Gold Futures


Weekly Newsletter #1034 – Trading Futures vs. ETs, Stocks & Gold Snap Shot, Support & Resistance Levels 1.11.2021

January 8th, 2021 Filed under Gold Futures, Metal Futures, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Newsletter Issue # 1034

Dear Traders,

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Trading 201: (Day) Trading Futures vs. ETFs, Stocks
By: John D Thorpe, Cannon Trading Senior Commodities Broker
According to the Wall Street Journal, assets in Exchange Traded Funds (ETFs) have grown to roughly $2 trillion dollars since their inception. Exchange Traded Funds were created to compete with the $20 trillion dollar Mutual Fund Market as it was the only market in which you could achieve broad class diversity outside of individual stocks. ETFs were also designed to overcome the drawback that mutual funds could only settle on the close of daily business at their Net Asset Value (NAV). Previously, broad diversification across market sectors could only be purchased or sold at the close of the business day based on the equity, bond or raw material elements included in the weighted averages of every component of the sector mutual fund—thus, ETFs came into play.
The first Exchange Traded Fund, the Spider or SPDR, was the S&P 500 depository receipt which was designed to track the S&P 500 stock market Index and began trading in January of 1993. No longer could an investor achieve broad market exposure on just the close of the business day, but could now buy and sell the broad market at any time throughout the trading day. Market makers and specialists provided liquidity for ETFs and continue to do so today.
During the May 2010 so called “Flash Crash”, the NYSE cancelled all trades …..
Gold Snap Shot by Mark O’Brien, Senior Broker:
As can be the case in any asset, what starts as a moderate correction can turn into a dramatic washout. In the case of gold futures today, its ± $85 intra-day sell-off – easily slicing through $1900/ounce down to the mid-$1850 area – almost certainly involved margin and other money-oriented liquidations. As an added catalyst, look to the disappointing non-farm payroll numbers. Further soft U.S. economic data would point to lower inflationary concerns and tamp down on bullish sentiment for the precious metal.
The case for any price reversal will look for continued dollar weakness and the overall sentiment that demand improvement for commodities across the board will continue tracking its established 3-4-month uptrend as the markets look through current events.
Gold Futures Daily Chart

gold futures sell off on unemployment 01.08.2021

To access a free trial to the ALGOS shown in the chart along with other tools, visit and sign up for a free trial for 21 days with real-time data.

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

1-11-2021

Futures Trading Levels 1.11.2021

 

Weekly Levels

Weekly Support & Resistance Levels 1.11.2021 - 1.15.2021

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

https://mrci.com

Date Reports/Expiration Notice Dates

MRCI Reports 1.11.2021-1.15.2021

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 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


Futures Trading Levels for January 5th, 2021

January 4th, 2021 Filed under Future Trading News, Index Futures | Comment (0)

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Dear Traders,

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If the first trading day of 2021 is any indication of the year to come….Better fasten your seatbelts!!
Thank you for choosing Cannon during this challenging year. We look forward to continuing to provide you with excellent service in 2021 and wish you a healthy, successful year ahead
mini russell 2000 chart

RTY chart for January 5th 2021

RTY = Mini Russell 2000 has been a leading indicator in my opinion for direction of stock index futures past few months.
Will be interesting to see if the sell off today was a start of a trend reversal or just risk hedging ahead of Georgia tomorrow. As usual in trading, few hours/ few days will tell the story….
If you like access to the ALGOS shown in the chart, click here.
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

January 5th 2021

Did you know?
Cannon offers over 10 TRADING PLATFORMS CLICK HERE for a demo
Cannon offers FX trading. Try FX Pro demo free and see why it’s called PRO

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.


Gold Daily Chart For Review. Sympathy rally with Bitcoin? & Support and Resistance Levels 12.18.2020

December 17th, 2020 Filed under Future Trading News | Comment (0)

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Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!  

