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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Key Economic Indicators Shake Markets as Fed Decision Looms

Posted on by Ilan
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Movers and shakers!

By Mark O’Brien, Senior Broker

General:   

 

So far this week, two of three important measures of the U.S. economy have been released: Tuesday’s Producer Price Index and today’s Consumer Price Index, both from the Labor Department and both providing the latest inflation data.  Tuesday’s report measuring average price changes seen by producers and manufacturers showed wholesale inflation slowing, up just 0.1% month-over-month and falling to 2.2% year-over-year.

 

The Consumer Price Index (CPI), a broad-based measure of prices for goods and services, increased 0.2% for the month, putting the 12-month inflation rate at 2.9%, its lowest since March 2021.  Excluding food and energy, core CPI came in at a 0.2% monthly rise and a 3.2% annual rate

 

Many analysts have been calling for the Federal Reserve to start lowering borrowing costs given the descendent inflationary readings this year, to which Central Bank chairman Jerome Powell has replied consistently after every FOMC meeting, to paraphrase, “patience.”

 

According the CME Group FedWatch tool, there is now a ±64% probability that the Fed will lower the Federal target rate range by 25 basis points down to 5.00-5.25% at their September FOMC meeting.  Including tomorrow’s Retail Sales report from the U.S. Census Bureau, there are numerous events on the horizon to give the Fed. more to think about:

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Metals: 

 

A powerful workers union is behind a current labor strike in Chile.  Because it’s virtually paralyzed the world’s largest copper mine – producing nearly 5% of the world’s copper in 2023 – keep an eye on those developments and the futures contract with the informal PhD in economics.  December copper prices are near 5-month lows, just above $4.00/lb. after falling over $1.00/lb from a May 20 close at $5.0185 – a $25,000 per contract move.

 

 

Energies:  

 

U.S. natural gas futures rose today for the sixth time in seven sessions ahead of tomorrow’s  weekly inventory report that’s expected to chip away further at the large storage surplus.  September futures have traded ±27 cents (±$2,700) off its Aug. 5 close of $1.942 /MMBtu., up to $2.216 /MMBtu.

 

 

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Daily Levels for August 15th, 2024

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Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
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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

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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.

Market Movers & Shakers: PPI, Retail Sales, and Fed Insights

Posted on by Ilan
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Movers and shakers!

By John Thorpe, Senior Broker

 

Today’s News:

US Producer Price Index (PPI) Headline Recap

 

**US July Producer Price Index (PPI) Final Demand: +0.1%; expected +0.2%

**US July Producer Price Index, ex. Food & Energy (PPI): 0.0%; expected +0.2%

**US July Personal Consumption: 0.0%

 

**US June PPI Final Demand unrevised: +0.2% from +0.2%

 

 

Redbook Weekly US Retail Sales Headline Recap

 

**Redbook Weekly US Retail Sales were +4.7% in the first week of August 2024 vs August 2023

**Redbook Weekly US Retail Sales were +4.7% in the week ending August 10 vs yr ago week

 

Atlanta Fed President Bostic

Atlanta Fed President Bostic: has gained more confidence with recent inflation data, but wants to see a little bit more data

 

 

 

 

 

Watch Tomorrow:

 

US July consumer price index (CPI) data is forecast by analysts up +0.2% month-to-month, which compares to the previous month’s -0.1%. Core CPI on monthly terms is expected +0.2% in July compared to the prior month’s +0.1%. The data will be released at 7:30 am CT Wednesday morning. CPI on annualized terms is forecast up +3.0% from the year ago month, the core year-over-year figure is expected up +3.2%.

 

 

Earnings:

 

CISCO after the close.

Check times below for econ data

 

 

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Daily Levels for August 14th, 2024

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Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
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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

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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.

NQ Futures Contract Nasdaq Futures

Posted on by Ilan

The NQ futures contract, also known as the Nasdaq-100 futures contract, is a popular derivative instrument in the financial markets. It allows traders to speculate on the future value of the Nasdaq-100 Index, which comprises 100 of the largest non-financial companies listed on the Nasdaq Stock Market. This contract is pivotal for investors aiming to hedge their portfolios, gain exposure to the tech-heavy index, or leverage trading opportunities. This article delves into the components of the NQ futures contract, including its size, trading hours, participants, and various specifications, with a particular focus on the Mini and Micro Nasdaq futures contracts.

Nasdaq Futures

Components of the Nasdaq-100 Futures Contract

The Nasdaq-100 Index, which the NQ futures contract is based on, includes major technology and innovative companies such as Apple, Microsoft, Amazon, and Tesla. The futures contract provides a means to trade the performance of these companies collectively without directly buying the stocks.

Contract Size

The standard Nasdaq-100 futures contract has a significant size, designed for institutional and professional traders. It represents a substantial notional value, calculated as the index level multiplied by a specific multiplier. For the standard NQ futures contract, the multiplier is 20. Thus, if the Nasdaq-100 Index is at 15,000 points, the notional value of one contract would be:

Contract Trading Hours

The trading hours for the Nasdaq-100 futures contracts are extensive, allowing for nearly round-the-clock trading. This is crucial for managing risks and capitalizing on global market movements.

