Category: Indices

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 November 11th, 2024

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Weekly Levels for the week of November 11th, 2024

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How Trade Oil Futures

Posted on November 7, 2024April 20, 2025 by Ilan

The oil market is one of the most significant and dynamic global markets, with crude oil futures representing one of the most actively traded commodities worldwide. For both new and experienced traders, understanding how to trade oil futures is key to gaining exposure to the oil market, which is impacted by a multitude of factors, from geopolitics to technological advancements. In this guide, we’ll explore the history of crude oil futures trading, why they are so popular, and the advantages and disadvantages for various types of traders, including retail traders, institutional traders, and hedgers. We’ll conclude with an analysis of oil price forecasts for the end of the year, addressing relevant factors that may impact these predictions.

The Origins of Oil as a Tradable Commodity

Oil, often referred to as “black gold,” has been a critical resource in the global economy since its discovery as a fuel source. The journey of oil from its early use to becoming a dominant global commodity on the futures trading market is complex. Originally, oil was traded in physical markets, where buyers and sellers would negotiate contracts for delivery. However, as global energy demand grew, especially in the 20th century, oil became an essential commodity, fueling industries, economies, and transport systems worldwide.

To facilitate oil trading and address the volatility in oil prices, crude oil futures were introduced in the 1980s, allowing for price stabilization and hedging. The New York Mercantile Exchange (NYMEX) launched the first crude oil futures contract in 1983, followed by similar offerings from the Intercontinental Exchange (ICE) and other exchanges. These contracts allowed market participants to buy or sell oil at a predetermined price on a future date, bringing a significant degree of predictability and security to the volatile oil market.

Why Crude Oil Futures are Popular

Crude oil futures are among the most popular futures contracts, and there are several reasons why traders are drawn to crude oil futures trading:

Liquidity: The oil futures market is one of the most liquid markets globally. High liquidity means that there is always a buyer or seller at any given time, making it easier for traders to enter and exit positions.
Volatility: Oil prices are highly sensitive to changes in supply, demand, geopolitical tensions, and economic shifts. This volatility presents opportunities for traders to profit from price movements, whether they are upward or downward.
Transparency: Unlike other markets, where information may not always be easily accessible, the oil market is relatively transparent, with data on supply, demand, inventory levels, and geopolitical developments widely available.
Global Significance: Oil is essential for transportation, manufacturing, and energy production, making it a critical commodity globally. Consequently, oil futures are a popular contract for speculation and risk management, given the reliance of the world economy on oil.

How Trade Oil Futures

To successfully engage in crude oil futures trading, traders should familiarize themselves with the trading process, understand market terminology, and stay informed on global events. Below are key steps for how trade oil futures:

Choosing a Brokerage: Selecting the right brokerage is the first step. Brokers that offer crude oil futures trading, such as E-Futures.com or Cannon Trading, provide platforms, tools, and guidance specifically tailored for futures traders.
Understanding Contracts: The most widely traded crude oil futures contracts are West Texas Intermediate (WTI) on the NYMEX and Brent crude oil on the ICE. These contracts specify the quantity (typically 1,000 barrels) and the quality of oil to be delivered, along with the future delivery date.
Leverage and Margin Requirements: Oil futures are leveraged products, meaning that a trader only needs to put down a fraction of the contract’s value (margin). While leverage can amplify profits, it also increases risk, as even a slight price movement against a trader’s position can result in significant losses.
Strategies: Some common trading strategies include day trading, swing trading, and position trading. Day trading involves capitalizing on intraday price fluctuations, while swing trading captures short-term trends over several days. Position trading, on the other hand, is suitable for those looking at long-term trends.
Monitoring Influences: Global events, weather patterns, and geopolitical tensions in oil-producing regions are critical to monitor, as they have direct impacts on oil supply and demand.
Risk Management: Setting stop-loss orders, understanding margin requirements, and using technical and fundamental analysis are essential risk management techniques in how trade oil futures effectively.

Advantages and Disadvantages of Trading Oil Futures

For Retail Traders

Advantages:

Access to Leverage: Retail traders can control large positions with relatively small amounts of capital due to leverage, allowing for potentially high returns.
Profit from Volatility: Retail traders often look for quick returns, and the volatility in the crude oil market can provide these opportunities.
Diverse Strategies: From day trading to holding long-term positions, retail traders can employ a variety of trading strategies to benefit from both short and long-term price movements.

Disadvantages:

High Risk: Leverage can be a double-edged sword. High volatility in oil prices, combined with leverage, can lead to significant losses.
Complex Market Factors: The oil market is influenced by numerous complex factors, including geopolitical tensions, natural disasters, and supply chain disruptions, which can be challenging for retail traders to analyze.
Margin Calls: If the market moves against a leveraged position, the trader might receive a margin call, requiring additional funds or leading to forced liquidation of the position.

For Institutional Traders

Advantages:

Risk Management: Institutional traders can hedge against other investments in energy or oil-dependent industries, allowing them to mitigate risks in their broader portfolios.
Access to Superior Data: Institutional traders have access to advanced trading platforms, market data, and analysis tools, giving them a competitive advantage in crude oil futures trading.
Liquidity and Execution: Institutional traders benefit from enhanced liquidity and can execute large trades with minimal slippage due to their established relationships with brokerages and exchanges.

Disadvantages:

High Costs: Institutional trading often involves high costs, including transaction fees, data feeds, and sophisticated trading technology.
Regulatory Scrutiny: Institutional traders are subject to regulatory requirements, which can restrict certain trading activities and require additional compliance.

