Cannon Futures Weekly Letter

In Today’s Issue #1298

• The Week Ahead – Humphrey Hawkins Testimony, CPI, PPI, Iran

• Trading Signals!

• Futures 102 – The Daily Briefing – What the Pros Know Before Trading

• Options 303: Selling Options premium & More!

• September Wheat Corn Spread Chart & Outlook

• Cannon Edge – Your Futures trading Map for the week ahead!

• Trading Levels for Next Week
• Trading Reports for Next Week

What Futures Traders Should Watch This Week

By John Thorpe, Senior Broker

The Week Ahead

We have everything needed to move the market next week as we do expect increased volatility daily from earnings reports to Fed Speakers and Government data releases. This, in addition to the lasting uncertainty in the Middle East. The key futures market news for next week’s trading focuses on

1. Heavy economic Data points including measures of inflation, CPI, PPI, Michigan Consumer Sentiment.

2. Humphrey Hawkins testimony, 12 Fed speakers including Chair Warsh’s Congressional testimony.

3. The Q2 corporate earnings lift off with over 2 trillion dollars in banking market cap on Tuesday before the open featuring, JPMorgan, BofA, Goldman, Citi and Wells followed by Wednesday’s premarket menu of over 1 trillion dollars in banking market cap featuring Morgan Stanley, BlackRock, Bank of NY, PNC and M&T with consumer goods nameplate Johnson and Johnson mixed in.

Don’t sleep on the banks earnings, Netflix after the close on Thursday announces it’s Q2 results. Additionally, Alcoa also announces after the close. Of note: if I counted correctly, 29 banks report, I have only listed the largest of them below.

Big bi-annual Humphrey -Hawkins Testimony to both the U.S.House on Tuesday and the U.S. Senate on Wednesday. This is the second and final this year, required monetary policy testimony for the Fed Chair. Powell presided in February, while this will be the first of many for Chairman Kevin Warsh. Typically, the House testimony moves the markets more than the Senate testimony. When Does It Peak?

Volatility occurs in two main waves:

1. The Prepared Remarks (Instant Spike): The initial release of the written Monetary Policy Report causes immediate, sharp price swings as traders react to the hard data.
2. The Q&A (Extended Fluctuations): This is where investors expect the most volatility. If the Fed Chair makes an off-the-cuff, “hawkish” remark (hinting at interest rate hikes to fight inflation), stocks usually drop. If they make a “dovish” remark (hinting at rate cuts or stimulus), stocks typically rise. (Federal Reserve Bank of Cleveland)

Who can trust the fragile Islamabad Memorandum of Understanding?  Is this now null and void?  Will Peace talks resume after the paused week-long funeral for former Supreme Leader Ayatollah Ali Khamenei?

           Is the smoke clearing in the Mid-East and the markets have a renewed sense of confidence?

The energy’s, metals, securities and interest rates are swirling in the uncertainty from a lack of resolution in the attempted unwinding of the Iranian nuclear program. The 60-day window to hammer out a deal has now less than 26 days to get done, or will there be none.

Don’t let your guard down just yet, the fog continues, tune into the Sunday evening markets to witness reactions to the weekend news streams, manufactured or true.

  Plan your trade and trade your plan!

Earnings Next Week:

·        Mon. Fastenal, FB Financial, Greenbrier Companies

·        Tue. JP Morgan, B of A, Goldman Sachs, CitiGroup, Wells Fargo,

·        Wed. J & J, Morgan Stanley, BlackRock, Bank of NY, PNC Bank, Cintas, M&T Bank, Inited Airlines, Conagra Foods

·        Thu. Netflix, Alcoa, United Healthcare, GE Aerospace, Abbott, Intuitive Surgical, ProLogis, US Bancorp, Truist, State Street

·        Fri.   Travelers Companies, Fifth Third Bancorp

Fed Speakers: (all times CDT)

·        Mon. 11:30 am Waller,

·        Tues.  9:00 am Fed Chair Warsh House Testimony for the Monetary Policy Report, 11:40 am Barr, Noon, Goolsbee, 12:30 pm Cook, 1:55 pm Bowman

·        Wed. 7:45 am Williams, 9:00 am Fed Chair Warsh Senate Testimony, Noon Cook, 5:30 pm Musalem

·        Thu. 11:30 am Logan, 6:00 pm Jefferson

·        Fri.   Quiet

Econ Data:

·        Mon. S&P Services, ISM Services,

·        Tue. CPI, Redbook, ADP Weekly, API Crude stock change

·        Wed. PPI, , EIA Crude stock Change, Beige Book

·        Thu. Retail Sales, Initial Jobless claims, Philly Fed, EIA Nat Gas Stocks, NAHB Housing market index,

·        Fri. Building Permits, Housing Starts, Industrial Production, Michigan Consumer Sentiment, Baker Hughes Oil Rig Count

Real Time Trading Signals

Sign up to receive a family of studies along with trading ALGORITHMS you can place on your own charts, your own time frame, and the markets you prefer.

