This Blog provides futures market outlook for different commodities and futures trading markets, mostly stock index futures, as well as support and resistance levels for Crude Oil futures, Gold futures, Euro currency and others. At times the daily trading blog will include educational information about different aspects of commodity and futures trading.
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Bullet Points, Highlights, Announcements
By Mark O’Brien, Senior Broker
General:
While inflation has cooled substantially since the middle of 2022 – when it hit a four-decade high of more than 9 percent – more recently progress has slowed, or even stopped outright as evidenced by the Labor Department’s report this morning that the Consumer Price Index rose 0.4 percent from November, the fastest one-month increase in overall prices since February. But in the same report, the “core” measure of inflation, which strips out volatile food and fuel prices to give a better sense of the underlying trend, rose 3.2 percent from a year earlier after three straight months of 3.3 percent gains. Forecasters had not expected core inflation to show signs of slowing.
Going into the fed’s next meeting later this month investors widely expect the central bank to hold interest rates steady, breaking a streak of three consecutive rate cuts. Some forecasters now believe policymakers may not lower rates at all this year.
Stock Indexes:
Stock index futures took this morning’s news positively with the March E-mini S&P 500 soaring over 100 points as of this typing, posting a ±2% gain. The E-mini Nasdaq scaled up ±500 points, over 2.25%, the E-mini Russell 2000 posted a gain of ±2% with a ±45-point climb and the E-mini Dow thrust up over 700 points/±1.75%.
More General:
The CME group has taken an almost unprecedented step and reduced their exchange fees on one of the fastest growing futures contracts by volume. Starting Feb. 1 Micro Bitcoin futures exchange fees will drop over 50% from $2.50 to $1.15.2025
Micro Ether futures, already with on for the CME Group’s lowest fees at $0.20, is dropping half to $0.10
With efficient price discovery in transparent futures markets, prices based on the regulated CME CF Bitcoin Reference Rate (BRR) and easily traded on your supported trading platform.
Energy:
WTI crude oil futures (Feb.) rose almost 3% today and traded over $80 per barrel for the first in six months on the heels yesterday’s Energy Information Administration (EIA) report showing crude oil stocks fell last week to their lowest since April 2022 as exports rose and imports fell. Excluding the Strategic Petroleum Reserve stocks fell by 2 million barrels to 412.7 million barrels in the week ended Dec. 10, about 6% below the five-year average for this time of year.
About: Cannon Trading is an independent futures brokerage firm established in 1988 in Los Angeles. Our mission is to provide reliable service along with the latest technological advances and choices while keeping our clients informed and educated in the field of futures and commodities 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.
Listen to our podcast: Subscribe on Apple, Spotify, Amazon, or wherever you listen to podcasts!
Movers and shakers!
By John Thorpe, Senior Broker
Today was a reversal day in a majority of the markets we all follow.
From the Energy Markets giving back some of their gains from the past few trading sessions, to the Precious metals , inching a little higher after a tremendous downward push yesterday.
Soybeans, while still in a strong up trend saw profit taking along with Corn and KC Wheat.
Equities have been struggling to maintain the election rally. The Bond markets slide was halted for a day.
Perhaps all this uncertainty is a result of the anticipation of tomorrow mornings CPI release.
This Economic data point has been one of the most talked about by the voting members of the FED and may portend a shift in policy..
Do keep an eye on changes in the CME FedWatch data (FedFund Futures) tomorrow, this will give traders an insight into future market direction. Higher inflation, leads to higher Bond yields, Higher Yields lead to lower bond prices, and greater hesitancy by the FED to lower rates anytime soon.
Lower CPI numbers are favorable to lower rates in the near term, therefore Higher Equity prices.
Plan your trade and trade your plan.
