Stock Futures suffer Eye-Opening Tumble as CPI Exceeds Expectations

9dc1e02e d5f7 4ff4 abf7 1df60775f196

 

Trading in Front of Reports – Like Today’s CPI – Stock Futures – a Word to the Wise

by Mark O’Brien, Senior Broker

This morning the Bureau of Labor Statistics released its scheduled Consumer Price Index and to the market’s surprise, it jumped more than anticipated, showing a higher-than-expected 0.5 percent increase from December. It was the fastest monthly increase since August 2023.

Stock Futures

The reaction by the major stock futures contracts was immediate and pronounced. Within a single minute of the report’s release, the E-mini Dow Jones stock futures contract dropped over 400 points, the E-mini S&P 500 stock futures contract dropped 60 points, a $3,000 move and within that same minute the E-mini Nasdaq stock futures contract dropped 311 points, a $6220 move.

CPI

CPI is one of several regularly scheduled reports that can have an impact on the futures markets. There are many such reports on things like crude oil stocks, crop conditions, interest rate decisions and several that look at aspects of the economy.

 

S
They all can impact related futures markets’ movement, even if for a span of time as short as a minute.

So, it’s important for traders to take care when trading into an approaching report, as well as afterwards if volatility continues. Even if you’re incorporating STOP orders to offset a position going into a report’s release, fast markets can “jump” over your STOP price and leave your trade exposed to further risk.

1 minute chart from this morning for illustration purposes below!

 

682b774c 110e 49de b4a6 d4c9a3cf6089

 

Daily Levels for February 13th, 2025

c6ee0a0d 2cf2 440f 9a49 040acf8282e3

 

822b33c5 2339 45ed bc84 e9c8f8c7358e

 

Economic Reports

provided by: ForexFactory.com

All times are Eastern Time (New York)

a107a0f3 78c5 43b1 bd45 a50dc3f45345

Find us on Trustpilot

stars

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.

Call Now

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on AppleSpotify, Amazon

or wherever you listen to podcasts!

S
Facebook  Instagram  LinkedIn
S
ef3ab1c9 8d6d 4e60 a3f1 af5d9d4ecbb3
Services
Software
Tools
Community
Contact

Market Movers This Week: Options on Futures, Grains, Hedging, Powell Testimony, CPI & PPI, WASDE, and Earnings Reports

7cfe5b36 db9f 4933 824a 7f264613e7fe

Cannon Futures Weekly Letter

In Today’s Issue #1229

  • 1099’s Are Available
  • The Week Ahead –
  • Futures 102 – Hedging With grains, Options on Futures
  • Hot Market of the Week – April Hogs
  • Broker’s Trading System of the Week – ES intraday System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

1099’s:

1099 forms will be generated for all futures trading accounts held by US clients that placed any trades during the 2024 calendar year. Traders should expect to receive their 1099 forms via mail, email or through their portal in early February.

 

·    1099 forms will be provided directly from the FCM to the client.

·    To login and retrieve your 1099 for your Cannon account via StoneX click here

·    To login and retrieve your 1099 for your Cannon account via Ironbeam click here

·    To login and retrieve your 1099 for your Cannon account via Dorman click here

For any other FCM’s please contact your broker directly.

Important Notices: The Week Ahead

By John Thorpe, Senior Broker

 

Humphrey Hawkins Testimony week, Fed Chair Powell gives testimony to the Senate Banking Committee beginning @ 9:00 am CST Tuesday the 11th, Wednesday he walks over to the House Financial Committee and answers questions for the congressional body. CPI,PPI! WASDE week! + 5Fed Speakers, 1000’s of midcaps reporting past earnings and future guidance.

Economic releases are relatively light this week with one exception: Consumer Price Index (CPI) pre-market Friday. The Fed Speakers will be at the podium for the foreseeable future as we don’t have another Fed rate decision until late March.

 

Earnings Next Week:

  • Mon. McDonalds
  • Tue. Coca-Cola, Softbank
  • Wed. Cisco
  • Thu.  Applied materials
  • Fri. Quiet

 

 

FED SPEECHES:

  • Mon Quiet
  • Tues. Hammock 7:50 CST, Chair Powell Testimony 9amCST, Bowman and Williams 2:30pmCST
  • Wed. Chair Powell Testimony 9am CST, Bostic 11:00 am CST, Waller 4:05PM,
  • Thu. Quiet
  • Fri. Quiet

Economic Data week:

  • Mon. Consumer inflation expectations
  • Tue. WASDE Ag Numbers 9amCST, NIFB Optimism index
  • Wed. CPI
  • Thur. Initial Jobless Claims, PPI
  • Fri. Retail Sales, Capacity Utilization, Business Inventories

Futures 102: Hedging Grains with Options on Futures

Course Overview

Gain an understanding of how buyers and sellers of grains and oilseeds utilize futures and options to hedge their position to manage price risk.  This course will enhance the hedger’s understanding of the different strategies available as well as how the basis affects prices.