For Hedgers

Advantages:

Price Stabilization: Companies in oil-dependent industries use crude oil futures to lock in prices, allowing them to stabilize costs and protect against price volatility.
Enhanced Budgeting and Planning: By locking in prices, hedgers can budget more effectively, making it easier to forecast costs and profits.
Reduced Exposure to Geopolitical Events: Oil prices are often sensitive to global political events, and hedgers can reduce their risk of exposure to such events by securing future oil prices.

Disadvantages:

Opportunity Costs: By locking in prices, hedgers may miss out on favorable price movements if the oil market shifts unexpectedly.
Initial Costs and Margins: Hedgers need to meet margin requirements, which may tie up capital that could be used elsewhere.
Complexity: Effective hedging requires a deep understanding of futures markets, as well as continuous monitoring of global oil trends.

Speculation on Oil Prices for the End of the Year

The price of crude oil futures heading into the end of the year is likely to be influenced by several critical factors, including global demand recovery, OPEC+ production decisions, and geopolitical issues.

Global Economic Recovery: As economies recover from global events, the demand for oil is expected to rise, pushing up prices. However, any setbacks, such as renewed economic slowdowns or shifts in energy policies, could temper demand.
OPEC+ Production Policies: OPEC+ decisions on production quotas will continue to be a key factor in crude oil futures trading. Tightening or loosening production levels could have an immediate impact on oil prices, as these decisions directly affect global supply.
Energy Transition Policies: The ongoing shift toward renewable energy may gradually dampen long-term oil demand, but in the short term, supply constraints and increased demand for conventional energy sources could drive prices higher.

Based on current market conditions, analysts predict that oil prices could remain relatively high through the end of the year, with potential spikes if any supply disruptions occur. Crude oil futures may see increased buying pressure, but price sensitivity to unforeseen disruptions could cause fluctuations. Retail and institutional traders, as well as hedgers, should remain vigilant, monitoring relevant indicators and adjusting their strategies accordingly. Given these factors, how to trade oil futures effectively will require a close watch on economic reports, OPEC announcements, and geopolitical developments.

Understanding how to trade oil futures requires a grasp of market mechanics, key influences, and the reasons behind the popularity of crude oil futures trading. With high liquidity, volatility, and a strong influence from global factors, oil futures present unique opportunities and risks for traders of all kinds. For retail traders, the potential for high returns is met with significant risk. Institutional traders benefit from data and scale, but face regulatory challenges, while hedgers achieve price stability at the cost of flexibility.

The outlook for crude oil futures remains complex, with oil prices predicted to face various pressures that may drive prices higher or, conversely, cause corrections. As oil remains essential to the global economy, futures trading in this sector will continue to be a focal point for market participants. For anyone engaging in crude oil futures trading, maintaining a strategic approach and staying informed of global events are essential for navigating the unpredictable and profitable world of oil futures.

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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.

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Post-Election Market Surge: Commodities, Equities Rally Ahead of FOMC Rate Decision

Posted on November 6, 2024 by Ilan

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US Elections, FOMC

By Mark O’Brien, Senior Broker

General:

On the heels of the U.S. Election Day results, commodities futures moves – up and down – have taken center stage in the financial world. Topping the charts – literally – the E-mini S&P 500 and E-mini Dow Jones vaulted to new all-time highs with 130+ and 1400+ point upward moves, respectively. Even the scrubby Russell 2000 took flight to new highs: up over 100 points, making it the stock index league leader in percentage gain at ±5.25%.

Outsize moves occurred across asset classes. Dec. gold gave up ±$80 per ounce (an $8,000 per contract move), silver lost over $1.60 per ounce (also an $8,000 per contract move) and copper shed over 20 cents per pound – a ±5% / $5,000 per contract move.

Marking the biggest one-day move in eight years – going back to the U.K. vote for Brexit in June 2016, the ICE U.S. Dollar Index jumped 1.8%, hammering other currency futures like the Euro, Japanese Yen, Swiss Franc and Mexican Peso, the latter sinking to its weakest level against the dollar this year.

In terms of percentage movement, the day’s titleholder will likely be Bitcoin futures with the December contracts – full-sized and micro contracts – increasing over 9% with a ±$7,000 move up to its own all-time high, touching 76,000 for the first time.

More General:

While the U.S. Election Day results have taken center stage, the futures markets are still keeping an eye on the rest of the upcoming potential market movers and that includes the conclusion of the most recent FOMC meeting tomorrow. The Fed is expected to reduce the benchmark policy rate by 25 basis points after it slashed its benchmark rate by 50 basis points, delivering its first rate cut since 2020 after their last meeting in September. The U.S. federal funds rate currently sits at 4.75%–5%. In September’s policy meeting, Fed policymakers anticipated the fed funds rate falling by additional 50 basis points by the end of this year, then another full percentage point through 2025, and a final half-point reduction in 2026, to end near the 2.75–3.00 per cent range.

Daily Levels for November 7th 2024

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Future S&P

Posted on November 6, 2024April 20, 2025 by Ilan

The E-Mini S&P 500, a futures contract for the S&P 500 index, has grown to become one of the most popular financial products in the world for futures trading. From retail traders to institutional investors and hedgers, the E-Mini S&P offers a flexible, accessible way to participate in the stock market, speculate on price movements, and hedge against risks. Brokers play a crucial role in facilitating these trades, providing guidance, resources, and a robust platform for responsible futures trading. This article explores why indices like the S&P 500 are so popular, the importance of experienced brokers, and common mistakes that new traders should avoid when entering the complex world of futures trading.

Why are Stock Indices Like the S&P 500 Popular in Futures Trading?

