Financial Futures News & Information on Cannon Trading

Financial Futures

Category Archives: Financial Futures

If one has to define financial futures, it is pretty simple. A financial future is basically a futures contract agreed upon on a short term or long term rate of interest. There are a number of representative financial futures contracts. Financial futures trading also requires you to understand some typical financial terms and terminology. Most popular are the treasury bonds futures in this category. Under this category archive, you will be able to learn and understand the different aspects of financial futures, through the write-ups we have listed for the readers.

Cannon Trading can provide assistance. We can provide you with professional advice and help. Whether you approach us for consultation on day trading, crude oil trading or for advice on financial futures, we can give you the answers and solutions that qualify us as one of the best. Another resource that we help you out with is information and knowledge based category archives. This particular category of blogs features extensive and exclusive information on financial futures. Read about it and equip yourself!


Accessible Trading when exploring MICRO Treasury Futures

May 16th, 2024 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Day Trading, Financial Futures, Future Trading News, Futures Broker, Futures Trading | Comment (0)

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MICRO Treasury Futures

As discussed in this recent article, What Drives Long-Term Treasury Yields, 10-Yr Treasury yields are heavily influenced by inflation expectations, economic growth, and monetary policy.

 

There has been significant uncertainty around inflation expectations and monetary policy recently. This has generated significant volatility in 10-Yr Treasury yields and prompted significant trading activity in 10-Yr Yield futures, particularly around key economic data releases including CPI, PCE, non-farm payroll, and FOMC decisions.

 

The market will be closely watching upcoming inflation data releases that heavily influence the Fed’s monetary policy path, including:

· 5/14 – Consumer Price Index (CPI)

· 5/31 – PCE

Yield futures allow the market to express their views on the impact of these releases on Treasury yields going forward.

Source: https://www.cmegroup.com/tools-information/communications/e-communication-disclaimer.html

 

 

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 17th, 2024

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

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

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* 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: FOMC next Week, Bonds Outlook & Trading Levels for April 29th

April 26th, 2024 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Day Trading, Financial Futures, Future Trading News, Futures Broker, Futures Trading, Indices, S&P 500, Weekly Newsletter | Comment (0)

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Cannon Futures Weekly Letter Issue # 1191

In this issue:
  • Important Notices – FOMC & NFP Next Week
  • Futures 101 – Understanding Volume
  • Hot Market of the Week – June Bonds
  • Broker’s Trading System of the Week – ES intraday System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices – Next Week Highlights:

    • FOMC Rate Announcement Wed.
    • Heavy Earnings, AMZN and AMD Tues, AAPL Thur. all after the close
    • Heavy Data, Chicago PMI, Consumer Confidence, Construction Spending, ISM Manufacturing PMI, Jobless Claims.
    • NON FARM Payrolls to cap off the week on Fri. , preopening

 

 

