Weekly Newsletter 1099: Introduction to Equity Index Products – FREE Online Trading Course + Trading Levels for the Week Ahead

Cannon Futures Weekly Newsletter Issue # 1099

Dear Traders,

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Enhance Your Trading, FREE COURSE: Introduction to Equity Index Futures Products

Course Overview If you were asked to picture trading the U.S. stock market, what comes to mind? You may think of trading shares of companies like Apple, ExxonMobil or Disney. But what if there was another way to express your views and gain broad-based exposure to U.S. equities – without trading each individual stock? One alternative is equity index futures and options. With a single transaction, investors can use these index-based contracts to manage risk or seek profits based on whether they think the stock market will rise or fall. Learn the basics of these contracts, including what they are, how they’re built and how many ways you can use them.
This comprehensive course will cover the following topics:
  • What’s an Index Future?
  • The Importance of Depth (Volume)
  • Hedging and Risk Management
  • Trading Opportunities in Equity Index Futures
  • Equity Intermarket Spreads
  • And More…..
CME Globex Memorial Day Holiday Schedule 2022
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 when it comes to Futures Trading.

Futures Trading Levels

05-31-2022

Futures Support & Resistance Levels 5.27.2022

Weekly Levels

Weekly Support & Resistance Levels

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

https://mrci.com

Date Reports/Expiration Notice Dates
MRCI Reports 5.26 - 6.03.2022

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

Next Support for NASDAQ? + Futures Trading Levels 4.27.2022

Get Real Time updates and more on our private FB group!
China, Ukraine/Russia, earnings, Inflation, rates and overall market sentiment sent stock futures much lower today.
NASDAQ been the leader so far and closed right on the first major support level below. Possible extended target as well as levels above for possible bounces, in the daily chart below for your review.
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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

04-27-2022

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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.

NQ Chart + Futures Trading Levels & Reports 4.22.2022

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Interesting intraday action on indices, led by the NASDAQ 100 futures, the NQ or MNQ for the Micros.

Market is sitting on a short term support level as can be seen in the daily chart below.

If you are a day trader, you may want to explore using range bar or volume charts rather than minutes chart as they may help reduce noise in quiet markets and help you make decisions faster when the markets are moving faster. WATCH VIDEO HERE.

NQ chart April
NQ, mini nasdaq futures daily chart on April 21st 2022

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

04-22-2022

Trading levels for futures

 

 

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

Screenshot 2022 04 21 130736

 

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.

SP500 “Buy Program” & Support and Resistance Levels 4.08.2022

Get Real Time updates and more on our private FB group!
Updates:
  • CME has launched Aluminum futures! more info available herecontact us if you would like to trade Aluminum futures.
  • Would you like to get access to daily research? Access info on what is moving the markets both technically and fundamentally? FREE TRIAL
  • Would you like a FREE CONSULTATION? Set up a time to talk with an experienced broker on variety of topics such as trading methods, indicators, concepts, questions on options/spreads/platforms and much more!
Stock Index futures were significantly lower today but bounced sharply off support levels, news sources cited “buy program” – I mentioned this to a client who asked me what the hell does it mean….
My speculation is that large institution had a “resting order” to buy at that levels, perhaps GTC order , perhaps new order but that was able to absorb all selling pressure and then price went higher, triggered more short covering, fueled intraday buying and helped an impressive intraday reversal.
Two big questions I have:
Am I correct?
What’s next?
My daily chart with some possible levels for what’s next below.
My speculation is as long as we can hold today’s lows, higher prices are path of least resistance.
Break below and it is a different ball game…..
I asked my colleague, John Thorpe for his feedback:
Why the buy programs? an over simplification is where we have been.. take a look at that low we got the bounce from.. and April 6th back in collegiate statistics 101 one of the first things we learn are the differences and applications of the Mean, the median and the mode… using the 4450 area this number satisfies the definition of the median and the mode if we begin taking our data points from the beginning of Q1 2021 for at least the last 6 months 4450 is the midpoint. it’s not that hard see why that is a critical area for the current market and potentially why, when the market got down to that level, Buy programs engaged. this is not to say this is a Fed put. what it does align with are the similarities between where the market was back on august , 31st 2021 and on the open 2 11 22. remember when the ES tested 4200 six times and successfully rallied? a close greater than 4500.00 is the goal and could be the springboard to a significantly higher move and, it may be possible there is a seasonal component too. all markets like to test and retest areas where they have been before. this is no different.
Emini ES daily Chart
Sierra Charts, Teton Order Routing
Contact us for a demo and/ or more information here!