The S&P 500, also known as the Standard and Poor’s 500 Index, represents 500 of the largest publicly traded companies in the United States. This index has become a barometer of the U.S. economy, and its futures contracts, like the E-Mini S&P 500, have become a popular choice for traders. But what makes these futures so attractive?

Broad Market Exposure: The S&P 500 is one of the most comprehensive indices, covering companies from various sectors, such as technology, healthcare, finance, and consumer goods. By trading futures on the S&P 500, traders can access the entire U.S. stock market in a single transaction, providing a straightforward way to diversify investments or take a position on the market as a whole.
Liquidity and High Volume: The E-Mini S&P 500 futures contract is one of the most actively traded contracts globally. This high level of liquidity allows traders to enter and exit positions with ease, even in large volumes, which is crucial for both retail and institutional traders.
Leverage and Capital Efficiency: Futures contracts, like the E-Mini S&P, offer leverage, meaning that traders only need to post a fraction of the total contract value as collateral. This leverage allows traders to control a more substantial position with less capital, potentially leading to higher returns.
Hedging Capabilities: The S&P 500 index futures provide an effective hedge against market fluctuations for investors who hold a portfolio of U.S. stocks. By taking opposite positions in the futures market, traders can offset potential losses in their portfolio, making it a preferred tool for risk management.

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How Can a Broker Assist in Stock Index Trading?

Brokers are essential in the stock index trading ecosystem. They provide traders with the necessary infrastructure, resources, and guidance to navigate the markets. Their services are tailored to cater to various types of traders, from retail investors to institutional clients and hedgers. Here’s how they assist each group:

Retail Traders

For retail traders, brokers offer a user-friendly platform, educational resources, and customer support to make trading more accessible. Brokers help retail traders in the following ways:

Platform Accessibility: Many retail traders lack the technical expertise or the capital that institutional traders have. Brokers simplify access to platforms that allow retail traders to trade E-Mini S&P 500 futures with low capital requirements.
Educational Resources: Brokers provide tutorials, webinars, and trading guides to help retail traders understand the basics of futures trading, technical analysis, and risk management. These resources are crucial for newcomers to grasp the complexities of the S&P 500 futures market.
Margin and Leverage Guidance: Many brokers offer guidance on responsible use of leverage, which is especially important for retail traders. They explain how leverage works, the potential for gains and losses, and how to set stop-loss orders to manage risk.

Institutional Traders

Institutional traders, such as hedge funds, asset managers, and pension funds, have larger capital bases and are typically more sophisticated in their trading strategies. Brokers offer these traders advanced tools and services to meet their complex needs:

Advanced Trading Platforms: Brokers offer platforms with advanced analytics, charting tools, and automated trading features, allowing institutional traders to make informed decisions quickly. Institutional clients often use algorithmic trading, and brokers provide the tools to facilitate this.
High-Level Market Analysis: Brokers offer market insights, proprietary research, and economic data that institutional traders rely on to make strategic decisions. Institutional clients often have dedicated account managers to help them stay informed and make tactical moves based on market conditions.
Execution and Speed: With high-frequency trading and large volumes at stake, institutional traders require precise and fast order execution. Brokers meet these needs by providing low-latency platforms that can handle large orders efficiently without slippage.

Hedgers

Hedgers, such as companies with large stock portfolios or those affected by economic cycles, use the E-Mini S&P 500 and other index futures to offset risks. Brokers assist hedgers with specific services:

Customized Hedging Strategies: Brokers work with hedgers to develop tailored strategies based on their exposure. This can involve shorting the S&P 500 futures to offset potential declines in their equity portfolios or using options to create risk management structures.
Risk Management Support: Brokers provide advice on margin requirements and stop-loss levels, which is essential for hedgers looking to protect against adverse market moves.
Regular Market Updates: For hedgers, staying updated on market trends is essential. Brokers offer real-time news feeds and economic reports to help these clients make informed decisions about when to enter or adjust their positions.

Common Rookie Mistakes in Futures Trading

New traders often face a steep learning curve when entering the futures markets, and the S&P 500 futures are no exception. Here are some rookie mistakes that traders should avoid:

Over-Leveraging: One of the most common mistakes is using excessive leverage, which amplifies both potential gains and losses. Many new traders underestimate the risks of leverage, leading to significant losses.
Ignoring Risk Management: Novice traders may neglect to set stop-loss orders or properly calculate position sizing, resulting in unmanageable losses if the market moves against them.
Lack of a Trading Plan: New traders often enter the market without a well-defined strategy or goals. Without a plan, they may make impulsive decisions, leading to inconsistent results and losses.
Failure to Stay Updated on Economic Data: Futures markets are sensitive to economic data releases, geopolitical events, and Federal Reserve announcements. New traders sometimes ignore these factors, which can lead to unexpected market swings and losses.
Emotional Trading: Trading futures can be intense, and emotions like fear and greed can cloud judgment. Many novice traders chase losses or overreact to short-term movements, which can erode their trading capital.

How Brokers Help Traders Avoid These Pitfalls

Experienced brokers help traders avoid these pitfalls by providing educational resources, effective trading tools, and disciplined practices. Here’s how they can make a difference:

Educational Programs: Brokers offer comprehensive training programs to educate new traders about risk management, technical analysis, and trading psychology. Knowledgeable brokers can empower traders to understand the importance of stop-loss orders, proper leverage use, and position sizing.
Guided Trade Execution: Many brokers offer order types that help traders stick to their plans, such as one-cancels-other (OCO) orders, which help enforce risk limits. They also provide demo accounts where beginners can practice trading the S&P 500 futures without risking real capital.
Alerts and Market Updates: Brokers provide real-time alerts and updates on economic events, which can help traders make informed decisions. These updates keep traders aware of relevant news, economic indicators, and potential market-moving events.
Supportive Customer Service: Brokers with knowledgeable support teams offer personalized advice and solutions to help new traders avoid costly errors. Customer support can clarify platform features, order types, and any specific questions about S&P 500 futures.

