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Category: Index Futures

Introduced in the year 1982, Index futures or stock index futures are extremely popular among trading commodities today. While trading, an index future is settled in cash on the value of a certain stock market index. One of the most traded indices is the S&P500.

These are quoted on the basis of either an underlying or a spot price for an index value. There are a number of technicalities involved, most of which you should understand. However, even if you find it tough to comprehend what Index futures are, you can take assistance from the trade experts at Cannon Trading.

We at Cannon Trading want you to understand the basics and the details about Index Futures like our experts do. There are a number of blogs that we list here in our category archive. We recommend that you read these to know for yourself what Index Futures trading is all about.

Micro Mini NQ Chart Review / Fibonacci Extensions; Thanksgiving Holiday Schedule & Support and Resistance Levels 11.24.2021

Posted on by Ilan

Dear Futures Trader,

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

An exercise in Fibonacci extensions….

As the NQ started moving lower today ( I actually prefer the MNQ as it causes less stomach ache when moves against me….), I was looking for a target profit on a short position a client of mine had.
I draw FIB extension for yesterday sell off move and applied it to the high on the bounce made early this morning….Today it turned out out to be an excellent tool (click for LARGER IMAGE)….gave me targets, possible trailing stops, possible re-entry and more ( always easier looking back after the fact)….Of course there are many times where this will NOT work but you may want to take a look at Fibonacci extensions as another tool in your arsenal and just Fibonacci retracement….
Micro Nasdaq #MNQ 15 Minute Chart
Short Trading week ahead with Thanksgiving Holiday this week.
See trading schedule below, be aware of the different reports, what is the market focusing on and the different closing times for the different markets between tomorrow and Friday/Sunday evening.
CME Globex Thanksgiving Holiday Futures Schedule 2021

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

11-24-2021

Futures Support and Resistance Levels 11.23.2021

 


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.

Simpler Approach To Trading Using ALGOS And Trade Management, Mini NQ Chart & Support and Resistance Levels 10.22.2021

Posted on by Ilan

Dear Traders,

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🙂

Simpler Approach To Trading Using ALGOS And Trade Management

Sign up to receive family of studies along with trading ALGORITHMS you can place on your own charts, your own time frame and the markets you prefer.
Once you register to the free 3 weeks trial, you will also receive a 23 page PDF eBook that details the logic, concept and trading applications that can be used while applying these indicators.
Examples from today’s session using the mini NASDAQ chart below for your review.
What you see are signals in the form of either RED or GREEN Squares, trying to suggest possible market turn is coming.
If price action confirms, the turns, the logic behind the model says there is a better chance for continuation.
Mini Nasdaq 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

10-22-2020

Support and Resistance Levels 10.22.2021

 


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.

VIX Volatility futures Index & Support and Resistance Levels 10.12.2021

Posted on by Ilan

Dear Traders,

Get Real Time updates and more on our private FB group!
🙂

Correlational Observations of Indices Market Behavior.

VIX Volatility futures Index.

By John Thorpe, Senior Broker
VIX futures expiration is a monthly occurrence. The expiration is somewhat varied, the remaining 2021 schedule is included below, typically, middle of the month on Wednesday mornings. Take a look at your daily chart for any of the indices and you see the sell offs during the week of or the week prior to VIX
 expiration days.
My belief is there would be a smaller probability of a correlational relationship during a Bear stock market, However, Since we are in the 12th year of a bull market, I believe the underling price action is created by portfolio managers rolling their hedges and adjusting their risk for the coming month. They often use the week prior to Short the VIX at higher prices (lower equity index prices) for the first week of the new VIX contract month as they are buying back their old contract shorts pushing the VIX prices higher, thereby pushing negative sentiment into the marketplace. If there are more extreme price movements in their favor, they will elect to have the hedges expire to cash as the contracts are financially settled.
Coincidentally, September VIX expired Wednesday morning September 15th at 8:00 a.m. CDT and the October VIX expires in 10 days.
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You can trade both the VIX and Equity index futures with multiple leverage options, Reach out to your Cannon Trading representative for more details.
Here is a VIX contract description from the CBOE “
The CBOE Volatility Index – more commonly referred to as the “VIX Index” – is an up-to-the-minute market estimate of expected volatility that is calculated by using real-time prices of options on the S&P 500® Index listed on CBOE Exchange, Inc. (“CBOE Options”) (Symbol: SPX). Only SPX options with Friday expirations are used to calculate the VIX Index. The VIX Index is calculated between 2:15 a.m. CT and 8:15 a.m. CT and between 8:30 a.m. CT and 3:15 p.m. CT. Only SPX options with more than 23 days and less than 37 days to the Friday SPX expiration are used to calculate the VIX Index. These SPX options are then weighted to yield a constant, 30-day measure of the expected volatility of the S&P 500 Index”
The above is the opinion of John Thorpe, Cannon’s broker since 2002. Do your homework, take a look at charts, see if you can find any correlations and understand that this is provided as trading insight/ opinion and readers are urged to use their own due diligence.
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.

