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!


FOMC Week + Futures Trading Levels for 6.14.2022

June 13th, 2022 Filed under Financial Futures, Future Trading News | Comment (0)

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FOMC Week!

By John Thorpe, Senior Broker
Federal Funds rate, the DOT Plot and CPI vs PCE
Wednesday , June 15th the U.S. Fed will release it’s guidance on short term interest rates in lieu of recent inflationary measures. One of the purposes of markets is to discount the potential for future events. When a rate announcement is made, price action in markets affected by the change tend to be muted. Conversely, a surprise announce will create more volatility in both directions as bids are cancelled, removing price floors or offers are cancelled removing price ceilings.
Here are some fascinating tools that are available to the novice and professional alike. If you have any questions about how to use them or read them please call your CannonTrading broker @ 800-454-9572.
First here is a snapshot of the consensus from
There is a futures contract based on the FOMC Fed Funds rate and it’s the 30 Day Federal Fund Futures contract, listed monthly ZQN22 will be the July FF Futures contract.
Please pull up the quote and feel free to trade this liquid contract.. The market prices actually reflect the probability of future rate changes. As most of us are aware, the Fed is currently in a rate hike mode and shouldn’t surprise you to know that by hiking short term interest rates, that’ should reduce the supply and appetite for cheap dollars. By raising rates, the fed would like to influence consumption of goods and services to stop the trend of inflationary price hikes across the broad economy.
The Fed has suggested during previous guidance that they key off of the PCE ( Personal Consumption Expenditures Price Index ) rather than the CPI (consumer Price Index) to base rate change decisions upon. A description of the differences can be found here https://www.bls.gov/osmr/research-papers/2017/st170010.htm
And Finally the CME has a wonderful “probalistic” tool called the “Fed Watch Tool” you will find the DOT Plot, probabilities of future rates all the way out to July 2023
Plan your trad 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

06-14-2022

Support and Resistance Levels 6.14.2022

 

 

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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.


Ten Year Bonds to Resume Downtrend? & Support and Resistance Levels 5.18.2022

May 17th, 2022 Filed under Financial Futures, Future Trading News | Comment (0)

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Ten Year Bonds to Resume Downtrend?

Please chart below or click here for LARGER IMAGE.
Our brokers can help you navigate the different weapons” available to you as a trader. Will outright futures is the right strategy? perhaps futures and options combo? maybe a spread between the 10 year and the 30 year or maybe an options spread like vertical put spread?
10 year Treasury Note Daily Chart

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

05-18-2022

Futures Support and Resistance Levels 5.18.2022

 

 

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: 

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.


NASDAQ Futures Down 3% + Futures Trading Levels for 01.06.2022

January 5th, 2022 Filed under Energy Futures, Financial Futures, Future Trading News, Indices | Comment (0)

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Hello Traders,
Happy and prosperous New Year from the Cannon Trading Team!
We appreciate the chance to serve your futures trading needs and are here to assist.
FOMC Minutes report triggered one of the larger sell offs we have seen in recent months. NQ and RTY were both down over 3% when the trading day was over.
Hope it helps.
*While I have no idea were the market is going from day to day, minute to minute, week to week etc. I do know that in the past, some of the sharpest and largest rallies were short covering after a large sell off. More often than not market sell offs and volatility like we are seeing do not end up as V type of action but more like U or W when it is all said and done.
*Expect the unexpected…
* Have an idea of what you are looking to do, keep in mind possible risk and have a game plan. Now more than ever, plan your trade and trade your plan!
* Think money management, hedging risk while you are still trying to figure out how to profit.
* Know what is going on, reports, current margins, current limits and more.
*Consider short term options instead of futures and/or MICROS
*Trade smaller. The bands are much larger. Watch the VIX.
* DO NOT assume anything…if you are not sure, contact us and we will try our best to assist with the combined, vast experience we have here as a team.
* Wash hands, take this seriously and do your best to stay healthy….
My colleague, John Thorpe, Ex floor broker, contributed the following on the VIX and the VVIX:
“We recommend all stock indices intraday traders to keep an eye on the VIX for directional clues and study, many of you have access through other means to view this critical trading barometer, VIX now trades 5 days per week ,23 hours per day. if you need to add the VIX data to your trading platforms , it’s 3 bucks per month, penny wise and pound foolish if you don’t. Contact your broker on how to add the Volatility Index traded through the CBOE to your trading platform.”

Futures Trading Levels

01-06-2022

Support & Resistance Levels For 01.06.2022


Economic Reports, Source: 

https://bettertrader.co/ 

BetterTrader Reports 01.06.2022

 

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.