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

04-08-2022

Futures Support and Resistance Levels 4.08.2022

 

 

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

Forex Factory 4.08.2022

 

 

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.

Key Points for Real Time Dow-Jones Futures Trading

Dow Jones Futures Blog

Dow-Jones In Real Time

Providing exposure to 30 of the largest companies in the U.S., the Dow-Jones futures market is directly correlated to the value of the Dow-Jones Industrial Average. Among the most liquid contracts on the exchange, the Dow futures are a favorite for all types of traders. Whether you are a scalper live streaming online, or you’re a position trader placing phone orders, the Dow futures are a diverse landscape with traders participating from all over the world.

Real time quotes are widely available across media outlets, trading platforms, and brokerages. The E-Mini Dow futures(YM) trade on the CBOT as part of the CME Group. Minimum tick size is one point with a value of $5.00 per point, per contract. The notional value of the E-Mini Dow contract can be calculated using the value of the Dow Jones Industrial Average times $5. A smaller alternative, the E-Micro Dow(MYM) contract trades at one-tenth the format of the former, or $0.50 per tick.

The Dow-Jones Advantage

Dow-Jones futures offer competitive margin requirements and leverage, allowing responsible investors and traders the opportunity to hedge larger positions with less capital. For U.S. Traders, the IRS classifies broad based index futures such as the Dow Futures under the 60/40 rule which allows trading profits to be taxed at 60% the more favorable capital gains rate, and only 40% as ordinary income (Check with a CPA before trading.)

As an investment device, the Dow-Jones futures provide real time leveraged exposure to the index value, which promotes capital efficiency for investors and traders.  This means that skilled risk managers, like yourself, will no doubt find competitive and creative solutions to manage risk.

The Dow Jones Futures market is a competitive market for tools and platforms to trade with.  Hence, a plethora of options are available to both retail and professional traders. The Dow-Jones Futures are traded on by many brokerages, software, and platforms, with access to real time data quotes being provided from the exchange through several different data providers.

Dow Jones Futures Live Stream

The Dow-Jones futures market shares a strong correlation to the other U.S. Index futures such as the Nasdaq 100, S&P500, and Russell 2000 contracts. This means that the U.S. markets tend to reflect the movement of one another with additional correlations to the bond markets, currencies, and many other commodities such as gold, silver, etc. Notably, the futures trade nearly 24 hours a day through the week, from Sunday evening until Friday. It’s arguable that if you consider the ease of shorting, capital efficiency, etc. it makes futures a much more valuable tool than ETF’s. Additionally, also  available are the Dow Futures Options contracts which expire monthly. Be sure to understand your risks, and consult with your broker before trading.

Key Points of the Dow-Jones Futures Market

  • Dow-Jones Futures provide leveraged exposure to the DJIA for traders and investors. Take caution when you are approaching a leveraged environment, as the risks can be substantial.
  • Multiple Contract Sizes for different sized investors, traders, and strategies
    • E-Mini(YM) – $5 per point
    • E-Micro(MYM) – $10 per point
  • Profits are taxed more favorably at the 60/40 rate.
  • Trade nearly 24 hours a day, 6 days a week.

You can download one of our trading platforms with live data and the options board here

E-Futures International | Futures Trading Platform & Broker Demo Account (cannontrading.com).

We will be happy to screen share with you and answer any questions you may have about futures related inquiries.

Author: Josh Meyers, Broker at Cannon Trading Company

Important: Trading commodity futures and options involves a substantial risk of loss. Therefore, recommendations contained in this letter are of opinion only and do not guarantee any profits. There is not an actual account trading these recommendations and past performances are not necessarily indicative of future results.