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Dear Traders,

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Gold Daily Chart below. Sympathy rally with Bitcoin?
End of the year rally?
Need to see a close above 1900 to get a bit more excited about this one.
Time will tell.
Quick educational tips:
1. Look for high volume markets with a thin spread, so orders are filled quickly and it has high volatility, so there are opportunities for 2 to 4 good trades during the day. The Emini S&P500 Index Future is a good example of this type of market (Each point is worth $50, split into 4 ticks of $12.50 and there are 4 contracts a year, traded on the Chicago Mercantile Exchange).
2. Try to minimize risk to 1% of your capital per trade, then your capital can absorb 100 consecutive bad trades. Even the best systems can expect 20% -40% loosing trades, so the 1% rule gives you room to maneuver.
3. $10-$15k is the minimum recommended risk capital you should have per Emini S&P500 contract traded – then if you lose $1000-$1500 it only represents 10% of you capital, which is recoverable compared to a $3k account where the same loss equals 50% of your account, consequently you are more likely to lose the remainder of your capital rather than recover the loss. If you don’t have the higher risk capital, limit yourself to the MICROS – 1/10th the size.
4. Limit the hours you trade – the more you trade, the more exposed you are to human weaknesses, frustration and more. Just like an athlete you need to preserve your trading (playing) time….

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

12-18-2020

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.


Gold weekly chart +Support & Resistance Levels 6.21.2018

June 20th, 2018 Filed under Commodity Brokers, Commodity Trading, Day Trading, Future Trading Platform, Futures Broker, Gold Futures, Metal Futures | Comment (0)

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Dear Traders,

Follow us on Twitter and receive real time trade updates, market developments and breaking news!!
Gold WEEKLY chart for your review below.
This Sunday night I got the first weekly sell signal since the end of 2017. You can see the little red arrow along with the current bar marked in red. Just because a signal happened, does not mean we will see a sell off but for me personally it is a good probability that the pressure is stronger to the downside. I like some of the option plays one can do using vertical put spreads.
The chart above includes some proprietary studies/ALGOS.
These ALGOS along with a 15 minutes one on one session is available for a free trial.

To sign up and more info visit: https://www.cannontrading.com/tools/intraday-futures-trading-signals 

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.

Futures Trading Levels

06-21-2018

Contract September 2018  SP500 #ES_F Nasdaq100  #NQ_F Dow Jones  #YM_F Mini Russell #RTY_F BitCoin Index #XBT_F
Resistance 3 2801.25 7461.33 25029 1737.83 7109.66
Resistance 2 2789.75 7398.92 24944 1725.87 6961.28
Resistance 1 2780.25 7351.58 24803 1718.83 6857.81
Pivot 2768.75 7289.17 24718 1706.87 6709.43
Support 1 2759.25 7241.83 24577 1699.83 6605.96
Support 2 2747.75 7179.42 24492 1687.87 6457.58
Support 3 2738.25 7132.08 24351 1680.83 6354.11
Contract August Gold #GC_F July Silver #SI-F Aug. Crude Oil #CL-F Sept.  Bonds  #ZB_F Sept.  Euro #6E_F
Resistance 3 1284.9 16.48 67.89 144 27/32 1.1749
Resistance 2 1281.7 16.43 67.12 144 19/32 1.1713
Resistance 1 1276.7 16.36 66.33 143 31/32 1.1685
Pivot 1273.5 16.31 65.56 143 23/32 1.1649
Support 1 1268.5 16.24 64.77 143  3/32 1.1622
Support 2 1265.3 16.19 64.00 142 27/32 1.1586
Support 3 1260.3 16.12 63.21 142  7/32 1.1558
Contract July  Corn #ZC_F July Wheat #ZW_F July Beans #ZS_F July SoyMeal #ZM_F July Nat Gas #NG_F
Resistance 3 367.0 509.2 917.00 348.10 3.04
Resistance 2 361.8 499.6 906.50 343.00 3.01
Resistance 1 358.0 493.9 898.00 338.10 2.98
Pivot 352.8 484.3 887.50 333.00 2.95
Support 1 349.0 478.7 879.0 328.1 2.9
Support 2 343.8 469.1 868.50 323.00 2.89
Support 3 340.0 463.4 860.00 318.10 2.87

Economic Reports, source: 

http://app.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.


Day Trading Comex Gold Futures – Contrary to Conventional Wisdom

June 11th, 2018 Filed under Day Trading, Future Trading News, Gold Futures | Comment (0)

Day Trading Comex Gold Futures

(Contrary to Conventional Wisdom)

 

By: John Thorpe, Cannon Trading Senior Broker

Markets are forward looking. Today’s price is as much a reflection of yesterday’s fears, needs , wants and desires as the current reaction to a political leader rattling sabers, or the effect that a surprise Government Report  will have on the prices of a security or commodity.

