Crude Oil

Category Archives: Crude Oil

A naturally found substance, crude oil is also one of the most traded commodities. It is crude oil that is further refined so as to make petroleum products. Just like with every other commodity, crude oil too has its specific ticker symbol, contract value and margin.

The margin is variable as it keeps changing as per the volatility in the market as well as according to the current value of the contract. If you are interested in crude oil trading or are already trading in this commodity, it is important for you to know that over the past 50 years the price of this commodity has been denominated in U.S. Dollars.

At Cannon Trading we help you trade crude oil at some of the best day trading margin rates. Our brokers will do their best to keep you aware of the market happenings to help you exercise call and put options carefully. In order to get more information on crude oil and commodities, read this category archive blog. Please feel free to share this information.


SPR Explained & Cattle Outlook & Support and Resistance Levels for 4.05.2022

April 4th, 2022 Filed under Crude Oil, Future Trading News | Comment (0)

Get Real Time updates and more on our private FB group!

Let’s Talk SPR

by John Thorpe, Senior Broker
Where is the SPR and how much Sweet Crude do we have? Energy futures contracts have taken our breath away and our bank accounts over the past month. Volatility is directly correlated to levels of uncertainty. A more certain supply and demand futures tend to reduce Volatility greatly. Higher price volatility has historically been linked to greater supply and demand instability. The Crude oil futures market has seen extraordinary volatility over the last month and for a variety of reasons. One recent reason for the downdraft in Crude oil futures prices has been the proclamation from the Biden administration that oil will be released from the SPR (Strategic Petroleum Reserve). I have read a number of articles from a number of well respected national news outlets and they all provide a little different information about the size of the reserves and the amount of the limits to daily withdrawals.. You too may have come across some of the confusion. The U.S. Office of Fossil Energy and Carbon Management is our entity in charge of the SPR, a branch of the U.S. Department of Energy and they are responsible for the 4 underground storage locations and recordkeeping. Crude oil traders keeping score some of the rules of the game of the SPR should know, there are limits to daily withdrawals and the holdings are actually quite a mix of sweet crude and sour, all with different industrial uses.
Drawdown Capability
  • Maximum nominal drawdown capability – 4.4 million barrels per day
  • Time for oil to enter U.S. market – 13 days from Presidential decision

Moving Markets

June Live Cattle started a move down but met buying support at 133.875.
Bearish technical signal on the daily chart.
Can the market break support?
Click chart for LARGER IMAGE
Daily Live Cattle Futures Chart
If you are looking for other reference material please contact your Cannon Broker for lists of solid, informative and helpful trading tomes
Sierra Charts, Teton Order Routing
Contact us for a demo and/ or more information here!

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

04-05-2022

Futures Support and Resistance Levels 4.05.2022

 

 

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

http://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 #1089 Trading Crude Oil Volatility & Support and Resistance Levels for the Week Ahead

March 11th, 2022 Filed under Crude Oil, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Newsletter Issue # 1089

Dear Traders,

Like us on FaceBook!
Get Real Time updates and market alerts on Twitter!

Crude Oil Futures Volatility Offers A “Different Market Personality” Than Stock Index Futures. Here Is Some Of The Things You Need To Know About Day Trading Crude Oil Futures:

By: Ilan Levy-Mayer, Cannon Trading Commodities Broker & VP
Crude Oil is one of MY favorite futures market for day trading. Before I dive in and share with you how the volatility in crude oil fits my risk tolerance for day trading and provide a couple of chart examples, we should review some of the specifications of Crude Oil Futures.
Crude Oil Futures have monthly expiration. So each month we trade a different contract month, so one needs to know when is the first notice day and last trading day for crude oil futures in order to always make sure we are trading the proper month with the most liquidity and avoid any chance of getting into delivery situation.
Next is the contract size. Crude Oil futures are based on 1000 barrels. To be honest from a day trading perspective all I care is that each tick or 1 cent fluctuation is $10 against me or in my favor per contract. That means that a move from 92.94 to 92.74 = $200.
Another factor is trading hours. At the time I am sharing my thoughts with you, April 8th 2013, crude oil futures trade on the CME Globex platform and trade from 5 PM CDT until the next day at 4 PM CDT. That is 23 of straight trading hours. I definitely don’t recommend day trading this market 23 hours…but it is good to know the trading hours.
Volume in crude oil futures is pretty good to trade in my opinion. Averaging about 300,000 contracts per day.
One last pointer to touch on is the API (American Petroleum Institute) report that normally comes out Wednesday at 9:30 CDT (on short weeks, holidays etc. , this report will be pushed to Thursday at 10 AM CDT). I tell my clients that this report is way too volatile and I like to be out 5 minutes before and not resume trading 5 minutes until after the report comes out. This report by itself deserves a writing but on short, the report provides information on how our stock pile is doing ( = supply/demand) and the market will move based on the numbers versus what was expected. Again as a day trader, your main job is to know about this report, when it comes out and in my opinion stay out of the market during this time..
Would you like to contact Ilan or any of our brokers for more feedback? We are happy to help!
Sierra Charts, Teton Order Routing

