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Category: Weekly Newsletter

Commodity Brokerage

Posted on by Ilan

Commodity brokerage is a cornerstone of the global financial markets, connecting traders to opportunities in futures and options. Among the many players in this competitive industry, Cannon Trading Company has emerged as a trusted name, celebrated for its enduring commitment to excellence, innovation, and client success. Established in 1988, Cannon Trading’s journey reflects the evolution of the futures markets and exemplifies why it continues to stand out as a top-tier choice for traders.

The Inception: A Vision in Los Angeles

Cannon Trading Company began its journey in Los Angeles in 1988, founded with the vision of empowering traders to access the dynamic world of futures and options markets. From its inception, the firm was committed to delivering exceptional customer service and personalized guidance—a philosophy that remains at the heart of its operations today. At a time when commodity brokers were largely confined to traditional office-based interactions, Cannon Trading sought to redefine the client experience by embracing accessibility and transparency.

Pioneering Online Trading in the 1990s

The 1990s were a transformative decade for the financial industry, as the advent of the internet revolutionized how markets operated. Recognizing the potential of this technological leap, Cannon Trading became an early adopter of online trading. By developing and offering some of the industry’s first online trading platforms, the firm empowered futures traders to execute trades with speed and efficiency, breaking barriers that had previously limited market access.

This pioneering move positioned Cannon Trading as a forward-thinking commodity brokerage, setting it apart from competitors who were slower to adapt. For the first time, traders could manage their portfolios, analyze market data, and execute trades—all from the comfort of their homes. Cannon’s embrace of online trading not only enhanced its reputation as an innovative futures broker but also laid the groundwork for the modern futures trading landscape.

Expertise in the Futures Markets

As the futures markets evolved, so did Cannon Trading. Over the decades, the firm has built a reputation as a trusted commodity broker, offering clients access to a wide range of markets, including agricultural commodities, energy products, metals, financial futures, and indices. This breadth of expertise has made Cannon Trading a one-stop solution for traders looking to diversify their portfolios and explore opportunities in multiple asset classes.

Cannon Trading’s team of professional futures brokers brings decades of combined experience to the table, helping clients navigate the complexities of futures trading. Whether a client is new to the markets or an experienced futures trader, Cannon’s brokers provide tailored advice, technical analysis, and risk management strategies to help them achieve their trading goals.

Industry Recognition and Regulatory Excellence

One of the hallmarks of a reliable commodity brokerage is its adherence to industry standards and regulations. Cannon Trading is a proud member of the National Futures Association (NFA) and is registered with the Commodity Futures Trading Commission (CFTC). These affiliations underscore the company’s commitment to maintaining the highest levels of integrity, transparency, and compliance in its operations.

Cannon Trading has also earned a stellar reputation among its clients, reflected in its consistent 5 out of 5-star ratings on TrustPilot. This recognition speaks volumes about the firm’s dedication to client satisfaction and the quality of its services. In an industry where trust is paramount, Cannon Trading has built a legacy of reliability that few commodity brokers can match.

Free Trading Platforms and Cutting-Edge Tools

In today’s competitive trading environment, access to robust tools and technology is essential for success. Cannon Trading offers a suite of free trading platforms, catering to the diverse needs of its clients. Whether a trader prefers a user-friendly interface for basic order execution or advanced charting and algorithmic trading capabilities, Cannon’s platforms provide the functionality required to excel in futures trading.

Some of the popular platforms offered by Cannon Trading include:

  • CQG: Known for its precision and reliability, CQG is a favorite among professional futures traders.
  • NinjaTrader: A versatile platform ideal for technical analysis and custom strategy development.
  • E-Futures International: An intuitive platform designed for seamless trading and account management.

These platforms are complemented by real-time market data, advanced charting tools, and educational resources, ensuring that Cannon’s clients have everything they need to succeed in trading futures.

A Client-Centric Approach

Cannon Trading’s success is rooted in its unwavering commitment to its clients. Unlike many commodity brokers who prioritize transactional relationships, Cannon takes a consultative approach, focusing on building long-term partnerships. The firm’s brokers take the time to understand each client’s unique needs, trading style, and risk tolerance, tailoring their recommendations accordingly.

This personalized approach is particularly valuable for new futures traders, who often require guidance to navigate the complexities of the market. Cannon’s brokers provide educational resources, one-on-one consultations, and continuous support, empowering clients to make informed decisions and build their confidence in futures trading.

