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Category: Indices

A plural of indexes, indices is a term often used in the markets. There are different indexes or indices in the markets and these don’t always move up or down in coordination. Indexed moving in tandem would create redundancy meaning that we don’t need more than one of them.

The Dow and the S&P500 are two extremely noteworthy as well as popular indices. While a change in the Dow indicated that the expectations of the investors have changed with regard to the risks and earnings of large companies, the S&P500 features 500 of the most highly traded stocks in the U.S.

Each index is different from another and each one behaves differently. You won’t find any one index that has continued to look the same over the years. Moreover, every index depicts a different thing. You can gain a deeper understanding into the world of indices.

We at Cannon Trading help you by providing the latest information on indices and their market performance. You can read it all here under one archive tagged as Indices. Read and be informed.

S&P 500 Futures Contracts

Posted on by Ilan

Introduced in April 1982 by the Chicago Mercantile Exchange (CME), the S&P 500 Futures Contract represented a turning point in financial markets. Before its debut, traders had limited tools to hedge or speculate on the broader U.S. equity market. The S&P 500 index, comprising 500 of the largest publicly traded companies in the U.S., was already a key benchmark of market performance. By creating a derivative tied to the index, the CME provided traders and institutions with a liquid, leveraged way to manage risk or profit from market movements.

This new financial instrument quickly gained traction. Unlike individual stocks, S&P 500 Futures Contracts allowed participants to trade the entire market with a single position. It was a game-changer for portfolio managers, hedge funds, and individual traders alike.

Evolution of the S&P 500 Futures Contract

Over the decades, the S&P 500 Futures Contract has undergone significant evolution. Initially, the contract was accessible only to institutional players with deep pockets. The margin requirements and notional value of the contract were high, making it impractical for smaller traders. However, the CME’s introduction of E-mini S&P 500 Futures in 1997 dramatically expanded accessibility.

These smaller contracts mirrored the original S&P 500 Futures Contract but with reduced notional value and margin requirements. Retail traders could now participate in the same market as institutional giants, leveling the playing field and increasing liquidity. The introduction of Micro E-mini S&P 500 Futures in 2019 further democratized futures trading, enabling even smaller trades with minimal financial commitment.

Technological advancements have also played a significant role. The advent of electronic trading platforms in the late 1990s transformed the market, making trading faster, more transparent, and widely accessible. Today, traders around the globe execute futures SP trades with just a few clicks, relying on real-time data and advanced analytics to inform their decisions.

The Current State of S&P 500 Futures

As we approach 2025, the S&P 500 Futures Contract remains a cornerstone of global financial markets. It serves three primary purposes:

  • Hedging: Institutions use the contract to mitigate risk. For example, a pension fund heavily invested in U.S. equities might short the S&P 500 Futures Contract to protect its portfolio during market downturns.
  • Speculation: Speculative traders often look fo market fluctuations, leveraging the contract’s high liquidity and transparency to execute short-term strategies.
  • Portfolio Diversification: The S&P 500 Futures Contract enables investors to gain or reduce exposure to U.S. equities without trading individual stocks.

In recent years, rising geopolitical tensions, pandemic-related economic shocks, and rapid technological innovation have contributed to heightened market volatility. This volatility has increased the appeal of S&P 500 Futures Contracts, as traders capitalize on swift market movements.

What’s Next for the S&P 500 Futures Contract?