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 1078: Rollover Notice and Trading Tips During Rollover & Support and Resistance Levels for the Week Ahead

December 10th, 2021 Filed under Financial Futures, Index Futures, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Letter Issue # 1078

Dear Traders,

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Trading 201: Trading During Rollover

Rollover Notice for U.S. Stock Index, Currency and Financial Futures
Heads up traders! We’re approaching important dates on the trading calendar.
Monday, December 13th is Last Trading Day for December currency futures. It is of the utmost importance for currency traders to exit all December futures contracts and start trading the next quarterly futures contract and the new front month: March ’22. Currency futures are DELIVERABLE contracts. By holding any December futures contracts through the close of Last Trading Day, you will be subject to delivering (short positions) or taking delivery of (long positions) the full notional value of the futures contract.
For stock index futures traders, on Friday, Dec. 17th, the Dec. ’21 futures contracts will officially halt trading and the exchange will cash settle all open positions at 8:30 A.M., Central Time.  Thursday, December 9th marked the traditional date traders started rolling Dec. stock index futures trades to the next quarterly futures contract and the new front month: also March ’22. Come forward to the new front month for the next ±90 days.
Finally, for financial futures traders (Ultra bonds, 30-yr. T-bonds, 2-, 5-, 10-yr. T-notes, etc.) the traditional roll-over day was Nov. 30th/First Notice Day (the date all open LONG positions became subject to delivery). The next front month – and now by far the more liquid – is also March ’22. For all longs and shorts not in the deliverables market, it’s time to trade March ’22 contracts.
The March exchange symbol for all these futures contracts is “H.” Check for the appropriate complete symbol for these new front month futures contracts on your trading/charting software. Make sure your quotes, charts, DOM’s are set to the correct futures contract month.
 Keep in mind the following:
  • Currencies are DELIVERABLE and you must be out and trading March as of today, Friday Dec. 10th
  • Stock index futures are cash settled on Friday Dec. 17th at 9:30 AM Eastern Time.
  • During the rollover period, especially with stock index futures, I noticed that the first few days will have two sided, volatile action. Think about it, you have large traders and institutions who are NOT day traders and carry large positions as speculation or a hedge and now they need to rollover from Dec. to March.
  • In my opinion, counter trend methods, mean reversion techniques can work better during rollover period but one must be very aware as past performance is not indicative of futures results.
  • Keep in mind, back in the days, many floor traders would “trade the spread” specifically with different techniques. I believe some traders still do using the screen.
  • Bottom line is know that this is rollover period, do research on past rollover periods, start trading the March contract and good trading and happy holidays!

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

12.13.2021

Support & Resistance Levels 12.13.2021

 

Weekly Levels

Weekly Support & Resistance Levels

 

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 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


3 Main Types of Trading Days, 30 Year Bond Chart Review & Support and Resistance Levels 11.12.2021

November 11th, 2021 Filed under Charts & Indicators, Financial Futures, Future Trading News | Comment (0)

Dear Futures Trader,

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Yesterday we had a nice volatile day, with price action both up and down and then we followed it today ( Veteran’s Day, banks are closed) with very choppy, much narrower price action. Tomorrow is Friday, after a quiet day and with some meanigful reports – which encouraged me to share the following with you on the different types of trading days:

 In my opinion there are 3 main types of trading days:

1. The most common day are two sided trading action with swings up and down – this type of trading day is most suitable for using support and resistance levels along with overbought/oversold indicators.
2. Strong trending days, mostly one directional – this type of trading day is the least common, many times will happen on Mondays and maybe 3-5 times a month at most – this type of trading day is most suitable for using ADX, MACD crossovers and pretty much looking for pullbacks to jump on the trend perhaps with the help of parabolics.
3. Slow and/or choppy trading days – this type of trading day is best suited for taking small profits from the market by looking at volume spikes, using stochastics as possible entry signals and usually wait for a pullback before jumping in.
·A good question I’ve been asked is how can one asses what type of trading day we will have while the market is still trading….I have been doing some work in finding the answers and will be happy to hear feedback via email but here are some initial observations:
1.  Was the overnight session a wide, two sided trading range? If the answer is yes, good chances for similar trading day during the primary session (primary session is when the cash/stock market is open)
2. Mondays have the highest chance for trending days
3. The behavior of the first hour of trading can also suggests the type of action for the rest of the day.
4. If the first 30 minutes of the trading day have good volume, better chances for type 1 or type 2 trading days.
5. Low volume during the first 30 minutes can suggest a choppy (type 3 trading day)
6. Are there other strong trends in other sectors? ( bonds? metals? energies? Dollar index? )
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.
Hourly/ 60 minutes chart click for larger image) of the 30 yr bonds (ZB or USA) for your review below. I have heard from some clients that they “like the personality of the bonds” better than the ES and NQ. Different dynamics, larger tick size – may be worth your time to follow and try in SIM MODE first
Futures US Treasury Bond 60 minute Chart
If you are looking for other reference material please contact your Cannon Broker for lists of solid, informative and helpful trading tomes

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

11-12-2021

 

Futures Support and Resistance Levels 11.12.2021


Economic Reports, source: 

https://bettertrader.co/ 

BetterTrader Reports

 

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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