Coffee Anyone? Gold? Copper?
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Daily Levels for February 11th, 2025
Economic Reports
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Support & Resistance Levels
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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Market Movers This Week: Options on Futures, Grains, Hedging, Powell Testimony, CPI & PPI, WASDE, and Earnings Reports
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Hot Market of the Week
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 and options on futures needs.
Free Trial Available
December 25 Corn
April Hogs satisfied a second upside PriceCount objective before turning sideways with a range bound trade. At this point, IF the chart can resume its rally with new sustained highs, the third count would project a potential run to the 100.96 area.
PriceCounts – Not about where we’ve been, but where we might be going next!
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Crude Oil Future Contracts
Crude oil future contracts represent one of the most actively traded commodities in the financial world. For seasoned futures traders, navigating the complexities of crude oil futures trading requires a deep understanding of market dynamics, risk management, and strategic execution. This article will explore the history of crude oil future contracts, provide 10 tips for advanced traders, and highlight the risks involved in trading futures contracts. Real-life anecdotes and case studies are included to enhance the insights presented.
Brief History of Crude Oil Future Contracts
Crude oil has long been a cornerstone of the global economy. Futures contract trading for crude oil began in 1983 when the New York Mercantile Exchange (NYMEX) introduced the first crude oil futures contract. This innovation provided a mechanism for producers, refiners, and other market participants to hedge price risks while also offering speculative opportunities for futures traders.
The development of crude oil futures contracts coincided with significant global events, including the oil crises of the 1970s, which underscored the need for more efficient price discovery mechanisms. Over the years, these contracts have evolved to include variants such as e-mini futures, enabling smaller-scale traders to participate in the market. Today, crude oil future contracts are traded on multiple platforms, including ICE (Intercontinental Exchange) and CME (Chicago Mercantile Exchange), solidifying their role as a crucial financial instrument.
10 Tips and Pointers for Advanced Traders Trading E-Mini Futures
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Understand the Fundamental Drivers of Oil Prices
Crude oil prices are influenced by a range of factors, including geopolitical events, OPEC production decisions, and economic data. Advanced futures traders must stay informed about these drivers and their potential impacts.
Real-Life Example: In 2020, crude oil prices plunged into negative territory due to a combination of oversupply and reduced demand from the COVID-19 pandemic. Traders who anticipated this downturn and shorted futures contracts reaped significant profits.
Risk Level: High. The market’s sensitivity to global events can lead to extreme volatility. Traders must prepare for rapid price swings and maintain a robust risk management plan.
Additionally, the shale revolution in the United States, starting in the mid-2000s, drastically increased oil supply, affecting crude oil prices. Advanced futures traders who understood the impact of this trend often incorporated long-term bearish strategies, profiting from lower price floors.
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Leverage Technical Analysis
Technical analysis remains an essential tool for futures traders. Understanding chart patterns, support and resistance levels, and moving averages can help identify entry and exit points.
Case Study: An experienced futures trader used a Fibonacci retracement tool to predict a bounce in WTI crude oil prices in 2022, capitalizing on a short-term rally. Similarly, a detailed analysis of Bollinger Bands allowed traders to identify overbought or oversold conditions, improving their timing.
Risk Level: Moderate. While technical analysis is valuable, it should not be used in isolation. Combining it with fundamental analysis can mitigate risks.
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Utilize Advanced Order Types
Stop-loss and limit orders are crucial for minimizing losses and locking in profits. Advanced traders should also consider trailing stops to protect gains as the market moves in their favor.
Real-Life Anecdote: A futures trader once avoided significant losses during a sharp price drop by setting a trailing stop order, which automatically exited their position at a predetermined level. Another trader used OCO (One Cancels the Other) orders to simultaneously manage profit targets and stop-loss levels, ensuring balanced risk-reward ratios.
Risk Level: Low to Moderate. Proper use of advanced order types can significantly reduce trading risk.
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Trade During Optimal Market Hours
Liquidity and volatility vary throughout the trading day. The overlap between London and New York trading sessions often provides the best opportunities for crude oil futures trading.
