FOMC


Suggestions to Help you Trade FOMC Tomorrow; Introducing Mini Ether & Support and Resistance Levels 12.15.2021

December 14th, 2021 Filed under Bitcoin Futures, Future Trading News, Futures Trading | Comment (0)

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FOMC Statement tomorrow:

 The following was written by my colleague, John Thorpe, an ex floor broker and a Senior Broker with Cannon Trading:
Since the depths of the pandemic, the Fed has been buying U.S. Treasuries and agency mortgage-backed securities in the open to signal its commitment to easy money policies. The Feds balance sheet has more than doubled during the Pandemic, from just under 4 trillion to nearly 9 trillion U.S. dollars. At the November Fed meeting , the governors had for the first time admitted that inflation may not be “transitory” and charted a path to “gradually” taper purchases with a target of mid 2022 to wind down the necessary taper .“If the market perceives that the Fed is behind the curve in controlling inflation, it would lead to higher inflation expectations and long-term interest rate hikes, potentially weakening the dollar and pressuring asset values,” said Madhavi Bokil, senior vice president at Moody’s Investors Service. In lieu of a gaudy CPI number recently at 6.8 and PPI increased by the largest amount in recorded economic history.
The market is looking for the Fed to acknowledge the existence of inflation in clearer terms than the November statement and the need to decelerate asset purchases and accelerating the “Taper” in an attempt to prevent a flat yield curve between the 2 yr and 10 yr notes. If this portion of the yield curve flattens or turns negative, this typically signals a recession. It has narrowed in recent weeks to a spread of only .75. This meeting is a very important one and so far this week, the equity markets are reacting to a potential need to accelerate the taper, an admission by the FED that they may be nervous about their inability to control inflation and an impending recession.

The following are my PERSONAL suggestions on trading during FOMC days:

·    Reduce trading size
·    Be extra picky = no trade is better than a bad trade
·    Choose entry points wisely. Look at longer time frame support and resistance for entry. Take the approach of entering at points where you normally would have placed protective stops. Example, trader x looking to go long the mini SP at 4325.00 with a stop at 4319.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 4319.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).
·    Expect the higher volatility during and right after the announcement
·    Expect to see some “vacuum” ( low volume, big zigzags) right before the number.
·    Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
·    Keep in mind statement comes out at 1 Pm Central time, the news conference which dissects the language comes out 30 minutes later so the volatility window stretches out.
·    Know what the market was expecting, learn what came out and observe market reaction for clues
·    Be patient and be disciplined
·    If in doubt, stay out!!
If you are looking for other reference material please contact your Cannon Broker for lists of solid, informative and helpful trading tomes

Introducing Micro Ether Futures

At 1/10 the size of one ether, Micro Ether futures (MET) provides a precision, efficient, cost-effective way to manage your exposure to one of the largest cryptocurrencies in the world by market capitalization.
  • Features & Benefits
  • Fine-tune your Ether exposure
  • Enjoy price discovery on a regulated exchange
  • Lower margin
  • Diversify your portfolio

 

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.

 

Futures Trading Levels

12-15-2021

Futures Support and Resistance Levels 12.15.2021

 


Economic Reports, Source: 

https://bettertrader.co/ 

Better Trader Economic Reports

 

 

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.


FOMC Reaction in the Futures Market & Support and Resistance Levels 11.04.2021

November 3rd, 2021 Filed under Future Trading News, futures trading education | Comment (0)

Dear Futures Trader,

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FOMC came out and stocks reacted with another leg up – what’s next?

FEDERAL RESERVE BEGAN
TAPPERING ITS $120 BILLION A MONTH PROGRAM.
$10 BILLION A MONTH OF
TREASURIES
$5 BILLION A MONTH OF
MORTGAGE BACKED SECURITIES
WAS:
$80 BILLION OF TREASURIES
$40 BILLION OF MORTGAGE BACKED
$1.44 TRILLION FOR THE YEAR
Gold sold off before hand and only bounced slightly.
Bonds sold off slightly.
Crude sold off the most but in my opinion it was API/ OPEC related and not FOMC related.
Many times, the real reaction to FOMC comes out the next day so price action, asset allocation across the different markets is important to watch.
If you are looking for other reference material please contact your Cannon Broker for lists of solid, informative and helpful trading tomes

Good Trading

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

 

Futures Trading Levels

11-04-2021

Futures Support & Resistance Levels 11.04.2021

 


Economic Reports, source: 

https://bettertrader.co/ 

BetterTrader Economic Reports 11.03.2021

 

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.