Contrary to conventional wisdom, Day Traders tend to be well educated and well capitalized.

Risk takers, by any other name, Wildcat oil drillers? Computer geeks working out of their parent’s garage? Mom and Pop managing their hard earned 401k’s; The Day trading approach is not very different from any other investing approach, with one major distinction from other risk takers who operate on a much greater time horizon.  As a day trader, you open an investment and close an investment between sunup and sundown and often many times during a market session.  One of the greatest risks that day traders must avoid is gauging their success or failure within that same sunup to sundown time frame. I like to call this a fiction trap. A fiction trap occurs when the day trader believes that once he has a good day trading, his subsequent days will always yield the same results. The fiction trap results in unrealistic expectations for success.  The Market, like the ocean current, is sometimes similar in repetition, but rarely identical in motion. When risk takers begin the process of assessing a strategy, they do it with the long view in mind.

By taking a longer view of returns, like all other risk takers, you can avoid the fiction trap of unrealistic expectations by incorporating the Rule of 72 into your long-range plans. The Rule of 72 is a formula that tells you how quickly (given a rate of return) it will take for your account size to double. Although your account size can double in one day trading futures, it is rare to hold on to those gains. The Rule of 72 forces you to be patient, emotionally subdued, and in line with long-term goals.

As with any risk taking, timing is key. A day trader needs to become:  a scientist, a student of the discipline, a tester, a collector of data, and an executer of plans.

With any project, the scientist keeps good notes and uses the microscope (technical indicators, charts, et al.) to determine the intersections of volume, price. This approach yields more accurate results than a random approach, such as throwing darts at the WSJ securities settlement page to find the correct asset and the correct position. Doing the homework and creating a practical plan should lead to positive results.

I like day trading in the Futures markets because with no more effort than buying a position, you can just as easily sell to open a new position.  In other words, if you have ever sold a stock or ETF short, you know you can short the asset by requesting from the stock loan department shares of a stock to borrow so you can short it.  Now patiently for an uptick to assume your position. This can be a time-wasting exercise when split-second decision making is required.  For this reason and this reason alone, day trading futures makes far greater sense than day trading stocks or ETF’s.

 

What I want to accomplish with you in this draft is to lay out a blueprint for day trading the NY Comex 100 oz. Gold futures contract, traded electronically through Globex.

 

 Factors Affecting Gold Prices

As part of the road map to the price discovery process, be aware of the London fixing times, or ocean currents, then can determine our Comex Gold prices. You can find charts and data points available like the one below from the U.S. St Louis Fed

https://fred.stlouisfed.org/series/GOLDAMGBD228NLBM

You may find, upon research, that you have an identifiable price pattern around these times in the Comex market equivalents. Allow your research to guide you. These prices from London represent settlement prices for the fabricators, miners, hedgers and speculators from which they close their daily business dealings.  These fixings are as variable as the US Market prices are for gold. The US Market pays attention to the London market, and although not fungible, they are interchangeable in price discovery. London watches Comex and Comex watches London. The auctions are run at 10:30am and 3:00pm London Time for gold and 12:00pm London time for silver. The final auction prices are published to the market as the LBMA Gold Price AM, The LBMA Gold Price PM and the LBMA Silver Price Benchmarks.

Scarcity or the perception of scarcity and lack thereof drives market sentiment.

Markets are forward looking. Today’s   price is as much a reflection of yesterday’s fears as anything else. So we need to anticipate market price impact from Governmental reports, increases and decreases in potential supply or demand,

Central banks have quite a bit to do with the value of the “Yellow Metal” based on how they perceive the underlying economy’s strengths and weaknesses and whether they print money or not, by increasing or decreasing the velocity of the sovereign nations’ cash supply.  When a Central bank adjusts the Nation’s supply of dollars of their native currency, Gold will typically behave reciprocally: More dollars in circulation, value of gold increases, fewer dollars in circulation, the value of gold decreases.

