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Category: Nasdaq

Price Gold Futures

Posted on by Ilan

Gold has long been one of the most sought-after commodities, and its value as a trading instrument remains undisputed. Gold futures contracts, introduced as a way for traders to speculate on and hedge against price fluctuations, are pivotal in today’s financial markets. In this comprehensive exploration, we delve into the origins of gold futures contracts, key players behind their establishment, and their role in modern trading. Additionally, we examine potential price movements for natural gas futures in 2025 and assess why Cannon Trading Company is a leading choice for futures traders of all levels.

The Origins of Gold Futures Contracts

Gold trading has a history stretching back millennia, but the formalized trading of gold futures contracts began relatively recently. The Chicago Board of Trade (CBOT), established in 1848, is credited as a pioneer in the creation of futures contracts. Initially focused on agricultural products like wheat and corn, the CBOT laid the foundation for futures trading. The gold futures contract was introduced by the Commodity Exchange, Inc. (COMEX) in 1974. This move came in the wake of significant changes in the global gold market, including the U.S. abandoning the gold standard in 1971, allowing gold prices to float freely.

Key Figures in Gold Futures Development

  • Richard Sandor: Often referred to as the “father of financial futures,” Sandor played a pivotal role in developing new types of financial instruments, including interest rate futures. Although not directly responsible for gold futures, his innovations provided a blueprint for structured futures markets.
  • Leo Melamed: A leading figure in modern futures trading, Melamed’s leadership at the Chicago Mercantile Exchange (CME) helped establish the credibility and expansion of futures contracts. His advocacy for innovation likely influenced the early days of trading future contracts like gold.
  • COMEX Leadership: Under the guidance of COMEX executives, gold futures became a reality. They recognized the growing need for a mechanism to hedge against price volatility in a post-gold standard world.

The introduction of gold futures allowed miners, jewelers, and speculators to protect themselves against price swings, leading to increased liquidity and price discovery in the gold market.

Understanding Price Movements in Gold Futures

The price of gold futures is influenced by a combination of macroeconomic factors, geopolitical events, and supply-demand dynamics. Inflation expectations, interest rates, and currency movements—particularly the U.S. dollar—play critical roles in determining price trends.

Real-Life Anecdotes and Case Studies

  • The 2008 Financial Crisis: During the global financial meltdown, gold futures prices surged as investors flocked to the safe-haven commodity. Gold futures, which were trading below $800 per ounce in early 2008, exceeded $1,000 by year’s end. Traders who anticipated the crisis and went long on gold futures reaped significant profits.
  • COVID-19 Pandemic (2020): In another flight to safety, gold futures skyrocketed to all-time highs above $2,000 per ounce in 2020. Traders who correctly interpreted the pandemic’s impact on global economies and central bank policies made substantial gains.
  • Hypothetical Scenario: Imagine a trader in 2025 predicting a weakening dollar due to rising national debt. By taking a long position in gold futures at $2,200 per ounce, they could capitalize on the ensuing rally if the dollar weakens further, driving gold prices to $2,500 or beyond.

Price Movements in Natural Gas Futures Contracts for 2025

Natural gas futures contracts are another critical component of the commodities market. As we move into 2025, traders are closely monitoring trends that could influence natural gas prices. Factors like global energy demand, geopolitical tensions, and weather patterns will play crucial roles.

  • Expected Volatility: Natural gas prices are notoriously volatile due to weather-dependent demand. A colder-than-average winter in the U.S. could spike prices, while mild weather might suppress them.
  • Energy Transition: The global push for cleaner energy is reshaping demand for natural gas. While it remains a key transitional fuel, increased investments in renewables could cap price gains.

Case Study: A Hypothetical Trade

A futures trader in January 2025 anticipates a harsh winter due to meteorological predictions. They buy natural gas futures at $4.50 per million British thermal units (MMBtu). As demand surges and prices reach $6.00 per MMBtu by February, the trader closes their position for a significant profit.

Current Price of Gold Futures Going Into 2025

As of early 2025, the price of gold futures is hovering around $2,100 per ounce. This level reflects ongoing geopolitical uncertainties, concerns about inflation, and central bank actions. The Federal Reserve’s monetary policies, particularly its stance on interest rates, are likely to influence gold prices throughout the year. Traders should closely monitor economic data releases and geopolitical developments to adjust their strategies accordingly.

Why Cannon Trading Company Excels in Futures Trading

Cannon Trading Company has cemented its reputation as a premier choice for futures traders. Here’s why:

  • Wide Selection of Trading Platforms: Cannon Trading offers access to top-performing platforms like NinjaTrader, TradingView, and CQG, catering to diverse trading styles and needs.
  • Unparalleled Reputation: With decades of experience, Cannon Trading has earned 5 out of 5-star ratings on TrustPilot. The company’s adherence to regulatory standards ensures a trustworthy trading environment.
  • Tailored Services: From beginner-friendly platforms to advanced tools for seasoned traders, Cannon Trading provides customized solutions, including one-on-one support.
  • Educational Resources: The firm’s commitment to education empowers traders with webinars, market analysis, and expert insights.
  • Regulatory Compliance: As a National Futures Association (NFA) member, Cannon Trading adheres to strict guidelines, ensuring transparency and fairness.