Staying Ahead in the Modern Era

As the futures markets continue to evolve, Cannon Trading remains at the forefront of innovation. The firm has embraced advancements in algorithmic trading, artificial intelligence, and data analytics, ensuring that its clients have access to the latest tools and strategies. By staying ahead of industry trends, Cannon Trading continues to solidify its position as a leading commodity brokerage.

Cannon’s focus on education is another key factor in its success. The firm regularly publishes market analysis, trading tips, and educational content, helping its clients stay informed about market developments. This commitment to education reflects Cannon’s belief that an informed trader is a successful trader.

Why Choose Cannon Trading?

With over three decades of experience, Cannon Trading offers a unique combination of expertise, innovation, and client-focused service. Here are some of the key reasons why traders continue to choose Cannon as their futures broker:

  1. Proven Track Record: Cannon Trading’s long-standing presence in the industry is a testament to its reliability and excellence.
  2. Top Ratings: The firm’s 5-star TrustPilot reviews highlight its commitment to client satisfaction.
  3. Regulatory Compliance: Cannon’s membership with the NFA and registration with the CFTC ensure that clients can trade with confidence.
  4. Diverse Market Access: From commodities and energy to financial futures, Cannon Trading provides access to a wide range of markets.
  5. Advanced Platforms: Free access to powerful trading platforms gives clients the tools they need to succeed.
  6. Personalized Support: Cannon’s brokers go above and beyond to provide tailored advice and support.

A Legacy of Excellence in Commodity Brokerage History

Cannon Trading Company has come a long way since its humble beginnings in Los Angeles in 1988. From pioneering online trading in the 1990s to serving as a trusted futures broker in today’s fast-paced markets, Cannon Trading has consistently demonstrated its commitment to innovation, integrity, and client success. Its decades of experience, regulatory excellence, and top-tier client ratings make it an unparalleled choice for traders looking to navigate the exciting world of futures trading.

Whether you’re an experienced futures trader or just starting your journey in trading futures, Cannon Trading offers the expertise, tools, and support you need to achieve your goals. As a leading name in commodity brokerage, Cannon Trading Company stands as a shining example of what a modern commodity broker should be.

NQ Futures Contract

Posted on by Ilan

The NQ futures contract, also known as the Nasdaq-100 futures contract or the E-mini Nasdaq-100 futures contract, is a cornerstone of modern futures trading. Representing 100 of the largest non-financial companies listed on the Nasdaq stock exchange, this contract is highly favored for its liquidity, volatility, and utility in both speculative and hedging strategies. In this article, we delve into the origins, evolution, and impact of the NQ futures contract, exploring its top historical turning points, contract size evolution, hedging applications, and why Cannon Trading Company stands out as a premier choice among futures brokers.

The Top 5 Major Turning Points in the History of the NQ Futures Contract

  1. Introduction of the Nasdaq-100 Index and Futures Contracts (1985)
    The foundation of the NQ futures contract began with the launch of the Nasdaq-100 index in 1985. This index represented a weighted basket of 100 non-financial companies, offering investors a way to track the performance of technology and growth-driven sectors. Shortly thereafter, the introduction of the Nasdaq-100 futures contract allowed investors to speculate on the index’s movement. At its inception, the contract size was much larger than the current E-mini Nasdaq-100 futures contract, catering primarily to institutional investors.
  2. The Dot-Com Boom and Bust (1990s–2000s)
    The late 1990s saw a surge in tech stock valuations, which dramatically impacted the Nasdaq-100 futures contract. During the dot-com boom, the NQ futures contract became a key vehicle for speculative trading, as traders sought to capitalize on the astronomical rise in tech stocks. However, the bust that followed in the early 2000s underscored the contract’s volatility. This era highlighted the need for smaller, more accessible contracts for retail traders, leading to the creation of the E-mini Nasdaq-100 futures contract in 1997.
  3. Introduction of E-mini Nasdaq-100 Futures (1997)
    The launch of the E-mini Nasdaq-100 futures contract marked a transformative moment in futures trading. Designed to be one-fifth the size of the original contract, the E-mini lowered the barrier to entry for individual traders and smaller institutional players. This innovation democratized trading and spurred a surge in participation, cementing the NQ futures contract’s reputation as a versatile tool for trading Nasdaq-linked securities.
  4. Global Financial Crisis (2008)
    During the 2008 financial crisis, the NQ futures contract experienced unprecedented volatility. Investors and fund managers turned to futures markets to hedge their equity positions against sharp declines. The crisis underscored the importance of liquidity and robust market access, which the E-mini contracts provided in abundance. This period also saw the introduction of advanced electronic trading platforms, enabling rapid execution of trades—a trend embraced by top futures brokers like Cannon Trading Company.
  5. Rise of Algorithmic Trading and Micro E-mini Contracts (2019)
    In 2019, the Chicago Mercantile Exchange (CME) introduced the Micro E-mini Nasdaq-100 futures contract, offering an even smaller notional value (one-tenth the size of the E-mini). This evolution catered to novice traders and those seeking greater precision in their trading strategies. Combined with advancements in algorithmic trading, this development has cemented the NQ futures contract’s role as a versatile instrument in modern markets.