Start Now

d98f3b7e 7256 471e 900c 5a5baf0195fb

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 and options on futures needs.

Free Trial Available

December 25 Corn

April Hogs satisfied a second upside PriceCount  objective before turning sideways with a range bound trade. At this point, IF the chart can resume its rally with new sustained highs, the third count would project a potential run to the 100.96 area.

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

d8637136 270b 4df5 b526 1b4fa9f92e59

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.

Brokers 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.

ES NZL

PRODUCT

Mini SP500

 

SYSTEM TYPE

Day Trading

 

Recommended Cannon Trading Starting Capital

$36,000

 

COST

USD 199 / monthly

 

Get Started

 

Learn More

 

e00bcbff fb9c 480f 9354 ffe247b25fa0

Would you like to get weekly updates on real-time, results of systems mentioned above?
Yes
No

Trading Levels for Next Week

Daily Levels for February 10, 2025

d3b2c9d3 c7bf 4f2a 9c25 a5e2f5cba83b

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

Trading Reports for Next Week

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

www.mrci.com

20cf9760 7f42 42ea 9997 2d12b0011b92

 

Find us on Trustpilot

stars

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.

Call Now

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on AppleSpotify, Amazon

or wherever you listen to podcasts!

S
Facebook  Instagram  LinkedIn
S
ef3ab1c9 8d6d 4e60 a3f1 af5d9d4ecbb3
Services
Software
Tools
Community
Contact

 

Market Watch: Record Highs in Gold & Coffee, Oil Retreats Amid Trade Concerns

9dc1e02e d5f7 4ff4 abf7 1df60775f196

New all-time highs in Gold!

Futures Markets Highlights by Mark O’Brien, Senior Broker

General:

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

Softs

New all-time highs in coffee!  The relentless coffee price rally continued today as the March futures contract on the ICE exchange hit a new intra-day record above $4.00 per pound on extremely tight supplies and fears over the outlook for the coming crop.  High: $401.10, settle: $397.75

The ICE coffee futures contract is considered the benchmark to price deals around the world and has moved up more than 15% this year.

S
Energy:

Crude oil futures were in retreat on broader demand concerns, tit-for-tat import taxes between the U.S. and China and the prospect of an extended trade war with China, Mexico, Canada and more broadly. Prices already were on the defensive after the EIA revealed U.S. commercial crude oil inventories soared by 8.7 million barrels from the previous week.

Closing at $71.03 per barrel today, the March contract is down over $7.00 per barrel ±10% in two weeks

Not “plugged in” to crude oil? There are three different futures contracts to trade West Texas Intermediate crude oil Traded on the CME Group’s NYMEX, the WTI crude futures contract is the largest energy futures contract in the world by volume.

 

Metals:

New all-time highs in gold! April gold futures – the most-active futures contract – hit a new all-time high – breaching $2,900 per ounce intraday as the dollar pushed lower. The ongoing sentiment among traders: concerns over the new U.S. administration’s tariff measures. Investors are increasingly turning to gold as a store of value amid fears of potential economic slowdowns, inflationary pressures, and trade disruptions. April gold settled up 2.7% at $2,893.00 per ounce, marking a 2.7% gain for the day and reinforcing gold’s strong upward momentum in the face of ongoing market volatility.

629d5a18 2c79 4188 afc9 b13d8d854b4d

Daily Levels for February 6th, 2025

1fff6918 206e 4a3f 9672 ac88d03000f5

 

 

 

822b33c5 2339 45ed bc84 e9c8f8c7358e

Economic Reports

provided by: ForexFactory.com

All times are Eastern Time (New York)

1524c764 8518 4d52 aa15 6dbbe34d8546

Find us on Trustpilot

stars

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.

Call Now

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on AppleSpotify, Amazon

or wherever you listen to podcasts!

S
Facebook  Instagram  LinkedIn
S
ef3ab1c9 8d6d 4e60 a3f1 af5d9d4ecbb3
Services
Software
Tools
Community
Contact

Market Turbulence and Global Tensions: Key Developments in Politics, Economy, and War

9dc1e02e d5f7 4ff4 abf7 1df60775f196

 

Movers & Shakers by John Thorpe, Senior Broker

Market turbulence and volatility is here to stay for the foreseeable future as global tensions rise.