Pro Tip: Monitor the market around key economic announcements, such as U.S. crude inventory reports, which can cause significant price movements. Another overlooked opportunity lies in trading futures during Asian hours, particularly when geopolitical events arise in the Middle East.
Risk Level: Moderate. Trading during high-volatility periods increases both profit potential and risk exposure.
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Master Position Sizing
Proper position sizing is critical in futures trading. Allocating too much capital to a single trade can amplify losses.
Case Study: A seasoned trader maintained consistent position sizes across multiple trades, enabling them to weather losses during a prolonged downtrend. Using tools provided by futures trading brokers, the trader also calculated risk as a percentage of total portfolio capital, limiting losses to 1-2% per trade.
Risk Level: Low to Moderate. Adequate position sizing minimizes the impact of individual losses on overall portfolio performance.
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Monitor Open Interest and Volume
Open interest and trading volume provide insights into market sentiment and liquidity. High volume often indicates strong trends, while declining open interest can signal trend exhaustion.
Pro Tip: Use these metrics to confirm the validity of breakouts and reversals. Pairing volume indicators with price action improves overall trading accuracy, especially during false breakouts.
Risk Level: Low. These indicators enhance decision-making but do not eliminate market risks.
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Diversify Trading Strategies
Relying on a single strategy can be detrimental. Advanced traders often employ a mix of trend-following, mean-reversion, and options strategies to adapt to changing market conditions.
Real-Life Example: A trader alternated between a breakout strategy during trending markets and a mean-reversion approach in range-bound conditions, achieving consistent profitability. Options spreads, such as bull call spreads, were also employed to hedge against unexpected price movements.
Risk Level: Moderate. Diversification reduces dependence on a single strategy but requires mastery of multiple techniques.
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Stay Updated on Regulatory Changes
Regulations governing futures contract trading can change, affecting margin requirements and market access. Working with a reputable futures trading broker ensures compliance and access to updated information.
Real-Life Example: In 2010, regulatory changes post-financial crisis increased margin requirements for crude oil futures, significantly impacting traders who were over-leveraged. Staying informed helped disciplined traders adjust their positions accordingly.
Risk Level: Low. Staying informed reduces the risk of non-compliance and operational disruptions.
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Maintain Emotional Discipline
Emotional trading can lead to impulsive decisions and significant losses. Advanced traders prioritize discipline and adhere to their trading plans.
Case Study: A futures trader maintained composure during a major market downturn, sticking to their strategy and recovering losses in subsequent trades. Leveraging meditation and regular breaks helped mitigate decision fatigue.
Risk Level: High. Emotional trading is a common pitfall, especially during periods of extreme volatility.
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Utilize Futures Brokers with Advanced Tools
A reliable futures trading broker provides advanced platforms, analytical tools, and educational resources. These features can give traders a competitive edge.
Pro Tip: Compare platforms to ensure they meet your trading needs, focusing on latency, charting tools, and real-time data. Advanced traders often use APIs for automated trading, enhancing execution speed and efficiency.
Risk Level: Low. Working with a reputable broker reduces operational risks and enhances trading efficiency.
Risk Levels in Crude Oil Futures Trading
Crude oil futures trading involves varying levels of risk, depending on the strategies employed and market conditions. Volatility, leverage, and geopolitical factors contribute to the inherent risks. Traders must adopt robust risk management practices, such as using stop-loss orders, maintaining proper position sizes, and diversifying portfolios.
Additionally, the emergence of algorithmic trading has increased market speed, introducing risks related to slippage and system malfunctions. Advanced traders must backtest algorithms rigorously and maintain redundancy protocols.
Crude oil future contracts offer significant profit potential for experienced traders but come with substantial risks. By leveraging advanced strategies, staying informed about market dynamics, and working with reliable futures trading brokers, traders can enhance their performance while mitigating risks.
For more information, click here.
Ready to start trading futures? Call us at 1(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.