Anecdote: A Successful Futures Trader’s Journey with Cannon Trading

Mark, a mid-career investor, transitioned to futures trading in 2020. After struggling with platform inefficiencies at another brokerage, he switched to Cannon Trading. The firm’s support team guided him in setting up his first gold futures trade. Over two years, Mark’s portfolio grew by 35%, thanks to robust analytics tools and timely market insights provided by Cannon Trading.

Hypothetical Scenario: A Beginner’s Experience

Sarah, new to futures trading, joins Cannon Trading in 2025. She starts with a demo account on the TradingView platform, using educational resources to understand the dynamics of gold and natural gas futures. With personalized guidance from a Cannon Trading broker, Sarah transitions to live trading, steadily building her confidence and portfolio.

Gold futures contracts remain a cornerstone of the commodities market, offering traders unparalleled opportunities to hedge and speculate. The introduction of these contracts was a milestone, driven by visionaries who recognized the need for a structured market. In 2025, the outlook for gold futures prices is shaped by macroeconomic and geopolitical factors, while natural gas futures present unique opportunities for weather-driven trades.

For traders at all experience levels, Cannon Trading Company provides an ideal platform for futures contract trading. Its combination of cutting-edge tools, stellar reputation, and commitment to client success ensures a seamless trading experience. Whether you’re a seasoned futures trader or just starting, Cannon Trading offers the resources and support you need to thrive in the dynamic 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.

Follow us on all socials: @cannontrading

Fed Holds Rates Steady Amid Persistent Inflation; Markets React with Volatility

Posted on by Jenny Collins

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Futures Brokers USA

What you need to know before trading futures on Jan. 30th:

By Mark O’Brien, Senior Broker

General:

Going into the fed’s meeting this month, financial markets widely expected the central bank to hold interest rates steady, breaking a streak of three consecutive rate cuts.  Pointing to stubborn inflation readings and an economy hardly in need of rescuing, the Fed. did just that: nothing.  “We feel like we don’t need to be in a hurry to make any adjustments,” Fed Chairman Jerome Powell said.   The Fed’s policymaking committee voted unanimously to maintain their target for the federal-funds rate today, at a range of 4.25%-4.5%.  The FOMC announcement noted unemployment “has stabilized at a low level” and “inflation remains somewhat elevated,” which noticeably removed a reference from its prior rate decision of inflation making “progress” toward the 2% target.  Inflation has remained above the Fed’s 2% target for 45 consecutive months and counting.

Stock Indexes:

Stock index futures started oscillating immediately after the fed announcement at 1:00 Central Time, and through Fed chairman Jerome Powell’s 1:30 press conference with the March E-mini S&P 500 trading to daily contract lows just shy of 6040.00 between those events then swinging up over 40 points above 6080 within 30 minutes.

Energy:

Oil prices fell today, with the U.S. benchmark West Texas Intermediate touching a multi-week low after today’s weekly API report showed crude stockpiles rose more than expected last week.

The March crude oil futures contract fell to $72.33 a barrel intraday today, a ±$7.00 per barrel / $7,000 per contract move over just nine trading sessions and the lowest level since Jan. 2.

Grains:

Tightening global corn supplies have had investors’ attention for months and March corn futures have steadily made a bullish move.  Today’s intraday high of $4.97½ per bushel marks a ±80-cent gain since its $4.14 intraday low back on Oct. 17.
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Daily Levels for January 30th, 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.

Copper Futures Contract

Posted on by Ilan

Copper futures contracts have long been a cornerstone of the commodities market, reflecting the vital role copper plays in global industries, from construction to electronics. The evolution of copper futures and other precious metals futures contracts, such as silver and gold, demonstrates the growing sophistication of futures trading and the vital role these instruments play in global financial markets. This essay explores how these contracts have developed, highlights key real-life examples, provides hypothetical scenarios, and examines why Cannon Trading Company stands out as a premier brokerage for trading copper futures contracts and other precious metals futures.

The Evolution of Copper Futures Contracts

Copper has been a critical material in human development for thousands of years. Its industrial importance, however, surged during the 19th and 20th centuries with the advent of widespread electrification and urbanization. Recognizing copper’s growing economic significance, financial markets began creating instruments to manage price risks associated with its production and consumption. The introduction of copper futures contracts on the London Metal Exchange (LME) and later on the COMEX (a division of the CME Group) revolutionized the way producers, consumers, and investors interacted with this metal.

Initially, copper futures contracts were primarily used by miners and manufacturers to hedge against price volatility. For instance, a mining company might sell copper futures to lock in a price for its future production, while an electronics manufacturer might buy futures to secure raw materials at a predictable cost. Over time, speculators and institutional investors entered the market, adding liquidity and enabling the development of more complex trading strategies.

The rise of electronic trading in the late 20th century further transformed the landscape of copper futures. Platforms like CME Globex allowed traders worldwide to access copper futures contracts seamlessly, increasing market participation and transparency. These advancements mirrored changes in the silver and gold futures markets, which also transitioned from being dominated by industrial users to attracting diverse participants, including retail traders and hedge funds.

Case Studies and Real-Life Examples

One of the most famous examples of copper futures trading is the Sumitomo Corporation scandal of the 1990s. Yasuo Hamanaka, a trader at Sumitomo, attempted to corner the global copper market by manipulating copper futures prices. Over nearly a decade, Hamanaka’s actions led to massive price distortions, ultimately causing Sumitomo to lose over $2.6 billion when his scheme unraveled. This event highlighted both the power and the risks associated with trading futures and led to stricter regulatory oversight.