Today’s Movers
Today’s News:
Updated: January 14, 2025 6:23 am
**NFIB December US small business optimism index: 105.1 ; prior month 101.7 ; expected 100.0
Updated: January 14, 2025 7:31 am
US Producer Price Index (PPI) Headline Recap
**US December Producer Price Index (PPI) Final Demand: +0.2%; expected +0.3%
**US December Producer Price Index, ex. Food & Energy (PPI): 0.0%; expected +0.3%
**US December Personal Consumption: +0.3%
**US November Producer Price Index (PPI) Final Demand revised: +0.4% from +0.4%
Updated: January 14, 2025 7:55 am
Redbook Weekly US Retail Sales Headline Recap
**Redbook Weekly US Retail Sales were +4.0% in the first two weeks of January 2025 vs January 2024
**Redbook Weekly US Retail Sales were +4.0% in the week ending January 11th vs yr ago week
Watch Tomorrow’s Movers and Shakers:
7:30 AM CST CPI Consumer Price Index!
Here is Econoday.com’s consensus view
Fed Speakers:
Barkin 8:20 CST, Kashkari 9 am CST, Williams 10 am CST, Goolsbee 11 am CST
Earnings:
(162 rpts) Pre-Open JP Morgan Chase, Wells Fargo, Goldman Sachs, Black Rock, Citigroup, Bank of NY, Oracle after the close
About: Cannon Trading is an independent futures brokerage firm established in 1988 in Los Angeles. Our mission is to provide reliable service along with the latest technological advances and choices while keeping our clients informed and educated in the field of futures and commodities 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.
Martin Luther King 2025 Holiday Schedule for CME Exchange Hours (including Globex & ICE Exchange)
*Dates and times are subject to change
If you have any questions, please call the CME Global Command Center at +1 800 438 8616, in Europe at +44 800 898 013 or in Asia at +65 6532 5010
Globex® Martin Luther King Holiday Schedule for CME Exchange Hours (including Globex & ICE Exchange)
More details at: http://www.cmegroup.com/tools-information/holiday-calendar.html
Detailed holiday hours for ICE Futures: https://www.theice.com/holiday-hours
The above sources were compiled from sources believed to be reliable. Cannon Trading assumes no responsibility for any errors or omissions. It is meant as an alert to events that may affect trading strategies and is not necessarily complete. The closing times for certain contracts may have been rescheduled.
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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Micro Bitcoin basics
Micro Bitcoin futures (MBT) provide an efficient, cost-effective new way to fine-tune bitcoin exposure and enhance your trading strategies. Offering multiple benefits for traders, it’s important to understand the contract mechanics. This course will cover the basics of Micro Bitcoin futures, the fundamentals behind the contract, and different ways to use.
About: Cannon Trading is an independent futures brokerage firm established in 1988 in Los Angeles. Our mission is to provide reliable service along with the latest technological advances and choices while keeping our clients informed and educated in the field of futures and commodities 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.
The wheat future contract has been a cornerstone of the agricultural futures market for centuries, allowing producers, processors, and investors to hedge against price fluctuations in a volatile global market. Today, futures trading has evolved into a sophisticated financial tool supported by cutting-edge technology and regulatory frameworks. This article will explore the evolution of wheat futures and other farm crop contracts, providing real-life anecdotes, case studies, and hypothetical trading scenarios to illustrate their significance. Additionally, we’ll delve into why Cannon Trading Company, with its decades of experience, stellar reputation, and wide selection of free platforms, stands out as a premier choice for trading wheat and other agricultural futures like class 3 milk futures and the corn futures contract.
The Evolution of Wheat Futures and Farm Crop Contracts
The origins of wheat future contracts date back to the mid-19th century with the establishment of the Chicago Board of Trade (CBOT) in 1848. Farmers and grain merchants needed a system to protect themselves from unpredictable price swings caused by weather, supply chain issues, and geopolitical events. Enter the futures market: a standardized contract to buy or sell wheat at a predetermined price on a specific future date.
Over time, the concept expanded to include other farm crop contracts, such as the corn futures contract and class 3 milk futures. Initially, futures trading was dominated by local farmers and merchants. However, the advent of electronic trading in the late 20th century democratized access, attracting institutional investors, hedge funds, and individual traders from around the globe.
Technological advancements have played a pivotal role in this evolution. Today, platforms like those offered by Cannon Trading Company provide traders with real-time market data, advanced charting tools, and risk management features, making futures trading more accessible and efficient than ever before.
