Future Trading News

Category Archives: Future Trading News

As a high risk trading type, futures trading is not for someone who is faint-hearted. Though there are a number of different ways of investing in futures , it is important to stick to what you know. Treading into unknown waters is not something that you should do when dealing in futures.

From managing margins to ordering trades to doing market analysis and more if you want to, you can do that all by yourself – but you may betaking double the risk. Therefore, when trading in futures, it may be better to seek advice from a professional trader.

Professional trading experts at Cannon Trading can help you with your futures trading. We are also there to keep you updated with the latest on futures trading and market news. All the news and latest articles on futures trading are published on our site under the category Archive Futures Trading News, which you are currently browsing through. Read more and the latest here and keep updated.


Insights into trading ( or not….) on FOMC days & Levels 6.13.2018

June 12th, 2018 Filed under Future Trading News | Comment (0)

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Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!  

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Dear Traders,

CME Fed Funds futures is currently projecting, with a 93.6 % confidence level;  .25 increase for tomorrow’s  FRB rate announcement.
FOMC days are quite different in their behavior:
** The FOMC interest rate decision is due at 2:00 ET in the US tomorrow. This is followed by the conference which will provide more clues ( volatility).
FOMC days have different characteristics than other trading days. If you have traded for a while, check your trading notes from past FOMC days that may help you prepare for tomorrow.
if you are a newcomer, take a more conservative approach and make sure you understand that the news can really move the market.
The following are 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 2765.00 with a stop at 2759.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 2759.75 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.
  • 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!!

 

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.

Futures Trading Levels

06-13-2018

Contract September 2018  SP500 #ES_F Nasdaq100  #NQ_F Dow Jones  #YM_F Mini Russell #RTY_F BitCoin Index #XBT_F
Resistance 3 2806.83 7319.17 25551 1708.70 7238.88
Resistance 2 2800.42 7280.83 25477 1700.50 7070.75
Resistance 1 2795.08 7257.67 25405 1693.80 6787.27
Pivot 2788.67 7219.33 25331 1685.60 6619.14
Support 1 2783.33 7196.17 25259 1678.90 6335.66
Support 2 2776.92 7157.83 25185 1670.70 6167.53
Support 3 2771.58 7134.67 25113 1664.00 5884.05
Contract August Gold #GC_F July Silver #SI-F July Crude Oil #CL-F Sept.  Bonds  #ZB_F June  Euro #6E_F
Resistance 3 1312.8 17.19 67.48 143 23/32 1.1878
Resistance 2 1308.8 17.09 67.09 143 11/32 1.1846
Resistance 1 1304.3 16.99 66.65 143  3/32 1.1801
Pivot 1300.3 16.88 66.26 142 23/32 1.1769
Support 1 1295.8 16.78 65.82 142 15/32 1.1724
Support 2 1291.8 16.68 65.43 142  3/32 1.1692
Support 3 1287.3 16.58 64.99 141 27/32 1.1647
Contract July  Corn #ZC_F July Wheat #ZW_F July Beans #ZS_F July SoyMeal #ZM_F July Nat Gas #NG_F
Resistance 3 392.2 566.8 972.08 361.33 3.05
Resistance 2 385.8 552.5 967.67 358.97 3.02
Resistance 1 381.7 543.5 960.83 356.23 2.98
Pivot 375.3 529.3 956.42 353.87 2.95
Support 1 371.2 520.3 949.6 351.1 2.9
Support 2 364.8 506.0 945.17 348.77 2.88
Support 3 360.7 497.0 938.33 346.03 2.84

Economic Reports, source: 

http://app.bettertrader.co 

 

 

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.


Insight into day trading gold futures & Trading Levels for 6.12.2018

June 11th, 2018 Filed under Future Trading News | Comment (0)

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Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!  