In a more positive example, consider the use of copper futures by Tesla, Inc. to manage its costs. As a major consumer of copper for electric vehicle production, Tesla strategically uses futures contracts to hedge against price fluctuations. By locking in copper prices, Tesla can ensure stable production costs, even when market conditions change unexpectedly.

Similar strategies are employed in the gold and silver futures markets. For instance, during the COVID-19 pandemic, many investors turned to gold futures as a safe haven, driving prices to record highs. This shift demonstrated how futures contracts can serve as both risk management tools and speculative opportunities in times of economic uncertainty.

Hypothetical Trading Scenarios

To illustrate the practical application of copper futures contracts, let’s consider a hypothetical scenario involving a construction company. Suppose the company has a major project scheduled to begin in six months, requiring substantial copper supplies. Fearing potential price increases, the company decides to purchase copper futures contracts to lock in current prices. If copper prices rise as expected, the company’s futures position offsets the increased costs of purchasing physical copper, effectively stabilizing its budget.

On the speculative side, imagine an experienced trader analyzing market trends and predicting a decline in copper prices due to an anticipated economic slowdown. The trader might sell copper futures contracts, aiming to profit from the price drop. If the trader’s prediction is correct, they can buy back the contracts at a lower price, pocketing the difference as profit.

The same principles apply to silver and gold futures trading. A jeweler, for instance, might buy silver futures to hedge against rising material costs, while a day trader might speculate on short-term movements in gold prices. These examples underscore the versatility of futures contracts in catering to a wide range of market participants.

Why Cannon Trading Company Is an Ideal Brokerage

Cannon Trading Company has built a stellar reputation as a go-to brokerage for trading copper futures contracts and other precious metals futures. Several factors contribute to its appeal, making it an excellent choice for traders of all experience levels.

Wide Selection of Free Platforms

Cannon Trading offers access to a broad array of free trading platforms, catering to diverse trading styles and preferences. Whether you’re a beginner looking for user-friendly software or a seasoned trader requiring advanced charting tools, Cannon’s platform selection ensures that you have the resources needed to succeed in the futures market. This flexibility is particularly valuable when trading copper futures contracts, where real-time data and technical analysis can make a significant difference in decision-making.

Exemplary Reputation and Regulatory Compliance

Cannon Trading’s decades of experience in the futures markets have earned it a 5 out of 5-star rating on TrustPilot, reflecting high customer satisfaction. Moreover, the company’s adherence to strict regulatory standards ensures that traders can trust the integrity of its operations. This commitment to transparency and accountability is crucial in the futures trading industry, where reliability and ethical practices are paramount.

Support for Traders of All Levels

Whether you’re new to futures trading or a seasoned professional, Cannon Trading provides comprehensive support to help you achieve your goals. For beginners, the company offers educational resources and personalized guidance to build confidence in trading copper, silver, and gold futures contracts. Experienced traders benefit from access to advanced tools, competitive commission rates, and expert market insights.

Competitive Edge in Precious Metals Trading

Cannon Trading’s expertise extends beyond copper futures to include silver and gold futures, giving traders the opportunity to diversify their portfolios within the precious metals market. By offering tailored solutions for each metal, Cannon ensures that traders can capitalize on market opportunities while managing risks effectively.

The Role of Futures Trading in Modern Markets

The evolution of copper futures contracts and their counterparts in silver and gold highlights the critical role these instruments play in modern financial markets. Futures trading provides essential benefits, including price discovery, risk management, and market liquidity. For industrial users, futures contracts are indispensable tools for stabilizing costs and ensuring predictable operations. For speculators and investors, they offer opportunities to profit from price movements and hedge against broader economic risks.

The growth of futures trading has been facilitated by technological advancements, regulatory improvements, and increased market access. Today, traders can execute complex strategies with unprecedented speed and efficiency, thanks to platforms like those offered by Cannon Trading Company. These developments have democratized access to futures markets, empowering individuals and institutions alike to participate in global commodity trading.

Copper futures contracts, alongside silver and gold futures, have evolved significantly over the years, reflecting broader changes in the financial markets. From their origins as hedging tools for industrial users to their current status as versatile instruments for a wide range of traders, these contracts have become indispensable components of the global economy. Real-life examples, such as the Sumitomo scandal and Tesla’s hedging strategies, underscore the power and complexity of futures trading.

For traders seeking to navigate the complexities of copper futures contracts and other precious metals futures, Cannon Trading Company stands out as a trusted partner. With its wide selection of free platforms, top-tier reputation, and unwavering commitment to regulatory compliance, Cannon Trading provides the tools and support needed for success in the futures markets. Whether you’re trading copper, silver, or gold, Cannon Trading offers the expertise and resources to help you achieve your financial goals.

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.

 

 

SP500 Index Futures

Posted on by Ilan

The S&P 500 Index Futures, also known as standard & poor’s 500 index futures, is a financial derivative that allows traders to speculate on the future value of the S&P 500 Index, one of the most widely followed stock market indices in the world. These futures contracts serve as a means of managing risk, offering both hedging capabilities and speculative opportunities. The s and p 500 futures contract provides exposure to the U.S. stock market’s performance without requiring traders to hold the actual underlying stocks. This contract’s prominence has made it one of the most traded assets globally, reflecting trends, economic indicators, and market sentiment.