Real-Life Anecdotes and Case Studies
The 2008 Wheat Price Surge
One of the most dramatic examples of volatility in the wheat market occurred in 2008. Global wheat prices skyrocketed due to poor harvests, rising demand from emerging markets, and export restrictions imposed by major producing countries. For farmers in the U.S. Midwest, this presented both challenges and opportunities.
A Kansas wheat farmer, for example, used wheat future contracts to lock in a sale price of $12 per bushel in March 2008, months before harvesting. By the time his crop was ready, spot prices had dropped to $8 per bushel due to improved weather conditions and easing supply concerns. His decision to hedge through futures saved his business from significant losses, highlighting the value of futures trading for risk management.
The Corn Belt Hedge Fund
In the 2010s, a small hedge fund based in Illinois recognized the interconnectedness of farm crop contracts. By analyzing weather patterns, they predicted a poor corn harvest in the Midwest, leading them to short corn futures contracts while going long on wheat future contracts due to substitution effects in animal feed markets. Their calculated bets paid off handsomely, yielding a 35% return for the year and showcasing how futures can be used for speculative gains as well as hedging.
Hypothetical Trading Scenario: A Dairy Processor
Imagine a dairy processor who relies on milk as a primary input. Concerned about rising costs, they decide to trade class 3 milk futures to secure a stable price for the next six months. By locking in a price of $17.50 per hundredweight, they mitigate the risk of price spikes caused by fluctuating feed costs for dairy cattle. Meanwhile, a speculator on the other side of the trade takes on the risk, hoping to profit from price movements. This mutually beneficial arrangement demonstrates the dual nature of futures markets: risk transfer and price discovery.
The Role of Cannon Trading Company in Futures Trading
Cannon Trading Company has established itself as a trusted partner for traders of all experience levels. Its wide selection of free platforms, including advanced tools for analyzing wheat future contracts, class 3 milk futures, and the corn futures contract, makes it an excellent choice for anyone engaged in futures trading. Here’s why:
User-Friendly Platforms Cannon Trading offers an array of platforms tailored to different trading styles and needs. Whether you’re a novice looking for simplicity or a seasoned trader requiring advanced analytics, Cannon has you covered. Real-time data, customizable charts, and automated trading options empower traders to make informed decisions.
Decades of Experience With over three decades in the industry, Cannon Trading has weathered market ups and downs, earning a reputation for reliability and expertise. Their deep understanding of markets like wheat future contracts and farm crop contracts positions them as invaluable advisors to clients navigating the complexities of futures trading.
Regulatory Excellence Cannon Trading Company’s exemplary track record with regulatory bodies underscores its commitment to transparency and integrity. In an industry where trust is paramount, this reputation provides peace of mind to traders.
Educational Resources For newcomers to futures trading, Cannon offers a wealth of educational resources, including webinars, tutorials, and market analysis. These tools help traders understand the nuances of markets like the corn futures contract and class 3 milk futures, enabling them to trade with confidence.
Stellar Customer Support Cannon’s 5-star ratings on TrustPilot reflect its dedication to customer satisfaction. Their team of experienced brokers is available to assist clients with everything from platform setup to strategy development, ensuring a seamless trading experience.
Why Trade Wheat Futures?
Trading wheat future contracts offers several advantages:
Risk Management: Farmers and processors can hedge against price fluctuations, ensuring stable income and cost structures.
Liquidity: The wheat market is highly liquid, making it easy to enter and exit positions.
Leverage: Futures allow traders to control large amounts of wheat with relatively small initial investments, amplifying potential returns (and risks).
Diversification: For investors, wheat futures provide exposure to a commodity that behaves differently from stocks and bonds, enhancing portfolio diversification.
Risks and Rewards in Futures Trading
While futures trading offers significant opportunities, it’s not without risks. Leverage can magnify losses as well as gains, and market movements can be unpredictable. However, with the right tools and strategies—like those provided by Cannon Trading Company—traders can navigate these challenges effectively.
