E-Mini Futures Archives - Support & Resistance Levels

E-Mini Futures

Category Archives: E-Mini Futures


Day Trading Strategies: Expert Advice and Techniques

May 21st, 2024 Filed under Commodity Brokers, Commodity Trading, Day Trading, E-Mini Futures, Future Trading News, Futures Broker, Futures Trading, futures trading education, Trading Guide | Comment (0)

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Some thoughts and pointers to help you day-trade by Cannon Trading:

Trading carries inherent risks, but adhering to eight essential money management principles can help safeguard your capital while enhancing your trading skills with Cannon Trading.

1. Seek out markets with high volume and narrow spreads to ensure prompt order execution and high volatility, offering 2 to 4 viable trades daily. The Emini S&P500 Index Future exemplifies such a market, with each point valued at $50, divided into 4 ticks worth $12.50 each, and 4 contracts annually traded on the Chicago Mercantile Exchange. For smaller accounts, explore the Micro NQ, Micro crude oil as well as gold and other markets. Cannon broker can be an excellent resource if you like feedback on different futures markets.

2. Try to limit your risk to 1% of your capital per trade; this way, your funds can withstand 100 consecutive unsuccessful trades. Even top-tier systems encounter 20% losing trades, so this rule provides flexibility. If your account size is not big enough, you can try adjusting the above to 2-3% and the math will still make sense.

3. Maintain a minimum risk capital of $10,000-$15,000 per Emini S&P500 contract traded—a loss of $1,000-$1,500 then represents just 10% of your capital, a recoverable amount unlike a $3,000 account where the same loss constitutes 50% of your funds, increasing the likelihood of depleting your capital. If this is not viable, consider trading the MICROS which are 1/10 the size.

4. Constrain your trading hours—we advocate for the initial 60-90 minutes of the market, which often sees a solid trend before the midday lull, a preferred window for many professional traders. As of late we noticed that the last 10-30 minutes of the CASH MARKET trading session brings in high volume and large moves as well.

5. Cease trading if losses reach 5-10% of your capital in a single day; such losses are manageable and suggest a misinterpretation of the market. Pause, assess your mistakes, and document them in your Trading Journal.

6. Maintain a Trading Journal, chronicling all transactions. Over time, the mind tends to overlook unsuccessful trades and habits. Record detailed charts and emotional responses. Noteworthy considerations include:

• Ensuring you’re trading based on the charts, not desperation after a few losses.

• Avoiding weak signals due to missing a significant move, which leads to chasing trades or opting for countertrend positions based on the assumption that the market can’t rise further. FOMO (Fear of Missing Out)

·        Take note of the different economic reports and market behavior!

7. Strategically set your stop loss and targets based on chart analysis, not random point selections. Utilize technical indicators like double tops, swing highs and lows, or retracements to moving averages for tighter stops and more favorable profit-to-risk ratios. Trade what the chart presents, not your desires or emotions.

8. Exercise patience!! If possible, try to trade a minimum of 2 contracts, securing 1 for a 2-3 point gain, your initial target, and allow the other to run with a break-even stop. A successful runner can outperform numerous small gains.

By following these guidelines, you can hopefully navigate the trading landscape more confidently and effectively with the help of a Cannon Trading broker when needed.

 

 

IMPORTANT PLEASE NOTE: TRADING COMMODITY FUTURES AND OPTIONS INVOLVE SUBSTANTIAL RISK OF LOSS. THE RECOMMENDATIONS CONTAINED IN THE LETTER IS OF OPINION AND DOES NOT GUARANTEE ANY PROFITS. THERE IS NOT AN ACTUAL ACCOUNT TRADING THESE RECOMMENDATIONS.  THESE ARE RISKY MARKETS AND ONLY RISK CAPITAL SHOULD BE USED. PAST PERFORMANCES ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

 

 

If you are a day trader, below you will see markets that our proprietary ALGO has identified as being more suitable for attacking either from the long side or the short side for the next trading session.

Questions? We are happy to help!

 

Daily Levels for May 22nd, 2024

Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)

Improve Your Trading Skills

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

Explore trading methods. Register Here

* 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.


Micro Nasdaq Futures vs. Mini Nasdaq Futures

May 16th, 2024 Filed under E-Mini Futures, Future Trading News, Indices | Comment (0)

Micro and Mini Nasdaq futures are derivatives that track the performance of the Nasdaq 100 Index

Micro and Mini Nasdaq futures are derivatives that track the performance of the Nasdaq 100 Index, which comprises 100 of the largest non-financial companies listed on the Nasdaq stock exchange. These futures contracts allow traders and investors to speculate on the future direction of the technology-heavy Nasdaq 100 Index or hedge against their existing equity positions. While both micro and mini Nasdaq futures serve similar purposes, they cater to different segments of the market due to differences in contract sizes, leverage, and capital requirements.