Origins and Initial Trading

The standard and poor’s 500 futures contract has its roots in the financial markets of the early 1980s. Developed by the Chicago Mercantile Exchange (CME), it was officially introduced for trading in 1982. The concept was initially designed to give institutional and retail investors an efficient way to hedge their portfolios against fluctuations in the S&P 500, which represents approximately 80% of the total U.S. market capitalization.

In the late 1970s, U.S. markets were becoming increasingly volatile due to various economic factors, such as inflation and changes in monetary policy. The S&P 500 index, established decades earlier, had gained a solid reputation for accurately representing the U.S. economy’s performance. As a result, financial professionals and individual investors alike were seeking new ways to protect their investments. The development of spx index futures was a direct response to these demands, providing an innovative tool for managing equity risk.

Historical Price Movements

Since its inception, standard & poor’s 500 index futures have experienced significant price fluctuations, reflecting changes in market sentiment, macroeconomic factors, and global events. Initially, these futures contracts began trading at levels near the index’s value, allowing investors to gain exposure to the market’s performance with minimal capital. Throughout the 1980s and 1990s, the S&P 500 index experienced steady growth as the economy expanded, with notable milestones in the technology and internet boom of the late 1990s.

The early 2000s, however, marked a significant downturn in the market due to the dot-com bubble. This period saw the s and p 500 futures contract decline sharply as technology stocks collapsed. The S&P 500 index futures reached their lowest levels during the early 2000s recession, but the market eventually rebounded due to monetary policy changes and renewed investor confidence. The 2008 global financial crisis led to another significant decline in standard and poor’s 500 futures, reflecting the uncertainty and economic strain at the time. However, aggressive fiscal policies and quantitative easing measures helped stabilize the market, leading to a prolonged recovery.

In the 2010s, the s&p 500 futures index saw remarkable growth, reaching new highs as technology stocks led the way and economic conditions improved. The introduction of automated and algorithmic trading contributed to increased liquidity and trading volume, propelling the futures contracts’ popularity further. Most recently, futures s&p 500 experienced unprecedented volatility due to the COVID-19 pandemic, which led to sharp declines and a rapid recovery as governments and central banks around the world implemented economic stimulus measures. By 2024, the futures sp trades at an impressive level of 5,994, reflecting the resilience and sustained growth of the U.S. economy.

Factors Influencing Price Movements

Several factors have influenced the price movement of sp500 index futures, including:

  • Economic Data and Indicators: Data such as GDP growth, unemployment rates, and inflation significantly impact standard & poor’s 500 index futures prices. Positive economic data often leads to an increase in futures prices, while negative data can trigger declines.
  • Corporate Earnings Reports: The s and p 500 futures contract represents the collective performance of 500 large U.S. companies, so quarterly earnings reports can lead to substantial movements in the futures market. Strong earnings across major sectors drive the futures higher, while weak earnings can lead to declines.
  • Federal Reserve Policies: Interest rate changes and other monetary policies by the Federal Reserve impact the entire economy, influencing the standard and poor’s 500 futures. Rate hikes typically lead to downward pressure on futures prices as borrowing costs rise, while rate cuts can boost prices.
  • Global Events: Geopolitical tensions, wars, pandemics, and other global events also contribute to fluctuations in spx index futures. For instance, during the COVID-19 pandemic, uncertainty about the virus’s economic impact caused unprecedented market volatility.
  • Market Sentiment and Speculation: The futures market is influenced by sentiment-driven buying and selling. Investors’ reactions to news and forecasts can create short-term price fluctuations in standard & poor’s 500 index futures.

Key Milestones in the History of S&P 500 Index Futures

  1. Introduction in 1982: The launch of standard & poor’s 500 futures marked a significant step in futures trading, providing institutional investors and retail traders a way to hedge equity risk.
  2. 1987 Black Monday Crash: This market crash highlighted the need for risk management tools, with s&p 500 futures index contracts becoming an essential component for institutional investors managing large portfolios.
  3. Dot-Com Bubble Burst (2000-2002): The decline of technology stocks impacted the entire market, demonstrating the S&P 500 futures’ sensitivity to specific sectors.
  4. 2008 Financial Crisis: The crisis showcased the contract’s value as a hedging tool and highlighted its susceptibility to broad economic downturns.
  5. COVID-19 Pandemic (2020): The pandemic caused rapid declines in futures sp prices, but aggressive monetary policy intervention led to a remarkable recovery, underscoring the S&P 500 futures’ role in reflecting the broader market’s health.

Current Trading Level and Market Position

As of now, futures s&p 500 are trading at approximately 5,994. This level represents years of market growth driven by strong corporate performance, advances in technology, and accommodative monetary policies. The current price level also suggests investor optimism and confidence in the U.S. economy’s resilience, despite recent economic challenges.