The Future of Farm Crop Contracts
As climate change and geopolitical tensions continue to impact agricultural markets, the role of farm crop contracts like wheat future contracts, class 3 milk futures, and the corn futures contract will only grow in importance. Technological innovations, such as blockchain-based smart contracts and AI-driven market analysis, promise to further revolutionize futures trading, making it more transparent and efficient.
The journey of wheat future contracts and other farm crop contracts from their humble beginnings to today’s sophisticated markets is a testament to the resilience and adaptability of the agricultural sector. Real-life examples and hypothetical scenarios illustrate the value of these contracts for hedging and speculation alike. For traders seeking a reliable partner in this dynamic market, Cannon Trading Company stands out with its top-rated platforms, extensive experience, and commitment to customer success.
Whether you’re trading wheat future contracts, class 3 milk futures, or the corn futures contract, Cannon Trading provides the tools and support you need to succeed. By leveraging their expertise and resources, you can navigate the complexities of futures trading with confidence.
Ready to start trading futures? Call us at 1(800)454-9572 – Int’l (310)859-9572 (International), or email info@cannontrading.comto speak with one of our experienced, Series-3 licensed futures brokers and begin your futures trading journey with Cannon Trading Company today.
Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. Past performance is not indicative of future results. Carefully consider if 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.
Important: Trading commodity futures and options involves a substantial risk of loss. The recommendations contained in this article are opinions only and do not guarantee any profits. This article is for educational purposes. Past performances are not necessarily indicative of future results.
This article has been generated with the help of AI Technology and modified for accuracy and compliance.
If you like a demo ( and did not have a demo of StoneX Futures yet) CLICK HERE
In the mean time, your E-Futures platform will stay active until a date no earlier than Fri., Dec. 27th, with a firm decommission date to be announced
Important Notices – Next Week Highlights:
The Week Ahead
By John Thorpe, Senior Broker
766 corporate earnings reports as the season swings into action with the largest U.S. Banks! A number of meaningful Economic data releases including CPI, PPI and There will be a series of FED Speakers throughout the week.
Earnings Next Week:
Mon. Quiet (59rpts mid and smallcaps)
Tue. Quiet (25rpts Mid and smallcaps)
Wed. (162 rpts) Pre-Open JP Morgan Chase, Wells Fargo, Goldman Sachs, Black Rock, Citigroup, Bank of NY, Oracle after the close
Thu. ( 186 rpts) Pre-open Tiawan Semiconductor, United HealthCare, BofA, Morgan Stanley, US Bank.
Fri. Quiet (108 mid and small caps rpts)
FED SPEECHES:
Mon. Quiet
Tues. Schmid 9 am CST, Williams 2:05 CST
Wed. Barkin 8:20 CST, Kashkari 9 am CST, Williams 10 am CST, Goolsbee 11 am CST
Thu. Quiet
Fri. Quiet
Economic Data week:
Mon. Consumer Inflation Expectations,
Tues. RedBook, PPI
Wed. CPI, NY Empire State Manufacturing Index
Thur. Jobless claims, Philly Fed, Retail Sales, Business Inventories, NAHB Housing Market Index
Fri. Building Permits, Housing Starts, Industrial Production
Futures 102: World Cup Trading Championship
Minimum Starting Balance
The minimum starting account balance is $10,000 for Futures and $5,000 for Forex.
Win a Bull & Bear Trophy
1st place finishers win a coveted pewter bull and bear trophy. 2nd and 3rd place finishers win beautiful crystal bull and bear trophies.
Global media exposure.
Prove your abilities on the world’s stage and build credibility.
Launch Your Trading Career
Top finishers may be invited to have their trading featured on WorldCupAdvisor.com. Subscribers may pay to follow their trades automatically.
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.
The March 10 year treasury notes have resumed their break into a new low. At this point the chart is taking aim at its third downside PriceCount objective to the 106^24 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.
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 get weekly updates on real-time, results of systems mentioned above?
About: Cannon Trading is an independent futures brokerage firm established in 1988 in Los Angeles. Our mission is to provide reliable service along with the latest technological advances and choices while keeping our clients informed and educated in the field of futures and commodities 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.