US January Non-Farm Payroll Report: Key Forecasts and Market Impact
NFP Tomorrow – Non Farm Payrolls Tomorrow
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April Hogs satisfied a second upside PriceCount objective before turning sideways with a range bound trade. At this point, IF the chart can resume its rally with new sustained highs, the third count would project a potential run to the 100.96 area. |
Daily Levels for February 7th, 2025
Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
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Market Watch: Record Highs in Gold & Coffee, Oil Retreats Amid Trade Concerns
New all-time highs in Gold!
Futures Markets Highlights by Mark O’Brien, Senior Broker
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Daily Levels for February 6th, 2025
Economic Reports
provided by: ForexFactory.com
All times are Eastern Time (New York)
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Market Turbulence and Global Tensions: Key Developments in Politics, Economy, and War
Movers & Shakers by John Thorpe, Senior Broker
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Daily Levels for February 5th, 2025
Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
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First and Last Commodity Trading Days February 2025
First Notice & last trading Days for February
Please see below First Notice and Last Commodity Trading days for February! Make it a disciplined trading month.
Daily Levels for February 4, 2025
Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
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The Week Ahead: Key Market Moves, May Wheat Futures, & Futures Trading Insights
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Price Gold Futures
Gold has long been one of the most sought-after commodities, and its value as a trading instrument remains undisputed. Gold futures contracts, introduced as a way for traders to speculate on and hedge against price fluctuations, are pivotal in today’s financial markets. In this comprehensive exploration, we delve into the origins of gold futures contracts, key players behind their establishment, and their role in modern trading. Additionally, we examine potential price movements for natural gas futures in 2025 and assess why Cannon Trading Company is a leading choice for futures traders of all levels.
The Origins of Gold Futures Contracts
Gold trading has a history stretching back millennia, but the formalized trading of gold futures contracts began relatively recently. The Chicago Board of Trade (CBOT), established in 1848, is credited as a pioneer in the creation of futures contracts. Initially focused on agricultural products like wheat and corn, the CBOT laid the foundation for futures trading. The gold futures contract was introduced by the Commodity Exchange, Inc. (COMEX) in 1974. This move came in the wake of significant changes in the global gold market, including the U.S. abandoning the gold standard in 1971, allowing gold prices to float freely.
Key Figures in Gold Futures Development
- Richard Sandor: Often referred to as the “father of financial futures,” Sandor played a pivotal role in developing new types of financial instruments, including interest rate futures. Although not directly responsible for gold futures, his innovations provided a blueprint for structured futures markets.
- Leo Melamed: A leading figure in modern futures trading, Melamed’s leadership at the Chicago Mercantile Exchange (CME) helped establish the credibility and expansion of futures contracts. His advocacy for innovation likely influenced the early days of trading future contracts like gold.
- COMEX Leadership: Under the guidance of COMEX executives, gold futures became a reality. They recognized the growing need for a mechanism to hedge against price volatility in a post-gold standard world.
The introduction of gold futures allowed miners, jewelers, and speculators to protect themselves against price swings, leading to increased liquidity and price discovery in the gold market.
Understanding Price Movements in Gold Futures
The price of gold futures is influenced by a combination of macroeconomic factors, geopolitical events, and supply-demand dynamics. Inflation expectations, interest rates, and currency movements—particularly the U.S. dollar—play critical roles in determining price trends.
Real-Life Anecdotes and Case Studies
- The 2008 Financial Crisis: During the global financial meltdown, gold futures prices surged as investors flocked to the safe-haven commodity. Gold futures, which were trading below $800 per ounce in early 2008, exceeded $1,000 by year’s end. Traders who anticipated the crisis and went long on gold futures reaped significant profits.
- COVID-19 Pandemic (2020): In another flight to safety, gold futures skyrocketed to all-time highs above $2,000 per ounce in 2020. Traders who correctly interpreted the pandemic’s impact on global economies and central bank policies made substantial gains.
