Economic Trading Archives - Support & Resistance Levels

Economic Trading

Category Archives: Economic Trading


FOMC Trading Day Tips + Futures Trading Levels & Reports for 11.02.2022

November 1st, 2022 Filed under Day Trading, Economic Trading, Future Trading News, Futures Broker, Futures Trading, futures trading education | Comment (0)

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Tomorrow we have FOMC.

The following are my PERSONAL suggestions on trading during FOMC days:
·    Reduce trading size
·    Be extra picky = no trade is better than a bad trade
·    Choose entry points wisely. Look at longer time frame support and resistance for entry. Take the approach of entering at points where you normally would have placed protective stops. Example, trader x looking to go long the mini SP at 3925.00 with a stop at 3919.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 3919.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).
·    Expect the higher volatility during and right after the announcement
·    Expect to see some “vacuum” ( low volume, big zigzags) right before the number.
·    Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
·    Keep in mind statement comes out at 1 Pm Central time, the news conference which dissects the language comes out 30 minutes later so the volatility window stretches out.
·    Know what the market was expecting, learn what came out and observe market reaction for clues
·    Be patient and be disciplined
·    If in doubt, stay out!!

 

 

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

for 11-02-2022

#goldfutures #sp500futures #crudeoilfutures # nasdaqfutures #dowfutures #futurestrading #futuresbrokers

SP500 #ES_FNasdaq100  #NQ_FDow Jones  #YM_FMini Russell #RTY_FBitCoin Index #BRTI SP500 Dec. Gold #GC_F Dec. Silver #SI_F Oct. Crude Oil #CL-F Dec. Bonds  #ZB_F Dec. 10 yr  #ZN_F Dec. Corn #ZC_F Dec.  Wheat #ZW_F Nov. Beans #ZS_F Dec. SoyMeal #ZM_F Oct. Nat Gas #NG_F Dec. Coffee #KC_F Dec. Cocoa #CC_F October Sugar #SB_F Dec. Cotton #CT_F Sept.  Euro Currency

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Economic Reports, Source: 

Forexfactory.com

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.


WYNTK for Oct. 11th + Futures Trading Levels 10.11.2022

October 10th, 2022 Filed under Day Trading, Economic Trading, Future Trading News | Comment (0)

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WYNTK for October 11th…

Market Volatility to remain this week. Please mark these times in your trading calendar. I always begin the week with a review of the scheduled economic data releases. This week, the fuel for volatility will be provided by what I consider to be 4 of the top five most impactful, market moving reports highlighting inflationary trends. First, on Wednesday at 7:30 am CDT PPI Final Demand consensus from Econoday.com is :

Producer prices have been cooling, edging 0.1 percent lower at the

headline level in August and rising only 0.2 percent when excluding food

and energy. September’s expectations are up 0.2 percent overall and up

0.3 percent for the core.

FOMC minutes of the most recent Fed Meeting will be released on Wednesday at 1:00PM CDT

This is the big one CPI Thursday 7:30 am CDT consensus from Econoday.com :

Core prices surged 0.6 percent in August with noticeable slowing to 0.4

percent expected for September. Overall prices are expected to rise 0.2

percent after August’s 0.1 percent gain. Annual rates are seen at 8.1

percent overall and 6.5 percent which would compare with 8.3 and 6.3

percent in August.

And finally, released at the same time, Jobless Claims Jobless claims for the October 8 week are expected to come in at 225,000 versus 219,000 in the prior week.

Be careful out there and please reduce position size during periods of likely , higher volatility . As always, plan your trade and trade your plan. Please contact your broker or Cannon Trading with any questions.