Importance of a Broker with High Ratings and Strong Regulatory Trust

Choosing a broker with a solid reputation and strong regulatory standing is vital for futures traders. Here’s why a broker with 5-star ratings on TrustPilot and Google, along with a robust regulatory history, matters:

Enhanced Trust and Reliability: High ratings from review sites like TrustPilot and Google signify that the broker has built a strong reputation with its clients. Traders want peace of mind knowing that their broker provides reliable service, secure transactions, and a stable platform.
Transparency and Accountability: Regulatory oversight ensures brokers adhere to standards that protect clients. Brokers with a reputation for strong regulatory compliance offer additional layers of safety, like segregated client funds, insurance protections, and fair practices.
Better Customer Support and Responsiveness: A highly rated broker is more likely to have responsive and effective customer support, which is crucial for resolving issues quickly. Trading is time-sensitive, and having access to prompt support can make a difference.

Defining Characteristics of Legacy Futures Brokers

Legacy futures brokers—those who have been around for decades—offer a wealth of knowledge, experience, and insight that newer brokers may lack. Here are some characteristics that set them apart:

Historical Market Knowledge: Legacy brokers have weathered various market cycles, from bull markets to crashes. This experience gives them unique insights that can benefit traders, especially during volatile times in the S&P 500 futures market.
Established Relationships: Legacy brokers have long-standing relationships with exchanges, clearing firms, and regulators. These relationships often translate to smoother operations, faster execution, and better market insights for clients.
Deep Understanding of Risk Management: Having been in the industry for years, legacy brokers understand the importance of risk management. They have seen how poor risk management can lead to devastating losses, and they use this experience to guide their clients responsibly.
Reliable Infrastructure: Established brokers have invested in robust, stable trading platforms capable of handling high volumes and volatile market conditions. Their infrastructure often includes advanced features, such as algorithmic trading and comprehensive market data feeds.
Commitment to Client Success: Legacy brokers typically focus on building long-term relationships with clients, rather than prioritizing quick profits. They understand that their reputation depends on helping clients succeed, and they often provide personalized service tailored to each client’s goals.

The E-Mini S&P 500 futures contract has cemented its place as one of the most widely traded financial instruments, appealing to a diverse range of market participants. Stock indices like the S&P 500 offer traders access to broad market exposure, high liquidity, and efficient hedging opportunities. Brokers play an instrumental role in facilitating these trades, providing support, education, and the necessary tools to help traders succeed.

For retail traders, institutional investors, and hedgers alike, choosing a broker with a solid reputation and a strong regulatory background is essential. Avoiding rookie mistakes and understanding risk management are crucial for anyone looking to trade S&P 500 futures. Ultimately, a broker with experience, high ratings, and regulatory trust offers an invaluable foundation for responsible, successful futures trading. With the right broker by their side, traders can confidently navigate the opportunities and challenges of the S&P 500 index futures market.

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This article has been generated with the help of AI Technology and modified for accuracy and compliance.

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Futures Quotes

Posted on November 4, 2024April 20, 2025 by Ilan

Futures quotes are fundamental to the world of futures trading, serving as the essential indicators of market sentiment, pricing, and future expectations across a broad array of asset classes. These quotes play a vital role for various market participants, from commodities brokers and future brokers to retail and institutional traders, as well as hedgers. By offering detailed insights into contract prices, trade volumes, and open interest, futures quotes help in making informed trading and hedging decisions, enhancing the efficiency of the entire marketplace.

What are Futures Quotes?

Futures quotes represent the current prices and associated data for futures contracts in the market. They typically include key information such as the bid (the highest price a buyer is willing to pay), ask (the lowest price a seller is willing to accept), last traded price (the most recent transaction price), open interest (total number of open contracts), and volume (the number of contracts traded over a given period). The price of a futures quote fluctuates in real time based on supply and demand and reflects the market’s expectations of where an asset’s price is headed in the future.

These quotes are crucial for market participants because they provide insights into the current sentiment and expected direction of prices for various commodities, currencies, stock indices, and other underlying assets. By interpreting futures quotes, traders and brokers can gauge market conditions, strategize on entry and exit points, and anticipate potential price movements to maximize profitability or mitigate risks.

How Futures Quotes Inform Traders and Brokers

Traders, brokers, and investors alike use futures quotes as a real-time source of information for decision-making. These quotes allow them to monitor market trends and price fluctuations and analyze supply and demand dynamics in the futures market. For example, commodities brokers closely follow futures quotes to assess the prices of agricultural products, metals, or energy resources. Future brokers, on the other hand, may focus on quotes across different asset classes, offering insights and trading options to their clients.

Futures quotes also help market participants recognize patterns and trends. If a quote shows a consistent upward trend, traders might interpret this as a signal of increasing demand or decreasing supply. In contrast, if a futures quote exhibits frequent fluctuations or erratic movements, this could suggest market uncertainty or volatility, potentially influencing brokers’ and traders’ strategies. By understanding these patterns, traders and brokers can make more informed decisions, placing themselves in a stronger position to capitalize on price movements.

Sources of Futures Quotes

Access to real-time futures quotes is essential for traders who want to act on the most current information. Futures quotes can be found through several sources, including online trading platforms, financial news websites, brokerage platforms, and dedicated market data providers. Many commodities brokers and future brokers provide real-time or delayed futures quotes on their trading platforms, making it convenient for clients to monitor market changes and adjust their strategies accordingly.