- Hypothetical Scenario: Imagine a trader in 2025 predicting a weakening dollar due to rising national debt. By taking a long position in gold futures at $2,200 per ounce, they could capitalize on the ensuing rally if the dollar weakens further, driving gold prices to $2,500 or beyond.
Price Movements in Natural Gas Futures Contracts for 2025
Natural gas futures contracts are another critical component of the commodities market. As we move into 2025, traders are closely monitoring trends that could influence natural gas prices. Factors like global energy demand, geopolitical tensions, and weather patterns will play crucial roles.
- Expected Volatility: Natural gas prices are notoriously volatile due to weather-dependent demand. A colder-than-average winter in the U.S. could spike prices, while mild weather might suppress them.
- Energy Transition: The global push for cleaner energy is reshaping demand for natural gas. While it remains a key transitional fuel, increased investments in renewables could cap price gains.
Case Study: A Hypothetical Trade
A futures trader in January 2025 anticipates a harsh winter due to meteorological predictions. They buy natural gas futures at $4.50 per million British thermal units (MMBtu). As demand surges and prices reach $6.00 per MMBtu by February, the trader closes their position for a significant profit.
Current Price of Gold Futures Going Into 2025
As of early 2025, the price of gold futures is hovering around $2,100 per ounce. This level reflects ongoing geopolitical uncertainties, concerns about inflation, and central bank actions. The Federal Reserve’s monetary policies, particularly its stance on interest rates, are likely to influence gold prices throughout the year. Traders should closely monitor economic data releases and geopolitical developments to adjust their strategies accordingly.
Why Cannon Trading Company Excels in Futures Trading
Cannon Trading Company has cemented its reputation as a premier choice for futures traders. Here’s why:
- Wide Selection of Trading Platforms: Cannon Trading offers access to top-performing platforms like NinjaTrader, TradingView, and CQG, catering to diverse trading styles and needs.
- Unparalleled Reputation: With decades of experience, Cannon Trading has earned 5 out of 5-star ratings on TrustPilot. The company’s adherence to regulatory standards ensures a trustworthy trading environment.
- Tailored Services: From beginner-friendly platforms to advanced tools for seasoned traders, Cannon Trading provides customized solutions, including one-on-one support.
- Educational Resources: The firm’s commitment to education empowers traders with webinars, market analysis, and expert insights.
- Regulatory Compliance: As a National Futures Association (NFA) member, Cannon Trading adheres to strict guidelines, ensuring transparency and fairness.
Anecdote: A Successful Futures Trader’s Journey with Cannon Trading
Mark, a mid-career investor, transitioned to futures trading in 2020. After struggling with platform inefficiencies at another brokerage, he switched to Cannon Trading. The firm’s support team guided him in setting up his first gold futures trade. Over two years, Mark’s portfolio grew by 35%, thanks to robust analytics tools and timely market insights provided by Cannon Trading.
Hypothetical Scenario: A Beginner’s Experience
Sarah, new to futures trading, joins Cannon Trading in 2025. She starts with a demo account on the TradingView platform, using educational resources to understand the dynamics of gold and natural gas futures. With personalized guidance from a Cannon Trading broker, Sarah transitions to live trading, steadily building her confidence and portfolio.
Gold futures contracts remain a cornerstone of the commodities market, offering traders unparalleled opportunities to hedge and speculate. The introduction of these contracts was a milestone, driven by visionaries who recognized the need for a structured market. In 2025, the outlook for gold futures prices is shaped by macroeconomic and geopolitical factors, while natural gas futures present unique opportunities for weather-driven trades.
For traders at all experience levels, Cannon Trading Company provides an ideal platform for futures contract trading. Its combination of cutting-edge tools, stellar reputation, and commitment to client success ensures a seamless trading experience. Whether you’re a seasoned futures trader or just starting, Cannon Trading offers the resources and support you need to thrive in the dynamic world of futures trading.
For more information, click here.
Ready to start trading futures? Call us at 1(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.
Follow us on all socials: @cannontrading
April Gold Futures Hit Record High Amid Tariff Concerns and Weaker Dollar
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