Index Futures

Category Archives: Index Futures

Introduced in the year 1982, Index futures or stock index futures are extremely popular among trading commodities today. While trading, an index future is settled in cash on the value of a certain stock market index. One of the most traded indices is the S&P500.

These are quoted on the basis of either an underlying or a spot price for an index value. There are a number of technicalities involved, most of which you should understand. However, even if you find it tough to comprehend what Index futures are, you can take assistance from the trade experts at Cannon Trading.

We at Cannon Trading want you to understand the basics and the details about Index Futures like our experts do. There are a number of blogs that we list here in our category archive. We recommend that you read these to know for yourself what Index Futures trading is all about.


Large Swings & Big Intraday Moves, Reminder of Limit Moves & Circuit Breakers & Support and Resistance Levels 9.21.2021

September 20th, 2021 Filed under Future Trading News, futures trading education, Index Futures | Comment (0)

Dear Traders,

Get Real Time updates and more on our private FB group!
Separator

Some very large swings and intra-day moves across more than a few markets!
Volatility is increasing.
When that happens, my personal opinion says:
*Reduce trade size
*Be a bit more stubborn in entry points with the thought of, “No trade is better than a bad trade”
Just in case….Here is a refresher about limit moves and circuit breakers:
A price limit is the maximum price range permitted for a futures contract in each trading session.  When markets hit the price limit, different actions can occur depending on the product being traded. Markets may temporarily halt until price limits can be expanded, they may remain in a limit condition or they may stop trading for the day, based on regulatory rules.
CME Group U.S. equity index price limits (and corresponding CME and CBOT rules) are designed to coordinate with circuit breakers provisions as applied by the New York Stock Exchange (NYSE).
  • 7%, 13%, and 20% price limits are applied to the futures fixing price and are effective from 8:30 a.m. CT – 2:25 p.m. CT. Mondays through Fridays. From 2:25 p.m. to 3:00 p.m. CT, only the 20% price limit will be applied to the futures price fixing.
  • 7% up-and-down limits are effective 5:00 p.m. – 8:30 a.m. CT. Sundays through Fridays; and 3:00 p.m. – 4:00 p.m. CT, Mondays through Fridays. Between 3:00 p.m. – 4:00 p.m. the 7% price limit will not be allowed to breech the 20% daily limit.
  • The fixing price is the volume weighted average price, VWAP, calculated during the 30 seconds of trading from 2:59:30 p.m. – 3:00:00 p.m. CT. View Equity Index Fixing Prices page
If you don’t understand how the circuit breakers/ price limits work…make sure you call us and talk to a broker at + 1 310 859 9572, feel free to reach out even if you are not a current client – we will be happy to assist.
So we went from 6 weeks of lower volatility, overall higher stock prices to Dow being down over 1000 points at one point today!!
This is MAJOR alert in my opinion that market sentiment may have changed.
Be aware and if the below applies, you are in a better spot….
If you know how to take a loss.
If you know how to reduce trading size based on volatility.
If you know how to trade spreads ( NQ vs ES?)
If you understand options spreads.
THAN there are some very interesting set ups out there ( STILL with HIGHER RISK than normal). However if none of the above applies to you, the risks outweighs the potential opportunities. – PERSONAL opinion
On a different note, if you are NOT a Cannon client yet, you may want to read this recent review!!

Bookmap Real-Time Order Flow Analysis Webinar

 

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

9-21-2021

Support & Resistance Levels 9.21.2021

Economic Reports, source: 

 www.BetterTrader.co

BetterTrader Economic Reports 9.21.2021

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.


Quadruple Witching Tomorrow & Support and Resistance Levels 9.17.2021

September 16th, 2021 Filed under futures trading education, Index Futures, Indices | Comment (0)

Dear Traders,

Get Real Time updates and more on our private FB group!
Separator

Quadruple witching tomorrow….