During large chunks of the 20th century, the world’s central banks were net suppliers of gold. After spending their early history accumulating gold to back up national currencies, central banks sold more gold than they purchased after the U.S. dollar became the de facto world reserve currency under the Bretton Woods Agreement.

In recent years, however, the trend has changed. Central banks have become net demanders of gold, which puts upward pressure on both production and retail costs. As some sovereign currency markets are in a constant to variable state of flux and turmoil due to political upheaval or disequilibrium in their balance of trade and payments, investors residing in these countries buy gold to use as a safe haven asset to offset the risk of holding their assets in their sovereign currency.

As with any worthwhile endeavor, a true student of any process understands addtional  research should be done to thoroughly understand the potential  risks and rewards from either day trading or position trading, or with equal vigor, engaging in short term or longer term investing of any kind.

As Greek philosopher Aristotle thoughtfully observed and written for us to learn from over 2000 years ago,  “Bring your desires down to your present means. Increase them only when your increased means permit.”

What Aristotle was saying (as it applies to investing) is to use risk capital only. Risk capital is capital that, if lost in the pursuit of reward, will not impact negatively your ability to take care financially of any of your current obligations, nor will it negatively impact your current lifestyle. This statement is also true for day traders to focus on the risk they are taking on in their own accounts. Just because you had a few good days trading doesn’t necessarily mean you should put more of your account at risk and increase the size of your trades exponentially. This happens all too often and turns successful day traders into unsuccessful traders in the intermediate term, and in many cases these traders end their trading because what was once a growing account with a tempered approach becomes one great big washout.

  1. No distractions, clear the table, shut the door, unplug your devices-FOCUS
  2. Perspective- where has the market been ( long term and intermediate term charts and try to identify the reason for large price moves in either direction
  3. Just because the market is open 23 hours, don’t try to physically trade the market for 23 hours, your money will burn out faster than you will. A quote I like is “the Market can remain irrational for longer than I can be solvent”
  4. Define your daytrading timeframe. (for example: 8am-10am, 2pm-4 pm), set it, and stick to it for at least 30 trading days. Markets have the tendency to behave similarly day in and day out during the same time frames. Remember, like currents in an ocean, markets are sometimes similar in repetition, but rarely identical in motion.
  5. Research – Know the market you are trading. Research it, understand what makes it move. Who the players are in the cash market.
  6. Stay informed – Know the recent daily dollar volatility of the market you are trading. I like to take the past 30 to 45 days for the Aug  Comex 100oz Gold contract. For example, I recently used 30 trading days and arrived at $1220.00. I took the distance between the high and low of each full day, totaled them, added 30 data points together for an average daily range and multiplied that by the value of a tick in the gold  ($10.00)
  7. With my trading platform I have the ability to adjust the time frame to include only the time I  have set aside to view the market. In my research I  will also have a full daily chart

a weekly chart

And a monthly chart

of August Comex Gold  which will show me the critical areas of technical support that I can apply intraday to my abbreviated chart.

Why is dollar volatility Important? (see above) – You can manage your expectations here; you now know you shouldn’t expect to make 2,000.00 on a single trade and you can better gauge how many contracts, and how much risk you can take, on each trade. You now have a template of recent activity to better judge expected volatility without having to utilize an expensive add-on or chart indicator.

8) Call – Please speak with your broker on the phone to determine the appropriate amount of risk capital you need to trade your plan in the Gold Futures Market.

The Comex Gold Contract trades in Chicago through a registered Broker. www.cannontrading.com

Gold Contract specs are as follows:

Quoted in Dollars and Cents per Troy OZ.

Minimum price fluctuation: $0.10 per troy oz.

Symbol GC or GGC

Initial margin requirement: $3,410.00

Maintenance requirement: $3,100.00

Hours traded: 6pm EST Sunday, through to Friday at 5pm EST with an hour break each day between 5pm and 6 pm EST

As always, lean on your broker for guidance, call him or her and discuss what your risk tolerance levels are. Where to use stop loss orders or options to hedge your trading plan to ensure you leave yourself with a fighting chance.

Disclaimer: Trading commodity futures and options involves a substantial risk of loss.

The recommendations contained in this letter are of opinion only and do not guarantee any profits.

There is not an actual account trading these recommendations.

Past performances are not necessarily indicative of future results.

 

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