Weekly Newsletter

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Weekly Newsletter #1051 Options on Futures, Market Pick on Gold and Futures Levels for the Week Ahead 5.17.2021

May 14th, 2021 Filed under Gold Futures, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Newsletter Issue # 1051

Dear Traders,

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Trading 102: Options on Futures In Depth Information (Note: When volatility is SO HIGH, options can provide additional ways for possible hedging and alternative speculation – our brokers will be happy to assist)

A comprehensive resource for information on options on futures
In this section you will read and learn about the following:
*Options Basics
*Options Strategies for Bullish set ups
*Options Strategies for Bearish set ups
*Options Strategies for Neutral set ups
*Selling Options Premium – an overview
And much more!

Market Pick Review for the Week:

Gold futures finished the trading week with strength. Looking at the daily chart below, I like the formation and the strength into the weekly close to confirm two trading signals I personally like:
The Blue arrow (highlighted) and the bars turning green (Highlighted as well)
Gold Futures Chart Outlook
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.
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

5-17-2021

 

Weekly 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 herein 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 judgment in trading


Weekly Newsletter – Trading Resources and more! 4.19.2021

April 16th, 2021 Filed under Weekly Newsletter | Comment (0)

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Dear Traders,

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Trading 202: Futures Options Writing
Have you ever wondered who sells the futures options that most people buy?
These people are known as the option writers/sellers. Their sole objective is to collect the premium paid by the option buyer. Option writing can also be used for hedging purposes and reducing risk. An option writer has the exact opposite to gain as the option buyer. The writer has unlimited risk and a limited profit potential, which is the premium of the option minus commissions. When writing naked futures options your risk is unlimited, without the use of stops. This is why we recommend exiting positions once a market trades through an area you perceived as strong support or resistance. So why would anyone want to write an option?
Here are a few reasons:
  1. Most futures options expire worthless and out of the money. Therefore, the option writer is collecting the premium the option buyer paid.
  2. There are three ways to win as an option writer. A market can go in the direction you thought, it can trade sideways and in a channel, or it can even go slowly against you but not through your strike price. The advantage is time decay.
  3. The writer believes the futures contract will not reach a certain strike price by the expiration date of the option. This is known as naked option selling.
  4. To hedge against a futures position. For example: someone who goes long cocoa at 850 can write a 900 strike price call option with about one month of time until option expiration. This allows you to collect the premium of the call option if cocoa settles below 900, based on option expiration. It also allows you to make a profit on the actual futures contract between 851 and 900. This strategy also lowers your margin on the trade and should cocoa continue lower to 800, you at least collect some premium on the option you wrote. Risk lies if cocoa continues to decline because you only collect a certain amount of premium and the futures contract has unlimited risk the lower it goes.
To read the rest of the article as well as power point presentation along with a summary table instantly
NQ vs. ES DAILY SPREAD chart. Click for larger image.
I have been asked by clients over the years: “What other angles are there for short term trading?” The answer I normally give is that there are many different ways to trade and one has to find what works for him/ her based on time/ personality/ risk capital and more. That being said, I feel that spreads are often ignored and more traders should explore spreads on a few different levels:
  1. Longer term, perhaps seasonal
  2. Day trading/ swing trading, looking for the strength or weakness of one sector versus the other. Gold vs. Silver, Hogs vs. cattle, mini Russel versus mini Dow, heating oil vs unleaded gas, SP vs NQ and more. Certain spreads have specific ratios for them to work and the field of spreads can not be learned overnight and requires effort, time and studying.
To access a free trial to the ALGOS shown in the chart along with other tools? (Slanted arrows possible buy, pink squares = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.

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

4-19-2021

Weekly Levels

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.


Weekly Newsletter #1046 Commitment of Traders Report PDF., ES Market Review & Trading Levels 4.10.2021

April 9th, 2021 Filed under Indices, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Newsletter Issue # 1046

Dear Traders,

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Get Real Time updates and market alerts on Twitter!
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Trading 102: Commitment of Traders Report – What Lies beneath
Commitment of Traders Report – COT
Commitment of Traders Report offers wealth of data when it comes to commodity and futures trading. You can somewhat say, this is a window into what the “big boys are doing” which is published weekly.
In this 24 page PDF booklet, Gary Kamen of Trends in Futures reviews the commitment of traders report, what it means, how traders can utilize it and much more.
Sign up and instantly download the booklet and learn about:
* History of the COT report
* Why is this report important?
* The new COT report
* How can you use the information in this report?
* And much more….
ES WEEKLY chart for your review. Click for larger image. New all time highs fueled by FED QE.
Next targets? Levels of support? will this past week slow price action continue or will the “speedy price action ” of weeks before return?
M S&P’s ( June mini SP 500)
4,101 OBJECTIVE has been met.
Market could have a retracement back
to 4075.00.
Next test area is 4145.00
No two Bull or Bear markets are alike. This pandemic is similar to 1918 (post WW1), which originated in China, unfortunately killing 50 million globally. The pent up demand led to the Roaring 20’s, which is the cycle we’re presently in. With the FED all in with unprecedented stimulus, we could see a 8-9% GDP number!
Q.E. is $120 billion a month, coupled
with the 3 stimulus packages and the new $2.2 trillion infrastructure in the pipeline. Also, the FED is allowing inflation to run hot, above their 2% target, using a weak US$, as its main catalyst. Lastly, the SHORT END may remain untouched for 2 years.
Eventually, the FED will lose control of the LONG END of the curve!
Future CAVEAT, is that we all know how the Roaring 20’s ended on Oct. 29, 1929.
Mini S&P ES Weekly Chart
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

4-12-2021

 

Weekly Levels

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

https://mrci.com

Date Reports/Expiration Notice Dates

MRCI 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 herein 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 judgment in 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
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