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

10-12-2020

Futures Trading Levels 10.12.2021

 


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.

Large Swings & Big Intraday Moves, Reminder of Limit Moves & Circuit Breakers & Support and Resistance Levels 9.21.2021

Posted on by Ilan

Dear Traders,

Get Real Time updates and more on our private FB group!
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Some very large swings and intra-day moves across more than a few markets!
Volatility is increasing.
When that happens, my personal opinion says:
*Reduce trade size
*Be a bit more stubborn in entry points with the thought of, “No trade is better than a bad trade”
Just in case….Here is a refresher about limit moves and circuit breakers:
A price limit is the maximum price range permitted for a futures contract in each trading session.  When markets hit the price limit, different actions can occur depending on the product being traded. Markets may temporarily halt until price limits can be expanded, they may remain in a limit condition or they may stop trading for the day, based on regulatory rules.
CME Group U.S. equity index price limits (and corresponding CME and CBOT rules) are designed to coordinate with circuit breakers provisions as applied by the New York Stock Exchange (NYSE).
  • 7%, 13%, and 20% price limits are applied to the futures fixing price and are effective from 8:30 a.m. CT – 2:25 p.m. CT. Mondays through Fridays. From 2:25 p.m. to 3:00 p.m. CT, only the 20% price limit will be applied to the futures price fixing.
  • 7% up-and-down limits are effective 5:00 p.m. – 8:30 a.m. CT. Sundays through Fridays; and 3:00 p.m. – 4:00 p.m. CT, Mondays through Fridays. Between 3:00 p.m. – 4:00 p.m. the 7% price limit will not be allowed to breech the 20% daily limit.
  • The fixing price is the volume weighted average price, VWAP, calculated during the 30 seconds of trading from 2:59:30 p.m. – 3:00:00 p.m. CT. View Equity Index Fixing Prices page
If you don’t understand how the circuit breakers/ price limits work…make sure you call us and talk to a broker at + 1 310 859 9572, feel free to reach out even if you are not a current client – we will be happy to assist.
So we went from 6 weeks of lower volatility, overall higher stock prices to Dow being down over 1000 points at one point today!!
This is MAJOR alert in my opinion that market sentiment may have changed.
Be aware and if the below applies, you are in a better spot….
If you know how to take a loss.
If you know how to reduce trading size based on volatility.
If you know how to trade spreads ( NQ vs ES?)
If you understand options spreads.
THAN there are some very interesting set ups out there ( STILL with HIGHER RISK than normal). However if none of the above applies to you, the risks outweighs the potential opportunities. – PERSONAL opinion
On a different note, if you are NOT a Cannon client yet, you may want to read this recent review!!

Bookmap Real-Time Order Flow Analysis Webinar

 

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

9-21-2021

Support & Resistance Levels 9.21.2021

Economic Reports, source: 

 www.BetterTrader.co

BetterTrader Economic Reports 9.21.2021

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading as well as options on futures.

Quadruple Witching Tomorrow & Support and Resistance Levels 9.17.2021

Posted on by Ilan

Dear Traders,

Get Real Time updates and more on our private FB group!
Separator

Quadruple witching tomorrow….

Futures, futures options, stock options and single stocks all expire tomorrow morning right on the open of the stock market.
Keep in mind that September mini SP and it’s relatives ( mini Dow, mini Nasdaq etc.) EXPIRE tomorrow and cash settle based on special settlement price….Markets can get volatile tomorrow morning right before and around the open.
The September contract will simply cease to trade. If you have not switched to December yet, now is the time…..
Know the rules, understand current margins, know where the circuit breakers are/ limit moves.
Figure out your max risk.
After you do all that, feel free to trade but jumping in and trying to trade without the basic knowledge above is like jumping into a stormy ocean without a life vest…..

 

Bookmap Real-Time Order Flow Analysis Webinar

 

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

9-17-2021

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Economic Reports, source: 

 www.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 as well as options on futures.

Good Bye BIG S&P500 & Support and Resistance Levels 9.14.2021

Posted on by Ilan

Dear Traders,

Get Real Time updates and more on our private FB group!
Separator

Good Bye BIG S&P500 by John Thorpe, senior broker:

A Swan song for the venerable FULL Size or BIG S&P 500 Futures contract.
The initial $500.00 per point then subsequently $250.00 per point S&P contract is done, over. Because the contract became unwittingly large as the index value increased, the CME will be delisting the “Big” S&P following this week’s expiration leaving the E-Mini and Micro E-mini contracts as its legacy to thrive.
The price of the index itself became too expensive for smaller investors and lead to the creation of the ES in 1997 and the MES in 2019 as index values soared from 959.90 on September 17th 1997 to 4450.00 as of Friday’s close.
This from the CME:
As announced on May 4, 2021, and subject to regulatory review, CME Group will delist its standard-size futures and options on futures contracts on the Standard and Poor’s 500 Stock Price Index (“standard-size contracts”) following the expiration of the September 2021 contracts on Friday, September 17, 2021. After the delisting of the standard-size contracts, the E-mini suite of futures and options on the S&P 500 Index will continue to meet the trading and risk management needs of customer

 

 

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

9-14-2021

Support and Resistance Levels 9.14.2021

Economic Reports, source: 

 www.BetterTrader.co

Futures Economic Indicators 9.14.2021

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading as well as options on futures.