Popular sources of futures quotes include:

Brokerage Platforms: Most brokers, whether focused on commodities or futures trading, provide real-time futures quotes on their trading platforms. These platforms allow traders to monitor their desired contracts, conduct analysis, and place trades.
Financial News Websites: Websites such as CNBC, Bloomberg, and Reuters offer futures quotes, often accompanied by news, analysis, and expert opinions. This comprehensive view helps traders interpret data within the larger economic context.
Market Data Providers: Specialized market data providers, like CME Group, ICE (Intercontinental Exchange), and Nasdaq, offer extensive futures data across multiple asset classes. These platforms provide up-to-date data that’s especially valuable to institutional traders and hedgers.
Trading Terminals: Professional trading terminals like Bloomberg Terminal and Thomson Reuters Eikon provide in-depth access to futures quotes, alongside various analysis tools and market insights.
Mobile Apps and Online Platforms: Retail traders frequently use mobile apps and online platforms like TD Ameritrade, E*TRADE, and Interactive Brokers to obtain futures quotes on the go. These platforms are often geared toward retail investors and provide a user-friendly interface with real-time quotes.

How Retail Traders Use Futures Quotes to Their Advantage

Retail traders, or individual investors, can leverage futures quotes to develop strategies for short-term trading, day trading, or long-term positions. By analyzing futures quotes, they can spot opportunities for profit in trending markets or capitalize on price swings. Here are a few strategies through which retail traders use futures quotes to their advantage:

Timing Entry and Exit Points: Futures quotes help retail traders determine the optimal times to enter or exit trades. By studying fluctuations in bid and ask prices, retail traders can decide when to place orders based on their price targets.
Analyzing Open Interest and Volume: Open interest and volume data included in futures quotes indicate market activity and liquidity. High volume and increasing open interest generally suggest a strong trend, which can be a signal for traders to join a market move, while declining volume may indicate a trend reversal.
Anticipating Market Movements with Technical Analysis: Futures quotes allow retail traders to use technical analysis indicators, such as moving averages or Bollinger Bands, to predict price movements. Technical analysis based on real-time futures quotes helps retail traders make more precise and informed decisions.
Hedging: Some retail traders use futures to hedge against other investments in their portfolio. For instance, if a trader has a substantial investment in stocks, they might hedge by taking a position in stock index futures as a way to mitigate downside risk.

By using futures quotes as the foundation of their trading strategies, retail traders can enhance their potential for success and build more resilient portfolios.

Institutional Traders and Futures Quotes

Institutional traders, such as hedge funds, mutual funds, and large investment firms, often rely on futures quotes as part of their sophisticated trading strategies. Institutional traders tend to have access to high-quality, real-time data and advanced trading platforms, enabling them to process vast amounts of information and respond quickly to market changes. Futures quotes offer institutional traders various advantages:

Leveraging Large Market Movements: Institutional traders often use futures quotes to identify large-scale price movements across commodities, indices, and interest rates. By analyzing futures quotes, they can make highly leveraged trades and achieve substantial profits from even minor price changes.
Market Analysis and Predictions: Institutional traders typically have access to proprietary models and algorithms that analyze futures quotes in conjunction with other market data to make predictions about future market behavior. This allows them to trade with a data-backed understanding of market expectations.
Arbitrage Opportunities: Futures quotes also reveal price discrepancies between different markets, and institutional traders capitalize on these discrepancies through arbitrage. For example, if the price of a futures contract differs between two exchanges, institutional traders can buy on one exchange and sell on the other to profit from the difference.
Hedging and Risk Management: Institutional traders often use futures to hedge against various risks. For instance, a pension fund might use bond futures to hedge against interest rate changes, while an international firm might use currency futures to hedge against forex risks.

Institutional traders’ use of futures quotes highlights the flexibility and potential for profit that these quotes offer, particularly for those with the resources and expertise to interpret and act on complex market information.

Hedgers and Futures Quotes

Hedgers, including agricultural producers, manufacturers, and corporations, use futures quotes to reduce price uncertainty and protect against adverse price movements in the underlying assets they rely on. Here are a few ways hedgers utilize futures quotes:

Locking in Prices for Commodities: Futures quotes allow hedgers to lock in prices for future purchases or sales of commodities. For example, a farmer might sell futures contracts on wheat based on futures quotes to lock in a selling price before the harvest, thereby reducing the risk of price declines.
Protecting Against Market Volatility: Futures quotes provide a real-time picture of market volatility, which can guide hedgers in implementing risk management strategies. By following the quotes, hedgers can make timely adjustments to their positions, reducing the impact of sudden price swings.
Budgeting and Cost Management: Corporations can use futures quotes to predict future expenses more accurately, especially for key materials. For instance, an airline might rely on fuel futures quotes to project fuel costs, enabling better budget planning and cost management.
Currency and Interest Rate Hedging: Companies involved in international trade might use futures to hedge against currency risk, while those dependent on debt financing may use interest rate futures to manage interest rate exposure. Futures quotes provide these companies with up-to-date information on currency and interest rate trends, allowing them to anticipate and mitigate risk.

Hedgers’ primary objective is not profit but risk mitigation, and futures quotes serve as a vital tool to achieve this goal. By using futures quotes, hedgers can achieve greater financial stability, protecting themselves against market fluctuations that might otherwise impact their business operations.

Companies Known for Producing Futures Quotes

Certain companies stand out in the industry for producing reliable and comprehensive futures quotes. These organizations provide real-time data feeds, analysis tools, and market insights that serve brokers, traders, and investors alike.