Looking ahead to 2025, several trends are likely to shape the future of the S&P 500 Futures Contract:

  • Increased Algorithmic Trading: Algorithms now dominate the trading of S&P 500 Futures Contracts. In 2025, advancements in artificial intelligence (AI) are expected to further refine these systems, enhancing market efficiency while potentially increasing competition among traders.
  • Sustainability and ESG Factors: As environmental, social, and governance (ESG) considerations gain prominence, derivatives linked to ESG-focused indices are growing in popularity. The CME may introduce variations of the S&P 500 Futures Contract tied to ESG criteria, offering traders new opportunities to align their strategies with ethical investing principles.
  • Regulatory Developments: As global regulators continue to monitor derivative markets, traders can expect enhanced safeguards against systemic risks. These measures aim to ensure the long-term stability of the market, preserving its appeal for both retail and institutional participants.
  • Expansion of Retail Participation: With brokers like Cannon Trading Company leading the charge, retail participation in S&P 500 Futures Contracts is expected to surge. Advances in education, trading platforms, and tools will further empower individual traders to harness the potential of these contracts.

Why Cannon Trading Company Is the Ideal Partner for Futures Traders

For traders looking to capitalize on the opportunities offered by the S&P 500 Futures Contract, choosing the right brokerage is critical. Cannon Trading Company stands out as a premier choice for several compelling reasons.

  • Exceptional Reputation: With a flawless 5 out of 5-star rating on TrustPilot, Cannon Trading Company has earned the trust of traders worldwide. Clients consistently praise the firm for its transparency, reliability, and personalized support.
  • Decades of Experience: Founded in 1988, Cannon Trading Company has decades of expertise in the futures markets. Its team of seasoned professionals offers invaluable insights and guidance, ensuring that traders are equipped to succeed in even the most challenging market conditions.
  • Free Trading Platforms: Cannon Trading Company provides access to cutting-edge trading platforms at no cost. These platforms offer advanced charting tools, real-time data, and customizable features, enabling traders to execute their futures SP strategies with precision.
  • Regulatory Excellence: The firm’s impeccable regulatory record underscores its commitment to integrity and client protection. Cannon Trading Company operates under the strict oversight of the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC), providing peace of mind to traders.
  • Comprehensive Support: From novice traders to seasoned professionals, Cannon Trading Company caters to all levels of experience. Its educational resources, including webinars, blogs, and one-on-one consultations, empower clients to master the complexities of S&P 500 Futures Contracts.

Why Trade S&P 500 Futures with Cannon Trading Company?

The S&P 500 Futures Contract offers unparalleled flexibility and potential. Whether you aim to hedge against market risk, speculate on short-term price movements, or diversify your portfolio, this contract is a powerful tool. Partnering with a trusted brokerage like Cannon Trading Company amplifies these advantages, ensuring that you have the resources, support, and technology needed to excel in futures trading.

Trading prowess often hinges on timing, knowledge, and execution. With Cannon Trading Company by your side, you can navigate the complexities of the S&P 500 Futures Contract with confidence, turning market challenges into opportunities for growth.

The journey of the S&P 500 Futures Contract is a testament to the innovation and resilience of global financial markets. From its inception in 1982 to its modern iterations, the contract has continually adapted to the needs of traders and investors. As we approach 2025, its relevance remains stronger than ever, promising new opportunities amid evolving market dynamics.

For traders seeking to unlock the full potential of S&P 500 Futures Contracts, partnering with an experienced and reputable brokerage like Cannon Trading Company is a winning strategy. With its stellar reputation, advanced tools, and commitment to client success, Cannon Trading Company is the ultimate ally for navigating the exciting world of futures trading.

For more information, click here.

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

Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. Past performance is not indicative of future results. Carefully consider if trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Important: Trading commodity futures and options involves a substantial risk of loss. The recommendations contained in this article are opinions only and do not guarantee any profits. This article is for educational purposes. Past performances are not necessarily indicative of future results.

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

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

Posted on by Ilan
Get Real Time updates and more by joining our Private Facebook Group!
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Cannon Futures Weekly Letter Issue # 1221

In this issue:

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

 

 

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

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

 

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

 

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

https://m.cqg.com/stonexfutures

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

 

 

Important Notices – Next Week Highlights:

 

The Week Ahead

By John Thorpe, Senior Broker

 

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

     

     

    Prominent Earnings Next Week:

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

     

     

    FED SPEECHES:

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

     

    Economic Data week:

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

 

 

Futures 102: Daily Research Free Trial

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

SIGN UP FOR A FREE TRIAL

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

 

 

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    • Hot Market of the Week 

Hot market of the week is provided by QT Market Center, A Swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.

