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CPI Rally and MICROS!! + Levels for May 16th

May 15th, 2024 Filed under Commodity Brokers, Commodity Trading, Day Trading, E-Mini Futures, Future Trading News, Futures Broker, Futures Trading, Index Futures, Indices, S&P 500 | Comment (0)

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CTS T4 Futures Trading Platform

 

Bullet Points, Highlights and Announcements

By Mark O’Brien, Senior Broker

General: 

 

Last Wednesday’s blog included a happy birthday greeting to the Micro E-mini stock index futures contracts.  In 2019, Micro E-mini futures and options on the four leading equity indices – E-mini S&P, Nasdaq, Dow Jones and Russell 2000. – became the most successful launch in CME Group history.

 

But did you know there are Micro futures contracts for a wide range of commodities?

 

CME Group, the world’s leading derivatives marketplace offers micro futures and options across nearly it’s entire commodities portfolio.  Below is selection of some of the more widely traded Micro futures and options contracts:

 

Energy: 

 

→  Micro Crude Oil: 1/10 the size of the benchmark WTI Crude Oil contract (link to contract specs.)

 

→  Micro Henry Hub Natural Gas: 1/10 the size of the benchmark natural gas contract (link to contract specs.)

 

Metals:

 

→  Micro Gold: at just 10 ounces Micro Gold futures and options contracts are designed for traders interested in smaller gold increments with a cost-effective alternative to the world’s largest, highly liquid Gold futures and options contracts (link to contract specs.)

 

→  Micro Silver: at 1/5 the size of the 5000-ounce silver futures, the contract unit is 1,000 troy ounces. The Micro Silver futures are quoted in 1/10 of one cent– making a one-tick move equivalent to $1 (link to contract specs.)

 

→  Micro Copper: theses futures 1/10 the size of the 25,000-pound Copper futures contract, so, the contract unit of the Micro Copper futures contract is 2,500 pounds. Like the Copper futures contract, the Micro Copper futures contract is quoted in increments of 5 one hundredths of a cent, making a one tick move in Micro Copper futures equal to $1.25. (link to contract specs.)

 

The daily settlement prices for the futures contracts will be identical to that of the larger Gold, Silver and Copper futures contract.

 

Crypto: 

 

→  Micro Bitcoin: At 1/10 the size of one bitcoin, Micro Bitcoin futures provide an efficient, cost-effective new way to fine-tune bitcoin exposure and enhance your trading strategies.

 

All these contracts provide traders with more flexibility when trading futures.  With Micro contracts, you can scale positions up and down with precision and gain more control over your exposure.  At the same time, Micro contracts offer the same robust trading transparency and price discovery, but with smaller margin requirements, which translates to easier access to the potential of the futures markets – nearly 24 hours a day.

 

 

Diversify your portfolio and add flexibility for trading Precious Metals, FX, Energy, Rates, and Equity Indices. Scale positions up and down with precision and gain more control over your exposure.

 

Energy:   

 

Options five day a week; it’s not just for stock index futures.  Mark your calendars; starting Monday July 22, WTI Crude Oil options will be available with Tuesday and Thursday expirations alongside the already-available Monday, Wednesday and Friday expirations and monthly options.  Once in place, along with shorter expirations and lower premiums, WTI Weekly options will provide opportunities to hedge weekend headline risk, OPEC+ meetings or geopolitical events. They can also be used to express views on mid-week announcements, including the weekly E.I.A Petroleum Status Report, typically released on Wednesday.

 

Financials: 

 

On the interest rate front, some interesting news: in contrast with the wait-and-see mode of the United States, today Sweden followed Switzerland, Hungary, and the Czech Republic in easing monetary policy for the first time since interest rate hiking cycles began in 2022, when inflation surfaced in the aftermath of the COVID pandemic. The central bank of Sweden – the Riksbank – lowered its policy rate by 0.25 basis points to 3.75%, making it more likely that the European Central Bank will jump on the bandwagon. The shift is noteworthy as it highlights the current divergence among central banks around the world.

 

Grains:  

 

Ostensibly the report of the week in an otherwise humdrum 5-day stretch, this Friday the U.S. Department of Agriculture will release its monthly World Agricultural Supply and Demand Estimates (WASDE) report.  The report provides annual forecasts for supply and use of U.S. and world wheat, rice, coarse grains, oilseeds, and cotton.  The report also covers U.S. supply and use of sugar, meat, eggs and milk.  Simultaneously released is the monthly Crop Production report which contains crop production data for the U.S., including crop conditions, acreage, area harvested and yield.

 

Stock Indexes:  

 

Happy birthday Micro E-mini futures!  In 2019, Micro E-mini futures on the four leading equity indices became the most successful launch in CME Group history.  In just these first five years, over 2.6 billion contracts have traded.  The average daily volume reached over 2.4 million contracts across the four indices (up 355% since 2019).  And how about this for global reach: 24% of average daily volume came from outside of the U.S., with trades submitted from 170+ countries.

 

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.

Questions? We are happy to help!

 

 

 

Daily Levels for May 16th, 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.

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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.


What to look for on the last 2 trading days of the week + Levels for May 9th

May 8th, 2024 Filed under Commodity Brokers, Commodity Trading, Day Trading, E-Mini Futures, Future Trading News, Future Trading Platform, Futures Broker, Futures Trading, Index Futures, Indices, S&P 500 | Comment (0)

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Listen to our Market Recap Podcasts on Apple Podcasts

 

 

Bullet Points: Highlights and Announcements

 

by Mark O’Brien, Senior Broker

Energy:  

 

Options five day a week; it’s not just for stock index futures.  Mark your calendars; starting Monday July 22, WTI Crude Oil options will be available with Tuesday and Thursday expirations alongside the already-available Monday, Wednesday and Friday expirations and monthly options.  Once in place, along with shorter expirations and lower premiums, WTI Weekly options will provide opportunities to hedge weekend headline risk, OPEC+ meetings or geopolitical events. They can also be used to express views on mid-week announcements, including the weekly E.I.A Petroleum Status Report, typically released on Wednesday.