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• Real-time intraday signals delivered directly through Sierra Chart or TradingView
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• The Diamond ALGO and indicators family – applicable to any market at any time frame
• One-on-one remote session to get you started
• Online meeting invitation if you need any help with installation

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Futures Options Writing

Have you ever wondered who sells the futures options that most people buy? These people are known as the option writers/sellers. Their sole objective is to collect the premium paid by the option buyer. Option writing can also be used for hedging purposes and reducing risk. An option writer has the exact opposite to gain as the option buyer.

The writer has unlimited risk and a limited profit potential, which is the premium of the option minus commissions. When writing naked futures options your risk is unlimited, without the use of stops. This is why we recommend exiting positions once a market trades through an area you perceived as strong support or resistance. So why would anyone want to write an option? Here are a few reasons:

1. Most futures options expire worthless and out of the money. Therefore, the option writer is collecting the premium the option buyer paid.
2. There are three ways to win as an option writer. A market can go in the direction you thought, it can trade sideways and in a channel, or it can even go slowly against you but not through your strike price. The advantage is time decay.
3. The writer believes the futures contract will not reach a certain strike price by the expiration date of the option. This is known as naked option selling.
4. To hedge against a futures position. For example: someone who goes long cocoa at 850 can write a 900 strike price call option with about one month of time until option expiration. This allows you to collect the premium of the call option if cocoa settles below 900, based on option expiration. It also allows you to make a profit on the actual futures contract between 851 and 900. This strategy also lowers your margin on the trade and should cocoa continue lower to 800, you at least collect some premium on the option you wrote. Risk lies if cocoa continues to decline because you only collect a certain amount of premium and the futures contract has unlimited risk the lower it goes.

Selling options premium or “options writing” is an advance, sometimes unlimited risk strategy and not suitable for everyone!! read more and download PDF “cheat Sheet” HERE.

Futures 102: The Daily Briefing by Cannon

Every morning, the world’s biggest banks and macro strategists publish where markets are headed. The rest of the world waits for the headline.

That intelligence stays locked inside trading desks, institutional terminals, and private client portals — accessible only to the few who pay for the privilege, and even they only get what they pay for.

This briefing changes that (100% FREE on Cannon’s website!!). Every morning we scour the open web and aggregate everything that matters — pulling from publicly available sources so you never have to — and distill it into one clear, readable edition you can get through before your first coffee is finished.

No terminals. No subscriptions. No private portals. Just everything the market is saying, gathered in one place, every morning before the bell.

Read the Latest Briefing HERE and make sure to Bookmark this page!

Wheat Corn Spread

Some professional futures traders prefer trading spreads—both intraday and swing—because spreads can reduce outright market risk while still offering opportunities for consistent returns. By trading the price relationship between two related contracts rather than a single direction, traders can benefit from relative value inefficiencies, seasonal patterns, and supply-demand imbalances. Intraday spread trading often provides smoother price action and tighter risk control, while swing trading spreads can capitalize on longer-term structural trends with lower volatility compared to outright positions. Additionally, spreads typically require lower margin and can be less sensitive to macro shocks, making them an appealing strategy for disciplined risk management and more stable performance.

That being said – spread trading is risky just like futures trading and past performance is not indicative of future results.

In today’s chart review, you will see an idea/ outlook of a swing trade between the Corn and wheat.

Some INTRA day traders will day trade gold vs silver, MNQ versus MES, ten years vs the 30 years and more….

Curious?

Learn more here or even better schedule a one on one consultation with a licensed series 3 broker HERE

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.

FREE TRIAL TO QT MARKET Center – Access to analysis, tools, news & Much more!

Highly recommended for HEDGERS!

Cannon Edge — Your Daily Futures Insight for the Next Trading Day! Cannon Edge for July 13th, 2026

Cannon Edge is our new daily feature designed to give traders a fast, actionable overview of key futures markets. Each post delivers:

• Current price and daily % change
• 30‑day and 52‑week highs/lows
• PROPRIETARY Short‑term and long‑term trend signals
• Coverage across equity indices, metals, energies, currencies, and ags

Whether you’re scanning for breakout setups, trend reversals, or just staying informed — Cannon Edge puts the data in your hands before the open.

Built for speed. Backed by insight. Powered by CQG.

Daily Levels for July 13th, 2026

Trading Reports for Next Week

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

www.mrci.com

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

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