FREE TRIAL AVAILABLE

March Sugar

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

 

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

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

   Broker’s Trading System of the Week

With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.

Fusion NQ

 

PRODUCT

Nasdaq 100 Mini

 

SYSTEM TYPE

Swing Trading

 

Recommended Cannon Trading Starting Capital

$50,000

 

COST

USD 150 / monthly

 

Get Started

Learn More

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The performance shown above is hypothetical in that the chart represents returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real‐time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on back adjusted data. Please read full disclaimer HERE.
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Daily Levels for December 16th, 2024

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Weekly Levels for the week of

December 16th, 2024

 

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Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week:
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Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

Explore trading methods. Register Here

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

Movers and Shakers: Inflation Data, Market Highs, and Commodity Surges

Posted on by Ilan

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Movers and shakers! 

By Mark O’Brien, Senior Broker

 

General:  

 

Fresh inflation data was released this morning, giving Federal Reserve officials one last glimpse at how their battle against inflation is progressing as they prepare for their final interest rate decision of 2024 next week.  The November Consumer Price Index climbed 2.7% percent year-over-year.  While this was in line with economists’ expectations, the report was a reminder that the central bank has yet to achieve a full victory.

Fed policymakers will decide whether or not to cut interest rates for a third and final time this year at their Dec. 17-18 gathering, and they will also release a fresh set of economic projections for 2025.

The Fed aims for 2 percent yearly inflation, although they define that goal using a separate but related index, the Personal Consumption Expenditures measure. That will come out on Dec. 20, so this is the last big inflation report officials will have in hand before their meeting.

 

Stock Indexes:   

 

Today, the Dec. E-mini Nasdaq futures rose over 400 points – an $8,000 per contract move – and above 21,800 to its latest all-time high.  Still yet to close above 6100 despite trading intraday above that mark five of the last six sessions, including today, the E-mini S&P 500 is within single-digit points of closing at its own all-time high, surpassing the 6096.75 close last Friday, Dec. 6.

 

Crypto:   

 

December Bitcoin futures once again pierced the $100,000 level with today’s ±$5,000/±5.25 move up and is set to post its latest all-time closing price after closing at $101,580 last Friday, Dec. 6.  As of this typing, Dec. Bitcoin is trading at $102,150.

 

Energy: 

 

January natural gas jumped over 20 cents per million British thermal units (MMBtu) – a $2,000 per contract move) in its largest single-day move in months.  The rally coincides with colder weather sweeping across the Midwest and Northeast.  Overnight and 3-5-day forecasts are trending colder and boosting near-term demand.

 

Softs: 

 

Yesterday, March coffee futures traded up to all-time highs – above a 1977 price point – as analysts and traders expect crops in Brazil and Vietnam – the world’s two largest producers – to shrink.  Brazil experienced one of its worst droughts in 70 years during August and September, followed by heavy rains in October, raising fears that the flowering crop could fail.  Vietnam’s crops experienced a similar weather cycle.  One of the most heavily leveraged futures contracts: each one-cent move is $375, the March contract has sot up ±$1.00 per pound – from its $2.42 close on Nov. 1 to its $3.34 close yesterday, a ±$34,500 per contract move.  Coffee is the world’s second most traded commodity by volume, after crude oil.

 

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Daily Levels for December 12, 2024

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Economic Reports

provided by: ForexFactory.com
All times are Eastern Time ( New York)
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Good Trading!
About: Cannon Trading is an independent futures brokerage firm established in 1988 in Los Angeles. Our mission is to provide reliable service along with the latest technological advances and choices while keeping our clients informed and educated in the field of futures and commodities trading.
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

NFP Tomorrow: Key Insights and Market Impacts

Posted on by Ilan

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NFP tomorrow!