Contract Size: Then and Now

At its inception, the Nasdaq-100 futures contract was designed with a larger notional value, making it suitable primarily for institutional investors. With the introduction of the E-mini Nasdaq-100 futures contract, the size was reduced to 20 times the index’s value, significantly increasing accessibility.

Today, traders can choose from multiple contract sizes:

  • E-mini Nasdaq-100 Futures Contract: 20 times the index value.
  • Micro E-mini Nasdaq-100 Futures Contract: 2 times the index value.

This tiered structure ensures that traders of all scales—from retail investors to institutional hedgers—can find a product that aligns with their risk tolerance and trading objectives.

Hedging with NQ Futures Contracts: Practical Applications

The NQ futures contract is not just for speculation—it’s a powerful hedging tool. For investors with significant exposure to Nasdaq-listed equities, trading the NQ futures contract or its options can mitigate potential losses during market downturns.

Example 1: Protecting a Technology-Heavy Portfolio

Imagine an investor with a $500,000 portfolio heavily concentrated in technology stocks like Apple, Microsoft, and Nvidia. If the investor anticipates a short-term decline in the tech sector, they can sell NQ futures contracts to offset potential losses. A single E-mini Nasdaq-100 futures contract moves in $20 increments for each point change in the index, offering precise risk management.

Example 2: Using Options on NQ Futures

Options on the Nasdaq-100 futures contract provide additional flexibility. For example:

  • A call option can be purchased to speculate on a market rebound without committing to a full futures position.
  • A put option can protect against significant downturns, acting as a form of insurance for the investor’s portfolio.

Options on E-mini Nasdaq-100 futures contracts are particularly popular due to their smaller contract size and manageable margin requirements, making them an excellent tool for hedging Nasdaq exposure.

Why Choose Cannon Trading Company?

When trading Nasdaq-100 futures contracts, selecting the right futures broker is critical. Cannon Trading Company consistently earns accolades from traders for several compelling reasons:

  • Free Trading Platform
    Cannon Trading offers a free, robust trading platform, ensuring that traders have access to advanced tools for charting, analytics, and trade execution. This cost-effective solution is particularly attractive for those trading the E-mini Nasdaq-100 futures contract or the Micro version.
  • 5-Star Ratings on TrustPilot
    The company’s exceptional reputation is reflected in its perfect 5-star ratings on TrustPilot. From seamless customer service to efficient trade execution, Cannon Trading is consistently praised by clients for delivering a top-tier trading experience.
  • Dedicated Brokers with Decades of Experience
    Unlike many futures brokers, Cannon Trading provides access to a team of seasoned professionals with decades of expertise in futures trading. These dedicated brokers guide clients through complex markets, ensuring informed decision-making and personalized support.
  • Regulatory Excellence
    A stellar reputation with regulatory bodies ensures that traders can trust Cannon Trading to operate with integrity and transparency. Compliance and client protection are central to their operations, making them a trusted partner for trading Nasdaq-100 futures contracts.
  • Superior Customer Service and Resources
    Cannon Trading excels in client education, offering webinars, market analysis, and one-on-one consultations. This commitment to client success sets it apart from other futures brokers, solidifying its reputation as a leader in the industry.

The NQ futures contract has evolved from its origins as a tool for institutional hedging to a versatile instrument accessible to all levels of traders. From the introduction of the Nasdaq-100 index to the launch of Micro E-mini contracts, the product’s history is marked by innovation and adaptation to market needs. Today, the combination of diverse contract sizes, robust hedging applications, and user-friendly platforms makes the Nasdaq-100 futures contract a cornerstone of futures trading.