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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

for 10-11-2022

#goldfutures #sp500futures #crudeoilfutures # nasdaqfutures #dowfutures #futurestrading #futuresbrokers

SP500 #ES_FNasdaq100  #NQ_FDow Jones  #YM_FMini Russell #RTY_FBitCoin Index #BRTI SP500 Dec. Gold #GC_F Dec. Silver #SI_F Oct. Crude Oil #CL-F Dec. Bonds  #ZB_F Dec. 10 yr  #ZN_F Dec. Corn #ZC_F Dec.  Wheat #ZW_F Nov. Beans #ZS_F Dec. SoyMeal #ZM_F Oct. Nat Gas #NG_F Dec. Coffee #KC_F Dec. Cocoa #CC_F October Sugar #SB_F Dec. Cotton #CT_F Sept.  Euro Currency

Improve Your Trading Skills

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 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

 

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.


WYNTK Before Trading Tomorrow, Sept. 22nd 2022 Futures Trading Levels

September 21st, 2022 Filed under Commodity Trading, Economic Trading, Future Trading News | Comment (0)

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Bullet Points: Hot off the FOMC Meeting

By Mark O’Brien, Senior Broker

Financials: for the third time in as many Federal Open Market Committee meetings, the twelve voting members unanimously approved a 0.75% rate increase for the benchmark federal funds rate – the overnight rate on lending between banks. With this the fifth consecutive rate increase from near 0% in March and the steepest rise since the 1980’s, not since 2008 has the fed. funds rate been set to this level. With two more FOMC meetings scheduled for the remainder of the year, the full 19-member committee signaled fed. funds are projected to continue their upward trajectory with 4.25% to 4.50% the expected target by year’s end.

The Federal Reserve also announced a program of reducing stimulus by shrinking its $8.8 trillion asset portfolio through attrition. As debt securities mature – to the tune of ±$95 billion a month – the Fed reduces its holdings by up to $95 billion a month.

Of course, all this is the Federal Reserve’s effort to quell inflation, the annual forecast of which officials revised up for the third time to 4.5% (core rate). “Inflation is running too hot. You don’t need to know much more than that,” said FOMC chairman Jerome Powell in his post-announcement news conference.

 

As always, plan your trade and trade your plan. Please contact your broker or Cannon Trading with any questions.

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

09-22-2022

#goldfutures #sp500futures #crudeoilfutures # nasdaqfutures #dowfutures #futurestrading #futuresbrokers

SP500 #ES_FNasdaq100  #NQ_FDow Jones  #YM_FMini Russell #RTY_FBitCoin Index #BRTI SP500 Dec. Gold #GC_F Dec. Silver #SI_F Oct. Crude Oil #CL-F Dec. Bonds  #ZB_F Dec. 10 yr  #ZN_F Dec. Corn #ZC_F Dec.  Wheat #ZW_F Nov. Beans #ZS_F Dec. SoyMeal #ZM_F Oct. Nat Gas #NG_F Dec. Coffee #KC_F Dec. Cocoa #CC_F October Sugar #SB_F Dec. Cotton #CT_F Sept.  Euro Currency

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: 

Forexfactory.com

 

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.


A Trader’s Guide to Futures 10.07.2021

October 6th, 2021 Filed under Day Trading, Economic Trading, Financial Futures, Future Trading News, Options Trading, Trading Guide | Comment (0)

Dear Traders,

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Separator

Everyone loves an introductory guide to trading futures! Even experienced traders can learn something new or refresh their strategies by reviewing this trader’s guide to futures. If you’re a trader who is interested in branching out from equities or cash FX into futures, this guide will provide a great starting point. If you already know something about futures trading, you can jump to any chapter for a review.  Additionally, you can also go to the back of the booklet and test your knowledge in our helpful Futures Quiz.
Some of the guide sections include:

Who Trades Futures?

What Types of Traders are There?

What Makes Futures Trading Different?

How Does a Trade Work?

How Do I Get Started?

Futures Quiz

Futures Trading Levels

10-07-2021

Support & Resistance Levels 10.07.2021

Did you know?
Cannon offers over 10 TRADING PLATFORMS CLICK HERE for a demo

Economic Reports, source: 

 www.BetterTrader.co

Better Trader Reports 10.07.2021

 

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading as well as options on futures.