Non Farm Payrolls, market moving event!

Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity;

This is vital economic data released shortly after the month ends. The combination of importance and earliness makes for hefty market impacts;

Please see an SP500 outlook from our friends at Artac Advisory and feel free to sign up for a FREE, NO OBLIGATION trial of their premium service and research!

 
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Daily Levels for December 6, 2024

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Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
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Good Trading!
About: Cannon Trading is an independent futures brokerage firm established in 1988 in Los Angeles. Our mission is to provide reliable service along with the latest technological advances and choices while keeping our clients informed and educated in the field of futures and commodities trading.
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Election Highs and Market Surprises: Navigating the 2024 Bull Run

Posted on by Ilan
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This bull market has a story behind it.

11 November 2024

By GalTrades.com

This bull market has a story behind it.

  • SPX rose 22.44 points (0.38%) to 5,995.54 to     end the week up 4.66%; posted its best weekly gain of the year.
  • Dow Jones     Industrial Average® ($DJI)     added 259.65 points (0.59%) to 43,988.99 to end the week up 4.61%
  • Nasdaq     Composite®($COMP)     climbed 17.31 points (0.09%) to 19,286.78 to end the week up 5.74%.
  • 10-year     Treasury note yield (TNX)     fell four basis points to 4.31%, but the 2-year yield added three basis     points to 4.25%. Shorter-term yields, which are more closely connected to     near-term rate policy, gained on longer-term ones this week.
  • Cboe     Volatility Index® (VIX)     fell to 14.99, near a two-month low.

The S&P500 is above 6,000 at the time of this writing, as the rally to record highs continued. Interestingly, the yield on the 10-Year Treasury is pacing to finish the week lower despite a huge swing higher in reaction to the election outcome. Donald Trump’s victory has caused bank and industrial stocks to surge on the expectations of less regulation and a pro-business environment. Technology stocks are a notable underperformer Friday, with all the Magnificent 7 in the red except for Tesla.

Did anyone predict the market will up so much with a trump victory? I was following lots of analyst and portfolio managers in order to understand what to expect from the markets with a Trump or Kamala victory. And no one predicted the markets will go up as much as they did with a Trump win. In fact, there were lots of predictions the markets will sell off after the elections.

So now what? From what I read it was institutional money that drove the markets up and not retail investors. And that should be a positive for the markets. From a near-term perspective, new all-time highs are bullish, and we haven’t yet seen any evidence that the post-election rally is exhausted. The bearish view would likely cite a near-term overbought technical status and a valuation that has become even more stretched. I do feel the markets are stretched and it’s always healthy to have a pull back, parabolic moves tend to have a rubber band effect. Trade with caution. On top of the Trump rally, we got a ¼ point rate cut from the FED; which finally sent bond yields down a bit. Keep a close eye on the 10 year this week and going fwd. Respect the uptrend, that’s what I keep hearing.

We remove the risk of higher corporate tax under Trump or higher regulations, but Valuations for the S&P is at 22.5, that’s a bit stretched. And earnings estimates have been getting trimmed the last few months.

So, if we’re overbought, what can be a catalyst that will trigger some kind of cool off? The CPI/PPI reports this week have the potential to create a “profit taking” excuse, regardless of the data, given the recent rally. It may Jostle the trend for the short term.

Usually when the dollar rallies it’s not a positive for equity markets.

Financial ETF XLF slated for best day in two years

Bank shares got a boost with JPMorgan Chase climbing 11.5% and Wells Fargo jumping 13%. The SPDR S&P Regional Bank ETF (KRE)continued to climb in midday trading and is now up about 12%.

Credit card stocks soar

Two leading credit card companies were among the top performing stocks in the S&P 500 in early trading, according to FactSet. Shares of Discover Financial jumped 22%, while Capital One popped about 17%.