30 Year Treasury Notes (ZB) 120min Chart & Futures Levels 12.03.2020

December 2nd, 2020 Filed under Future Trading News, Futures Broker | Comment (0)

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Dear Traders,

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Each market has a different personality, different behavior along with different times of the day when it is most active. If you are finding that the ES (mini SP) is not giving you enough risk/opportunities then start monitoring a couple of other markets and perhaps explore them in demo / simulated mode.
I think that there are more than a few markets that are suitable for day-trading. Below you will find some observations, tips along with what are unique about these markets, personality and most active trading hours (interest rates, mostly the ten year and 30 year).
In most platforms, the symbols are ZB for 30 year bonds and ZN for 10 year notes.
Product Symbol
ZB
Contract Size
The unit of trading shall be U.S. Treasury Bonds having a face value at maturity of one hundred thousand dollars ($100,000) or multiples thereof
Price Quotation
Points ($1,000) and 1/32 of a point. For example, 134-16 represents 134 16/32. Par is on the basis of 100 points.
Product Symbol
ZN
Underlying Unit
One U.S. Treasury note having a face value at maturity of $100,000.
Deliverable Grades
U.S. Treasury notes with a remaining term to maturity of at least six and a half years, but not more than 10 years, from the first day of the delivery month. The invoice price equals the futures settlement price times a conversion factor, plus accrued interest. The conversion factor is the price of the delivered note ($1 par value) to yield 6 percent.
Price Quote
Points ($1,000) and halves of 1/32 of a point. For example, 126-16 represents 126 16/32 and 126-165 represents 126 16.5/32. Par is on the basis of 100 points.
Tick Size
(minimum fluctuation)
One-half of one thirty-second (1/32) of one point ($15.625, rounded up to the nearest cent per contract), except for intermonth spreads, where the minimum price fluctuation shall be one-quarter of one thirty-second of one point ($7.8125 per contract).
Contract Months
The first five consecutive contracts in the March, June, September, and December quarterly cycle.
These contracts are often affected by many of the economic reports that come out at 8:30 AM Eastern and there is very active volume between the hours of 8 AM EST and 3 PM EST
Volume on both contracts is very good. Ten years will often have 1 million contracts traded per day (might be the second most active US futures market after the mini SP 500) and the bonds will avg. around 300,000 contracts.
These markets can experience very volatile movements during and right after different reports but then will often trade smooth or in an intraday trend the rest of the day.
Spread traders may find some interesting strategies trading the ZB/ZN spread or what I refer to as the 30/10 and some call NOB spread ( notes over bonds).
120 minute chart of the ZB or 30 yr bonds for observation below.

Good Trading

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

 

Futures Trading Levels

12-03-2020

Economic Reports, source: 

 www.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.


Bank of England Rate Decision Tomorrow Morning + Video Library. 3.21.2018

March 21st, 2018 Filed under Future Trading News | Comment (0)

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FOMC is behind us but Bank of England will go through the same exercise tomorrow morning early…More volatility anticipated. 

We have added some new videos for your review at: 

https://www.cannontrading.com/video_center/

Did you know that our brokers are available for one on one consultation with clients and prospects?

Our brokers have different strengths, some are focused on spreads, others on options and some are more on the technical side.

As a group we have  strong and solid market experience and will be always happy to set up a time to listen to your needs and offer insight and actionable strategies.

If interested sign up at:

https://www.cannontrading.com/services/traders-profile

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Trading Week Starts with Strong Sell off – FOMC this Week

March 19th, 2018 Filed under Future Trading News | Comment (0)

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Fed Likely to Sidestep Trade War to Raise Rates on March 21

  • 12 Mar 2018
  • By Bluford Putnam
  • Topics: Economic Events, Interest Rates

The trade war that could stem from U.S. tariffs on steel and aluminum is unlikely to affect GDP, freeing the Fed to raise rates at its March 21 meeting.

Watch Video: http://www.cmegroup.com/education/featured-reports/fed-likely-to-sidestep-trade-war-to-raise-rates-on-march-21.html

Read the rest of this entry »

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