Contract Sizes and Leverage

Mini Nasdaq Futures (NQ): The Mini Nasdaq futures, often referred to as “NQ,” are the more established and widely recognized of the two. Each NQ contract represents a financial commitment to 20 times the Nasdaq 100 Index. This means that the value of one mini Nasdaq futures contract is 20 times whatever the Nasdaq 100 Index is trading at. For example, if the Nasdaq 100 Index is at 13,500, the notional value of one mini Nasdaq futures contract would be $270,000 (13,500 x 20).

Each mini NASDAQ futures point is worth $20 in your favor or against you per contract.

Micro Nasdaq Futures (MNQ): Introduced more recently to provide access to the same markets at a reduced financial commitment, micro Nasdaq futures (MNQ) are one-tenth the size of their mini counterparts. Each MNQ contract represents a financial commitment to 2 times the Nasdaq 100 Index. Continuing with the previous example, if the Nasdaq 100 Index is at 13,500, the notional value of one micro Nasdaq futures contract would be $27,000 (13,500 x 2).

Each mini NASDAQ futures point is worth $2 in your favor or against you PER contract traded.

The smaller size of the micro Nasdaq futures results in lower margin requirements, making it a more accessible option for individual traders and those with smaller trading accounts. The leverage inherent in both contracts allows traders to control significant positions with a relatively small amount of capital. However, it’s crucial to understand that while leverage can amplify profits, it also increases the potential for losses.

Why Trade Micro Nasdaq Futures?

  1. Lower Capital Expenditure: The primary advantage of micro Nasdaq futures is their affordability due to lower capital requirements. This makes it feasible for smaller investors to enter futures markets, a domain that was traditionally dominated by larger institutional investors. Micro contracts allow traders to manage risk more effectively by not over-leveraging their positions.
  2. Overnight Margins and Swing Trading: Swing traders, who typically hold positions for several days or weeks, find micro Nasdaq futures particularly appealing due to smaller overnight margin requirements. Overnight margins—the amount of capital required to hold a position after the daily trading session ends—are significantly lower for micro contracts. This reduces the cost of carrying open positions overnight, making it a viable strategy for traders with limited capital who wish to exploit the market’s medium-term movements.
  3. Fine-Tuned Position Sizing: Micro futures enable traders to achieve more precise position sizing and risk management. Instead of being limited to the larger increments of capital commitment required by mini contracts, traders can adjust their exposure more gravely with micro contracts. This flexibility is crucial in tailoring trading strategies to individual risk tolerance and market conditions.
  4. Portfolio Diversification and Hedging: Both mini and micro Nasdaq futures can be used for hedging against existing portfolio risks. However, the micro contracts allow for more precise hedging of smaller portfolio sizes. This can be particularly beneficial for individual investors looking to mitigate specific risks without the need to engage in larger, more capital-intensive contracts.

Suitability for Smaller Investors

Micro Nasdaq futures are particularly suitable for smaller investors for several reasons. Firstly, the lower financial commitment required allows these investors to participate in futures trading with less risk of significant capital loss. Secondly, the ability to use leverage effectively but conservatively can help amplify returns on smaller price movements in the Nasdaq 100 Index, which might otherwise be inconsequential with less capital at stake.

Moreover, the growth in popularity of electronic trading platforms and the availability of extensive educational resources make it easier for individual investors to access and trade micro Nasdaq futures. This democratization of financial markets helps level the playing field between individual retail traders and institutional investors.

In summary, both mini and micro Nasdaq futures offer valuable opportunities ( and risks!) for different types of traders. While mini futures continue to be a staple for larger traders and institutions looking for significant market exposure, micro futures cater exceptionally well to individual traders focused on risk management, capital conservation, and tactical leverage. As the financial markets evolve, the introduction of products like micro Nasdaq futures underscores the industry’s move towards inclusivity and accessibility, enabling more people to participate in and benefit from futures trading.

 

Ready to start trading futures? Call US 1(800)454-9572 – Int’l (310)859-9572 email info@cannontrading.com and speak to one of our experienced, Series-3 licensed futures brokers and start your futures trading journey with Cannon Trading Company today.

 

Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  Past performance is not indicative of future results. 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.

Important: Trading commodity futures and options involves a substantial risk of loss. The recommendations contained in this writing are of opinion only and do not guarantee any profits. This writing is for educational purposes. Past performances are not necessarily indicative of future results. 

 

**This article has been generated with the help of AI Technology. It has been modified from the original draft for accuracy and compliance.