Futures 101 : Understanding VOLUME

Volume is reported for all futures contracts. It is calculated by counting the number of contracts that have been bought and sold over a given time. You can track volume using different time intervals like daily or intraday.
When a futures contract is traded, whether bought or sold, it counts towards volume for that contract.
For example, a trader closes a short position in the E-mini S&P 500 (ES) futures contract by buying one contract in the ES, so volume will increase by 1.
Traders often use and interpret the rise or decline of volume in a futures contract to help make trading decisions.
Volume can give important information to traders such as:
  • Indicate the price levels at which traders are more or less interested in trading a futures contract
  • During the roll, indicate to traders when to switch to trading the front month futures contract as volume decreases in the expiring contract
  • Identify the times of day when a futures contract is most liquid
Price Levels
When volume changes as price of a futures contract moves towards certain levels, this can indicate to a trader that a change in direction may occur. Some traders may use this information to indicate whether to buy or sell at those key levels.
­Contract Roll
During the futures rollover, traders pay attention to the contract that is taking the higher levels of volume. Traders use this information to determine when to start trading the next month contract. As volume decreases in the expiring contract, trading will shift to the next available month contract.
For example, say the June ES (E-mini S&P 500) futures contract is about to expire and September will become the new front month. On the Thursday of rollover week, watch how the June contract starts to lose volume and the September contract begins to pick up volume. When the September contract has more volume than the June contract, it is time to switch to the September contract.
Active Periods
Traders typically prefer higher volume times to trade, as it means that more traders are actively interested in buying and selling. When volume is high, the bid-ask spread is typically smaller, orders are filled faster and less gaps may exist between ticks.
For example, markets can have lower volume between the hours of 12:00 p.m.-2:00 p.m. ET, before major economic releases; conversely, market often see higher volume around the open and close of the trading day.
Traders also can look at average daily volume over a longer time period, such as a few weeks or months, to see if the markets currently are in a lower or higher volume than is typical.
Summary
What volume can’t show however, is whether traders are buying or selling, or opening or closing a position.
For example, if the ES contract is trading at 2375 and suddenly pushes down to 2360 while volume increases, the volume that comes into the market could be from traders opening new long positions at key levels of support. That could indicate a bullish sentiment. Volume also can be generated by liquidation of exiting long positions or opening of new short positions, a possible bearish indication.
A spike in volume at 2360 doesn’t necessarily mean that buyers are coming into the market and that the price will bounce.
Volume data is readily available for each futures contract and for the market as a whole. Although traders may use volume in different ways to interpret how to trade, volume can be an important factor to help inform your trading decisions.

 

 

  • Hot Market of the Week – June Bonds
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.
June 30 Year T-Bonds
The June 30 Year T-Bond break found temporary stability at its second downside PriceCount objective recently. Now, the chart has resumed its slide into new lows which, if sustained, would project a run to the third count in the 109^20 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
SYSTEM TYPE
Intraday
COST
USD 110 / monthly
Recommended Cannon Trading Starting Capital
$10,000
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

 

Daily Levels for April 29th 2024

Trading Reports for Next Week

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

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* 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.


CPI, FOMC Minutes + Futures Trading Levels for 04.10.2024

April 9th, 2024 Filed under Commodity Brokers, Commodity Trading, Day Trading, Economic Trading, Financial Futures, Future Trading News, Futures Broker, Futures Trading | Comment (0)

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CPI and FOMC minutes Tomorrow

CPI Tomorrow! The CPI will be critical to the inflation outlook for Fed policymakers.

 

Previous CPI reports have created velocity logic events in the stock indices at the CME.

 

Please read more details about velocity logic and price banding HERE.

 

The above reports will Bookend the FOMC minutes release @1pm CT on tomorrow.

My previous notes suggest to do the following if you are an index day trader:

Get out before the 730 AM CPI.

Wait for the smoke to clear.

Resume trading.

Look at market volume and behavior after 9:30 AM Central time to decide if and how to resume trading.

I usually stop trading and resume after 1 PM once FOMC minutes are out.

AGAIN…This is just my PERSONAL preferences…

 

 

 

 

 

Daily Levels for April 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.


Micro Treasury Yield Futures + Futures Trading Levels for 02.09.24

February 8th, 2024 Filed under Commodity Brokers, Commodity Trading, Day Trading, Financial Futures, Future Trading News, futures trading education | Comment (0)

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4 MIN READ

US TREASURY

Spreading Treasury Yield Futures

By CME Group

05 FEB 2024

Although the Federal Reserve (the Fed) has been on pause when it comes to interest rate hikes since the summer of 2023, economic uncertainty still looms. The Fed is reducing the size of its balance sheet by decreasing holdings of Treasury and mortgage backed securities, and it is ambiguous on when the first rate cuts will take place.

Given the uncertain economic environment, it is as important as ever to manage Treasury yield curve risk.

Treasury yields

The United States Treasury market stands as one of the largest and most crucial financial markets globally, playing a pivotal role in the functioning of the global economy. The magnitude of the U.S. Treasury market reflects its significance as a safe haven for investors, central banks and institutions seeking low-risk assets. Treasury maturities across the yield serve as an important reference point for risk management across various markets.

➜ Finish Article

 

 

Daily Levels for February 9th, 2024

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

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.