Why Choose Cannon Trading Company for S&P 500 Futures Trading

Cannon Trading Company stands out as an ideal broker for trading spx index futures due to several key factors:

  • Decades of Experience: With a legacy of excellence in the futures industry, Cannon Trading Company has earned the trust of traders and investors seeking stability and expertise. Their years of experience in handling futures s&p 500 trading give clients the advantage of informed guidance and support.
  • Free Trading Platform: Cannon Trading offers a complimentary trading platform that is highly regarded for its ease of use, sophisticated tools, and reliability. This platform enables traders to make informed decisions when trading s and p 500 futures contract and other futures products, regardless of experience level.
  • Exceptional Customer Service: With a 5 out of 5-star rating on TrustPilot, Cannon Trading is recognized for outstanding customer service. Their team is knowledgeable, responsive, and dedicated to ensuring a seamless trading experience for those trading standard & poor’s 500 futures.
  • Regulatory Reputation: Cannon Trading maintains a stellar reputation with regulatory bodies, adhering to the highest standards of transparency, compliance, and ethical business practices. This trustworthiness is crucial for traders, particularly when engaging in high-stakes markets like futures sp.
  • Advanced Trading Tools and Resources: Cannon Trading Company provides advanced tools, data feeds, and educational resources to enhance trading in s&p 500 futures index contracts. These tools are essential for tracking market trends, performing technical analysis, and making timely trading decisions.

For traders looking to navigate the complexities of this market, Cannon Trading Company stands as a reliable partner, offering decades of experience, a free trading platform, exceptional customer service, and a stellar regulatory reputation. With Cannon Trading, traders can confidently access the s and p 500 futures contract, making it an excellent choice for those seeking a robust and reputable brokerage.

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

DJIA Index Futures

Posted on by Ilan

The Dow Jones Industrial Average (DJIA), commonly known as the Dow, has long served as a benchmark for American stock market performance, capturing the movement of 30 prominent U.S. companies across various sectors. Since the inception of DJIA Index Futures, often referred to as Dow futures or Dow Jones futures, traders have had unique opportunities to speculate on the index’s movements, providing a way to manage risk and potentially earn profits based on the future value of the Dow. As the futures market evolved, DJIA Index Futures established themselves as some of the most versatile tools in a trader’s portfolio.

This article explores why DJIA Index Futures have remained a mainstay in the futures market, the key players involved in the development of the Dow Jones futures contract, and why Cannon Trading Company is an excellent brokerage for trading these futures contracts. With decades of expertise in futures trading and a reputation for exceptional customer service, Cannon Trading Company has earned its place as a premier option for traders looking to invest in DJIA Index Futures and emini Dow futures.

The Versatility of DJIA Index Futures for Futures Traders

DJIA Index Futures have demonstrated remarkable versatility since their introduction to the market. This versatility stems from several key factors:

  • Hedging Opportunities: One of the primary uses of DJIA Index Futures is to hedge against potential losses in the stock market. Institutional investors and portfolio managers use Dow futures to manage risk. For example, if a fund holds a large portfolio of U.S. stocks, a decline in the Dow could lead to losses. By holding short positions in DJIA Index Futures, fund managers can offset these losses, thereby protecting their assets and minimizing risk.
  • Leverage Potential: Futures contracts are highly leveraged instruments, allowing traders to control large amounts of underlying assets with a relatively small amount of capital. This characteristic makes DJIA Index Futures particularly attractive to traders who want to maximize their returns. Since futures leverage can amplify both gains and losses, traders are advised to approach it with caution and employ risk management strategies.
  • Speculative Opportunities: Beyond hedging, DJIA Index Futures offer substantial potential for speculation. By accurately predicting the direction of the Dow Jones Industrial Average, traders can capitalize on price movements. This is particularly valuable for day traders who look to profit from intraday volatility, as well as swing traders who seek to capture longer-term trends.
  • Liquidity and Market Access: DJIA Index Futures are among the most actively traded futures contracts globally, providing deep liquidity for traders. High liquidity enables traders to enter and exit positions quickly, with minimal slippage, enhancing the efficiency of trading strategies. The popularity of emini Dow futures, a miniaturized version of the standard contract, has further increased market accessibility, allowing smaller retail traders to participate in Dow futures trading.
  • Flexibility in Trading Hours: The DJIA Index Futures market operates nearly 24 hours a day, offering traders more flexibility than the traditional stock market. This round-the-clock trading access allows traders to react instantly to geopolitical events, economic data releases, or other market-moving factors. Thus, the ability to trade Dow Jones futures outside standard stock market hours makes them ideal for managing global events’ impact on U.S. markets.

The Inception of DJIA Index Futures

The idea of creating futures contracts based on major stock indices emerged in response to increased demand for risk management tools in the 1980s. The Chicago Board of Trade (CBOT) was instrumental in bringing this concept to life. The late Leo Melamed, a visionary in financial futures and a key figure at the Chicago Mercantile Exchange (CME), recognized the potential of introducing futures on financial indices. Working alongside industry pioneers, Melamed helped to popularize index futures as a way for investors to protect their portfolios from adverse movements in stock prices.

The initial success of the S&P 500 futures contract set the stage for further innovation in the market. The creation of DJIA Index Futures was a natural progression. In 1997, the CBOT launched the DJIA Index Futures contract, providing investors a means to speculate or hedge on the movements of one of the most well-known indices in the world. This product allowed for a diversified approach to futures trading, as it reflected the performance of the Dow Jones Industrial Average, a cornerstone of American financial markets.

While Melamed was a pivotal figure, the development and launch of DJIA Index Futures were collaborative efforts that involved input from regulators, financial institutions, and industry experts. Their goal was to create a futures product that mirrored the Dow Jones index and offered accessible, transparent, and efficient trading for institutions and retail investors alike.