 

***@cannontrading on all socials.

 


CPI Rally and MICROS!! + Levels for May 16th

May 15th, 2024 Filed under Commodity Brokers, Commodity Trading, Day Trading, E-Mini Futures, Future Trading News, Futures Broker, Futures Trading, Index Futures, Indices, S&P 500 | Comment (0)

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CTS T4 Futures Trading Platform

 

Bullet Points, Highlights and Announcements

By Mark O’Brien, Senior Broker

General: 

 

Last Wednesday’s blog included a happy birthday greeting to the Micro E-mini stock index futures contracts.  In 2019, Micro E-mini futures and options on the four leading equity indices – E-mini S&P, Nasdaq, Dow Jones and Russell 2000. – became the most successful launch in CME Group history.

 

But did you know there are Micro futures contracts for a wide range of commodities?

 

CME Group, the world’s leading derivatives marketplace offers micro futures and options across nearly it’s entire commodities portfolio.  Below is selection of some of the more widely traded Micro futures and options contracts:

 

Energy: 

 

→  Micro Crude Oil: 1/10 the size of the benchmark WTI Crude Oil contract (link to contract specs.)

 

→  Micro Henry Hub Natural Gas: 1/10 the size of the benchmark natural gas contract (link to contract specs.)

 

Metals:

 

→  Micro Gold: at just 10 ounces Micro Gold futures and options contracts are designed for traders interested in smaller gold increments with a cost-effective alternative to the world’s largest, highly liquid Gold futures and options contracts (link to contract specs.)

 

→  Micro Silver: at 1/5 the size of the 5000-ounce silver futures, the contract unit is 1,000 troy ounces. The Micro Silver futures are quoted in 1/10 of one cent– making a one-tick move equivalent to $1 (link to contract specs.)

 

→  Micro Copper: theses futures 1/10 the size of the 25,000-pound Copper futures contract, so, the contract unit of the Micro Copper futures contract is 2,500 pounds. Like the Copper futures contract, the Micro Copper futures contract is quoted in increments of 5 one hundredths of a cent, making a one tick move in Micro Copper futures equal to $1.25. (link to contract specs.)

 

The daily settlement prices for the futures contracts will be identical to that of the larger Gold, Silver and Copper futures contract.

 

Crypto: 

 

→  Micro Bitcoin: At 1/10 the size of one bitcoin, Micro Bitcoin futures provide an efficient, cost-effective new way to fine-tune bitcoin exposure and enhance your trading strategies.

 

All these contracts provide traders with more flexibility when trading futures.  With Micro contracts, you can scale positions up and down with precision and gain more control over your exposure.  At the same time, Micro contracts offer the same robust trading transparency and price discovery, but with smaller margin requirements, which translates to easier access to the potential of the futures markets – nearly 24 hours a day.

 

 

Diversify your portfolio and add flexibility for trading Precious Metals, FX, Energy, Rates, and Equity Indices. Scale positions up and down with precision and gain more control over your exposure.

 

Energy:   

 

Options five day a week; it’s not just for stock index futures.  Mark your calendars; starting Monday July 22, WTI Crude Oil options will be available with Tuesday and Thursday expirations alongside the already-available Monday, Wednesday and Friday expirations and monthly options.  Once in place, along with shorter expirations and lower premiums, WTI Weekly options will provide opportunities to hedge weekend headline risk, OPEC+ meetings or geopolitical events. They can also be used to express views on mid-week announcements, including the weekly E.I.A Petroleum Status Report, typically released on Wednesday.

 

Financials: 

 

On the interest rate front, some interesting news: in contrast with the wait-and-see mode of the United States, today Sweden followed Switzerland, Hungary, and the Czech Republic in easing monetary policy for the first time since interest rate hiking cycles began in 2022, when inflation surfaced in the aftermath of the COVID pandemic. The central bank of Sweden – the Riksbank – lowered its policy rate by 0.25 basis points to 3.75%, making it more likely that the European Central Bank will jump on the bandwagon. The shift is noteworthy as it highlights the current divergence among central banks around the world.

 

Grains:  

 

Ostensibly the report of the week in an otherwise humdrum 5-day stretch, this Friday the U.S. Department of Agriculture will release its monthly World Agricultural Supply and Demand Estimates (WASDE) report.  The report provides annual forecasts for supply and use of U.S. and world wheat, rice, coarse grains, oilseeds, and cotton.  The report also covers U.S. supply and use of sugar, meat, eggs and milk.  Simultaneously released is the monthly Crop Production report which contains crop production data for the U.S., including crop conditions, acreage, area harvested and yield.

