E-Mini Futures Archives - Page 2 of 10 - Support & Resistance Levels

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Category Archives: E-Mini Futures


Rollover Reminder for Index Traders as June Contracts Give Way to September

June 13th, 2024 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Day Trading, E-Mini Futures, Future Trading News, Futures Trading, Index Futures, Indices, Nasdaq, S&P 500 | Comment (0)

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Listen to our Market Recap Podcasts on Apple Podcasts

 

 

For all of you index traders, you may have noticed the shrinking Open Interest and Volume in the June contracts. It’s that time when volume shifts to the next quarterly expiration contract. September! the symbol is U.

 

June volume will be drying up quickly, don’t get stuck next Friday morning with a June contract at the crack of dawn when the carousel stops.

I personally start trading the September, U contract this Monday but many traders will start switching as of today….just make sure your charts are aligned – meaning that both the DOM and the charts use the same symbol.

Watch video below on how to rollover if you are a stock index trader on our E-Futures Platform!

 

 

 

 

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 June 14th, 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.


Mastering Vertical Spreads: A Guide to Risk-Defined Options Strategies + Trading Levels for June 3rd

May 31st, 2024 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Corn Futures, Day Trading, E-Mini Futures, Energy Futures, Future Trading News, Futures Broker, Futures Trading, futures trading education, Options Trading, Weekly Newsletter | Comment (0)

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Cannon Futures Weekly Letter Issue # 1196

In this issue:
  • Important Notices – Non Farm Payrolls is the main event
  • Futures 101 – Vertical Option Spreads
  • Hot Market of the Week –
  • Broker’s Trading System of the Week – Crude Oil Day Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices – Next Week Highlights:

  • Light Earnings week: Crowdstrike, LULULemon, Dollar Tree and HP are the 4 headliners
  • FOMC Blackout Period Begins in advance of the June 11-12 FOMC Mtg.
  • Econ Data: ISM MFG PMI Mon., JOLTS Tues., ISM SVCS PMI Wed, Jobless Claims Thur, NON Farm Payrolls B4 the open Fri.
  • August gold is front month
  • September is front month for bonds, 10 years, 5/2 notes.

 

 

 

Futures 101 :

Vertical Spreads

By Craig Bewick CMEGroup.com
“Vertical Spreads” involve buying (selling) a higher strike price option and selling (buying) a lower strike price option and can be executed with either Calls or Puts.
  • If a trader sells the lower strike CALL option and buys the higher strike CALL option, they would receive a CREDIT (the lower strike Call will trade at a higher price than the higher strike Call) for that trade. Selling the higher strike and buying the lower strike CALL would result in a DEBIT. The opposite is true if the trader executed a PUT spread.
These spreads are known as “risk defined” strategies because the max potential profit and loss is known to the trader at the time of execution.
If we hold all other variables constant, Call and Put Vertical spreads represent a bullish or bearish view on the price of the underlying instrument:
  • Long (debit) Call spreads and Short (credit) Put spreads represent a bullish view
  • Short (credit) Call spreads and Long (debit) Put spreads represent a bearish view
Of course, as with most options strategies, several factors, including volatility, can also impact the value of vertical spreads, as we’ll demonstrate below.
EXAMPLE:
Let’s look at a real-life example using E-mini S&P 500 options:
Using markets from 4/25 @ 10:35 AM CST, we selected the following options:
Futures: 5,038
Sell 1 5,090 Call | Premium 58.25 | IV: 14.3% | Delta: -.41 | Gamma: -.0019 | Vega: -550.8 | Theta: 1.35
Buy 1 5,130 Call | Premium 42.0 | IV: 13.9% | Delta: .33 | Gamma: .0018 | Vega: 513.8 | Theta: -1.23
Position: Delta: -.08 | Gamma: -.0001 | Vega: -37 | Theta: .12
Max profit and loss (excluding all fees and commissions):
  • The max profit that this position could realize is the credit taken in at execution
  • 58.25-42.0 = 16.25 pts (16.25*$50 = $812.50)
  • The max loss that this position could realize is the credit taken in minus the difference between the strike prices
  • 16.25-40.00 = 23.75 pts (23.75*$50 = $1,187.50)
  • The P&L graph of each option and the overall P&L is shown in the TOP image below
Short 5090 Call (Blue Line)
  • 58.25 points were collected at execution on the 5090 Call. At any price below 5090 at expiry, this option is worthless and the trader will keep the premium collected (58.25).
  • As the price rises above 5090, the option gains value incrementally which, because this position is short, has a negative impact on the P&L.
Long 5130 Call (Orange Line)
  • 42 points were paid at the execution of the 5130 Call. This option, at expiry, is worthless at any futures price at, or under, 5130.
  • Similar to the 5090, as the price rises above 5130, the option gains value incrementally, which, in this case, has a positive impact on the P&L.
Position P&L
  • They gray line represents the overall P&L of the position at expiration, based on the futures price on the X-axis. This is simply the addition of the value of the blue and orange lines.
P&L Scenarios Prior to Expiration
However, though the max profit and loss is defined at the entry point of the trade, as we mentioned earlier, because option pricing is multi-dimensional, factors like volatility and time can impact the value of the position between execution and expiration. Although it is impossible to illustrate all the different values at which this option could theoretically trade because of the dynamic nature of options pricing, we wanted to illustrate some “what-if” scenarios to demonstrate how things like implied volatility and time decay might impact the position. These are illustrated in the bottom image below.