Mini Russell Chart Review & Support and Resistance Levels 7.21.2021

Posted on by Ilan

Dear Traders,

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What happened from one day to the next??
After a large sell off yesterday, stock index futures bounced sharply today….
I wish I REALLY knew…..However, a mentor of mine once told me that in situations like this, the 3rd day action is critical to watch and see if the market really holds and a temporary bottom is in or if the sell off resumes.
4 hour chart of the RTY for your review below.
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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

7-21-2021

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Economic Reports, source: 

 www.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 herein contained are derived from sources believed to be reliable but are not guaranteed as to the 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.

Futures Trading Levels for June 30th, 2021

Posted on by Ilan

Cannon Futures Daily Blog

Dear Traders,

Starting June 28, 2021, CME Group has removed the trading halt between 3:15 and 3:30 p.m. CT on CME Globex for Equity Index products.
This enhancement will allow market participants to access liquidity continuously throughout the trading day and manage event risk that occurs during the trading session with greater ease.
Tomorrow is also the last trading day of the month!
Last trading days and first trading days of the months will at times have unique characteristics. Possible larger moves, sharper turns, higher volume.
Large traders/ funds will try to “close the books for the month”, book profits or losses etc.
Do you homework, go over notes from your journal, study the charts from prior last/ first trading days and be prepared.

 

Get Real Time updates and more on our private FB group!
To access a free trial to the ALGOS shown in the chart along with other tools? (Arrows possible buy/sell, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.

Futures Trading Levels

for June 30th

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Economic Reports, source: 

 www.BetterTrader.co

 

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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 for June 29th, 2021

Posted on by Ilan

Cannon Futures Daily Blog

Dear Traders,

Starting today, June 28, 2021, CME Group has removed the trading halt between 3:15 and 3:30 p.m. CT on CME Globex for Equity Index products.
This enhancement will allow market participants to access liquidity continuously throughout the trading day and manage event risk that occurs during the trading session with greater ease.
Subject to regulatory review and effective June 28, 2021, CME and CBOT will eliminate the 3:15 p.m. – 3:30 p.m. Central Time (CT) trading halt on CME Globex which currently exists for certain Equity futures and options contracts.
The halt was initially implemented to account for transactions conducted via open outcry in the trading pits and is therefore no longer necessary.
June is almost over and just like that next week is 4th of July and the beginning of what we consider “summer trading”…
Summer trading USUALLY = less volume, narrower ranges but also larger moves on certain reports.
Below is a video I put together a few years ago on trading using overbought and oversold conditions – still very valid in m opinion.

 

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

To access a free trial to the ALGOS shown in the chart along with other tools? (Arrows possible buy/sell, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.

Futures Trading Levels

for June 29th

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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.

Economic Reports, source: 

 www.BetterTrader.co

5cffa6f6 9af3 42ae a278 a02c076a8219

 

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

Futures Trading Levels for April 22nd, 2021

Posted on by Ilan

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Dear Traders,
Today’s action in Silver, gold, SP and NQ lead me to write the quick piece below.
Few words on BREAKOUT trading.
The concept is one of many different traders use.
Some like to use COUNTRER TREND trading.
others look at ORDER FLOW, some will use support and resistance mainly and hopefully more traders will master a few different techniques and use the appropriate one depending on the type of trading day that is developing in front of their eyes.
The concept of break out trading looks for the market to “snap out” of a certain trading range and continue moving in that direction. The toughest part is to filter out the “fake breakouts” and recognize early enough which breakouts have the potential to be a powerful one.
A few tips to explore:
Look for a breakout on a smaller time frame that will coincide with a longer time frame CURRENT trend. So you may look at a daily trend and look for a breakout on the hourly chart?
You may trade smaller time frames and look for breakouts that will coincide with the 30 minute chart time frame.
Last but not least ( for today only of course as I am sure there are MUCH more than the short few pointers I am sharing….) try utilizing different type of charts and do your homework in regards to which breakouts seem to work better than others. Look at RANGE BAR charts, explore VOLUME charts, maybe even take a look at Renko bars and other types as well.
30 MINUTES chart of ES below with 4 different pointers to look at, marked A through D. CLICK for larger IMAGE. ALWAYS much easier to look back in hindsight and explain what happened….I wish it was that easier when trading live….Click on the chart so you are able to read the pointers along with some insight for educational purposes.
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To access a free trial to the ALGOS shown in the chart along with other tools? (Slanted arrows possible buy, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.

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

4-22-2021

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Economic Reports, source: 

 www.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.

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.