The Week Ahead: Federal Reserve Board Black Out Period + Futures Trading Levels for 12.05.23

December 4th, 2023 Filed under Commodity Brokers, Commodity Trading, Day Trading, E-Mini Futures, Economic Trading, Financial Futures, Future Trading News, Future Trading Platform, Futures Broker, Futures Exchange, Futures Trading, futures trading education, Indices, Trading Guide | Comment (0)

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The Week Ahead: Federal Reserve Board Black Out Period Dec 2-14

By John Thorpe, Senior Broker

 

March (H24) Interest rate products, U.S. T-Bond Futures ZB, Ultra T-Bond Futures UB, 10-Year T-Note Futures ZN, 5-Year T-Note Futures ZF, 2-Year T-Note Futures ZT. are now front month

Earnings watch, Tuesday 12-5 Toll Brothers Builders NYSE (TOL), Thursday 12-7 chipmaker Broadcom NYSE (AVCO)

Reports a variety, Main Focus Friday, NFP 7:30am, WASDE 10am and 1st day of Hanukkah all times CST

The Role of Expectations for the NFP report

Expectations are typically baked into future prices. Rarely can a more direct correlation to this reality be found than in our futures markets as they are affected by expectations of NFP .

There are a number of indicators the Federal Reserve Board and investors watch prior to the NFP release, these all become reflected in asset prices and if there is a surprise NFP release, the market can adjust violently to the new perception of the health of the economy and therefore the affect on future Interest rate decisions. For instance, The Labor Department’s JOLTS report tracks monthly change in job openings and offers rates on hiring and quits. The reporting period lags other employment data including the employment situation report. Then there is the ADP report The national employment report from Automated Data Processing Inc. and is computed from ADP payroll data and offers advance indications on the U.S. private workforce. Are to name but two. Contact your broker for more detail.

This Friday @ 7:30 a.m. CST the BLS will release it’s monthly employment update called the NFP which stands for Non-Farm Payroll and this specific economic event is always released on the first Friday of every month. Rarely, the NFP figure may be postponed to the second Friday if the first Friday is the first of the month or a public holiday. This Friday is one of those rare exceptions. The NFP figure is a report which shows how many individuals are employed within the US but excludes specific industries such as agriculture.

Why is it important to the Dollar?

DXH246EH24 (eurocurrency)

When individuals wish to invest in stocks, bonds and a currency, they prefer currencies backed by a strong economy with a robust employment sector. In addition, if employment is high, the Federal Reserve is also likely to increase interest rates or keep them high; again, this can support demand for the Dollar.

A higher-than-expected NFP figure is positive for the Dollar.

A lower-than-expected NFP figure is negative for the Dollar. The inverse would be true for the Euro currency

Why is it important to the US Stocks?

ESH24,NQH24,RTYH24,YMH24 + micros

The NFP figure can affect the US Stock Market in 2 ways. A higher-than-expected NFP figure can indicate a resilient economy and higher consumer demand. As a result, companies perform better; earnings are higher, as is investor confidence. This can cause the stock market to rise. But be wary as it can also trigger current belief by the FED that interest rate increases will be necessary to cool the employment trend.

On the other hand, if the Federal Reserve is increasing interest rates, positive employment figures may support a further increase. Interest rates can significantly pressure the stock market. A lower than expected figure during the current environment may rally stocks as the FED would NOT need to raise rates further yet as they wait and see if their tight money policy is being effective

Why is it important to the Gold?

GGCG24, GCG24 + micros

The price of Gold is largely inversely correlated with the cost of the Dollar. As a result, the NFP can influence the price of gold. Whether the horse leads the cart or the cart leads the horse is for you to determine as you lock those contracts onto your trading screens.

Why is it important to Interest Rates?

UBH24,ZBH24,ZTH24,FFF24 + minis

If the NFP is stronger than expectations Bond prices will go lower as the concern of “higher for Longer” persists

If the NFP is weaker than expected Bond Prices will go higher as anticipation for rate cuts sooner wash over the interest rate markets

Plan your trade and trade your plan.

 

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

12-05-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

 

 

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.

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