Energies and Equities Volatility & Support and Resistance Levels 1.20.2022

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Be Watchful for Stock Market & Petroleum Product Oscillations

By Mark O’Brien
The prevailing downward bias in stock indexes has plenty of justification: a 1.4 million single-day case spike in infections last week, market expectations for up to four interest rate hikes this year, less-than-robust readings for last week’s initial jobless claims and retail sales, potential Russian military action against Ukraine, surging energy prices (crude oil traded up to a 7-year high yesterday).
Yet, there are supportive elements capable of counteracting the equity index sell-off of recent days: traders may look at this latest correction as sufficient to compensate for future Fed. policy actions, rate hike fears will tend to moderate with softening economic data. The latest Omicron developments continue to be encouraging. New Covid-19 cases are plummeting in a growing list of places. Since early last week, new cases in Connecticut, Maryland, New Jersey and New York have fallen by more than 30 percent. They’re down by more than 10 percent in Colorado, Florida, Georgia, Massachusetts and Pennsylvania. In California, cases may have peaked. Acknowledging the tensions between Washington and Moscow, U.S. Secretary of State Anthony Blinken will meet with his Russian counterpart on Friday and promised “relentless diplomatic efforts to prevent renewed aggression and to promote dialogue and peace.”
Crude oil traders should expect the recent price increase to be met with increased volatility as political tensions involving major producers such as the United Arab Emirates and aforementioned Russia could exacerbate the already tight supply outlook. Blow-off tops should not be downplayed.

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

01-20-2022

Futures Support & Resistance Levels 1.20.2022

 

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: 

https://bettertrader.co/ 

Better Trader Economic Reports 1.20.2022

 

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.

Weekly Newsletter 1078: Rollover Notice and Trading Tips During Rollover & Support and Resistance Levels for the Week Ahead

Cannon Futures Weekly Letter Issue # 1078

Dear Traders,

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Trading 201: Trading During Rollover

Rollover Notice for U.S. Stock Index, Currency and Financial Futures
Heads up traders! We’re approaching important dates on the trading calendar.
Monday, December 13th is Last Trading Day for December currency futures. It is of the utmost importance for currency traders to exit all December futures contracts and start trading the next quarterly futures contract and the new front month: March ’22. Currency futures are DELIVERABLE contracts. By holding any December futures contracts through the close of Last Trading Day, you will be subject to delivering (short positions) or taking delivery of (long positions) the full notional value of the futures contract.
For stock index futures traders, on Friday, Dec. 17th, the Dec. ’21 futures contracts will officially halt trading and the exchange will cash settle all open positions at 8:30 A.M., Central Time.  Thursday, December 9th marked the traditional date traders started rolling Dec. stock index futures trades to the next quarterly futures contract and the new front month: also March ’22. Come forward to the new front month for the next ±90 days.
Finally, for financial futures traders (Ultra bonds, 30-yr. T-bonds, 2-, 5-, 10-yr. T-notes, etc.) the traditional roll-over day was Nov. 30th/First Notice Day (the date all open LONG positions became subject to delivery). The next front month – and now by far the more liquid – is also March ’22. For all longs and shorts not in the deliverables market, it’s time to trade March ’22 contracts.
The March exchange symbol for all these futures contracts is “H.” Check for the appropriate complete symbol for these new front month futures contracts on your trading/charting software. Make sure your quotes, charts, DOM’s are set to the correct futures contract month.
 Keep in mind the following:
  • Currencies are DELIVERABLE and you must be out and trading March as of today, Friday Dec. 10th
  • Stock index futures are cash settled on Friday Dec. 17th at 9:30 AM Eastern Time.
  • During the rollover period, especially with stock index futures, I noticed that the first few days will have two sided, volatile action. Think about it, you have large traders and institutions who are NOT day traders and carry large positions as speculation or a hedge and now they need to rollover from Dec. to March.
  • In my opinion, counter trend methods, mean reversion techniques can work better during rollover period but one must be very aware as past performance is not indicative of futures results.
  • Keep in mind, back in the days, many floor traders would “trade the spread” specifically with different techniques. I believe some traders still do using the screen.
  • Bottom line is know that this is rollover period, do research on past rollover periods, start trading the March contract and good trading and happy holidays!
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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 when it comes to Futures Trading.

 

Futures Trading Levels

12.13.2021

Support & Resistance Levels 12.13.2021

 

Weekly Levels

Weekly Support & Resistance Levels

 

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

https://mrci.com

Date Reports/Expiration Notice Dates

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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

Advice from a Seasoned Broker w/ Current Market Conditions & Support and Resistance Levels 12.08.2021

I am often asked by clients and prospects the following:
“I am not doing very well in my current trading – any ideas you can share?”
While the answer will vary from one individual to another based on their experience, risk capital, personality and much more, here are a few common themes one can explore and try to educate oneself:
  1. Try a different market. Many will trade the NQ and ES but perhaps trading markets like bonds, gold and crude oil will fit your situation better?
  2. Try using different time frames. Most common is use higher time frames and less leverage
  3. Get confidence using MICROS. Practice and confidence are extremely important. After a while demo lacks the main Ingredients: fear and greed. Trading live using MICROS can be a worthy extra step.
  4. Have you looked at using options for short term trading rather than futures?
  5. Have you explored trading futures alongside options and using the options as risk management?
  6. What about future spreads?
  7. Option Spreads?
The bottom line is that trading futures is a tough task but there are many different ways to try and get an edge. Not all ways will fit all traders. Learn, explore and try to find your niche.