CME Group: One of the most prominent companies for futures quotes, the CME Group offers a vast range of futures data across various asset classes, including commodities, currencies, interest rates, and indices. With its robust data services and platforms, CME Group is a go-to source for both retail and institutional traders.
Intercontinental Exchange (ICE): ICE provides futures quotes for commodities, financials, and currencies, along with real-time and historical data. It is well-known for its role in energy futures, particularly crude oil, natural gas, and power markets.
Bloomberg: Bloomberg is highly regarded for its real-time data and trading analytics. The Bloomberg Terminal is a powerful tool for futures quotes, providing in-depth market data and advanced analytical tools that benefit institutional traders.
Thomson Reuters: Now part of Refinitiv, Thomson Reuters is a major player in financial data and offers futures quotes across multiple asset classes. Its Eikon platform is popular among professional traders for its comprehensive data and advanced features.
Nasdaq: Known for equities and options data, Nasdaq also provides futures quotes, particularly in the index futures space. Nasdaq’s market data is accessible to both retail and institutional traders.

Each of these companies offers a range of tools to facilitate trading, hedging, and market analysis, making them indispensable for accessing reliable futures quotes.

Futures quotes are an indispensable tool for understanding market sentiment, predicting price movements, and making informed trading and hedging decisions. For commodities brokers and future brokers, these quotes are essential for providing clients with actionable information and market access. Retail traders rely on futures quotes to time trades, analyze trends, and execute hedging strategies, while institutional traders use them for advanced analysis, arbitrage, and risk management. Hedgers, on the other hand, utilize futures quotes to stabilize costs and secure prices for future transactions.

By interpreting and leveraging futures quotes, all market participants can gain an edge, allowing them to navigate complex and often volatile markets more effectively. Companies like CME Group, ICE, Bloomberg, Thomson Reuters, and Nasdaq play a critical role in providing access to high-quality futures quotes, enhancing the accessibility and transparency of the futures market for everyone involved.

For more information, click here.

This article has been generated with the help of AI Technology and modified for accuracy and compliance.

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Weekly Newsletter: Elections, FOMC, Volatile Week Ahead+ Trading Levels for Nov. 4th

Posted on November 1, 2024 by Ilan

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Cannon Futures Weekly Letter Issue # 1215

In this issue:

Important Notices – Elections, FOMC – Volatile Week ahead.
Futures 102 – Crude Oil Outlook + Premium Daily Research
Hot Market of the Week – March sugar
Broker’s Trading System of the Week – Nikkei 225 Swing System
Trading Levels for Next Week
Trading Reports for Next Week

Important Notices – Next Week Highlights:

The Week Ahead

By John Thorpe, Senior Broker

Time change, Clocks “Fall Back” 1 hour in U.S. Nov. 2nd, US Presidential Election Nov 5th, Fed Rate announcement (expectations are .25 cut), 3756 corporate earnings reports and a few Economic data releases. To wit, Market volatility could be very high next week.

Many clearing firms will be raising margins to protect from and for the undercapitalized in what could be extreme moves related to the US Election outcomes which may not be known for hours or days following poll closings Tuesday evening.

Tuesday is the 60th U.S. Quadrennial Presidential Election, Polls close @ 7:00 P.M. in each of the 4 time zones. (a recent Nevada Supreme Court Ruling allows un-postmarked mail-in ballots received within 3 days past the official poll closing may be counted)

Prominent Earnings this Week:

The following are the largest cap stocks reporting and for those that are little known, however their market cap is in the billions of dollars, I have provided lists of their core services, you will agree they fulfill critical roles in our internet of things infrastructure.
Wed. Qualcomm, ARM Holdings (operates as a holding company, which engages in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, physical IP and associated systems IP, software, and tools.) Gilead Sciences report post close.
Thu. Arista Networks (engages in the development, marketing, and sale of cloud networking solutions. Its solutions include EOS, a set of network applications, and Gigabit Ethernet switching and routing platforms. Its product categories include Core, Cognitive Adjacencies, and Network Software and Services) AirBNB

FED SPEECHES:

Mon. quiet
Tue. quiet
Wed. Day 1 FOMC
Thu. Day 2 FOMC Rate Decision 1pm CST, Powell Presser @ 1:30 pm CST
Fri. quiet

Big Economic Data week:

Mon. Factory Orders
Tues. U.S. Trade Balance, ISM Services PMI, Redbook
Wed. Quiet
Thur. Retail Inventories, Jobless Claims, FED RATE Decision
Fri. Michigan Consumer Sentiment, agricultural numbers>WASDE 11:00 a.m. CST

Futures 101: Ask a Broker!!

Ask a Broker: Bollinger Bands?

Futures 102: Crude Oil In Depth Analysis

Please click here to instantly view a PDF with Crude Oil outlook for the short, medium and long term.

With tensions in Middle East yoyoing…you may want o read and view the outlook provided by Artac Advisory!

- Hot Market of the Week – March Sugar
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

March sugar is attempting to break out of a bull flag formation. If successful, it would support a challenge of the September high and potentially the contract high from late 2023. At this point, new sustained highs would project a possible run to the third upside PriceCount objective to the 25.84 area.

PriceCounts – Not about where we’ve been , but where we might be going next!

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.

QuantumFusion ProMax

PRODUCT

NK – Nikkei 225

SYSTEM TYPE

Swing Trading

Recommended Cannon Trading Starting Capital

$50,000

COST

USD 165 / monthly

Would you like to receive daily support & resistance levels?