Choose your opportunities wisely.

Updated: February 4, 2025 11:19 am

WSJ on Tuesday now reporting President Trump and China’s leader Xi will not speak to each other later today

Updated: February 4, 2025 11:24 am

Bloomberg reported on Tuesday that around 20,000 US federal employees accepted buyout offers. The Washington Post today is reporting layoffs of federal employees is likely if too few of them choose to accept buyouts or quit.

 

Updated: February 4, 2025 2:17 pm

Pres. Trump said he would have talks with his Iranian counterpart, but also said Iran is too close to having and cannot have nuclear weapons

 

Updated: February 4, 2025 2:23 pm

Pres Trump he would like to Palestinians taken in by Egypt and Jordan, adding they have no alternative but to leave. He is not in favor of Israeli’s settling in Gaza

Russia – Ukraine War Update

–Reuters reports Ukraine’s military said on Tuesday its air force had struck a Russian military command post in Russia’s Kursk region the previous day causing sustained significant damage and casualties. Reuters could not independently verify the statement.

–Ukraine’s military has reported numerous strikes on Russian military and energy facilities in recent weeks. Ukrainian forces have been battling Russian troops in the Kursk region since Ukraine mounted a cross border operation there last year.

–A pro-Russian Ukrainian paramilitary leader, Armen Sarkisyan, was killed along with one other person, and three more people were wounded in a bomb blast inside a residential building in northwest Moscow, Russian state news agency TASS reports.

–Russia’s Investigative Committee said it opened a criminal inquiry after the explosion on charges of murder by means injurious to the public, attempted murder of two or more people and arms trafficking.

–Ukrainian forces are believed to be behind a series of assassinations in Russia. In mid-December, Russian General Igor Kirillov died in a remote-controlled blast in Moscow.

–The United Nations echoed Ukraine’s growing concerns that Russia killed 79 captured Ukrainian soldiers in 24 separate incidents since September.

–A former United Kingdom MP, Jack Lopresti, has joined the Ukrainian International Legion to help fight against Russia, media reports said. Lopresti reportedly travelled to Kyiv in November to help a charity.

 

S
–Russia’s Ministry of Defense said Moscow’s air defense units intercepted and destroyed 70 drones in a Ukrainian offensive overnight. The ministry said Kyiv had also targeted energy facilities, including an oil refinery in Volgograd which had caught fire.

–Ukraine’s military claimed responsibility for strikes on Russian energy facilities, claiming that it hit a Russian oil refinery in Volgograd and a gas processing plant in Astrakhan. Both establishments supplied fuel to the Russian Army, according to the military.

–State Emergency Service workers of Ukraine work at the site of a rocket strike on a residential building in Poltava

Ukrainian rescuers working at the site of a rocket strike on a residential building in Poltava, where at least seven people died and 17 others, including four children, were injured, on February 1, 2025 [Handout/State Emergency Service of Ukraine via EPA-EFE]

–Kyiv’s Air Force said it destroyed 38 of 71 Russian drones launched at Ukraine in an overnight attack. Some 25 drones disappeared from radars without reaching their targets, the Air Force said.

–According to the Reuters news agency, Moscow also said that it was too early for Russia to consider the four-way peace talks model proposed by Zelenskyy, which would include the US, Ukraine, Russia and the EU. Zelenskyy previously said it would be very dangerous if Washington and Moscow held ceasefire talks without involving Kyiv.

–Russia’s Ministry of Foreign Affairs spokesperson, Maria Zakharova, criticized the Finnish government over the publication of an information package for its citizens who are planning or considering volunteering on Ukraine’s side in the ongoing Russia-Ukraine war.

–US President Donald Trump told reporters in the Oval Office that he is seeking a secure supply of rare earth metals from Ukraine in exchange for US aid.

–Moldova’s Foreign Ministry issued a statement denouncing the invasion of its airspace by a drone and said it was discussing with allies how to boost airspace defense. The statement detailed that the drone entered from Ukraine’s airspace, but did not identify the origin or likely operator of the drone.

Tomorrow: Disney before the open, Qualcomm Earnings after the close! ADP, Balance of Trade, Barkin Speech 8am CST, ISM Svcs., Fed Jefferson Speech 6:30 pm CST

 

Daily Levels for February 5th, 2025

b7dfff27 aaba 4c7f b255 4a353832214f

822b33c5 2339 45ed bc84 e9c8f8c7358e

 

Economic Reports

provided by: ForexFactory.com

All times are Eastern Time ( New York)

92e065fa b229 46da 97ba ab6e3c708abf

Find us on Trustpilot

stars

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.