Cannon Trading Company: An Ideal Partner for Trading DJIA Index Futures

With its reputation for excellence and over three decades of experience in futures trading, Cannon Trading Company has become a trusted broker for traders interested in DJIA Index Futures. Known for its high ratings on platforms like TrustPilot, where it maintains a 5-star rating, Cannon Trading Company has earned a solid reputation for customer service and reliability. Here’s why Cannon Trading Company is a standout choice for trading DJIA Index Futures and other futures contracts.

  • Expertise and Experience: Cannon Trading Company has specialized in futures markets for over 30 years, gaining expertise in navigating the complexities of futures trading. The brokerage’s deep industry knowledge is invaluable to traders, especially those trading Dow futures, who may require guidance on market trends, trading strategies, or risk management techniques.
  • Regulatory Compliance and Reputation: Cannon Trading Company adheres to strict regulatory standards, holding an excellent reputation with industry regulatory bodies. Compliance with industry regulations ensures that Cannon Trading Company maintains transparency, accountability, and protection of client funds—critical factors when choosing a brokerage for Dow Jones futures trading.
  • High-Quality Customer Service: Cannon Trading Company’s customer service team receives high praise for responsiveness, knowledge, and reliability. The brokerage’s dedication to client support, combined with its stellar TrustPilot ratings, reflects its commitment to providing a seamless trading experience. Whether traders need technical assistance, market insights, or guidance on emini Dow futures, Cannon’s customer service team is equipped to offer prompt and expert support.
  • Advanced Trading Platforms: Cannon Trading Company offers advanced trading platforms designed to meet the diverse needs of futures traders. From sophisticated charting tools to real-time data feeds, Cannon provides the resources necessary for traders to make informed decisions when trading DJIA Index Futures. Many of these platforms are customizable, allowing traders to tailor their trading interface to their unique preferences.
  • Educational Resources: For traders looking to improve their futures trading skills, Cannon Trading Company offers educational resources that cover a wide range of topics, including Dow Jones futures trading, emini Dow trading strategies, and risk management principles. This focus on education helps both novice and experienced traders make well-informed decisions when trading DJIA Index Futures.

Emini Dow Futures: A Popular Choice for Retail Traders

In addition to standard DJIA Index Futures, the introduction of emini Dow futures has expanded accessibility for retail traders. These miniaturized contracts represent a fraction of the size of traditional Dow futures, allowing traders with smaller capital to participate in Dow Jones futures trading. Emini Dow futures retain many of the features of standard contracts, including liquidity, leverage, and round-the-clock trading. Cannon Trading Company provides access to emini Dow futures, enabling retail traders to benefit from the versatility of Dow Jones futures without the large financial commitment of full-sized contracts.

Why Choose DJIA Index Futures?

As a futures trading instrument, DJIA Index Futures offer several advantages that make them popular among traders worldwide:

  • Diversification and Exposure to U.S. Markets: DJIA Index Futures offer exposure to 30 major U.S. companies, providing a diversified entry point into the U.S. stock market. For international traders, Dow futures present an efficient way to gain exposure to the American economy.
  • Adaptability to Different Trading Strategies: DJIA Index Futures can be used in various trading strategies, including hedging, speculation, and arbitrage. This adaptability makes them suitable for both institutional and retail traders, regardless of their investment objectives.
  • Ease of Trading During Market Downturns: Unlike traditional stock trading, which is challenging in declining markets, futures traders can easily take short positions in DJIA Index Futures, enabling them to profit from downward price movements.
  • Low Transaction Costs: Futures trading, including trading DJIA Index Futures, often has lower transaction costs compared to other types of financial instruments. Lower costs mean traders can focus more on their strategies without worrying as much about high commissions or fees.
  • Transparency and Standardization: DJIA Index Futures contracts are standardized, meaning that contract specifications, including expiration dates and contract sizes, are set by the exchange. This standardization provides transparency and simplifies the trading process for participants.

Since their inception, DJIA Index Futures have proven to be a valuable asset in the futures trading landscape. These contracts offer traders a unique combination of leverage, liquidity, and flexibility, making them suitable for a wide range of strategies, including hedging, speculation, and arbitrage. The versatility of Dow futures, combined with their close association with the U.S. stock market, has made them a go-to choice for traders seeking exposure to the American economy.

Cannon Trading Company’s dedication to providing a top-tier trading experience, combined with its 5-star TrustPilot rating, extensive experience, and regulatory compliance, makes it a highly recommended broker for trading DJIA Index Futures. With access to advanced trading platforms, educational resources, and high-quality customer service, Cannon Trading Company empowers traders to capitalize on opportunities in DJIA Index Futures and emini Dow futures with confidence.

Whether you’re a seasoned futures trader or just starting your journey with Dow Jones futures, the support and expertise offered by Cannon Trading Company make it a trustworthy partner for achieving your trading goals. DJIA Index Futures, with their unique attributes and market appeal, remain an indispensable tool for futures traders worldwide.

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 Trader

Posted on by Ilan

A futures trader is a professional who buys and sells futures contracts on commodities, financial instruments, and other assets in order to profit from fluctuations in their price. Engaging in futures trading involves significant risk and complexity, but when done right, it can yield considerable rewards. However, to maintain a long-term career in futures trading, a trader must adhere to a set of core principles that promote sustainable growth and risk management. Key principles for longevity in this field include emotional control, adherence to trading plans, disciplined risk management, and an understanding of how to balance opportunity with caution. Futures trading is a demanding profession, and those who approach it without a structured approach often find themselves struggling to maintain consistency.

