jones futures contract and its related cash index are approaching a fifty-year record with today’s sell-off capping a 10-day losing streak – its worst since an 11-day slide in 1974.  Despite the streak, the Dow sits roughly 5% from an all-time high.

Stock index futures across the board sold off after the announcement.  The Dec. E-mini S&P 500 has fallen ±160 points / ± 2.6% as of this typing, moving further away from its all-time closing high 6096.75 on Dec. 4.

Crypto:

After trading intraday yesterday to yet another all-time high of 108,960, December Bitcoin futures have fallen ±8000 points below 10100 late this session.

 

 

Daily Chart of the mini SP500 below:

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Daily Levels for December 19, 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.

Movers and Shakers: Markets Await Fed Decision Amid Retail Sales Strength

Posted on by Ilan

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Movers and shakers!

By John Thorpe, Senior Broker

 

The Equity markets got a little less frothy today ahead of the Final rate decision; prices down marginally. Some SMA crossovers are showing a downside break is in store for the DOW Index. Not so for the S & P or Nasdaq Indices. Although the S&P does not appear to be poised for a breakdown like the Dow, (range bound for the past 3 weeks) NQ’s story is a little different and the Magnificent 7 have continue to fuel the endless rally with only a minor 6/10th’s of a percentage correction. My personal view is this is simply a retail selling opportunity in advance of the FOMC results tomorrow, I call it a little “risk off”.

 

Energies, Grains, Metals, softs are all closing on the negative for the day with very few exceptions within the complexes.

 

US Advance Retail Sales Headline Recap

 

**US November Advance Retail Sales: +0.7%; expected +0.6%

**US November Advance Retail Sales ex Autos: +0.2%; expected +0.4%

 

**US revised October Retail Sales: +0.5% from +0.4%

 

Redbook Weekly US Retail Sales Headline Recap

 

**Redbook Weekly US Retail Sales were +4.5% in the first two weeks of December 2024 vs December 2023

**Redbook Weekly US Retail Sales were +4.8% in the week ending December 14th vs yr ago week

 

Redbook Weekly US Retail Sales Headline Recap

 

**Redbook Weekly US Retail Sales were +6.5% in the first week of September 2024 vs September 2023

**Redbook Weekly US Retail Sales were +6.5% in the week ending September 7 vs yr ago week

 

Updated: December 17, 2024 8:15 am

Federal Reserve US Industrial Production & Capacity Utilization Headline Recap

 

**Federal Reserve November US Industrial Production: -0.1%; expected +0.2%

**Federal Reserve November US Capacity Utilization: 76.8%; expected 77.2%

 

**Federal Reserve October US Industrial Production revised: -0.4%; prior -0.3%

**Federal Reserve October US Capacity Utilization revised: 77.0%; prior 77.1%

 

Updated: December 17, 2024 9:38 am

**US House Speaker Johnson Tuesday morning said the stopgap funding bill will have $10 billion for US farmers

Updated: September 10, 2024 12:49 pm

 

 

Watch Tomorrow’s Movers and Shakers:

 

 

Fed Funds FOMC Rate decision @ 1P.M. Central with 1:30 PM Presser with J. Powell to follow.

 

Consensus Outlook:

The US Federal Reserve will announce their FOMC policy statement Wednesday afternoon around 1:00 pm CT. Many economists expect the FOMC to lower the key Fed Funds rate by 25 basis points, to a range between 4.25% to 4.50%. However, after Tuesday’s strong November US retail sales data showed underlying economic momentum, pundits are wondering if the Fed may signal a cautious, slowing pace of interest rate cuts in 2025.

Soybeans Daily Chart Below:
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Daily Levels for December 18, 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.

Weekly Newsletter: Rollover, Levels for Monday, Sugar Outlook & More!

Posted on by Ilan
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Cannon Futures Weekly Letter Issue # 1221

In this issue:

  • StoneX/E-Futures Platform Updates
  •  Important Notices – Earnings, FOMC, Rollover, The Week Ahead.
  • Futures 102 – SP500 Outlook + Premium Daily Research Trial
  • Hot Market of the Week – March Sugar
  • Broker’s Trading System of the Week – NQ intraday System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

 

To our clients whose accounts are with StoneX and currently using the E-Futures Platform:

  • The new StoneX Futures platform will be up and running Monday, Dec. 16th.

 

  • Your existing LIVE user name and password will be accepted.

 

  • Your existing exchange data subscriptions will migrate to the new platform.
  • To login to the new trading interface please login here:

https://m.cqg.com/stonexfutures

  • If you like a demo ( and did not have a demo of StoneX Futures yet) CLICK HERE
  • In the mean time, your E-Futures platform will stay active until a date no earlier than Fri., Dec. 27th, with a firm decommission date to be announced

 

 

Important Notices – Next Week Highlights:

 

The Week Ahead

By John Thorpe, Senior Broker

 

  • 122 corporate earnings reports and a number of meaningful Economic data releases including Core Personal Consumption and Expenditures Index (PCE) a closely watched Data point for the FED.Additionally, The final fed funds rate decision of 2024 will be announced on Wed. Dec. 18th, to be followed by Chairman Powell’s presser 30 minutes later.Below are the Rate change Probabilities as of this morning from the CME Fedwatch tool.

     

     

    Prominent Earnings Next Week:

    • Mon. Quiet (32 rpts)
    • Tue. Quiet (19 rpts)
    • Wed. Micron, Lennar Homes Post close
    • Thu. Quiet (30 rpts)
    • Fri. Quiet (18 rpts)

     

     

    FED SPEECHES:

    • Wed. 1:30 P.M. CST FOMC Chair Jerome Powell, leads Fed Presser on Rate decision.

     

    Economic Data week:

    • Mon. NY Empire State Manu. Index, S&P Global PMI Composite,
    • Tues. Retail Sales , Redbook, Industrial Production, Business Inventories, Housing Market Index,
    • Wed. Bldg Permits, Housing Starts, FOMC Rate Decision, Economic projections
    • Thur. Jobless claims, Core PCR, GDP Final, Philly Fed, Conference Board Leading Economic Indicators, Existing Home Sales
    • Fri. Core PCE Price Index, Personal Income
    •  For stock index futures traders, it’s time to “roll over” and start trading the March ’25 futures contracts. This Friday, Dec. 20th at 8:30 A.M., Central Time, the Dec. ’24 futures contracts will officially halt trading and the exchange will cash settle all open positions. 

 

 

Futures 102: Daily Research Free Trial

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Get Personalized Trading Reports Like the One Above Directly to your Inbox!

SIGN UP FOR A FREE TRIAL

  • Get qualified support and resistance levels for precise risk management on different commodity markets.
  • Get pivot points that highlight shifts in the futures market momentum.
  • Get technical forecasts to keep you on the right side of a specific commodity trading market.
  • One on One “Daily Digest” with a dedicated series 3 professional.

 

 

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    • Hot Market of the Week 

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

March Sugar

The rally in March sugar ran out of momentum and the chart has been trending lower since. If the chart can sustain its break from here, the second downside PriceCount projects a possible run to the 20.16 area. It would take a trade below the September reactionary low to formally negate the remaining unmet upside count which would also be consistent with targeting the third downside count.

 

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.

Fusion NQ

 

PRODUCT

Nasdaq 100 Mini

 

SYSTEM TYPE

Swing Trading

 

Recommended Cannon Trading Starting Capital

$50,000

 

COST

USD 150 / 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.
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Daily Levels for December 16th, 2024

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Weekly Levels for the week of

December 16th, 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.

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.