Futures, futures options, stock options and single stocks all expire tomorrow morning right on the open of the stock market.
Keep in mind that September mini SP and it’s relatives ( mini Dow, mini Nasdaq etc.) EXPIRE tomorrow and cash settle based on special settlement price….Markets can get volatile tomorrow morning right before and around the open.
The September contract will simply cease to trade. If you have not switched to December yet, now is the time…..
Know the rules, understand current margins, know where the circuit breakers are/ limit moves.
Figure out your max risk.
After you do all that, feel free to trade but jumping in and trying to trade without the basic knowledge above is like jumping into a stormy ocean without a life vest…..

 

Bookmap Real-Time Order Flow Analysis Webinar

 

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

9-17-2021

Economic Reports, source: 

 www.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 as well as options on futures.


Good Bye BIG S&P500 & Support and Resistance Levels 9.14.2021

September 13th, 2021 Filed under Future Trading News, Index Futures, Indices | Comment (0)

Dear Traders,

Get Real Time updates and more on our private FB group!
Separator

Good Bye BIG S&P500 by John Thorpe, senior broker:

A Swan song for the venerable FULL Size or BIG S&P 500 Futures contract.
The initial $500.00 per point then subsequently $250.00 per point S&P contract is done, over. Because the contract became unwittingly large as the index value increased, the CME will be delisting the “Big” S&P following this week’s expiration leaving the E-Mini and Micro E-mini contracts as its legacy to thrive.
The price of the index itself became too expensive for smaller investors and lead to the creation of the ES in 1997 and the MES in 2019 as index values soared from 959.90 on September 17th 1997 to 4450.00 as of Friday’s close.
This from the CME:
As announced on May 4, 2021, and subject to regulatory review, CME Group will delist its standard-size futures and options on futures contracts on the Standard and Poor’s 500 Stock Price Index (“standard-size contracts”) following the expiration of the September 2021 contracts on Friday, September 17, 2021. After the delisting of the standard-size contracts, the E-mini suite of futures and options on the S&P 500 Index will continue to meet the trading and risk management needs of customer

 

 

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

9-14-2021

Support and Resistance Levels 9.14.2021

Economic Reports, source: 

 www.BetterTrader.co

Futures Economic Indicators 9.14.2021

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.


Mini Russell Chart Review & Support and Resistance Levels 7.21.2021

July 20th, 2021 Filed under Future Trading News, Index Futures, Indices | Comment (0)

Dear Traders,

Like us on FaceBook!
Get Real Time updates and more on our private FB group!
What happened from one day to the next??
After a large sell off yesterday, stock index futures bounced sharply today….
I wish I REALLY knew…..However, a mentor of mine once told me that in situations like this, the 3rd day action is critical to watch and see if the market really holds and a temporary bottom is in or if the sell off resumes.
4 hour chart of the RTY for your review below.

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

7-21-2021

Economic Reports, source: 

 www.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 herein contained are derived from sources believed to be reliable but are not guaranteed as to the 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 judgment in trading.


Futures Trading Levels for June 30th, 2021

June 29th, 2021 Filed under Day Trading, Future Trading News, Futures Broker, Futures Trading, Index Futures | Comment (0)

Cannon Futures Daily Blog

Dear Traders,

Starting June 28, 2021, CME Group has removed the trading halt between 3:15 and 3:30 p.m. CT on CME Globex for Equity Index products.
This enhancement will allow market participants to access liquidity continuously throughout the trading day and manage event risk that occurs during the trading session with greater ease.
Tomorrow is also the last trading day of the month!
Last trading days and first trading days of the months will at times have unique characteristics. Possible larger moves, sharper turns, higher volume.
Large traders/ funds will try to “close the books for the month”, book profits or losses etc.
Do you homework, go over notes from your journal, study the charts from prior last/ first trading days and be prepared.

 

Get Real Time updates and more on our private FB group!
To access a free trial to the ALGOS shown in the chart along with other tools? (Arrows possible buy/sell, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.

Futures Trading Levels

for June 30th

Economic Reports, source: 

 www.BetterTrader.co

 

 

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.

Trading Tips You Can Use Right Away!


Watch 4 short videos on the topics of:
  • Using Bollinger Bands and Parabolics
  • Using range Bars for Day-Trading
  • The concept of Price Confirmation
  • How to Use Support & Resistance Levels
  • License 3 Broker at your Fingertips
________
Doing Business With
See more...
Loading
Loading

Loading