Call Now

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on AppleSpotify, Amazon

or wherever you listen to podcasts!

S
Facebook  Instagram  LinkedIn
S
ef3ab1c9 8d6d 4e60 a3f1 af5d9d4ecbb3
Services
Software
Tools
Community
Contact

First and Last Commodity Trading Days February 2025

9dc1e02e d5f7 4ff4 abf7 1df60775f196

 

First Notice & last trading Days for February

Please see below First Notice and Last Commodity Trading days for February! Make it a disciplined trading month.

4e55af64 47cb 4e91 9f17 a0fa24bf020a

cdedb386 b6b2 4845 bd69 e2abcd75328c

 

Daily Levels for February 4, 2025

05c4db2f f9d3 44c3 beb7 4f08f980f6fe

822b33c5 2339 45ed bc84 e9c8f8c7358e

 

Economic Reports

provided by: ForexFactory.com

All times are Eastern Time ( New York)

b0d49e0c b3dc 48f9 aa69 f11dfdd4220d

Find us on Trustpilot

stars

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.

Call Now

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on AppleSpotify, Amazon

or wherever you listen to podcasts!

S
Facebook  Instagram  LinkedIn
S
ef3ab1c9 8d6d 4e60 a3f1 af5d9d4ecbb3
Services
Software
Tools
Community
Contact

Market Movers & Shakers: Reversals, Trends, and Key Insights for Traders

Pass the Knowledge – Feel Free to Forward to a Friend!

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on AppleSpotify, Amazon, or wherever you listen to podcasts!

C69

Movers and shakers!

By John Thorpe, Senior Broker

 

Today was a reversal day in a majority of the markets we all follow.

From the Energy Markets giving back some of their gains from the past few trading sessions, to the Precious metals , inching a little higher after a tremendous downward push yesterday.

Soybeans, while still in a strong up trend saw profit taking along with Corn and KC Wheat.

Equities have been struggling to maintain the election rally. The Bond markets slide was halted for a day.

 

Perhaps all this uncertainty is a result of the anticipation of tomorrow mornings CPI release.

This Economic data point has been one of the most talked about by the voting members of the FED and may portend a shift in policy..

Do keep an eye on changes in the CME FedWatch data (FedFund Futures) tomorrow, this will give traders an insight into future market direction. Higher inflation, leads to higher Bond yields, Higher Yields lead to lower bond prices, and greater hesitancy by the FED to lower rates anytime soon.

 

Lower CPI numbers are favorable to lower rates in the near term, therefore Higher Equity prices.

Plan your trade and trade your plan.

 

 

Today’s Movers

Today’s News:

Updated: January 14, 2025 6:23 am

**NFIB December US small business optimism index: 105.1 ; prior month 101.7 ; expected 100.0

Updated: January 14, 2025 7:31 am

US Producer Price Index (PPI) Headline Recap

 

**US December Producer Price Index (PPI) Final Demand: +0.2%; expected +0.3%

**US December Producer Price Index, ex. Food & Energy (PPI): 0.0%; expected +0.3%

**US December Personal Consumption: +0.3%

 

**US November Producer Price Index (PPI) Final Demand revised: +0.4% from +0.4%

 

Updated: January 14, 2025 7:55 am

Redbook Weekly US Retail Sales Headline Recap

 

**Redbook Weekly US Retail Sales were +4.0% in the first two weeks of January 2025 vs January 2024

**Redbook Weekly US Retail Sales were +4.0% in the week ending January 11th vs yr ago week

 

 

 

 

Watch Tomorrow’s Movers and Shakers:

7:30 AM CST CPI Consumer Price Index!

 

Here is Econoday.com’s consensus view

55975ff6 3185 4cb8 a04c 377334ad2439
Fed Speakers:

 

Barkin 8:20 CST, Kashkari 9 am CST, Williams 10 am CST, Goolsbee 11 am CST

 

Earnings:

 

(162 rpts) Pre-Open JP Morgan Chase, Wells Fargo, Goldman Sachs, Black Rock, Citigroup, Bank of NY, Oracle after the close

Daily Levels for January 15th, 2024

49b238ba 9fdb 4b8c 9970 405a5cb60488

 

Economic Reports

provided by: ForexFactory.com
All times are Eastern Time ( New York)
be5cd759 cde1 44f6 82c1 5a5c77488f6f
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.