Interest Rate Futures, Real Estate and Mortgage Rates

July 17th, 2019 Filed under Economic Trading, Financial Futures, Futures Broker, Futures Trading | Comment (0)

By John Thorpe, Senior Broker

 

Over the course of the last 45 years, whether you own a small monopoly of commercial buildings or a condo on Oak street U.S.A. your investments are subjected to the actions of the Federal Reserve Bank.

 

The Federal Reserve Bank seeks to provide stability in the largest world economy through interest rate regulation. Its mandate is to use financial tools to satisfy two congressional mandates, 1: Full Employment and 2: Moderate Inflation to a 2% annualized rate; Move too far too fast in any direction with policy shifts and financial perils for all! may be in the offing. The economy could move too fast in the wrong direction or too fast in the right direction which can lead to an overheating and a bursting of an economic bubble. Look no further than Savings and Loan crisis in the 1980’s and 90’s, the Japanese housing market collapse in 1989 (Japan is currently still struggling with a zero interest rate environment 30 years later) the Dot Com bubble after Y2K and most recently , the housing market collapse, which began with the bankruptcy of Iceland, no one paid attention, then the bankruptcy of Ireland, again, no one paid attention, then the bankruptcy of Bear Stearns,  some paid attention  (what did any of these entities have to do with the value of our homes, we thought) then Lehman brothers collapsed in September of 2008 and everyone paid attention as our home prices collapsed.

Use Google, DuckDuckGo, Bing or any of your favorite search engines and type in

10 yr. correlation with mortgage rates

 

You will find search pages full of information about the importance of interest rate policy and its effect on mortgage rates, specifically the Fedfunds rate.

 

 

Whether you have a 30 yr fixed, a 15 yr fixed or a 5/1 ARM  (usually capped after 5 years) you need to protect your largest investments by first understanding the tools available to the public to monitor these markets and second, knowing you can contact a professional to discuss the myriad of ways to hedge your real estate portfolio and be ready when you need to by utilizing the futures markets to protect your investments.

 

The hypothesis:  Generally speakingand largely from region to region diversity, when interest rates go lower, home prices go higher. Lower interest rates lead to increases in the value of real assets. Mortgage rates are sensitive to changes in Fed Policy, the 10yr note being the reference financial instrument moves in response to market reactions to Fed policy shifts.

 

When interest rates go higher, a definite time lag exists in the long run may make  home prices move lowerand real asset prices lower.

 

 

Watch futures market prices in the interest rate futures. Get comfortable watching the interest rate futures contracts.

 

I am by no means offering a pure hedge or even a short-term hedge in my analysis.

I believe what you will see and get a sense of the ebbs and flows of these markets from a visual perspective  while you are learning about the base currency (US Dollar) valuation of real assets changing and thereby affecting not only the value of the real assets you hold but also the cost to maintain those assets. The interest rate futures markets give you the clearest picture of how policy equates to real rates for you, the mortgage holder. 10yr Note Futures prices and chart

 

Major trends that are a serious harbinger of future housing price changes are important to understand so you may act to preserve, maintain and profit from potential shifts in policy.

 

 

FRED

 

Between 2008 and 2012 during the last recession, a major fed policy tool used was a series of fed fund rate reductions (net effect is the cost of money becomes cheaper relative to real asset prices), these calculated moves lowered the interest rate on longer term debt obligations  10Yr. Note Futures Prices and Chart as well as all dollar denominated Treasuries.

 

As you can see, Mortgage rates, I mean the 10yr Treasury Note rates (Freudian slip, sorry), are still at or near all-time lows.

In Summary, Familiarizing yourself with the interrelationships among Mortgage rates, 10 year treasuries and fed fund policy shifts are an important starting point for a conversation with a professional about protecting your family’s biggest investment.

 

A Cannon Trading professional is available between 8:30am to 5:00pm Eastern to answer your questions Call Now

 

Disclaimer – Trading Futures, Options on Futuresand 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, knowledgeand financial resources. You may lose all or more of your initial investment. Opinions, market dataand recommendations are subject to change at any time.

 

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