For those seeking a reliable futures broker to navigate this dynamic market, Cannon Trading Company stands out. With its free trading platform, 5-star TrustPilot ratings, experienced brokers, and commitment to regulatory excellence, Cannon Trading offers unparalleled support for traders of E-mini Nasdaq-100 futures contracts and beyond. Whether hedging a portfolio or exploring speculative opportunities, partnering with a trusted broker like Cannon Trading ensures a seamless and rewarding trading experience.

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, Bean Oil Hot Market Chart + Trading Levels 11.25.2024

Posted on by Ilan
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Cannon Futures Weekly Letter Issue # 1218

In this issue:

  • Important Notices – Week Ahead – What to expect
  • Holiday Trading Schedule – Thanksgiving Schedule
  • Hot Market of the Week – March Coffee
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices – Next Week Highlights:

 

The Week Ahead

By John Thorpe, Senior Broker

 

503 corporate earnings reports and a number of meaningful Economic data releases.

FOMC Minutes 1:00P.M. Central this upcoming Tuesday!, highlights Thanksgiving week data points. No Fed speakers.

 

 

Prominent Earnings this Week:

  • Mon. quiet
  • Tue. Dell, Crowdstrike
  • Wed. quiet
  • Thu. Thanksgiving Day Mkts closed
  • Fri. quiet

 

 

FED SPEECHES:

  • Mon. quiet
  • Tue. quiet
  • Wed. quiet
  • Thu. Thanksgiving Day Mkts closed
  • Fri. quiet

 

Economic Data week:

  • Mon. Chicago Fed National Activity Index, Dallas Fed Manufacturing Index
  • Tues. Bldg Permits, Housing Starts, RedBook, Case Schiller Home PX. Consumer confidence, New Home Sales, Richmond Fed.
  • Wed. Core PCER Price index, Durable goods, Initial Jobless claims, Retail Inventories, Chicago PMI.
  • Thur. Thanksgiving Day Mkts closed
  • Fri. Early closes for the futures markets

 

Thanksgiving 2024 Holiday Schedule for CME Exchange Hours

Click here for the detailed schedule

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    • Hot Market of the Week – January Bean Oil

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

January Bean Oil

January bean oil completed its second upside PriceCount objective this month and corrected lower. Nw, the chart has activated downisde counts also. The first target projects a run to the 40.90 area. It takes a trade below the September reactionary low to formally negate the remaining unmet upside objectives.

 

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.
Would you like to receive daily support & resistance levels?
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S
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Daily Levels for November 25th, 2024

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Weekly Levels for the week of November 25th, 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.

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

S and P 500 Futures Contract

Posted on by Ilan

The S and P 500 futures contract, commonly referred to as SPX index futures, is one of the most popular and actively traded stock market index futures. It represents a standardized agreement to buy or sell the value of the S&P 500 Index at a future date. With a focus on the performance of 500 large-cap U.S. companies, the SPX index futures contract serves as a barometer for the broader U.S. economy and is widely used by traders and investors to hedge portfolios or speculate on market direction. In this article, we’ll delve into the significance of the U.S. Presidential election on the S&P 500 futures contract, assess the impact of Trump’s hypothetical win on these futures, and explore the advantages of using a highly rated brokerage firm, Cannon Trading Company, for trading futures.

What Does the U.S. Presidential Election Mean for the S&P 500 Futures Contract?

U.S. Presidential elections significantly impact financial markets, with the S&P 500 and SPX index futures being among the most affected instruments. This is due to the perceived influence that presidential policies can have on the broader economy, specific sectors, and individual corporations. SPX index futures, representing the S&P 500 Index, are particularly sensitive to factors like economic stimulus, corporate taxation, regulatory policies, and trade relations—policies that can shift dramatically depending on which candidate wins the White House.

When a candidate from a business-friendly background, such as Trump, wins an election, it can lead to initial optimism in the stock market and a subsequent rally in S&P 500 futures. This optimism is often fueled by expectations of corporate tax cuts, deregulation, and pro-business policies that could directly boost corporate earnings and drive stock prices higher. On the other hand, uncertainty around foreign policy and global trade dynamics can introduce volatility, impacting SPX index futures as traders try to anticipate the broader implications for multinational corporations.

Historically, a Republican victory has often led to an initial bullish outlook on the SPX index futures due to the traditional pro-business stance associated with the party. However, this impact can vary depending on the incumbent’s unique policy mix, as seen with Trump’s focus on “America First” policies. A win for Trump in the 2024 election, for instance, would likely continue influencing investor sentiment, particularly in industries like manufacturing, energy, and defense, as well as in sectors that rely on reduced regulations.