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 when it comes to Futures Trading.

 

Futures Trading Levels

12-08-2021

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Economic Reports, Source: 

https://bettertrader.co/ 

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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.

Weekly Newsletter 1077: Adjust your Trading with Volatility & Futures Levels for the Week Ahead

Cannon Futures Weekly Letter Issue # 1077

Dear Traders,

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Get Real Time updates and market alerts on Twitter!

 

Trading 201: Adjust your Trading with Volatility

Unemployment report along with Omicron along with an already “very spicy markets” encouraged me to share some of the following pointers.
Hope it helps.
*While I have no idea were the market is going from day to day, minute to minute, week to week etc. I do know that in the past, some of the sharpest and largest rallies were short covering after a large sell off. More often than not market sell offs and volatility like we are seeing do not end up as V type of action but more like U or W when it is all said and done.
*Expect the unexpected…
* Have an idea of what you are looking to do, keep in mind possible risk and have a game plan. Now more than ever, plan your trade and than trade your plan!
* Think money management, hedging risk while you are still trying to figure out how to profit.
* Know what is going on, reports, current margins, current limits and more.
  • Consider short term options instead of futures and/or MICROS
*Trade smaller. The bands are much larger. Watch the VIX.
* DO NOT assume anything…if you are not sure, contact us and we will try our best to assist with the combined, vast experience we have here as a team.
* Wash hands, take this seriously and do your best to stay healthy….
My colleague, John Thorpe, Ex floor broker, contributed the following on the VIX and the VVIX:
We recommend all stock indices intraday traders to keep an eye on the VIX for directional clues and study, many of you have access through other means to view this critical trading barometer, VIX now trades 5 days per week ,23 hours per day. if you need to add the VIX data to your trading platforms , it’s 3 bucks per month, penny wise and pound foolish if you don’t. Contact your broker on how to add the Volatility Index traded through the CBOE to your trading platform
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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 when it comes to Futures Trading.

 

Futures Trading Levels

12.05.2021

Futures Trading Support & Resistance Levels 12.05.2021

 

Weekly Levels

Futures Trading Support & Resistance Weekly Levels

 

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

https://mrci.com

Date Reports/Expiration Notice Dates

MRCI Reports

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 & Trade Management in Volatile Markets, NQ Chart review & Support and Resistance Levels 12.01.2021

Dear Futures Trader,

Get Real Time updates and more on our private FB group!
On Friday, Omicron, the new COVID-19 variant took the oxygen out of newsrooms. Detected first in South Africa, this mutation is being described as potentially more contagious than the Delta variant. It is unknown whether the currently available vaccines will provide protection from it.
On Monday the markets shrugged the news and bounced hard….
Today, Tuesday fear, greed and everything in between took over again and we witnessed strong sell off across different markets with high volatility in many segments:
Stock indices, rates, grains, softs, energies…..
See 30 minute chart of the Mini NASDAQ from today below. In less than one hour, the difference from high to low was approximately $7750!! That is extreme leverage and can be a double edge sword…..This is when possibly trading smaller size, like 1-2 MICRO NQ may be a better fit for smaller accounts.
  1. Learn to reduce trading size. Perhaps trade smaller contracts like the micros.
  2. Adjust stops and entries based on volatility ( ATR/ Parabolics).
  3. Be extra picky on entries without chasing trades.
  4. Understand that loses are part of trading and this is definitely not a good time to “fight the markets”.
  5. Focus more on risk management and ways to protect certain positions as needed. Survive to trade another day.
  6. Consider possibly utilizing short term options rather than futures.
Useful link, just in case – -Example, cotton was down limit today, only sellers, no buyers….:
eMini NQ 30 minute chart

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 when it comes to Futures Trading.

 

Futures Trading Levels

12-01-2021

Futures Support and Resistance Trading Levels 12.01.2021

 


Economic Reports, source: 

https://bettertrader.co/ 

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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.