Listen to our podcast: Subscribe on Apple, Spotify, Amazon, or wherever you listen to podcasts!
Bullet Points, Highlights, Announcements
By Mark O’Brien, Senior Broker
General:
In a one-day early release, the Labor Department said on Wednesday that the number of Americans filing new applications for unemployment benefits fell to an 11-month low last week. Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 201,000 for the week ending Jan. 4, the lowest level since February 2024. The report was published a day early as federal government offices are closed today in honor of former President Jimmy Carter who died on Dec. 29 at the age of 100.
Coming up tomorrow, the first Friday of the month, the Labor Dept. releases its monthly Non-farm payrolls report. It’s widely considered to be one of the most important and influential measures of the U.S. economy. Forecasters predict the U.S. created a modest 155,000 new jobs in the final month of 2024. The economy added 227,000 jobs in November. The unemployment rate is forecast to be unchanged at 4.2%. The report is released at 7:30 A.M., Central Time.
Stock Indexes:
U.S. stock index futures closed today in a mark of respect for the late former president. President Joe Biden declared a National Day of Mourning following Carter’s passing.
Grains:
Also due out Friday: the latest USDA crop production and world supply & demand report as well as the final production numbers and stocks as of Dec. 1. These reports are released at 11:00 A.M. Central Time.
Softs:
The hands down 2024 commodity price gain winner: cocoa. Despite new all-time highs in Bitcoin futures, eclipsing 110,00 in mid-December and gold surpassing $2,800 per ounce in late October, cocoa nearly tripled in price over 2024, far outpacing other commodities. The March ’25 futures contract hit an intraday and record high of $12,931 a metric ton on Dec. 18. Top cocoa producers Ivory Coast and Ghana have suffered crop losses due to adverse weather and bean disease.
Energy:
In the meantime, Brent and West Texas Intermediate crude oil futures posted a second consecutive annual decline in 2024 as supply outstripped a rebound in demand growth.
About: Cannon Trading is an independent futures brokerage firm established in 1988 in Los Angeles. Our mission is to provide reliable service along with the latest technological advances and choices while keeping our clients informed and educated in the field of futures and commodities 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.
Silver futures price is a topic of immense importance for futures traders, both novice and experienced. The ability to predict and trade silver futures effectively requires a deep understanding of historical price trends, the dynamics of futures contract trading, and the factors influencing the value of this precious metal. This article delves into the evolution of trading silver, its price fluctuations over time, and the advantages and disadvantages of silver futures trading. To illustrate key points, we include real-life anecdotes, case studies, and hypothetical scenarios. Additionally, we explore why Cannon Trading Company stands out as a top choice for trading futures.
Evolution of Trading Silver
Historical Context
Silver has been traded for centuries, with its value historically tied to its dual role as a monetary asset and an industrial commodity. During the Roman Empire, silver coins were a primary medium of exchange, anchoring economies with a standardized weight and purity. Fast forward to the 19th and early 20th centuries, silver’s role shifted as the gold standard dominated monetary policy. However, silver remained integral to global trade and industrial applications.
The establishment of futures markets in the 19th century transformed silver trading. The Chicago Board of Trade (CBOT) introduced standardized contracts, enabling traders to hedge and speculate on price movements effectively. This innovation made futures trading accessible, offering a regulated platform for trading futures contracts based on silver.
Price Fluctuations
Silver’s price has experienced dramatic fluctuations. For instance, in the late 1970s, the Hunt brothers attempted to corner the silver market, driving prices from $6 per ounce in 1979 to an all-time high of $49.45 in January 1980. This bubble burst shortly after, causing prices to plummet, underscoring the volatility inherent in silver futures trading.
More recently, during the 2008 financial crisis, silver prices dropped to around $9 per ounce as industrial demand waned. However, as investors sought safe-haven assets, prices rebounded to $48 in 2011. These swings highlight the interplay of macroeconomic factors, including inflation fears, currency fluctuations, and industrial demand, that affect silver futures prices.