Market Highlights and Key Announcements: Jobless Claims, Non-Farm Payrolls, and Commodity Winners

Pass the Knowledge – Feel Free to Forward to a Friend!

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on AppleSpotify, Amazon, or wherever you listen to podcasts!

C70

Bullet Points, Highlights, Announcements

By Mark O’Brien, Senior Broker

 

General:

 

In a one-day early release, the Labor Department said on Wednesday that the number of Americans filing new applications for unemployment benefits fell to an 11-month low last week.  Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 201,000 for the week ending Jan. 4, the lowest level since February 2024.  The report was published a day early as federal government offices are closed today in honor of former President Jimmy Carter who died on Dec. 29 at the age of 100.

 

Coming up tomorrow, the first Friday of the month, the Labor Dept. releases its monthly Non-farm payrolls report.  It’s widely considered to be one of the most important and influential measures of the U.S. economy.  Forecasters predict the U.S. created a modest 155,000 new jobs in the final month of 2024.  The economy added 227,000 jobs in November. The unemployment rate is forecast to be unchanged at 4.2%.  The report is released at 7:30 A.M., Central Time.

 

Stock Indexes:

 

U.S. stock index futures closed today in a mark of respect for the late former president.  President Joe Biden declared a National Day of Mourning following Carter’s passing.

 

Grains:

 

Also due out Friday: the latest USDA crop production and world supply & demand report as well as the final production numbers and stocks as of Dec. 1.  These reports are released at 11:00 A.M. Central Time.

 

Softs:

 

The hands down 2024 commodity price gain winner: cocoa.  Despite new all-time highs in Bitcoin futures, eclipsing 110,00 in mid-December and gold surpassing $2,800 per ounce in late October, cocoa nearly tripled in price over 2024, far outpacing other commodities.  The March ’25 futures contract hit an intraday and record high of $12,931 a metric ton on Dec. 18.  Top cocoa producers Ivory Coast and Ghana have suffered crop losses due to adverse weather and bean disease.

 

Energy:

 

In the meantime, Brent and West Texas Intermediate crude oil futures posted a second consecutive annual decline in 2024 as supply outstripped a rebound in demand growth.

 

0f088299 cf68 491d b23a 346eba92f600
 

Daily Levels for January 10th, 2024

c6c02899 f4c2 4e69 8d19 e271430b0774

 

Economic Reports

provided by: ForexFactory.com
All times are Eastern Time ( New York)
6f783d7f cd56 47b2 bfb7 00e12d34e45b
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.

Weekly Newsletter: New Year’s Schedule, Order Flow Booklet & Trading Levels for Dec. 30th

Pass the Knowledge – Feel Free to Forward to a Friend!

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on AppleSpotify, Amazon, or wherever you listen to podcasts!

New Years 2025

In this issue:

  • StoneX/E-Futures Platform Updates
  • Important Notices – New year’s Trading Schedule
  • Hot Market of the Week – March Bean Oil
  • 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:

0c2e56e4 8514 4064 ba2d c123c83e4dce

279d512e 0844 4a0e 870a a285c89cde71

538840ce c3ec 4290 b5fe 2abd416925d4

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.
45b14acb 8218 4d6a b38d f2e815bbef9a
Would you like to get weekly updates on real-time, results of systems mentioned above?
Yes
No
stars

Daily Levels for December 30, 2024

84a5b0b2 2088 4009 9b76 a79b4c046ea1

7d5f26c3 8986 41e5 8614 67d99457488f

Weekly Levels

0eabf521 d55c 44c8 867f 62282aec774d

Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week:
5b8181da fad2 4d6a 944d b1a0dc3c352c
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.

Futures Broker

The futures trading market, known for its high risk and high reward potential, is not only a game of skill and strategy but also one that requires choosing the right futures broker. For novice and seasoned traders alike, navigating the world of future brokers can be fraught with challenges, especially when determining who to trust. With so much at stake—both financially and emotionally—it is crucial to recognize the signs of a reliable futures broker versus the red flags of an unreliable one. This guide will dive into the top ten signs of a trustworthy broker and the ten glaring warning signs to avoid, drawing on real-world cases, hypotheticals, and practical advice. We will also explore how traders can minimize their risks and why firms like Cannon Trading Company stand out as exceptional choices in the futures trading landscape.

Top Ten Signs of a Reliable Futures Broker

  1. Regulatory Compliance and Transparency A trustworthy futures broker is always registered with reputable regulatory bodies, such as the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) in the U.S. These registrations ensure compliance with stringent standards. Look for clear disclosures on their website, including license numbers and links to verification tools.