Yes

Daily Levels for November 4th, 2024

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Weekly Levels for the week of November 4th, 2024

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Trading Reports for Next Week

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

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

Countdown to NFP: High Volatility Brings New Opportunities for Traders

Posted on October 31, 2024 by Ilan

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All Roads lead to NFP

Heads up: Highly anticipated NFP (non farm payrolls) report tomorrow.

It’s that time of the month again: Tomorrow the Labor Dept. releases its monthly Non-farm payrolls report. It’s widely considered to be one of the most important and influential measures of the U.S. economy and the report is released at 7:30 A.M., Central Time on the first Friday of the month.

To review, the Labor Dept.’s Bureau of Labor Statistics surveys about 141,000 businesses and government agencies, representing approximately 486,000 individual work sites. The report excludes farm workers, private household employees, domestic household workers and non-profit organization employees. The report also includes other detailed industry data including the overall unemployment rate as a percentage of the total labor force that is unemployed but actively seeking work, wages, wage growth and average workday hours.

Volatility is quite high. This requires one to evaluate their stops? targets? Trading size?

With the micros Trading such good volume across the board a trader now has the option of trading one 3, 6 micros for example rather than trading one Single mini SP or mini Nasdaq This is especially true on volatility as as high as we have seen the last few days And may help certain traders adapt to the volatility.

If you like feedback, discuss ideas – let us know and we will do our best to assist.

Mini SP 240 min chart (4 hours) for your review below with possible support levels. Click image below for larger image.

Daily Levels for November 1, 2024

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Economic Reports

provided by:ForexFactory.com

All times are Eastern Time ( New York)

Good Trading!

Cannon Trading Company

12100 Wilshire Boulevard

Suite 1640

Los Angeles, CA 90025

(800) 454-9572

Visit Our Website

Weekly Newsletter: FOMC next Week, Bonds Outlook & Trading Levels for April 29th

Posted on April 26, 2024 by Ilan

Get Real Time updates and more by joining our Private Facebook Group!

Subscribe to our YouTube Channel

C47

Cannon Futures Weekly Letter Issue # 1191

In this issue:

Important Notices – FOMC & NFP Next Week
Futures 101 – Understanding Volume
Hot Market of the Week – June Bonds
Broker’s Trading System of the Week – ES intraday System
Trading Levels for Next Week
Trading Reports for Next Week

Important Notices – Next Week Highlights:

- FOMC Rate Announcement Wed.
- Heavy Earnings, AMZN and AMD Tues, AAPL Thur. all after the close
- Heavy Data, Chicago PMI, Consumer Confidence, Construction Spending, ISM Manufacturing PMI, Jobless Claims.
- NON FARM Payrolls to cap off the week on Fri. , preopening
- Higher than average volatility in Cocoa, Coffee, Silver, Gold & Copper.

Futures 101 : Understanding VOLUME

Volume is reported for all futures contracts. It is calculated by counting the number of contracts that have been bought and sold over a given time. You can track volume using different time intervals like daily or intraday.

When a futures contract is traded, whether bought or sold, it counts towards volume for that contract.

For example, a trader closes a short position in the E-mini S&P 500 (ES) futures contract by buying one contract in the ES, so volume will increase by 1.

Traders often use and interpret the rise or decline of volume in a futures contract to help make trading decisions.

Volume can give important information to traders such as:

Indicate the price levels at which traders are more or less interested in trading a futures contract
During the roll, indicate to traders when to switch to trading the front month futures contract as volume decreases in the expiring contract
Identify the times of day when a futures contract is most liquid

Price Levels

When volume changes as price of a futures contract moves towards certain levels, this can indicate to a trader that a change in direction may occur. Some traders may use this information to indicate whether to buy or sell at those key levels.

Contract Roll

During the futures rollover, traders pay attention to the contract that is taking the higher levels of volume. Traders use this information to determine when to start trading the next month contract. As volume decreases in the expiring contract, trading will shift to the next available month contract.

For example, say the June ES (E-mini S&P 500) futures contract is about to expire and September will become the new front month. On the Thursday of rollover week, watch how the June contract starts to lose volume and the September contract begins to pick up volume. When the September contract has more volume than the June contract, it is time to switch to the September contract.

Active Periods

Traders typically prefer higher volume times to trade, as it means that more traders are actively interested in buying and selling. When volume is high, the bid-ask spread is typically smaller, orders are filled faster and less gaps may exist between ticks.

For example, markets can have lower volume between the hours of 12:00 p.m.-2:00 p.m. ET, before major economic releases; conversely, market often see higher volume around the open and close of the trading day.

Traders also can look at average daily volume over a longer time period, such as a few weeks or months, to see if the markets currently are in a lower or higher volume than is typical.

Summary

What volume can’t show however, is whether traders are buying or selling, or opening or closing a position.

For example, if the ES contract is trading at 2375 and suddenly pushes down to 2360 while volume increases, the volume that comes into the market could be from traders opening new long positions at key levels of support. That could indicate a bullish sentiment. Volume also can be generated by liquidation of exiting long positions or opening of new short positions, a possible bearish indication.

A spike in volume at 2360 doesn’t necessarily mean that buyers are coming into the market and that the price will bounce.

Volume data is readily available for each futures contract and for the market as a whole. Although traders may use volume in different ways to interpret how to trade, volume can be an important factor to help inform your trading decisions.

Hot Market of the Week – June Bonds

FREE TRIAL AVAILABLE

June 30 Year T-Bonds

The June 30 Year T-Bond break found temporary stability at its second downside PriceCount objective recently. Now, the chart has resumed its slide into new lows which, if sustained, would project a run to the third count in the 109^20 area.