Emotional Control: The Backbone of Successful Futures Trading

One of the most critical principles for any futures trader is emotional control. The fast-paced nature of trading futures, coupled with the significant leverage available, can make it easy to fall into the traps of fear and greed. Emotional control allows traders to respond to market movements calmly rather than react impulsively, which is essential in avoiding irrational decisions that can lead to losses.

For instance, a futures trader may be tempted to double down on a losing position out of frustration or stubbornness, hoping to recoup losses. However, experienced traders know that emotional decisions are rarely profitable in the long term. Instead, successful futures traders have the discipline to cut losses when needed and avoid revenge trading — the tendency to try and “win back” losses through risky moves. Achieving emotional control is often about creating a mindset that recognizes that losses are a natural part of trading in futures and can be managed with a clear strategy.

While emotional control is vital, it can also conflict with the excitement of seizing opportunities. The futures market often presents fast-moving opportunities, and a futures trader may feel an impulse to “catch the wave” of a sudden price move. However, seasoned traders understand that making emotionally driven decisions rarely yields consistent profits. They approach each opportunity with a clear mind and refrain from overtrading, no matter how tempting it may feel in the moment.

The Role of a Trading Plan: Consistency and Structure

A trading plan is a carefully crafted roadmap that outlines a trader’s strategy, including entry and exit points, stop-loss levels, position sizes, and risk tolerance. For a futures trader, adhering to a trading plan is crucial for maintaining consistency in an environment known for its volatility. A trading plan helps remove the emotional component from decision-making, as it provides clear guidelines on how to react under different market conditions.

One of the most significant challenges that futures traders face is resisting the urge to deviate from their trading plans in pursuit of short-term gains. Trading in futures can sometimes feel unpredictable, and an unexpected market shift may lead traders to stray from their plan to try to capitalize on a sudden price movement. While the allure of quick profits can be strong, a successful futures trader recognizes the importance of sticking to the plan and avoiding impulsive trades that do not align with their long-term objectives.

For example, let’s say a futures trader sees an unexpected market rally that they did not anticipate in their plan. Jumping in impulsively could expose them to excessive risk and result in a significant loss if the market reverses. Instead, a disciplined futures trader will assess the situation and determine if the opportunity aligns with their trading criteria. If not, they will patiently wait for a setup that fits their plan. This adherence to a structured approach not only minimizes unnecessary risks but also helps in building a consistent track record over time.

Risk Management: Avoiding Overleveraging in Futures Trading

Risk management is arguably one of the most important principles for anyone involved in futures trading. Unlike other forms of trading, futures contracts are highly leveraged, allowing a futures trader to control large positions with a relatively small amount of capital. While this leverage can magnify profits, it also significantly increases the potential for losses. Proper risk management involves understanding the potential downside of each trade and implementing safeguards to protect capital.

One of the main ways to manage risk is by avoiding overleveraging. Overleveraging occurs when a trader takes on too large a position relative to their account size, which can lead to substantial losses if the market moves unfavorably. Many futures traders are tempted to overleverage in an attempt to maximize profits, but this approach often leads to a quick depletion of their capital. Instead, experienced traders limit their leverage to a level that allows them to weather market volatility without risking catastrophic losses.

Resisting overleveraging is critical, but it sometimes conflicts with a trader’s desire to take advantage of an attractive opportunity. For instance, if a futures trader identifies what they perceive as a high-probability trade, they may feel compelled to increase their leverage to maximize their gains. However, seasoned traders understand that any single trade carries risk, and overextending oneself on one trade can lead to financial trouble. The most successful futures traders balance their enthusiasm for opportunity with a disciplined approach to leverage, ensuring that they have enough capital to remain in the market for the long haul.

Choosing the Right Broker: The Value of Support and Expertise

While discipline and skill are essential, selecting a reliable futures broker is also a crucial decision for any futures trader. The right broker provides a foundation of support, from trade execution to customer service and technical troubleshooting. Cannon Trading Company, for instance, is known for its decades of experience in the futures markets, and with a 5 out of 5-star rating on TrustPilot, it has established a reputation for reliability and client satisfaction.

Working with a broker like Cannon Trading offers multiple advantages for futures traders trading futures. First, their extensive experience in the futures markets means they understand the nuances and challenges traders face daily. This insight allows them to provide valuable guidance and support, which can be especially beneficial for newer traders who are still learning the complexities of trading futures. Additionally, their high customer service ratings indicate a strong commitment to assisting clients promptly, which can be essential in the fast-paced world of futures trading where platform issues or trade execution delays can have financial consequences.

Cannon Trading’s dedication to customer service and troubleshooting helps traders focus on their strategies without the added stress of technical issues. In futures trading, having a broker who can resolve issues efficiently and provide ongoing support can be the difference between a successful trade and a missed opportunity. Cannon Trading’s ratings reflect their reliability in providing broker assistance, which is invaluable for futures traders who rely on quick access to information and a seamless trading experience.

Continuous Learning and Adaptability in Futures Trading

The futures markets are constantly evolving, with new technologies, strategies, and market conditions emerging regularly. For a futures trader to succeed over the long term, a commitment to continuous learning is essential. This could involve studying market trends, understanding new regulations, or refining trading strategies based on past experiences. A willingness to adapt and evolve as a trader ensures that one remains competitive and avoids becoming complacent.