 

  • Hot Market of the Week – December Corn

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.
Dec Corn
The rally in December corn ran out of momentum after completing a second upside PriceCount objective. Now, on the correction lower the chart has activated downside counts too. The first downside objective project a run to the $4.61 area. It takes a trade below $4.56 1/2 to formally negate the remaining unmet upside counts
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.

   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.

Agora Crude

PRODUCT
SYSTEM TYPE
Swing
Recommended Cannon Trading Starting Capital
$20,000
COST
USD 70 / 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?
Yes
No
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 June 3rd 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.


Commodity Market Milestones this week: Record-Breaking Trends Across Commodities and Economic Indicators

May 29th, 2024 Filed under Bitcoin Futures, Charts & Indicators, Commodity Brokers, Commodity Trading, Day Trading, E-Mini Futures, Energy Futures, Future Trading News, Futures Broker, Futures Trading | 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

 

 

 

 The Rest of the Short Trading Week:

By Mark O’Brien, Senior Broker

General: 

 

Breaking records – either multi-year or all-time – has been in style for commodities in recent months.  Notable markets to set new all-time record highs include all three major stock index futures: S&P 500, Nasdaq, Dow Jones, cocoa, gold, silver and Bitcoin.

 

Not to be overlooked, in February natural gas traded to lows not seen in nearly 30 years.

 

One other record is garnering attention lately because of its sheer persistence and no sign of ending.  And while it’s not a futures market, it is an economic indicator futures traders and others watch closely – known as an inverted yield curve, in which yields on short-term Treasurys exceed those of longer-term government debt.  Long taken as a nearly surefire signal that an economic pullback is on the horizon (it happened prior to each of the last eight downturns in the U.S.), the current yield curve inversion has now stretched for over 400 trading sessions with no measurable signs of a major economic slow-down in sight.

 

It harkens to one of the principal rules in trading that we strive to drill into the minds of traders: Past performance is not indicative of future results.

 

Energies: 

 

Due to the short trading week, both the natural gas and the crude oil numbers will be released tomorrow.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a collection of nations that produces 40% of the world’s crude oil are getting together to decide their strategy at OPEC’s ministerial meeting on Sunday, June 2nd.  Traders and analysts are predicting the 2.2 million barrels per day voluntary production cuts will stay in place.

 

Metals: 

 

Last Tuesday, July silver closed at $32.20/ounce and at this typing, the contract is trading barely 3 cents from there at ±$32.17 per ounce.  Sandwiched between there – within five trading sessions – the contract dropped ±$2.00/ounce then rallied right back, a ±$10,000 per contract swing in both directions.

 

Crypto: 

 

Bitcoin futures have threatened to breach the 70,000 mark over the last eight trading sessions – dating to May 20.  The front month June contract’s all-time high close on March 13: 75,900.  This is a ±$12,000 per contract move from its last correction low on May 1 near 58,000.

 

 

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 30th, 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: A Simplified Approach for Futures Traders & Memorial Day Trading Hours

May 24th, 2024 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Day Trading, E-Mini Futures, Future Trading News, Futures Broker, Futures Trading, Indices, Trading Guide, Weekly Newsletter | Comment (0)

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Cannon Futures Weekly Letter Issue # 1195

In this issue:
  • Important Notices – Memorial Day Trading Hours
  • Futures 101 – Simplify Your Day Trading
  • Hot Market of the Week – Dec 24/Dec 25 Corn Spread
  • Broker’s Trading System of the Week – NQ Swing System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices – Next Week Highlights:

  • Short trading week. Monday most markets are either closed or observe a modified schedule. Memorial Day Trading Schedule HERE
  • Light Data Week: Consumer Confidence Tuesday, jobless claims and GDP Thursday, Chi PMI Friday
  • Roll June Gold futures to the August contract: symbol (Q) (micro, mini and full)
  • Earnings features: Costco, Salesforce and Dell. ( a number of discount retailers as well)

 

Treasury Bond Auctions and Price Action Watch video below. Ever traded the ES or MNQ and all of a sudden around 1:01 PM Eastern time a large move takes place and you wounder what happened? Watch video below….

 

Treasury Bond Auction and its Impact on Stock Index Futures

 

Futures 101 :

Simplify Your Day Trading

Day-trade futures using either counter trend or trend following concepts ( or what I call a simpler approach to day trading)
In This 25 Minutes Video You Will Learn The Following:
1. Possible advantages of using range bar charts over time charts for day trading
2. Trade set ups using counter trend indicators
3. Trade set ups using trend following indicators
4. The concept of price confirmation
5. Tips and insights from Ilan’s observations of different markets
6. You will be able to install the indicators/concepts mentioned and practice right away with your own demo!

 

 

  • Hot Market of the Week – Dec 24 – Dec 25 Corn Spread

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.
Dec 24 – Dec 25 Corn Spread ( read more about spreads HERE)
The Dec – Dec corn spread activated upside PriceCount objectives off the April low and completed the first count to the -4 area before correcting. From here, IF the chart can resume its rally with new sustained highs, the second count would project a run to the +2.5 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.

   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.
PRODUCT
NQ – Mini Nasdaq
SYSTEM TYPE
Swing
Recommended Cannon Trading Starting Capital
$50,000
COST
USD 210 / 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?
Yes
No
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 27th 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.


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)

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

 

 

 

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.

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