Case Study: A trader working with a broker fully licensed by the NFA avoided significant losses when the broker promptly alerted clients to regulatory changes affecting margin requirements. This transparency showcased the firm’s commitment to protecting its clients’ interests.

  1. Comprehensive Educational Resources Reliable futures brokers invest in educating their clients. They provide webinars, tutorials, and market analyses tailored to both beginners and experienced traders. Access to free trading platforms for practice is another strong indicator of a broker’s credibility.

Hypothetical: A beginner is torn between two brokers. One offers a free demo account and extensive learning material, while the other provides no educational resources. The beginner chooses the former and gains valuable experience in futures trading without risking real money.

  1. Fair and Transparent Fee Structures Reputable brokers clearly outline their fee structures, including commissions, margin rates, and withdrawal fees. Hidden charges are a sign of a broker to avoid.

Real Example: Cannon Trading Company is known for its transparency, offering clients detailed breakdowns of trading costs, ensuring there are no surprises.

  1. Quality Customer Service Trustworthy future brokers provide responsive and knowledgeable customer service, available across multiple channels, including phone, email, and live chat. Look for brokers with highly rated customer support.

Hypothetical: A trader faces a platform error during a critical market movement. The broker’s 24/7 support resolves the issue within minutes, preventing significant losses.

  1. User-Friendly Platforms A good broker provides intuitive and reliable trading platforms that cater to various levels of expertise. Features like advanced charting tools, real-time data, and easy execution of trades are essential.

Case Study: A trader using a platform provided by a reliable broker successfully executed a stop-loss order during a market crash, avoiding catastrophic losses thanks to the platform’s reliability.

  1. Access to a Wide Range of Markets Reliable futures brokers offer access to various markets, from commodities and indices to currencies and energy. This diversity allows traders to build robust portfolios.
  2. Strong Online Reputation High ratings on platforms like TrustPilot and positive reviews across forums and social media reflect a broker’s trustworthiness. Cannon Trading Company, for example, boasts numerous 5-star reviews, highlighting its reliability.
  3. Risk Management Tools Trustworthy brokers emphasize the importance of risk management by providing tools like stop-loss orders, margin calculators, and alerts.
  4. Industry Longevity Experience matters in futures trading. Brokers with decades of operation have weathered market changes, proving their resilience and reliability.

Example: Cannon Trading Company, with over 30 years in the industry, has built a stellar reputation for reliability and integrity.

  1. Ethical Practices Trustworthy brokers never pressure clients into excessive trading, upsell unnecessary products, or promise unrealistic profits. Their goal is long-term partnerships, not short-term gains.

Top Ten Red Flags of an Unreliable Futures Broker

  1. Lack of Regulatory Oversight Brokers without registration with major regulatory bodies are immediate red flags. Always verify their credentials.

Hypothetical: A trader works with an unregulated broker who disappears overnight with their funds—a devastating yet avoidable situation.

  1. Unrealistic Profit Guarantees Promising guaranteed returns in futures trading is a major red flag. The futures market is inherently volatile, and no broker can ensure profits.
  2. High-Pressure Sales Tactics Brokers that pressure clients into making quick decisions or investing more than they’re comfortable with are not to be trusted.

Case Study: A novice trader was persuaded to over-leverage their account, resulting in significant losses when the market turned against them.

  1. Hidden Fees Shady brokers often bury exorbitant fees in the fine print, from withdrawal charges to “maintenance fees.”

Example: One trader discovered after a year that their broker charged monthly inactivity fees, eroding their profits.

  1. Poor Customer Support Brokers that are difficult to reach or provide vague responses to inquiries are signs of trouble. A lack of support can be disastrous during market volatility.
  2. Unreliable Platforms Frequent outages, execution delays, or lack of robust security measures are clear signs of a broker to avoid.
  3. Fake Reviews and Endorsements Be wary of brokers with overly polished or suspiciously similar online reviews. Genuine testimonials are diverse and specific.
  4. Limited Account Transparency Reliable brokers offer full visibility into account activity. Lack of transparency may signal mismanagement or fraud.
  5. Excessive Leverage Offers Brokers offering extremely high leverage may be enticing but are often designed to capitalize on inexperienced traders’ losses.
  6. Unverified Claims of Longevity Brokers claiming decades of experience without proof or clear histories are likely unreliable.