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Dear Traders,

The following article was written by my colleague John Thorpe and offers valuable insight into day trading gold futures specifically and most other futures markets in general.
Enjoy!
Day Trading Comex Gold Futures
(Contrary to Conventional Wisdom)
By: John Thorpe, Cannon Trading Senior Broker
 
Markets are forward looking. Today’s price is as much a reflection of yesterday’s fears, needs , wants and desires as the current reaction to a political leader rattling sabers, or the effect that a surprise Government Report  will have on the prices of a security or commodity.
Contrary to conventional wisdom, Day Traders tend to be well educated and well capitalized.
Risk takers, by any other name, Wildcat oil drillers? Computer geeks working out of their parent’s garage? Mom and Pop managing their hard earned 401k’s; The Day trading approach is not very different from any other investing approach, with one major distinction from other risk takers who operate on a much greater time horizon.  As a day trader, you open an investment and close an investment between sunup and sundown and often many times during a market session.  One of the greatest risks that day traders must avoid is gauging their success or failure within that same sunup to sundown time frame. I like to call this a fiction trap. A fiction trap occurs when the day trader believes that once he has a good day trading, his subsequent days will always yield the same results. The fiction trap results in unrealistic expectations for success.  The Market, like the ocean current, is sometimes similar in repetition, but rarely identical in motion. When risk takers begin the process of assessing a strategy, they do it with the long view in mind.
By taking a longer view of returns, like all other risk takers, you can avoid the fiction trap of unrealistic expectations by incorporating the Rule of 72 into your long-range plans. The Rule of 72 is a formula that tells you how quickly (given a rate of return) it will take for your account size to double. Although your account size can double in one day trading futures, it is rare to hold on to those gains. The Rule of 72forces you to be patient, emotionally subdued, and in line with long-term goals.
To read the rest of the article, click here

 

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.

Futures Trading Levels

06-12-2018

Contract September 2018  SP500 #ES_F Nasdaq100  #NQ_F Dow Jones  #YM_F Mini Russell #RTY_F BitCoin Index #XBT_F
Resistance 3 2815.25 7284.75 25580 1692.47 8466.57
Resistance 2 2804.75 7249.75 25499 1685.53 8079.01
Resistance 1 2795.00 7220.75 25419 1680.37 7418.18
Pivot 2784.50 7185.75 25338 1673.43 7030.62
Support 1 2774.75 7156.75 25258 1668.27 6369.79
Support 2 2764.25 7121.75 25177 1661.33 5982.23
Support 3 2754.50 7092.75 25097 1656.17 5321.40
Contract August Gold #GC_F July Silver #SI-F July Crude Oil #CL-F Sept.  Bonds  #ZB_F June  Euro #6E_F
Resistance 3 1317.5 17.24 68.15 143 27/32 1.1869
Resistance 2 1312.2 17.11 67.25 143 17/32 1.1848
Resistance 1 1308.3 17.03 66.65 143  7/32 1.1819
Pivot 1303.0 16.90 65.75 142 29/32 1.1798
Support 1 1299.1 16.83 65.15 142 19/32 1.1770
Support 2 1293.8 16.70 64.25 142  9/32 1.1749
Support 3 1289.9 16.62 63.65 141 31/32 1.1720
Contract July  Corn #ZC_F July Wheat #ZW_F July Beans #ZS_F July SoyMeal #ZM_F July Nat Gas #NG_F
Resistance 3 383.4 531.9 978.58 365.13 3.03
Resistance 2 380.1 527.3 973.42 362.27 3.00
Resistance 1 373.7 520.9 963.58 356.73 2.97
Pivot 370.3 516.3 958.42 353.87 2.94
Support 1 363.9 509.9 948.6 348.3 2.9
Support 2 360.6 505.3 943.42 345.47 2.89
Support 3 354.2 498.9 933.58 339.93 2.86

Economic Reports, source: 

http://app.bettertrader.co 

 

 

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 Comex Gold Futures – Contrary to Conventional Wisdom

June 11th, 2018 Filed under Day Trading, Future Trading News, Gold Futures | Comment (0)

Day Trading Comex Gold Futures

(Contrary to Conventional Wisdom)

 

By: John Thorpe, Cannon Trading Senior Broker

Markets are forward looking. Today’s price is as much a reflection of yesterday’s fears, needs , wants and desires as the current reaction to a political leader rattling sabers, or the effect that a surprise Government Report  will have on the prices of a security or commodity.

Contrary to conventional wisdom, Day Traders tend to be well educated and well capitalized.