Solar stocks sold off Wednesday ETF TAN Republicans won control of the Senate, amid fears the Inflation Reduction Act, which helps fund clean energy manufacturing in the U.S., will be repealed.

The small-cap benchmark Russell 2000 surged, hitting a 52-week high. Small companies, which are more domestic-oriented and cyclical, are believed to enjoy outsized benefits from Trump’s tax cuts and protectionist policies. Trump is viewed as supporting lower corporate tax rates, deregulation, and industrial policies that favor domestic growth, all of which could provide more stimulus to the U.S. economy and benefit risk assets

Historically speaking, stocks rallied into year-end from Election Day. However, the S&P 500 and Russell 2000 perform even better during presidential election years, while the Nasdaq Composite does worse.

Goldman Sachs’ Kostin says earnings growth will drive stocks higher into 2025

“Robust earnings growth should drive continued equity market appreciation into next year,” he wrote in a Wednesday note. “We forecast EPS growth of 11% in 2025 and 7% in 2026, although those estimates may change as the new administration’s policy agenda comes into clarity.” Kostin’s team is keeping its 12-month S&P 500 target of 6,300, suggesting upside of about 9% from Tuesday’s close. The magnitude of the rally in stocks could be curtailed by a sharp rise in the 10-year Treasury yield, the strategist said.

Futures:

Bitcoin, which could benefit from relaxed regulation, soared to an all-time high and topped $76,000. The dollar index climbed to its highest level since July on the belief that Trump’s proposed tariffs against major U.S. trading partners would boost the greenback. The 10-year Treasury yield jumped to around 4.43% on speculation Trump’s proposed tax cuts and other spending plans would spark economic growth, but also widen the fiscal deficit and reignite inflation.

Dollar at overbought levels, says strategist

On a technical level, the dollar has cleared the 104 resistance level, leaving the 106-107 level as the next major hurdle to overcome.

“Momentum is confirming the breakout but is overbought short-term. Support for pullbacks sets up at 104 and the 200-day moving average at 103.85,” said LPL Financial chief technical strategist Adam Turnquist.

Corn futures (/ZCZ24) closed higher to end the past week (+0.82%) with the December contract trading at highs last seen in late June. The USDA in its November World Agricultural Supply and Demands Estimates (WASDE) report estimated U.S. corn production at 15.143 billion bushels. This was below October’s 15.204 billion bushel estimate and below average analysts’ estimates for 15.190 billion bushels.

Cotton futures (/CTZ24) posted modest declines on Friday (–0.10%) after the USDA lowered U.S. cotton export projections by 200,000 bales to 11.3 million bales. The USDA also raised U.S. ending stocks projection by 200,000 bales to 4.3 million bales.

Crude oil futures (/CLZ24) ended the past week in the red as U.S. oil inventories posted a larger than expected build during the reporting period.

In its Weekly Petroleum Status Report, the Energy Information Administration (EIA) said crude oil stockpiles increased by 2.1 million barrels during the week ending November 1. This was above expectations for a 1.8-million-barrel build.

U.S. oil production remained unchanged last week and averaged 13.5 million barrels per day. This was up 300,000 barrels per day from one year ago.

On the oil product side, distillate inventories increased by 2.9 million barrels, contrary to market expectations for a 1.5-million-barrel draw. Distillate inventories are now 6% below the five-year average for this time of year.

Gasoline inventories rose by 400,000 barrels, contrary to forecasts for a 1.6-million-barrel draw. These stockpiles are now 2% below the five-year average.

EIA said gasoline production increased modestly from the previous week and averaged 9.7 million barrels per day. Distillate production also increased versus last week, averaging 5.1 million barrels per day.

The agency also reported that U.S. ethanol production increased last week, averaging 1.105 million barrels per day. Expectations were for 1.096 million barrels per day.