This extensive trading period covers Asian, European, and American market hours, providing ample opportunities for traders globally.

Who is Trading the Nasdaq-100 Futures?

The Nasdaq-100 futures contract attracts a diverse group of market participants:

  • Institutional Investors: Including hedge funds, pension funds, and mutual funds, these investors use the contract for hedging purposes and to gain exposure to the tech sector without directly buying individual stocks.
  • Professional Traders: Proprietary trading firms and market makers trade these contracts to profit from short-term price movements.
  • Retail Traders: With the introduction of the E-mini and Micro E-mini contracts, retail traders can participate in the market, speculating on price movements or hedging their portfolios.
  • Corporate Treasurers: Companies with significant exposure to the tech sector might use the contracts to hedge against adverse price movements in the Nasdaq-100 Index.

Why Trade the Nasdaq-100 Futures?

The popularity of the Nasdaq-100 futures contracts can be attributed to several factors:

  • Leverage: Futures contracts allow traders to control a large notional value with a relatively small amount of capital, amplifying potential returns (and risks).
  • Liquidity: The Nasdaq-100 futures are highly liquid, ensuring tight bid-ask spreads and ease of entering and exiting positions.
  • Diversification: By trading the index, investors gain exposure to a broad range of leading technology and innovative companies, reducing the risk associated with individual stocks.
  • Hedging: The contracts are an effective tool for hedging against market downturns, protecting the value of investment portfolios.
  • Speculation: Traders can speculate on the direction of the Nasdaq-100 Index, taking advantage of price movements to profit.

History of the Nasdaq-100 Futures Contract

The Nasdaq-100 futures contract was introduced to provide a means for investors to trade the performance of the Nasdaq-100 Index. The history of this contract is intertwined with the evolution of the Nasdaq Stock Market and the growing importance of technology companies in the global economy.

  • 1985: The Nasdaq-100 Index was launched, initially comprising 100 of the largest non-financial companies listed on the Nasdaq Stock Market.
  • 1996: The Chicago Mercantile Exchange (CME) introduced the Nasdaq-100 futures contract, allowing traders to speculate on the future value of the index.
  • 1999: The E-mini Nasdaq-100 futures contract was introduced, providing a smaller-sized contract suitable for individual investors and smaller trading firms.
  • 2019: The CME Group launched the Micro E-mini Nasdaq-100 futures contract, making it accessible to a wider audience, including retail traders.

Over the years, the Nasdaq-100 futures contracts have become a vital part of the financial markets, offering liquidity, leverage, and exposure to the tech-heavy Nasdaq-100 Index.

Contract Specifications in Detail

Margin Requirements

The margin requirements for trading Nasdaq-100 futures vary based on market conditions and the volatility of the underlying index. Initial margin is required to open a position, while maintenance margin must be maintained to keep the position open.

  • Standard NQ Contract: Typically, the initial margin is around $20,000, with maintenance margin slightly lower.

These margins are subject to change and can be higher during periods of increased market volatility.

Expiration and Settlement

Nasdaq-100 futures contracts have quarterly expiration dates: March, June, September, and December. The final settlement is based on the Special Opening Quotation (SOQ) of the Nasdaq-100 Index on the third Friday of the contract month.

Position Limits

To prevent market manipulation and ensure orderly trading, the CME Group imposes position limits on Nasdaq-100 futures contracts. These limits are periodically reviewed and adjusted based on market conditions.

Trading Strategies

Traders employ various strategies when trading Nasdaq-100 futures contracts:

  • Speculation: Taking directional positions based on market analysis and predictions about future price movements.
  • Hedging: Using futures contracts to offset potential losses in a portfolio of stocks or other assets.
  • Spread Trading: Simultaneously buying and selling related futures contracts to profit from changes in the price relationship between them.
  • Arbitrage: Exploiting price discrepancies between the Nasdaq-100 futures and other related instruments.

The NQ futures contract, encompassing the standard, E-mini, and Micro E-mini Nasdaq-100 futures, plays a crucial role in the financial markets. Its appeal lies in the ability to gain leveraged exposure to the tech-heavy Nasdaq-100 Index, the liquidity it provides, and its utility for hedging and speculative purposes. Understanding the components, specifications, trading hours, and strategies associated with these contracts is essential for anyone looking to participate in this dynamic segment of the futures market. Whether you’re an institutional investor, professional trader, or retail participant, the Nasdaq-100 futures contracts offer a versatile tool for managing risk and capitalizing on market opportunities.

For more information, click here.

Ready to start trading futures? Call us at 1(800)454-9572 (US) or (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 E-Futures.com 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

Stock Index Futures Ride the Rollercoaster as PPI Looms Tomorrow

Posted on by Ilan
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Stock index futures continue with “zig zag” type of volatility with large swings both ways.

Tomorrow we have PPI.

I suspect the current behavior will continue a bit longer as there is quite a bit of uncertainty.

 

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Daily Levels for August 13th, 2024

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Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
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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

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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.