Advantages and Disadvantages of Silver Futures Trading
Advantages
Leverage and Capital Efficiency Futures contract trading allows traders to control large amounts of silver with a relatively small margin. For example, a futures trader can enter a position worth $50,000 with only $5,000 in initial margin. This leverage amplifies potential returns, making futures trading attractive to investors seeking significant profits.
Hedging Opportunities Silver futures are a powerful hedging tool for both miners and industrial users. By locking in prices through futures contracts, businesses can mitigate the risk of adverse price movements. For instance, a jewelry manufacturer anticipating a rise in silver prices might buy futures to secure their raw material costs.
Liquidity and Price Transparency The silver futures market is highly liquid, ensuring that traders can enter and exit positions with ease. Exchanges like the CME Group provide transparent pricing, fostering confidence among participants.
Disadvantages
High Volatility Silver prices are notoriously volatile. While this volatility presents opportunities for profit, it also increases the risk of substantial losses. Traders must use risk management tools, such as stop-loss orders, to protect their capital.
Complexity Futures trading requires a nuanced understanding of market dynamics, margin requirements, and contract specifications. Novice traders may find it overwhelming to navigate these complexities without proper guidance.
Leverage Risks While leverage magnifies gains, it also amplifies losses. A futures trader who misjudges market direction can quickly face margin calls or account liquidation.
Real-Life Anecdotes and Case Studies
The Hunt Brothers’ Infamous Trade
In the late 1970s, Nelson and William Hunt sought to monopolize the silver market by amassing substantial physical holdings and futures contracts. Initially, their strategy drove prices to record highs, creating immense paper profits. However, regulatory changes, including increased margin requirements, forced the Hunt brothers to liquidate their positions. This led to a catastrophic price crash, resulting in billions of dollars in losses.
This case underscores the importance of understanding regulatory frameworks and using leverage prudently when trading futures.
Hypothetical Trading Scenario
Consider a futures trader anticipating a short-term spike in silver prices due to geopolitical tensions. The trader buys a December silver futures contract at $24 per ounce, with an initial margin of $5,000. Over the next month, silver prices rise to $26 per ounce. The trader closes the position, realizing a profit of $10,000 (2,000 ounces x $2 price increase).
Now, imagine an alternate scenario where silver prices drop to $22. Without stop-loss orders, the trader incurs a $10,000 loss, highlighting the risks associated with leverage.
Why Choose Cannon Trading Company?
Cannon Trading Company is an industry leader in futures trading, offering unparalleled advantages for futures traders of all experience levels. Here’s why it stands out:
Top-Performing Trading Platforms
Cannon Trading provides access to a wide selection of advanced trading platforms, catering to diverse needs. From user-friendly interfaces for beginners to sophisticated tools for seasoned traders, their platforms enable seamless trading futures.
TrustPilot Ratings and Reputation
With a 5 out of 5-star rating on TrustPilot, Cannon Trading has earned the trust of its clients. Positive reviews consistently highlight the firm’s exceptional customer service, knowledgeable futures brokers, and commitment to transparency.
Decades of Experience
Established in 1988, Cannon Trading boasts decades of experience in the futures markets. Their team of seasoned professionals understands the intricacies of futures trading and offers personalized guidance to clients.
Regulatory Compliance
Cannon Trading maintains an exemplary reputation with regulatory bodies like the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). Traders can trust that their funds and transactions are handled with the utmost integrity.
Silver futures trading offers a unique blend of opportunities and challenges. Understanding historical price trends, leveraging advantages like hedging and liquidity, and navigating the risks of volatility and leverage are essential for success. With its extensive experience, top-rated platforms, and stellar reputation, Cannon Trading Company is an excellent choice for anyone looking to trade futures contracts. Whether you are an experienced futures trader or new to the world of trading futures, Cannon Trading provides the tools and support necessary to navigate the complexities of the futures markets confidently.
Ready to start trading futures? Call us at1(800)454-9572 – Int’l (310)859-9572 (International), or email info@cannontrading.com to speak with one of our experienced, Series-3 licensed futures brokers and begin your futures trading journey with Cannon Trading Company today.
Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. Past performance is not indicative of future results. Carefully consider if 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.
Important: Trading commodity futures and options involves a substantial risk of loss. The recommendations contained in this article are opinions only and do not guarantee any profits. This article is for educational purposes. Past performances are not necessarily indicative of future results.
This article has been generated with the help of AI Technology and modified for accuracy and compliance.
Listen to our podcast: Subscribe on Apple, Spotify, Amazon, or wherever you listen to podcasts!
The President has declared January 9, 2025, as a National Day of Mourning in observance of the passing of former President James Earl Carter, Jr.
All banks will remain open, margin calls and money transfers will be processed as normal.
Please take note of the following adjusted trading schedules on January 9, 2025
(*all times are US Central Time):
CME Group:
Equity Index – Close at 8:30am, settle prices derived at 12:00pm. All Equity Index options expiring January 9th will be moved to expire on January 8th.
Interest Rates – Close at 12:15pm
Ags – Close at 12:15pm
Energy, FX, Metals, Crypto – Normal Trading Hours
MIAX Futures:
Hard Red Spring Wheat – 12:15pm
ICE US Commodities – Normal Trading Hours
Regular market opening times will be in place for the January 10, 2025 trade date.
Please let us know if you have any questions.
March Cotton
March cotton is threatening to break down once again. At this point, new sustained lows would project a possible run to the third downside PriceCount objective to the 62.18 area.
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.
About: Cannon Trading is an independent futures brokerage firm established in 1988 in Los Angeles. Our mission is to provide reliable service along with the latest technological advances and choices while keeping our clients informed and educated in the field of futures and commodities 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.
Listen to our podcast: Subscribe on Apple, Spotify, Amazon, or wherever you listen to podcasts!
Movers and shakers!
By John Thorpe, Senior Broker
Three trading days removed from Contract Highs in the U.S. Dollar index @ 109.325 basis the March 2025 contract and a 2 full cent retracement yesterday, the bulls certainly appear to be control of this market with a close today near the session highs @ 108.40. The value of the dollar has numerous implications for our export markets, as the dollar becomes stronger the cost of goods become more expensive.
High Dollar values over the long term usually do not not bode well for commodity prices. Needless to say, the energy complex looks strong today with spot Feb WTI up .85 cents, nearing the $75 /bbl mark after being in the 60’s just 10 days ago.
The Grain market has nearly a mirror inverse image basis the daily charts compared to the U.S Dollar index. With one exception, The corn market.
Just an observation, the precious metals market have struggled to make new highs or even break above their 3 month Mid range price levels as the U.S. Dollar strength has been a main feature affecting the commodity markets.
The U.S Dollar is considered a safe haven.
Today’s Movers
Today’s News:
Updated: January 7, 2025 9:02 am
Institute of Supply Management (ISM) US Service Sector Headline Recap
**ISM US December Service Sector Composite Index: 54.1 ; expected 53.4 ; prior month 52.1
**ISM US December Service Sector Business Activity: 58.2 vs prior month 53.7
**ISM US December Service Sector Employment: 51.4 vs prior month 51.5
**ISM US December Service Sector New Orders: 54.2 vs prior month 53.7
**ISM US December Service Sector Prices Paid: 64.4 vs prior month 58.2
Updated: January 7, 2025 9:02 am
**US November 2024 Job Openings and Labor Turnover Summary (JOLTS): 8.098 mln; prior month 7.744 mln
US weekly jobless claims will be released at 7:30 am CT Wednesday morning, a day earlier than normal due to the funeral for former Pres. Carter, initial claims are expected at 215,000, up +4,000 from the prior week.
Watch Tomorrow’s Movers and Shakers:
7:30 AM CST Waller Fed Speech
ADP December US Private Sector jobs net change data will be released Wednesday morning around 7:15 am CT. Analysts expect job gains of +136,000 that’s off 100,000 from the previous month’s +146,000.
11:00 AM CST FOMC minutes from the December Rate decision
Both crude oil and natural gas numbers are out tomorrow!
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