 

Financials: 

 

On the interest rate front, some interesting news: in contrast with the wait-and-see mode of the United States, today Sweden followed Switzerland, Hungary, and the Czech Republic in easing monetary policy for the first time since interest rate hiking cycles began in 2022, when inflation surfaced in the aftermath of the COVID pandemic. The central bank of Sweden – the Riksbank – lowered its policy rate by 0.25 basis points to 3.75%, making it more likely that the European Central Bank will jump on the bandwagon. The shift is noteworthy as it highlights the current divergence among central banks around the world.

 

Grains: 

 

Ostensibly the report of the week in an otherwise humdrum 5-day stretch, this Friday the U.S. Department of Agriculture will release its monthly World Agricultural Supply and Demand Estimates (WASDE) report.  The report provides annual forecasts for supply and use of U.S. and world wheat, rice, coarse grains, oilseeds, and cotton.  The report also covers U.S. supply and use of sugar, meat, eggs and milk.  Simultaneously released is the monthly Crop Production report which contains crop production data for the U.S., including crop conditions, acreage, area harvested and yield.

 

Stock Indexes: 

 

Happy birthday Micro E-mini futures!  In 2019, Micro E-mini futures on the four leading equity indices became the most successful launch in CME Group history.  In just these first five years, over 2.6 billion contracts have traded.  The average daily volume reached over 2.4 million contracts across the four indices (up 355% since 2019).  And how about this for global reach: 24% of average daily volume came from outside of the U.S., with trades submitted from 170+ countries.

 

In just five years, demand and liquidity for Micro E-mini futures have grown significantly from both active individual and institutional traders, creating more possibilities than ever for those seeking new opportunities. These liquid, smaller-sized contracts provide an efficient way to scale equity exposure with precision, while adding versatility to trading strategies.

 

 

 

Daily Levels for May 9th, 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.


About imbalance, last 10 minutes of the trading day + Levels for May 8th

May 7th, 2024 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Day Trading, Future Trading News, Futures Broker, Futures Trading, Index Futures, Indices, S&P 500, Trading Guide | Comment (0)

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The Last 15 minutes are Very Important!

 

by Ilan Levy-Mayer, VP

For those engaged in trading index futures, particularly day trading in instruments like the mini NASDAQ, mini S&P500, and micro NASDAQ, it’s becoming increasingly clear that the final 10 to 15 minutes of the trading session are gaining significance.

The advent of zero-day expiration options and the earnings season seem to be driving a surge in volume and market activity during this closing window. A key metric I monitor is what I term ‘the imbalance,’ which reflects the trading dynamics of the constituent stocks within these indices, including major players like Microsoft and Netflix, among others. Various platforms, including TradeTheNews.com, offer insights into this imbalance, and as demonstrated in the screenshot provided, we extend a complimentary trial to TTN’s acclaimed services.

What you will see below is the last trading day there was a significant imbalance, the screen shot below from TTN shows an “imbalance to the sell side of 2.0 Billion”

 

You can also see the large downside move that took place the same day during the last 15 minutes along with HIGH volume, almost as much as the rest of the day session…..

AGAIN, this is NOT meant as a recommendation or as an indicator….simply another factor to pay attention to.

This brief article isn’t a guide on how to trade in these crucial final minutes but rather a prompt to acknowledge their importance. As a trader, you should dedicate more time to studying and understanding this period. Below, you’ll find a chart of mini S&P 500 from April 30th session, complete with volume and additional analyses for your consideration.

 

 

 

Daily Levels for May 8th, 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.


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:

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.


Markets Post FOMC + Levels for March 21st 2024

March 20th, 2024 Filed under Commodity Brokers, Commodity Trading, Day Trading, E-Mini Futures, Future Trading News, Futures Broker, Futures Trading, Gold Futures, S&P 500 | Comment (0)

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Life After FOMC …..

by Mark O’Brien, Senior Broker

General: 

 

The Federal Reserve took center stage today.  With inflation proving stickier than expected, the central bank has found itself balancing between a hawkish and dovish view.  The policy-setting FOMC held interest rates steady at the 5.25%-5.50% range for the fifth straight meeting.  The bigger indicator traders were eager to see was the Fed governors’ so-called dot plot that updated their rate and economic projections – for the first time since December.  Turns out, it didn’t deviate from the three rate cuts they previously penciled in by the end of 2024.

 

Indexes: 

 

As of this typing, the June E-mini S&P 500 is trading at new all-time highs around 5280.  As well, the June E-mini Dow Jones is trading at its own all-time highs, barely 100 points away from 40,000!

 

Metals: 

 

April gold is on the verge of eking out its own all-time high close above last Monday’s closing price of $2,188.60 per ounce.  It’s currently trading ±$2,191.00 per ounce

 

General pt. II: 

 

Over the weekend, Japan ended its negative interest rate policy, marking a historic shift away from an aggressive monetary easing program that was implemented years ago to fight chronic deflation.  As part of the decision, the Bank of Japan (BOJ) raised interest rates for the first time in 17 years, lifting its short-term rate to “around zero to 0.1%” from minus 0.1%.

 

Plan your trade and trade your plan

 

 

 

 

 

Daily Levels for March 21st, 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.

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