Additionally, the support of a knowledgeable broker like Cannon Trading Company can aid in this learning process. With their years of experience, they can offer educational resources, insights, and market analysis that are beneficial to traders at all skill levels. Leveraging the resources provided by an experienced broker can help traders stay informed and make more educated decisions.

Balancing Discipline and Opportunity in Futures Trading

The life of a futures trader is a delicate balance between seizing opportunities and maintaining discipline. The desire to capitalize on favorable market conditions is natural, but without the guiding principles of emotional control, adherence to a trading plan, and disciplined risk management, traders may fall into habits that undermine their long-term success. Resisting the temptation to overleverage and choosing a trustworthy broker like Cannon Trading Company can further support a sustainable approach.

Futures trading is not a career suited to impulsive decision-making or excessive risk-taking. Traders who respect the markets, remain vigilant, and continuously refine their strategies have the best chances of success. The journey of a futures trader is marked by patience, adaptability, and a focus on consistent, incremental gains rather than high-stakes risks. By adhering to these core principles and leveraging the support of an experienced broker, traders can pursue a rewarding and sustainable career in the dynamic 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.

Follow us on all socials: @cannontrading

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

Posted on by Ilan
Get Real Time updates and more by joining our Private Facebook Group!
Subscribe to our YouTube Channel

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.
Would you like to receive daily support & resistance levels?
Yes
S
No
S

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.

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

Posted on 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.

 

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  • Hot Market of the Week – July Coffee
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.
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!
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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.
PRODUCT
SYSTEM TYPE
Intraday
COST
USD 55 / monthly
Recommended Cannon Trading Starting Capital
$25,000
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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.
Would you like to receive daily support & resistance levels?
Yes
S
No
S

 

Daily Levels for April 22nd 2024

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Trading Reports for Next Week

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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.

Rollover, CPI & Futures Trading Levels for 03.12.24

Posted on by Ilan
Get Real Time updates and more by joining our Private Facebook Group!
Subscribe to our YouTube Channel

 

C3 1

 

CPI Tomorrow – Trade June ES/NQ/YM and MICROS

by John Thorpe, Senior Broker

 

For all of you index traders, you may have noticed the shrinking Open Interest and Volume in the March contracts. It’s that time when volume shifts to the next quarterly expiration contract. June! the symbol is M.

March volume will be drying up quickly, don’t get stuck Friday morning with a March contract at the crack of dawn when the carousel stops. Start trading the June contract today!

According to Bloomberg, the S&P 500 has averaged an 0.8% move on CPI days over the past six months

Today, stocks are sideways, the dollar and gold are both up marginally as investors nervously await tomorrows 7:30 a.m. CDT Consumer Price Index release.

Last Month, on Feb 13th stocks slid sharply following the release and Treasury yields surged higher when a surprise CPI number, an Increase of 0.3% in January, crossed the newswires. Housing costs accounted for much of the price rise.

Overall prices are expected to rise 0.4% percent after increasing 0.3% percent in January. Annual rates, which in January were 3.1% percent overall and 3.9% percent for the core, are expected at 3.1% and 3.7% percent respectively. Per econoday.

 

 

Plan your trade and trade your plan

 

Watch video below on how to rollover from March to June contracts if you are a stock index trader on our E-Futures Platform!

 

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Daily Levels for March 12th, 2024

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Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
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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

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

Weekly Newsletter: Turning Points Algo Signals on your Own Charts!

Posted on by Ilan
Get Real Time updates and more by joining our Private Facebook Group!
Subscribe to our YouTube Channel

C14

Cannon Futures Weekly Letter Issue # 1183

In this issue:
  • Important Notices – PCE, ISM, May Softs
  • Trading Resource of the Week – Trade Signals on Your Own Charts!
  • Hot Market of the Week – July Wheat
  • Broker’s Trading System of the Week – NQ Day Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices –

  • Heavy Data week: Housing, GDP, Core PCE, and many more..
  • 979 Earnings Reports for the week, Salesforce, Inc. the largest cap.
  • Leap Year
  • March 1st Deadline for some US Budgetary appropriations; Kick the can down the road?
  • May is front month for softs such as Cocoa, Coffee, Sugar, Cotton

 

 

Trading Resource of the Week : Plug our ALGO into your own charts!

Trade futures using either counter trend or trend following concepts ( or what I call a simpler approach to day trading)
In This 25 Minutes Video You Will Learn The Following:
1. Possible advantages of using range bar charts over time charts for day trading
2. Trade set ups using counter trend indicators
3. Trade set ups using trend following indicators
4. The concept of price confirmation
5. Tips and insights from Ilan’s observations of different markets
6. You will be able to install the indicators/concepts mentioned and practice right away with your own demo!
The trial includes:
  • 28 real time access
  • Introductory remoter session if desired.
  • A video that explains the signals.

 

Watch an Example below using Sierra Charts from February 21st.
You will see the predicted TURNING POINTS marked on the ES intraday chart.
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  • Hot Market of the Week – July Wheat
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.
July Wheat
July wheat satisfied its third downside PriceCount objective and reacted with a key reversal with follow through to start today. At this point, IF the chart can resume its break with new sustained lows, we are left with only the low percentage fourth count to aim for in in the $4.62 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.
PRODUCT
SYSTEM TYPE
Intraday
COST
USD 55 / monthly
Recommended Cannon Trading Starting Capital
$20,000
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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 February 26th 2024

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Trading Reports for Next Week

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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.

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

RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.