3 Main Types of Trading Days, 30 Year Bond Chart Review & Support and Resistance Levels 11.12.2021

November 11th, 2021 Filed under Charts & Indicators, Financial Futures, Future Trading News | Comment (0)

Dear Futures Trader,

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Yesterday we had a nice volatile day, with price action both up and down and then we followed it today ( Veteran’s Day, banks are closed) with very choppy, much narrower price action. Tomorrow is Friday, after a quiet day and with some meanigful reports – which encouraged me to share the following with you on the different types of trading days:

In my opinion there are 3 main types of trading days:

1. The most common day are two sided trading action with swings up and down – this type of trading day is most suitable for using support and resistance levels along with overbought/oversold indicators.

2. Strong trending days, mostly one directional – this type of trading day is the least common, many times will happen on Mondays and maybe 3-5 times a month at most – this type of trading day is most suitable for using ADX, MACD crossovers and pretty much looking for pullbacks to jump on the trend perhaps with the help of parabolics.

3. Slow and/or choppy trading days – this type of trading day is best suited for taking small profits from the market by looking at volume spikes, using stochastics as possible entry signals and usually wait for a pullback before jumping in.

·A good question I’ve been asked is how can one asses what type of trading day we will have while the market is still trading….I have been doing some work in finding the answers and will be happy to hear feedback via email but here are some initial observations:

1. Was the overnight session a wide, two sided trading range? If the answer is yes, good chances for similar trading day during the primary session (primary session is when the cash/stock market is open)

2. Mondays have the highest chance for trending days

3. The behavior of the first hour of trading can also suggests the type of action for the rest of the day.

4. If the first 30 minutes of the trading day have good volume, better chances for type 1 or type 2 trading days.

5. Low volume during the first 30 minutes can suggest a choppy (type 3 trading day)

6. Are there other strong trends in other sectors? ( bonds? metals? energies? Dollar index? )

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 when it comes to Futures Trading.

Hourly/ 60 minutes chart ( click for larger image) of the 30 yr bonds (ZB or USA) for your review below. I have heard from some clients that they “like the personality of the bonds” better than the ES and NQ. Different dynamics, larger tick size – may be worth your time to follow and try in SIM MODE first

If you are looking for other reference material please contact your Cannon Broker for lists of solid, informative and helpful trading tomes

Good Trading

Futures Trading Levels

11-12-2021

Futures Support and Resistance Levels 11.12.2021

Economic Reports, source:

https://bettertrader.co/

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

Weekly Newsletter #1045 Tight Stops? Wide Stops? Which One Should I Use? & 30 Year Treasury Bond Chart Review & Trading Levels for Week Ahead 3.29.2021

March 26th, 2021 Filed under Future Trading News, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Newsletter Issue # 1045

Dear Traders,

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Trading 102: Tight Stops? Wide Stops? Which One Should I Use?

Entry Signals Are Very Important But Just As Important If Not More Is Trade Management.

By: Ilan Levy-Mayer, Cannon Trading Commodities Broker & VP

This article was published on FinanceMagnates.com back a couple years ago but is defintely a timeless article.

Today I decided to touch more on an educational feature rather than provide a certain market outlook. Many of my clients and blog readers know that when it comes to short term trading I am a fan of adjusting your trading technique/ game plan according to your assessment of the type of trading day that is developing in front of you.

Many new and advanced traders spend HOURS on looking for entry signals. Back testing historical data, creating algorithms to use and much more. I know. I am one of these traders.

Trade management consists of many factors. Some are psychological and some are more mathematical and many are in between. Some of the basic elements of trade management before even entering the trade are: What will my stop loss be**? will i use a stop loss**? What will my target be? will I use a target or just trail the trade if it goes my way?

….Finish reading rest of the article, click here

Weekly chart of US 30 year bond futures for your review below. Click here for Larger image.

The bond market, more specifically, interest rate and yield projections, have been the big force behind the moves in many other futures markets. Bonds and the U.S. dollar have been key markets to watch, regardless of whether you are trading the E-mini S&P 500, gold, crude oil or soybeans. The way “big money” flows between asset classes, the allocation of assets, as well as the hedging interests in different markets are the main forces behind most of the markets we trade here.

Good Trading

Futures Trading Levels

3-29-2021

Weekly Levels

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

https://mrci.com

Date Reports/Expiration Notice Dates

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 herein 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 judgment in trading

10 & 30 YR Treasury Bonds Analysis 6.25.2015

June 24th, 2015 Filed under Commodity Trading, Future Trading News, Futures Trading | Comment (0)

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Hello Traders,

For 2015 I would like to wish all of you discipline and patience in your trading!

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Hello Traders,

Looking at 10 and 30-Year Treasury Bonds for Clues on What’s to Come

Back in April I wrote this piece:

Wondering if bonds hit double top, well hindsight is 20/20 and it seems I was definitely right about this one. The question now is where is this volatile market heading next?

Before I jump in to take a look at the charts, one quick side note: Bonds have been one of my favorite day trading markets these past six months…so if you are looking for a different market to add to your day trading mix, I recommend observing the 30-year bonds.

My assumption as of late is that by now the bonds have already discounted 1-2 rate hikes by the end of the year, hence the big drop we noticed in the last few months. My speculation is that the Fed will raise 0.25 at best by year’s end.

– See more at: http://www.equities.com/editors-desk/investing-strategies/trading/looking-at-the-10-year-and-30-year-treasury-bonds-for-clues-ahead#sthash.XicGuNKq.dpuf

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