Are you using Sierra charts and looking to implement their Teton order routing?

If so, look no further, Cannon can assist you in getting set up!
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

03-14-2022

Futures Support and Resistance Levels 3.14.2022

 

Weekly Levels

Weekly Support and Resistance Levels 3.11.2022

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


“I Use Mental Stops…..” & Support and Resistance Trading Levels 3.10.2022

March 9th, 2022 Filed under Crude Oil, Future Trading News | Comment (0)

Get Real Time updates and more on our private FB group!

“I use mental stops”…..Said the trader who just blew up his account day trading crude oil the wrong way…..

By Mark O’Brien
As futures brokers, we’ve heard clients share their thoughts on trading and truly, their strategies are as unique as the individual trader. With that said, there are a number of “nuts and bolts” to trading that all traders can employ – or not. One example of these is the STOP order. We as brokers hear a variety of assertions from our clients as to the virtues or evils of employing STOP orders in their trading.
In this blog we’re going to showcase today’s price activity in April crude oil to make a case for the virtues of employing STOP orders.
Notwithstanding the almost unheard-of ±$23/$23,000 per contract price range, at one point, the April crude oil contract fell ±$10 per barrel/$10,000 per contract in the span of five minutes.
As we’ve spelled out in recent blogs, with the Russian attack on Ukraine and all the geopolitical moving parts now involved in the conflict, commodity price volatility has reached remarkable heights across several asset classes – energies in particular. So be it, but this provides us with low hanging fruit, as it were, to advocate for the use of STOP orders. Price moves like this literally scream for the implementation of STOP orders, lest you find your proverbial trading legs cut off at the knees – or worse. If you find yourself eyeing crude oil, unleaded gas, gold, wheat, any stock index, just to list the recent headliners, transpose those mental stops to actual orders. Trade safely and sanely.
5 min chart of crude oil from today when the news on OPEC send crude oil tumbling over $15 in minutes. If you were long, with “mental stops”….good luck.
Crude Oil Futures 5 minute Chart
Sierra Charts, Teton Order Routing
Contact us for a demo and/ or more information here!

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

03-10-2022

 

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

http://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.


Size does Matter & Support and Resistance Levels 3.08.2022

March 7th, 2022 Filed under Crude Oil, Future Trading News | Comment (0)

Get Real Time updates and more on our private FB group!

Size does Matter

By John Thorpe, Senior Broker
 In an effort to keep up with appropriate volatility scans, the CME is again increasing the good faith deposits required to trade WTI Crude, Heating oil and RBOB Gasoline futures.
Recently the margins have increased for Wheat and Gold futures as well as the stock indices for good reason. Geopolitical risk has put these markets on notice that the margins, already low, were not sufficient to protect clients and firms from the extreme price action these commodities have been experiencing.
The intraday moves have been nothing short of jaw dropping; with opportunity comes risk.
Many are aware of the smaller sized Micro Emini stock indices for the S&P 500 MES, Nasdaq 100 MNQ , Dow30 MYM and Russell 2000 M2K
(all indices roll from March to June this Thursday and Friday)
Did you know there were also other Micro contracts to take advantage of many of these futures contracts outsized price swings? And they are liquid too!
For the WTI Crude, the Comex Gold, Crypto Currencies and EuroCurrency contracts.
 The WTI Contracts overnight margin requirement is now going to be set tonight @ $13,500.00 and most clearing firms would rather not give a break for Day trading margins
The answer to participate in the crude market if the current volatility is too rich for your blood, you may take a look at the Micro’s :
The exchange has increased the margin several times over the past week and today’s increases are here and currently no break for Daytrading..
MORE CME energy margin increases:
You do however, have two smaller sized contracts that are plenty liquid,  the QMj22 that is a 500bbl contract and trades in .025 increments      110.025, 110.050, 110.075 and so on.. the margin is ½ the full size contract or $6750.00
And you also have the micro WTI Crude Oil MCLJ22 a 100 bbl contract  1/10 the size      that trades in minimum increments like the full size.   100.02,100.03,100.04 and so on.. the margin is 1/10th or 1320.00 per contract  The micro’s also give you the ability to trade as many crude contracts incrementally in 100 barrel units.
Would you like to contact John or any of our brokers for more feedback? We are happy to help!
Sierra + Teton Available through Cannon Trading along with other data feeds such as CQG and Rithmic.
Sierra Charts, Teton Order Routing
Contact us for a demo and/ or more information here!