Navigating Pedestals and Pitfalls as a Beginner

For those new to trading futures, separating the reliable from the questionable can be daunting. Follow these steps to minimize financial and emotional risk:

  1. Do Your Homework Research brokers extensively. Use resources like the NFA’s BASIC system to verify registrations.
  2. Start Small Begin with small trades to learn the mechanics of futures trading without risking significant capital.
  3. Leverage Demo Accounts Take advantage of brokers offering free trading platforms and demo accounts to practice.
  4. Understand the Market Educate yourself on futures trading, including market terminology, strategies, and risk management.
  5. Ask Questions A reliable broker will answer all questions openly. If a broker seems evasive, look elsewhere.
  6. Avoid High-Pressure Sales Walk away from brokers pushing you into decisions without providing ample time for consideration.

Why Cannon Trading Company Excels in Futures Trading

Cannon Trading Company exemplifies the qualities of a reliable futures broker. With over 30 years in the industry, it is regulated by the CFTC and a proud member of the NFA. The company is renowned for its transparency, offering clear fee structures and a range of account options. Its free trading platform allows beginners to learn the ropes without financial pressure, while its exceptional customer service ensures clients receive timely support.

Moreover, Cannon Trading Company’s stellar reputation on TrustPilot, with numerous 5-star ratings, speaks volumes about its reliability. The firm prioritizes client education through webinars and detailed market analyses, enabling traders to make informed decisions. Its dedication to ethical practices and robust regulatory compliance sets it apart in a crowded market.

The future trading market is filled with opportunities, but success begins with choosing the right futures broker. Recognizing the signs of a reliable broker—such as regulatory compliance, transparent fees, and quality support—while avoiding red flags like hidden charges, poor customer service, and unregulated operations can save traders from costly mistakes. For beginners, starting small, asking questions, and leveraging educational resources can help navigate this challenging yet rewarding field. Brokers like Cannon Trading Company stand out for their decades of experience, ethical practices, and commitment to client success, making them a top choice for trading 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

Futures Brokers USA

Navigating Market Volatility in 2025

As financial markets continue to experience unprecedented levels of volatility, futures brokers in the USA play an increasingly critical role in helping traders navigate the complexities of futures trading. Heading into 2025, the unpredictability of global economic conditions, geopolitical events, and shifting monetary policies underscore the need for strategic intervention by futures brokers. Traders face unique challenges and opportunities in these conditions, making the guidance of experienced professionals more valuable than ever.

In this article, we will examine how futures brokers in the USA can assist their clients in managing volatility, offering ten actionable techniques supported by real-life trades, case studies, and hypotheticals. We will also explore why Cannon Trading Company, a leading futures broker with a stellar reputation, is an exceptional choice for traders seeking stability in turbulent times.

  1. Hedging with Futures Contracts

    One of the primary ways futures brokers help clients manage volatility is through hedging. By taking opposing positions in the futures market, traders can protect themselves against adverse price movements in underlying assets. For example:

    • Case Study: A soybean farmer fears a drop in prices before the next harvest. By working with a futures broker, the farmer sells soybean futures contracts to lock in current prices. When the market later experiences a downturn due to surplus production, the loss in the physical market is offset by gains in the futures trading position.

    Through personalized hedging strategies, futures brokers in the USA provide peace of mind to clients worried about market swings.

  2. Utilizing Options on Futures

    Another effective technique is trading options on futures contracts. These instruments provide traders the right, but not the obligation, to buy or sell futures at a specific price. For instance:

    • Hypothetical Example: An energy company anticipates rising oil prices but wants limited risk exposure. A futures broker advises purchasing call options on crude oil futures. If oil prices soar, the call options generate profit. If prices fall, the company’s loss is capped at the premium paid.

    Options on futures trading offer traders a way to benefit from volatility while managing risk.

  3. Spreading Strategies

    Spread trading, which involves taking offsetting positions in related contracts, is another volatility management tool. Examples include calendar spreads (trading futures with different expiration dates) and intercommodity spreads.

    • Real-Life Example: A trader anticipates narrowing spreads between corn and wheat prices. A futures broker helps the trader go long on corn futures while shorting wheat futures. As the price gap tightens, the trader realizes gains irrespective of overall market direction.

    This strategy reduces exposure to absolute price volatility and focuses on relative price movements.

  4. Leveraging Stop-Loss Orders

    Stop-loss orders are a critical tool for managing downside risk in volatile markets. A futures broker can work with clients to establish stop-loss levels tailored to their risk tolerance.

    • Case Study: A gold trader enters a long position expecting prices to rise due to inflation concerns. The futures broker sets a stop-loss order at a 5% decline. When prices unexpectedly drop due to a stronger dollar, the order is triggered, limiting losses.