Pros and Cons of S and P 500 Futures Contracts with Trump’s Victory

Trump’s victory could bring both advantages and disadvantages for S&P 500 futures contracts, creating both opportunities and risks for traders. Here’s a closer look at some potential pros and cons.

Pros

  • Potential for Corporate Tax Cuts and Deregulation: One of the most prominent benefits seen from Trump’s previous presidency was his emphasis on reducing corporate taxes and loosening regulatory requirements for businesses. A win for Trump would likely signal similar intentions, potentially boosting the profitability of U.S.-based companies. With higher earnings, stock valuations tend to rise, making SPX index futures attractive to traders who anticipate a bullish market.
  • Infrastructure Spending and Job Growth: Trump’s previous initiatives often included ambitious infrastructure spending plans, which he posited would lead to job growth and increased consumer spending. If Trump returns to office, a renewed focus on infrastructure could drive demand across multiple sectors, from construction to technology. This increased economic activity might provide a strong backdrop for the S&P 500 index, pushing SPX index futures higher.
  • Market Volatility and Trading Opportunities: Trump’s leadership style has historically brought volatility to financial markets. For active traders in S&P 500 futures contracts, such volatility can present a plethora of trading opportunities, as frequent market swings allow traders to capitalize on both upward and downward movements in SPX index futures.

Cons

  • Potential Trade Conflicts and Global Tensions: Trump’s previous term was marked by trade tensions, particularly with China. Renewed trade wars or heightened tariffs could negatively affect multinational companies, especially in sectors like technology, manufacturing, and agriculture. This uncertainty might cause sharp swings in SPX index futures, making it more challenging for traders to accurately predict market directions.
  • Uncertain Economic Policies and Fiscal Discipline: The potential for an expansionary fiscal policy focused on government spending might also increase concerns about the national debt. Increased federal spending and potential inflation concerns could contribute to volatility in the bond market, which can trickle into the S&P 500 and SPX index futures. Traders may need to exercise caution in response to fiscal policy announcements and inflation indicators.
  • Social and Political Instability: A win for Trump could also bring about societal polarization and potential civil unrest, which may have repercussions in the financial markets. Uncertainty in the political landscape often translates to market volatility, which could create unexpected swings in SPX index futures, challenging risk management for traders.

Why Choose Cannon Trading Company for Trading Futures?

For traders looking to capitalize on SPX index futures, selecting the right brokerage is essential. Cannon Trading Company, with decades of experience in the futures market and a reputation for excellence, has become a go-to option for both novice and seasoned traders. Here are several reasons why Cannon Trading Company stands out as a top choice for trading futures, especially S&P 500 futures contracts.

  • Unparalleled Expertise and Experience: Cannon Trading Company has a long-standing history in the futures market, with a team of professionals who understand the intricacies of SPX index futures and other stock market index futures. Their expertise enables them to provide valuable insights, helping traders make informed decisions based on real-time market data, technical analysis, and macroeconomic trends.
  • Exceptional Customer Ratings and Trustworthiness: With a perfect 5-star rating on TrustPilot, Cannon Trading has built a solid reputation for client satisfaction. Traders appreciate the company’s transparent and ethical practices, as evidenced by its regulatory compliance record. This trustworthiness is critical for futures traders who need confidence in their broker, especially when trading high-stakes instruments like SPX index futures.
  • Advanced Trading Platforms and Resources: Cannon Trading Company offers a wide array of trading platforms that cater to various trading styles and experience levels. Their platforms come equipped with sophisticated charting tools, analytical resources, and real-time data, allowing traders to stay updated on the performance of SPX index futures and other contracts. For example, their trading platforms offer advanced risk management features, allowing traders to set parameters that help protect against unexpected market swings.
  • Personalized Support and Education: The brokerage’s team goes above and beyond to support its clients, offering personalized guidance tailored to each trader’s goals and risk tolerance. For traders new to SPX index futures, Cannon Trading provides educational resources and training, helping them develop strategies suited to their trading style. This level of support can make a significant difference, especially during volatile periods.
  • Wide Range of Trading Instruments: Besides SPX index futures, Cannon Trading offers access to a variety of other stock market index futures, commodities, and options. This wide range enables traders to diversify their portfolios and explore different sectors, all while enjoying the convenience of trading with a single brokerage.