Ethanol inventories increased last week to 22 million barrels. Traders were expecting inventories of 22.4 million barrels.

Bonds: a run to 5% on the 10-year Treasury has been a level that gave markets pause in the recent past.”

China: China stock ETF drops amid Trump tariff fears. China-related stocks felt additional pain Friday on yet another disappointing stimulus update. What the market wants to see is the Chinese government put cash directly in the hands of people to boost consumption.

Earnings:

If you’ve been listening to companies’ post-earnings conference calls. Manufacturing has been weak, and there’s a freight recession.

FactSet pegged third-quarter S&P 500 EPS growth at 5.3% year over year, up from 5.1% a week ago. With 91% of companies reporting, 75% have delivered a positive earnings surprise and 60% have reported a positive revenue surprise.

It’s a quieter week of earnings with only 9 companies in the S&P 500 scheduled to report. Within the portfolio, Home Depot reports before the opening bell Tuesday and Disney before the opening bell Wednesday. Other notable companies reporting are Shopify, Tyson Foods, AstraZeneca, Spotify, Occidental, Cisco, Advance Auto Parts, Applied Materials, and Alibaba. Earnings may be on the lighter side.

  • Monday     (11/11): Monday.com     Ltd. (MNDY), Zeta Global Holdings Corp. (ZETA), Assured Guaranty Ltd.     (AGO)
  • Tuesday     (11/12): Home Depot     Inc. (HD), AstraZeneca (AZN), Sea Ltd. (SE), Live Nation Entertainment     Inc. (LYV), Tyson Foods (TSN), On Holdings (ONON), Spotify Technology SA     (SPOT), Suncor Energy, Occidental Petroleum (OXY), Cava Group (CAVA)
  • Wednesday     (11/13): CyberArk     Software Ltd. (CYBR), Cisco Systems Inc. (CSCO), Tetra Tech Inc. (TTEK),     Helmerich and Payne Inc. (HP)
  • Thursday     (11/14): Walt     Disney Co. (DIS), JD.com Inc. (JD), NetEase Inc. (NTES), Applied Materials     (AMAT), Post Holdings (POST)
  • Friday     (11/15): Alibaba     Group (BABA), Spectrum Brands Holdings (SPB)

Economic reports:

It’s a heavy week of economic data for inflation and consumer spending. On Wednesday there is the consumer price index (CPI) report and the next day we’ll see the producer price index (PPI) report. The October retail sales report is Friday.

  • Monday     (11/11): No     reports
  • Tuesday     (11/12): NFIB Small     Business Optimism
  • Wednesday     (11/13): Consumer     Price Index (CPI), Core CPI, EIA Crude Oil Inventories, MBA Mortgage     Applications Index, Treasury Budget
  • Thursday     (11/14): Continuing     Claims, Producer Price Index (PPI), core PPI, EIA Natural Gas Inventories,     Initial Claims
  • Friday     (11/15): Business     Inventories, Capacity Utilization, Export Prices, Import Prices,     Industrial Production, NY Fed Empire State Manufacturing, Retail Sales

 

 

Technical analysis:

The Russell 2000 index (RUT) gapped up 5.8% to fresh two-year highs on Wednesday despite a corresponding significant jump in bond yields. Furthermore, the index has held its ground, with only some minor consolidation following that move, which is characteristically bullish price action. The only near-term flag is that the Russell’s RSI is currently sitting at a slightly (overbought) level of 72.

Market Breadth:

SPX breadth lifted to 75.15% from 69.74%, the CCMP moved up to 50.83% from 45.13%, and the RTY jumped to 66.74% from 55.43%.

Trading stocks, commodity futures and options involves a substantial risk of loss. The information here is of opinion only and do not guarantee any profits. Past performances are not necessarily indicative of future results.