    Stop-loss orders ensure disciplined trading futures even in chaotic market conditions.

  5. Using Technical Analysis

    Futures brokers often provide clients with advanced charting tools and technical analysis to identify key market levels. These insights help traders execute informed decisions.

    • Example: A professional trader collaborates with a futures broker to analyze historical price patterns in the S&P 500 futures market. Using Fibonacci retracements and moving averages, they pinpoint entry and exit points during a volatile earnings season.

    By leveraging technical analysis, futures brokers in the USA empower clients to act decisively.

  6. Diversifying Across Asset Classes

    Diversification is a time-tested approach to mitigating risk. Futures brokers can guide traders in creating portfolios with exposure to various asset classes, such as commodities, equities, and currencies.

    • Hypothetical Example: A trader overly reliant on equity index futures is advised by their futures broker to diversify into agricultural commodities. When equity markets experience heightened volatility, gains in agricultural futures trading help stabilize the portfolio.

    This strategy minimizes reliance on a single market segment.

  7. Providing Real-Time Market Insights

    Modern futures brokers in the USA offer access to real-time data and expert commentary to help clients anticipate and respond to market moves.

    • Example: During the 2022 energy crisis, Cannon Trading provided clients with timely analysis of natural gas futures. Traders who acted on this information navigated extreme price fluctuations more effectively than those without broker insights.

    Access to accurate, up-to-date information is a cornerstone of successful trading futures.

  8. Structured Trade Execution

    Effective execution can make or break a trade during periods of high volatility. Experienced futures brokers employ smart order routing and execution algorithms to reduce slippage.

    • Case Study: A high-frequency trader enters the E-mini S&P 500 futures market during a Fed announcement. With the help of a futures broker’s advanced platform, orders are executed swiftly, locking in favorable prices before the market reacts.

    Top-tier execution is an often-underestimated advantage provided by reputable futures brokers in the USA.

  9. Educating Clients Through Webinars and Research

    Education is vital for empowering traders to manage risk. Many futures brokers, including Cannon Trading, provide webinars, market reports, and one-on-one consultations.

    • Real-Life Example: In 2023, Cannon Trading hosted a webinar on “Trading Futures During High Volatility.” Participants learned strategies to navigate unpredictable interest rate announcements, which they later applied successfully in live trades.

    Educational resources ensure traders are equipped to make informed decisions in volatile markets.

  10. Offering Access to Diverse Trading Platforms

    In a fast-paced environment, the right trading platform can be the difference between success and failure. Leading futures brokers in the USA provide clients with access to state-of-the-art platforms tailored to their needs.

    • Example: A swing trader uses a multi-asset platform from Cannon Trading to monitor futures, options, and spot markets simultaneously. This integrated view helps them identify arbitrage opportunities during a market selloff.

    The ability to trade seamlessly across markets enhances resilience in volatile times.

Why Choose Cannon Trading Company for Managing Volatility?

Cannon Trading Company is a standout in the crowded field of futures brokers in the USA, offering unmatched experience, client support, and technological resources. Here’s why Cannon is an excellent choice for traders concerned about market volatility:

  • Decades of Experience: With over 35 years in the industry, Cannon Trading has weathered countless market cycles, making it a trusted partner in uncertain times.
  • Top Regulatory Standards: Cannon Trading operates under strict compliance with U.S. regulatory bodies, providing traders with a secure and transparent trading environment.
  • Highly Rated Service: The company boasts dozens of 5 out of 5-star ratings on TrustPilot, reflecting exceptional customer satisfaction.
  • Diverse Platforms: Whether you are a beginner or a seasoned trader, Cannon Trading offers access to top-tier platforms like CQG, TradeStation, and Sierra Chart.
  • Tailored Support: Cannon Trading’s personalized service helps traders develop customized strategies to navigate volatility effectively.

For traders seeking a reliable partner in futures trading, Cannon Trading delivers expertise, technology, and trustworthiness.

As we approach 2025, market volatility is likely to remain a defining feature of financial markets. Futures brokers in the USA play an indispensable role in helping traders navigate these challenges through hedging, diversification, advanced execution, and education. From stop-loss orders to real-time insights, the techniques outlined above demonstrate the breadth of strategies available to clients.

With a proven track record, comprehensive platform offerings, and a commitment to client success, Cannon Trading Company is uniquely positioned to assist traders in managing risk and capitalizing on opportunity in the world of futures trading. By leveraging the resources and expertise of leading futures brokers, traders can approach market volatility with confidence and resilience.

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