Risk takers, by any other name, Wildcat oil drillers? Computer geeks working out of their parent’s garage? Mom and Pop managing their hard earned 401k’s; The Day trading approach is not very different from any other investing approach, with one major distinction from other risk takers who operate on a much greater time horizon.  As a day trader, you open an investment and close an investment between sunup and sundown and often many times during a market session.  One of the greatest risks that day traders must avoid is gauging their success or failure within that same sunup to sundown time frame. I like to call this a fiction trap. A fiction trap occurs when the day trader believes that once he has a good day trading, his subsequent days will always yield the same results. The fiction trap results in unrealistic expectations for success.  The Market, like the ocean current, is sometimes similar in repetition, but rarely identical in motion. When risk takers begin the process of assessing a strategy, they do it with the long view in mind.

By taking a longer view of returns, like all other risk takers, you can avoid the fiction trap of unrealistic expectations by incorporating the Rule of 72 into your long-range plans. The Rule of 72 is a formula that tells you how quickly (given a rate of return) it will take for your account size to double. Although your account size can double in one day trading futures, it is rare to hold on to those gains. The Rule of 72 forces you to be patient, emotionally subdued, and in line with long-term goals.

As with any risk taking, timing is key. A day trader needs to become:  a scientist, a student of the discipline, a tester, a collector of data, and an executer of plans.

With any project, the scientist keeps good notes and uses the microscope (technical indicators, charts, et al.) to determine the intersections of volume, price. This approach yields more accurate results than a random approach, such as throwing darts at the WSJ securities settlement page to find the correct asset and the correct position. Doing the homework and creating a practical plan should lead to positive results.

I like day trading in the Futures markets because with no more effort than buying a position, you can just as easily sell to open a new position.  In other words, if you have ever sold a stock or ETF short, you know you can short the asset by requesting from the stock loan department shares of a stock to borrow so you can short it.  Now patiently for an uptick to assume your position. This can be a time-wasting exercise when split-second decision making is required.  For this reason and this reason alone, day trading futures makes far greater sense than day trading stocks or ETF’s.

 

What I want to accomplish with you in this draft is to lay out a blueprint for day trading the NY Comex 100 oz. Gold futures contract, traded electronically through Globex.

 

 Factors Affecting Gold Prices

As part of the road map to the price discovery process, be aware of the London fixing times, or ocean currents, then can determine our Comex Gold prices. You can find charts and data points available like the one below from the U.S. St Louis Fed

https://fred.stlouisfed.org/series/GOLDAMGBD228NLBM

You may find, upon research, that you have an identifiable price pattern around these times in the Comex market equivalents. Allow your research to guide you. These prices from London represent settlement prices for the fabricators, miners, hedgers and speculators from which they close their daily business dealings.  These fixings are as variable as the US Market prices are for gold. The US Market pays attention to the London market, and although not fungible, they are interchangeable in price discovery. London watches Comex and Comex watches London. The auctions are run at 10:30am and 3:00pm London Time for gold and 12:00pm London time for silver. The final auction prices are published to the market as the LBMA Gold Price AM, The LBMA Gold Price PM and the LBMA Silver Price Benchmarks.

Scarcity or the perception of scarcity and lack thereof drives market sentiment.

Markets are forward looking. Today’s   price is as much a reflection of yesterday’s fears as anything else. So we need to anticipate market price impact from Governmental reports, increases and decreases in potential supply or demand,

Central banks have quite a bit to do with the value of the “Yellow Metal” based on how they perceive the underlying economy’s strengths and weaknesses and whether they print money or not, by increasing or decreasing the velocity of the sovereign nations’ cash supply.  When a Central bank adjusts the Nation’s supply of dollars of their native currency, Gold will typically behave reciprocally: More dollars in circulation, value of gold increases, fewer dollars in circulation, the value of gold decreases.

During large chunks of the 20th century, the world’s central banks were net suppliers of gold. After spending their early history accumulating gold to back up national currencies, central banks sold more gold than they purchased after the U.S. dollar became the de facto world reserve currency under the Bretton Woods Agreement.

In recent years, however, the trend has changed. Central banks have become net demanders of gold, which puts upward pressure on both production and retail costs. As some sovereign currency markets are in a constant to variable state of flux and turmoil due to political upheaval or disequilibrium in their balance of trade and payments, investors residing in these countries buy gold to use as a safe haven asset to offset the risk of holding their assets in their sovereign currency.

As with any worthwhile endeavor, a true student of any process understands addtional  research should be done to thoroughly understand the potential  risks and rewards from either day trading or position trading, or with equal vigor, engaging in short term or longer term investing of any kind.