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

03-08-2022


Economic Reports, Source: 

http://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 #1081 Day Trading Commodities with Crude Oil Futures & Support and Resistance Levels for the Week Ahead

January 7th, 2022 Filed under Crude Oil, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Letter Issue # 1081

Dear Traders,

Like us on FaceBook!
Get Real Time updates and market alerts on Twitter!

Trading 102: Day Trading Commodities with Crude Oil Futures

Crude Oil Futures Volatility Offers A “Different Market Personality” Than Stock Index Futures. Here Is Some Of The Things You Need To Know About Day Trading Crude Oil Futures:
By: Ilan Levy-Mayer, Cannon Trading Commodities Broker & VP
Crude Oil is one of MY favorite futures market for day trading. Before I dive in and share with you how the volatility in crude oil fits my risk tolerance for day trading and provide a couple of chart examples, we should review some of the specifications of Crude Oil Futures.
Crude Oil Futures have monthly expiration. So each month we trade a different contract month, so one needs to know when is the first notice day and last trading day for crude oil futures in order to always make sure we are trading the proper month with the most liquidity and avoid any chance of getting into delivery situation.
Next is the contract size. Crude Oil futures are based on 1000 barrels. To be honest from a day trading perspective all I care is that each tick or 1 cent fluctuation is $10 against me or in my favor per contract. That means that a move from 92.94 to 92.74 = $200.
Another factor is trading hours. At the time I am sharing my thoughts with you, April 8th 2013, crude oil futures trade on the CME Globex platform and trade from 5 PM CDT until the next day at 4 PM CDT. That is 23 of straight trading hours. I definitely don’t recommend day trading this market 23 hours…but it is good to know the trading hours.
Volume in crude oil futures is pretty good to trade in my opinion. Averaging about 300,000 contracts per day.
One last pointer to touch on is the API (American Petroleum Institute) report that normally comes out Wednesday at 9:30 CDT (on short weeks, holidays etc. , this report will be pushed to Thursday at 10 AM CDT). I tell my clients that this report is way too volatile and I like to be out 5 minutes before and not resume trading 5 minutes until after the report comes out. This report by itself deserves a writing but on short, the report provides information on how our stock pile is doing ( = supply/demand) and the market will move based on the numbers versus what was expected. Again as a day trader, your main job is to know about this report, when it comes out and in my opinion stay out of the market during this time..Fill out the form below to read the full article.
WorldCup Trading Championships 2022

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

01.10.2022

Support and Resistance Levels 1.10.2022

 

Weekly Levels

Weekly Support and Resistance Levels

 

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

https://mrci.com

Date Reports/Expiration Notice Dates

 

MRCI Reports 1.10.2022

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

Have A Questions? Open an account Free Demo Account Free Demo Account

Questions?

Valid first name is required.
Valid last name is required.
Phone number is required.
E-mail is required.
Message is required.
Phone (USA)
Phone (International)
Our Approach

You and your broker will work together to achieve your trading goals. We develop long term relationships with our clients so that we can grow and improve together.
Learn More About Choosing Cannon

Our Platforms

Please click on one of our platforms below to learn more about them, start a free demo, or open an account.
TransAct AT
E-Futures
Shogun Trade Executer
Firetip (Mac Compatible)

Trading Tips You Can Use Right Away!


Watch 4 short videos on the topics of:
  • Using Bollinger Bands and Parabolics
  • Using range Bars for Day-Trading
  • The concept of Price Confirmation
  • How to Use Support & Resistance Levels
  • License 3 Broker at your Fingertips
________
Doing Business With
See more...
Loading
Loading

Loading