PriceCounts – Not about where we’ve been , but where we might be going next!

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.

Pluton Mini S&P

PRODUCT

ES – Mini SP500

SYSTEM TYPE

Intraday

COST

USD 110 / monthly

Recommended Cannon Trading Starting Capital

$10,000

Would you like to receive daily support & resistance levels?

Yes

Daily Levels for April 29th 2024

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Trading Reports for Next Week

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

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

Weekly Newsletter: Role of Speculators, Coffee Outlook & Trading Levels for April 22nd

Posted on April 19, 2024 by Ilan

Get Real Time updates and more by joining our Private Facebook Group!

Subscribe to our YouTube Channel

C35

Cannon Futures Weekly Letter Issue # 1190

In this issue:

Important Notices – Israel, Iran, PCE Report & More
Futures 101 – The Role of Speculators in Futures Trading
Hot Market of the Week – July Coffee
Broker’s Trading System of the Week – NQ intraday System
Trading Levels for Next Week
Trading Reports for Next Week

Important Notices –

The situation in the Middle East will loom over the markets next week. More on that below.

Keep an eye on these potential futures market movers:

It was hardly unexpected, but Israel’s missile strike on Iran Friday may foreshadow a dangerous series of tit-for-tat retaliation between the Middle East powers – and unsettle world markets. At the same time, the limited scale of the attack and Iran’s muted response appears so far to signal a successful effort by diplomats who have been working to avert all-out war.

At the outset of Israel’s offensive last night, volatility amplified in key futures markets – stock indexes (S&P 500, Dow, Nasdaq), currencies, energies (crude oil), metals (gold), financials (30-yr. bonds, 10-yr. notes). Into late evening and on into today, there has been a virtual across-the-board drop-off in the inflated price fluctuation seen when news broke of the military action.

GDP and PMI along with homes sales, durable goods and overall a packed week with economic reports.

PCE Friday will provide additional clues as to the future of interest rates

big earnings week MSFT, GOOG, META, XOM, Visa, TSLA

Volatility in Cocoa and Coffee continues. Copper broke higher.

Trading Resource of the Week: Understanding the Role of Speculators

What Are Speculators?

Speculators are primary participants in the futures market. A speculator is any individual or firm that accepts risk in order to make a profit. Speculators can achieve these profits by buying low and selling high. But in the case of the futures market, they could just as easily sell first and later buy at a lower price.

Obviously, this profit objective is easier said than done. Nonetheless, speculators aiming to profit in the futures market come in a variety of types. Speculators can be individual traders, proprietary trading firms, portfolio managers, hedge funds or market makers.

Individual Traders

For individuals trading their own funds, electronic trading has helped to level the playing field by improving access to price and trade information. The speed and ease of trade execution, combined with the application of modern risk management, gives the individual trader access to markets and strategies that were once reserved for institutions.

Proprietary Trading Firms

Proprietary trading firms, also known as prop shops, profit as a direct result of their traders’ activity in the marketplace. These firms supply their traders with the education and capital required to execute a large number of trades per day. By using the capital resources of the prop shop, traders gain access to more capital than they would if they were trading on their own account. They also may have access to the same type of research and strategies developed by larger institutions.

Portfolio or Investment Managers

A portfolio or investment manager is responsible for investing or hedging the assets of a mutual fund, exchange-traded fund or closed-end fund. The portfolio manager implements the fund’s investment strategy and manages the day-to-day trading. Futures markets are often used to increase or decrease the overall market exposure of a portfolio without disrupting the delicate balance of investments that may have taken a significant effort to build.

Hedge Funds

A hedge fund is a managed portfolio of investments that uses advanced investment strategies to maximize returns, either in an absolute sense or relative to a specified market benchmark. The name hedge fund is mostly historical, as the first hedge funds tried to hedge against the risk of a bear market by shorting the market. Today, hedge funds use hundreds of different strategies in an effort to maximize returns. The diverse and highly liquid futures marketplace offer hedge funds the ability to execute large transactions and either increase or decrease the market exposure of their portfolio.

Market Makers

Market makers are trading firms that have contractually agreed to provide liquidity to the markets, continually providing both bids and offers, usually in exchange for a reduction in trading fees. Market makers are important to the trading ecosystem as they help facilitate the movement of large transactions without effecting a substantial change in price. Market makers often profit from capturing the spread, the small difference between the bid and offer prices over a large number of transactions, or by trading related futures markets that they view as being priced to provide opportunity.

Conclusion

All types of speculators bring liquidity to the market place. Providing liquidity is a crucial market function that enables individuals to easily enter or exit the market. Though speculative trading activity generates considerable liquidity, all market players benefit. In contrast to speculators who aim to profit by assuming market risk, some buyers and sellers have a vested interest in the underlying asset of each contact. These market participants aim to offset or eliminate risk and are referred to as hedgers.

Hot Market of the Week – July Coffee

FREE TRIAL AVAILABLE

July Coffee

July Coffee satisfied its third upside PriceCount objective in where it would be normal to get a near term reaction in the form of a consolidation or corrective trade, at least. At this point, IF the chart can sustain additional upside we are left with thelow percentage fourth count to aim for just above $300.

PriceCounts – Not about where we’ve been , but where we might be going next!

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.

Boston Nasdaq B

PRODUCT

NQ – Mini NASDAQ 100

SYSTEM TYPE

Intraday

COST

USD 55 / monthly

Recommended Cannon Trading Starting Capital

$25,000

Would you like to receive daily support & resistance levels?

Yes

Daily Levels for April 22nd 2024

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Trading Reports for Next Week

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