As Greek philosopher Aristotle thoughtfully observed and written for us to learn from over 2000 years ago,  “Bring your desires down to your present means. Increase them only when your increased means permit.”

What Aristotle was saying (as it applies to investing) is to use risk capital only. Risk capital is capital that, if lost in the pursuit of reward, will not impact negatively your ability to take care financially of any of your current obligations, nor will it negatively impact your current lifestyle. This statement is also true for day traders to focus on the risk they are taking on in their own accounts. Just because you had a few good days trading doesn’t necessarily mean you should put more of your account at risk and increase the size of your trades exponentially. This happens all too often and turns successful day traders into unsuccessful traders in the intermediate term, and in many cases these traders end their trading because what was once a growing account with a tempered approach becomes one great big washout.

  1. No distractions, clear the table, shut the door, unplug your devices-FOCUS
  2. Perspective- where has the market been ( long term and intermediate term charts and try to identify the reason for large price moves in either direction
  3. Just because the market is open 23 hours, don’t try to physically trade the market for 23 hours, your money will burn out faster than you will. A quote I like is “the Market can remain irrational for longer than I can be solvent”
  4. Define your daytrading timeframe. (for example: 8am-10am, 2pm-4 pm), set it, and stick to it for at least 30 trading days. Markets have the tendency to behave similarly day in and day out during the same time frames. Remember, like currents in an ocean, markets are sometimes similar in repetition, but rarely identical in motion.
  5. Research – Know the market you are trading. Research it, understand what makes it move. Who the players are in the cash market.
  6. Stay informed – Know the recent daily dollar volatility of the market you are trading. I like to take the past 30 to 45 days for the Aug  Comex 100oz Gold contract. For example, I recently used 30 trading days and arrived at $1220.00. I took the distance between the high and low of each full day, totaled them, added 30 data points together for an average daily range and multiplied that by the value of a tick in the gold  ($10.00)
  7. With my trading platform I have the ability to adjust the time frame to include only the time I  have set aside to view the market. In my research I  will also have a full daily chart

a weekly chart

And a monthly chart

of August Comex Gold  which will show me the critical areas of technical support that I can apply intraday to my abbreviated chart.

Why is dollar volatility Important? (see above) – You can manage your expectations here; you now know you shouldn’t expect to make 2,000.00 on a single trade and you can better gauge how many contracts, and how much risk you can take, on each trade. You now have a template of recent activity to better judge expected volatility without having to utilize an expensive add-on or chart indicator.

8) Call – Please speak with your broker on the phone to determine the appropriate amount of risk capital you need to trade your plan in the Gold Futures Market.

The Comex Gold Contract trades in Chicago through a registered Broker. www.cannontrading.com

Gold Contract specs are as follows:

Quoted in Dollars and Cents per Troy OZ.

Minimum price fluctuation: $0.10 per troy oz.

Symbol GC or GGC

Initial margin requirement: $3,410.00

Maintenance requirement: $3,100.00

Hours traded: 6pm EST Sunday, through to Friday at 5pm EST with an hour break each day between 5pm and 6 pm EST

As always, lean on your broker for guidance, call him or her and discuss what your risk tolerance levels are. Where to use stop loss orders or options to hedge your trading plan to ensure you leave yourself with a fighting chance.

Disclaimer: Trading commodity futures and options involves a substantial risk of loss.

The recommendations contained in this letter are of opinion only and do not guarantee any profits.

There is not an actual account trading these recommendations.

Past performances are not necessarily indicative of future results.

 


Rollover Notice for Stock Index Futures

June 8th, 2018 Filed under Future Trading News | Comment (0)

Rollover Notice for Stock Index Futures

Important notice: For those of you trading any stock index futures contracts, i.e., the E-mini S&P, E-mini NASDAQ, E-mini Dow Jones etc., it is extremely important to remember that we are now rolling over and trading the September contract.

Starting June 8th, the September (U) 2018 futures contracts will be the front month contracts. It is recommended that all new positions be placed in the September 2018 contract as of June 8th. Volume in the June 2018 contracts will begin to drop off until its expiration on Friday June 15th.

The month code for September is U8

Traders with electronic trading software should make sure that defaults reflect the proper contract as of Friday morning.

Please close any open June Currency positions by the close on Friday the 15th.

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.


First Notice Days alert + Trading Levels and Reports for June 8th 2018

June 7th, 2018 Filed under Future Trading News | Comment (0)

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Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!  