 

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Daily Levels for November 12th 2024

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Economic Reports
provided by:ForexFactory.com
All times are Eastern Time ( New York)
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Good Trading!
About: Cannon Trading is an independent futures brokerage firm established in 1988 in Los Angeles. Our mission is to provide reliable service along with the latest technological advances and choices while keeping our clients informed and educated in the field of futures and commodities trading.
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
Contact
S
Cannon Trading Company
12100 Wilshire Boulevard
Suite 1640
Los Angeles, CA 90025
(800) 454-9572
Follow Us
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Visit Our Website

 

Weekly Newsletter: The Week Ahead in Futures Trading + Trading Levels for Nov. 11th

Posted on by Ilan
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Veterans Day

Cannon Futures Weekly Letter Issue # 1216

In this issue:

  • Important Notices – Veteran’s Day, CPI, PPI
  • Futures 102 – Trading Contest – REAL CASH Prizes
  • Hot Market of the Week – July-Dec. Corn Spread
  • 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

  • Veterans Day Monday the Banks, Bond market and Federal officers are closed,
  • 13 Fed Speakers Powell on Thursday!
  • 821 earnings
  • CPI Wed, PPI Thursday!

 

Futures 101: Ask a Broker!!

Spread Trading?

Spread Trading

 

Futures 102: Trading Contest – Trade Against the Pro!

Challenge Details

Test-drive strategies with our range of futures, including standard- and Micro-sized contracts across Cryptocurrency, Equities, FX, Agriculture, Metals, Energy and Interest Rates. Gain valuable experience in a simulated, risk-free environment while trading against peers and industry professional Scott Bauer.

GET STARTED!
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    • Hot Market of the Week – July -Dec Corn Spread

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

July -Dec Corn Spread

The July – Dec corn spread satisfied its second upside PriceCount objective early last month and corrected. Now, the chart is poised to resume its rally where new sustained highs would project a possible run to the 11.75 area.

 

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

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

   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.

DaGGoR Rider M1C NQ

PRODUCT

NQ – Mini NASDAQ

 

SYSTEM TYPE

Swing Trading

 

Recommended Cannon Trading Starting Capital

$40,000

 

COST

USD 150 / monthly

 

Get Started

Learn More

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The performance shown above is hypothetical in that the chart represents returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real‐time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on back adjusted data. Please read full disclaimer HERE.
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Daily Levels for November 11th, 2024

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Weekly Levels for the week of November 11th, 2024

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Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week:
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Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

Explore trading methods. Register Here

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

How Trade Oil Futures

Posted on 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.

For more information, click here.

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

Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. Past performance is not indicative of future results. Carefully consider if trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Important: Trading commodity futures and options involves a substantial risk of loss. The recommendations contained in this article are opinions only and do not guarantee any profits. This article is for educational purposes. Past performances are not necessarily indicative of future results.

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

Follow us on all socials: @cannontrading

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

Posted on by Ilan
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C103

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.

 

 

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Daily Levels for November 7th 2024

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Economic Reports
provided by:ForexFactory.com
All times are Eastern Time ( New York)
46a6a6dc 4930 4d3b 81c8 15721beed7a7
Good Trading!
About: Cannon Trading is an independent futures brokerage firm established in 1988 in Los Angeles. Our mission is to provide reliable service along with the latest technological advances and choices while keeping our clients informed and educated in the field of futures and commodities trading.
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
Contact
S
Cannon Trading Company
12100 Wilshire Boulevard
Suite 1640
Los Angeles, CA 90025
(800) 454-9572
Follow Us
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Visit Our Website

 

Future S&P

Posted on 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.

Questions? Click here.

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.

For more information, click here.

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

Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. Past performance is not indicative of future results. Carefully consider if trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Important: Trading commodity futures and options involves a substantial risk of loss. The recommendations contained in this article are opinions only and do not guarantee any profits. This article is for educational purposes. Past performances are not necessarily indicative of future results.

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

Follow us on all socials: @cannontrading

Futures Quotes

Posted on 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.

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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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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.