 

Stock Indexes:  

 

Happy birthday Micro E-mini futures!  In 2019, Micro E-mini futures on the four leading equity indices became the most successful launch in CME Group history.  In just these first five years, over 2.6 billion contracts have traded.  The average daily volume reached over 2.4 million contracts across the four indices (up 355% since 2019).  And how about this for global reach: 24% of average daily volume came from outside of the U.S., with trades submitted from 170+ countries.

 

If you are a day trader, below you will see markets that our proprietary ALGO has identified as being more suitable for attacking either from the long side or the short side.

Questions? We are happy to help!

 

 

 

Daily Levels for May 16th, 2024

Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)

Improve Your Trading Skills

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

Explore trading methods. Register Here

* 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: Trading Resources and more! 05.13.24

May 10th, 2024 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Day Trading, E-Mini Futures, Future Trading News, Futures Broker, Futures Trading, Indices, Weekly Newsletter | Comment (0)

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Cannon Futures Weekly Letter Issue # 1193

In this issue:
  •  Important Notices – Trading Challenge, CPI, PPI
  • Futures 101 – NEW Podcast on Futures Spreads
  • Hot Market of the Week – July Cotton
  • Broker’s Trading System of the Week – Gold Swing System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices – Next Week Highlights:

  • Commodity Trading Challenge! Starting this Sunday! $2500 first prize! Register now.
  • A number of fed speakers throughout the week
  • Tues. Fed Chair Powell at the annual Foreign Bankers Assoc. roundtable 9a.m. Central
  • Heavy Data week, T-PPI pre-open, W-CPI, Retail Sales pre-open, Th- Housing starts, Jobless Claims pre-open, Capacity utilization
  • Earnings headliners: Walmart, Tencent, Home Depot, Cisco, Applied Materials.

 

Futures 101 :
Futures Spreads Podcast!
In this podcast, two of Cannon Trading Co.’s most experienced trading brokers – both with 20+ years in the profession – sit down to discuss futures spread trading: one of the most underrepresented approaches to trading the futures markets among retail traders, yet regularly employed by some of the most invested and arguably the most sophisticated players in futures trading, including large speculators and commercial firms.
They dig into the important reasons why spread trading should be considered if you’re looking for an approach to trading futures, including lower volatility, lower margins and increased staying power. They also delve into the recurring market conditions, i.e., weather, supply & demand ebbs and flows and global financial shifts when spreads can be deployed. They make the case that spread trading is used as a strategy by some very sophisticated participants and it should be viewed as a trading approach worthy of investigation by retail futures traders.
Listen to the podcast: on AppleSpotify, Amazon, or wherever you listen to podcasts!

 

 

    • Hot Market of the Week – July Cotton
    Hot market of the week is provided by QT Market Center, A Swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.
    July Cotton
    The break in July cotton satisfied its second downside PriceCount objective and now the chart is correcting. From there, IF you can resume the slide with new sustained lows, the third count would project a possible run to the 65.17 area.
    PriceCounts – Not about where we’ve been, but where we might be going next!
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.
Treasury Bond Auctions and Price Action Watch video below.
https://youtu.be/t-r3Q4VVkvM
   Broker’s Trading System of the Week
With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.
EagleTRM Cont. v.22 _ Gold
PRODUCT
GC – Gold
SYSTEM TYPE
Swing
Recommended Cannon Trading Starting Capital
$30,000
COST
USD 150 / monthly
The performance shown above is hypothetical in that the chart represents returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real‐time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on back adjusted data. Please read full disclaimer HERE.
Would you like to receive daily support & resistance levels?
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If you are a day trader, below you will see markets that our proprietary ALGO has identified as being more suitable for attacking either from the long side or the short side.

Daily Levels for May 13th 2024

Trading Reports for Next Week

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

Improve Your Trading Skills

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

Explore trading methods. Register Here

* 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.


Attack the markets below from the following direction….. + Levels for May 10th

May 9th, 2024 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Day Trading, E-Mini Futures, Future Trading News, Futures Broker, Futures Trading, Gold Futures, Metal Futures | Comment (0)

Get Real Time updates and more by joining our Private Facebook Group!
Subscribe to our YouTube Channel
Listen to our Market Recap Podcasts on Apple Podcasts

 

 

Soybean daily chart outlook for your review below.

Tomorrow pay attention to Univ. of Michigan Consumer Sentiment as well as few fed members speaking.

Volume has been on the light side for stock index futures.

Both silver, gold and copper resumed upside moves.

 

If you are a day trader, below you will see markets that our proprietary ALGO has identified as being more suitable for attacking either from the long side or the short side.

Questions? We are happy to help!

 

 

 

 

Daily Levels for May 10th, 2024

Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)

Improve Your Trading Skills

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

Explore trading methods. Register Here

* 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.

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