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Dear Traders,

Below are the contracts which are entering First Notice or Last Trading Day for the upcoming month.  Be advised, for contracts that are deliverable, it is Cannon’s policy that all LONG positions be exited the day prior to First Notice and ALL positions be exited the day prior to Last Trading Day.  If you have any questions please contact your broker. Carrying positions past the guidelines above can result in fines by the FCM and/or the exchanges.
First Notice
Contract Month
Contract
4-Jun
June
Live Cattle
18-Jun
July
ICE Cocoa
21-Jun
July
ICE Coffee
25-Jun
July
Cotton
26-Jun
July
London Coffee
29-Jun
July
COMEX & ICE Metals
29-Jun
July
Wheat (CBOT, KC, MN)
29-Jun
July
CBOT Corn & Oats
29-Jun
July
CBOT Soybeans
29-Jun
July
CBOT Soybean Meal & Oil
29-Jun
July
CBOT Rice
29-Jun
July
Canola
Last Trading Day
Contract Month
Contract
7-Jun-18
June
CME Dollar Nikkei
14-Jun-18
June
S&P 500
14-Jun-18
June
Lean Hogs
15-Jun-18
June
E-Mini Indices
18-Jun-18
June
Dollar Index
18-Jun-18
June
Currencies
18-Jun-18
June
CME Eurodollar
19-Jun-18
June
Canadian Dollar
20-Jun-18
June
10-Yr. Notes & 30-Yr. Bonds
20-Jun-18
July
NYMEX Crude Oil
27-Jun-18
June
Long Gilt (Liffe)
27-Jun-18
June
COMEX & ICE Metals
27-Jun-18
July
NYMEX Natural Gas
29-Jun-18
June
2-Yr. & 5-Yr. Notes
29-Jun-18
June
30-Day Fed Funds
29-Jun-18
July
NYMEX RBOB & Heating Oil
29-Jun-18
August
ICE Brent Crude Oil
29-Jun-18
July
ICE Sugar

 

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.

Futures Trading Levels

06-08-2018

Contract June 2018  SP500 #ES_F Nasdaq100  #NQ_F Dow Jones  #YM_F Mini Russell #RTY_F BitCoin Index #XBT_F
Resistance 3 2802.58 7344.08 25572 1702.83 7849.98
Resistance 2 2791.17 7289.17 25450 1691.97 7798.31
Resistance 1 2782.83 7226.58 25364 1681.73 7742.69
Pivot 2771.42 7171.67 25242 1670.87 7691.02
Support 1 2763.08 7109.08 25156 1660.63 7635.40
Support 2 2751.67 7054.17 25034 1649.77 7583.73
Support 3 2743.33 6991.58 24948 1639.53 7528.11
Contract August Gold #GC_F July Silver #SI-F July Crude Oil #CL-F June  Bonds  #ZB_F June  Euro #6E_F
Resistance 3 1314.9 17.16 67.68 146 12/32 1.1908
Resistance 2 1311.3 17.05 66.87 145  9/32 1.1878
Resistance 1 1306.1 16.89 66.42 144 12/32 1.1842
Pivot 1302.5 16.78 65.61 143  9/32 1.1812
Support 1 1297.3 16.63 65.16 142 12/32 1.1775
Support 2 1293.7 16.52 64.35 141  9/32 1.1745
Support 3 1288.5 16.36 63.90 140 12/32 1.1709
Contract July  Corn #ZC_F July Wheat #ZW_F July Beans #ZS_F July SoyMeal #ZM_F July Nat Gas #NG_F
Resistance 3 387.3 549.2 1010.08 371.27 3.07
Resistance 2 384.3 543.1 1002.42 368.53 3.03
Resistance 1 380.3 534.9 988.33 363.47 2.98
Pivot 377.3 528.8 980.67 360.73 2.94
Support 1 373.3 520.7 966.6 355.7 2.9
Support 2 370.3 514.6 958.92 352.93 2.85
Support 3 366.3 506.4 944.83 347.87 2.80

Economic Reports, source: 

http://app.bettertrader.co 

 

 

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.

Download Cannon’s new eBook, “Futures Forthright” instantly.


Quick Tip: After registering you will be emailed login information, so be sure to use an email address you have access to. If you need assistance please call us at 1-800-454-9572, a professional broker will help you through the registration process.
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