The Importance of SPX Index Futures for Traders

SPX index futures play a crucial role in financial markets by providing a way for traders to hedge against or speculate on the future direction of the S&P 500. These futures contracts enable traders to take advantage of market movements without needing to own individual stocks. This feature is particularly beneficial during periods of political uncertainty or economic volatility, as traders can quickly pivot their positions in response to changing market conditions.

Trading futures like the SPX index futures also offers advantages in terms of leverage, as traders only need to deposit a fraction of the contract’s value as collateral. This leverage allows traders to magnify their potential returns, though it also increases the risk, underscoring the importance of proper risk management and using a reputable brokerage like Cannon Trading Company.

The outcome of the U.S. Presidential election can have a profound impact on financial markets, especially on instruments like the S&P 500 futures contract, or SPX index futures. A Trump victory would likely bring renewed attention to pro-business policies, but it could also introduce additional volatility stemming from trade tensions, fiscal policy shifts, and political polarization. For traders, these dynamics underscore the importance of choosing a reliable and experienced brokerage.

Cannon Trading Company, with its decades of experience, high customer ratings on TrustPilot, and robust regulatory reputation, stands out as a top choice for trading futures. With personalized support, advanced trading platforms, and a commitment to transparency, Cannon Trading empowers traders to navigate the complex world of SPX index futures. For those looking to capitalize on the opportunities within the S&P 500 futures contract, a trusted brokerage like Cannon Trading can make all the difference in achieving trading success.

In a dynamic market landscape influenced by political events, having a solid foundation in SPX index futures and a supportive brokerage like Cannon Trading Company can provide traders with the tools and insights needed to make informed and strategic trades.

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

How Trade Oil Futures

Posted on by Ilan

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

The Origins of Oil as a Tradable Commodity

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

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

Why Crude Oil Futures are Popular

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

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

How Trade Oil Futures

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

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

Advantages and Disadvantages of Trading Oil Futures

For Retail Traders

Advantages:

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

Disadvantages:

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

For Institutional Traders

Advantages:

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

Disadvantages:

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

For Hedgers

Advantages:

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

Disadvantages:

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

Speculation on Oil Prices for the End of the Year

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

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

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

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

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

For more information, click here.

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

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

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

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

Follow us on all socials: @cannontrading

Future S&P

Posted on by Ilan

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

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

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

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

Questions? Click here.

How Can a Broker Assist in Stock Index Trading?

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

Retail Traders

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

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

Institutional Traders

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

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

Hedgers

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

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

Common Rookie Mistakes in Futures Trading

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

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

How Brokers Help Traders Avoid These Pitfalls

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

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

Importance of a Broker with High Ratings and Strong Regulatory Trust

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

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

Defining Characteristics of Legacy Futures Brokers

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

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

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

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

For more information, click here.

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

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

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

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

Follow us on all socials: @cannontrading

Futures Quotes

Posted on by Ilan

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

What are Futures Quotes?

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

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

How Futures Quotes Inform Traders and Brokers

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

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

Sources of Futures Quotes

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

Popular sources of futures quotes include:

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

How Retail Traders Use Futures Quotes to Their Advantage

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

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

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

Institutional Traders and Futures Quotes

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

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

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

Hedgers and Futures Quotes

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

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

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

Companies Known for Producing Futures Quotes

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

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

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

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

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

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

Posted on by Ilan
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C101

Cannon Futures Weekly Letter Issue # 1215

In this issue:

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

 

Important Notices – Next Week Highlights:

 

The Week Ahead

By John Thorpe, Senior Broker

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

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

 

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

 

Prominent Earnings this Week:

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

 

 

FED SPEECHES:

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

 

Big Economic Data week:

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

 

Futures 101: Ask a Broker!!

Ask a Broker: Bollinger Bands?

Bollinger Bands

 

Futures 102: Crude Oil In Depth Analysis

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

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

Crude Oil PDF Outlook HERE.

 

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    • Hot Market of the Week – March Sugar

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

    FREE TRIAL AVAILABLE

    March Sugar

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

     

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

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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.

QuantumFusion ProMax

PRODUCT

NK – Nikkei 225

 

SYSTEM TYPE

Swing Trading

 

Recommended Cannon Trading Starting Capital

$50,000

 

COST

USD 165 / 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?
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Daily Levels for November 4th, 2024

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Weekly Levels for the week of November 4th, 2024

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Trading Reports for Next Week

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

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.