Future S&P Trade S&P 500 Index Futures

Posted on by Ilan

Trading Standard and Poor’s 500 (S&P 500) index futures is highly appealing to various investors and traders. Known as ES futures, these contracts are among the most traded financial instruments globally. Here are the top ten reasons to consider trading S&P 500 futures:

Future S&P Trade

  • Diversification Trading S&P 500 index futures allows investors to gain exposure to a broad market, as the index includes 500 of the largest U.S. companies across various industries. This diversity mitigates the risk associated with individual stocks or sectors. A single S&P 500 futures contract effectively represents a varied portfolio, simplifying diversified investment through one transaction.
  • High Liquidity S&P 500 futures are renowned for their high liquidity. The high volume of transactions ensures swift execution of trades, reducing the cost of entering and exiting positions. This liquidity results in tighter bid-ask spreads and ensures that large orders can be filled without significantly impacting the price, making it ideal for investors of all sizes.
  • Leverage One of the most compelling aspects of trading S&P 500 futures is the leverage available. Futures contracts allow traders to control a substantial amount of equity with a relatively small capital outlay. This leverage can amplify profits if the market moves favorably but can also amplify losses, highlighting the importance of risk management.
  • Cost Efficiency Futures trading can be more cost-effective than buying the individual stocks that comprise the index. Commissions and transaction fees are generally lower in futures trading compared to equity markets. Additionally, as margined products, traders do not need to pay the full value of the exposure to benefit from its performance.
  • Hedging Investors with a portfolio of U.S. stocks can use S&P 500 index futures to hedge against potential downturns in the broader market. By short selling futures, they can protect their portfolios from market volatility or anticipated declines, making futures an excellent risk management tool, especially in uncertain market conditions.
  • Speculation Traders can speculate on the direction of the U.S. economy or the stock market by trading S&P 500 futures. Whether anticipating a rise or fall, these futures provide an efficient means to position accordingly and profit from movements in the index.
  • No Short-Selling Restrictions Unlike the stock market, where short selling has restrictions, S&P 500 futures traders can go long or short freely. This flexibility allows them to act on bearish market outlooks as easily as bullish ones, which is particularly valuable during market corrections or bear markets.
  • Nearly 24-Hour Trading The S&P 500 futures market operates nearly 24 hours a day during weekdays, allowing traders to react to news and economic events globally. This continuous trading window provides a significant advantage in managing positions and capitalizing on global economic events that may affect the U.S. market.
  • Transparency and Fairness The futures market is highly regulated, offering a level of transparency that ensures a fair trading environment. S&P 500 futures prices reflect a broad consensus influenced by widespread information, including economic indicators, market sentiment, and political events, making it one of the fairest investment vehicles.
  • Access to Advanced Trading Strategies Trading S&P 500 futures enables the use of sophisticated trading strategies such as spreads, straddles, and strangles, which can manage risk and enhance potential returns. These strategies can be particularly beneficial in a futures market where price movements can be significant.

S&P 500 Index Futures are financial contracts that obligate the buyer to purchase, and the seller to sell, a specified amount of the S&P 500 Index at a future date and at a predetermined price. The S&P 500 Index itself is a benchmark of U.S. equities, representing the performance of 500 of the largest publicly traded companies in the U.S., covering various sectors of the economy.

  • Underlying Asset: The S&P 500 Index, which is a broad representation of the U.S. stock market and includes large-cap companies across various sectors.
  • Contract Size: Typically, futures contracts are based on a notional amount of the index. For example, each point movement in the S&P 500 Index futures contract corresponds to a set monetary value, such as $50 per point for the standard S&P 500 futures.
  • E-Mini S&P 500: A smaller version of the standard S&P 500 futures contract, known as the E-Mini S&P 500, is popular among traders due to its lower margin requirements and reduced contract size, making it more accessible for individual traders and smaller institutions.

Why Traders and Institutions Trade S&P 500 Index Futures

  • Liquidity: S&P 500 futures are among the most actively traded futures contracts, providing high liquidity. This liquidity ensures that traders can enter and exit positions with ease, often at tight bid-ask spreads.
  • Arbitrage Opportunities: Institutional traders use S&P 500 futures to exploit price discrepancies between the futures market and the underlying spot market. This can involve strategies like cash-and-carry arbitrage, where traders simultaneously buy or sell the index in the spot market and take the opposite position in the futures market.
  • Market Sentiment: Futures on the S&P 500 Index can be used to gauge market sentiment and investor expectations about future market movements. The futures prices reflect collective market expectations and can offer insights into potential market trends.

S&P 500 Index Futures play a crucial role in the financial markets by providing a flexible, cost-effective, and efficient way to hedge, speculate, and gain exposure to the U.S. stock market. With their high liquidity and leverage, these futures contracts cater to both institutional investors and individual traders, facilitating a wide range of trading strategies and market insights.

Try the FREE E-Futures International Platform Trading S&P 500 futures offers numerous benefits, from diversification and liquidity to cost efficiency and flexibility. Whether you aim to hedge other investments, leverage positions, or speculate on market movements, S&P 500 futures are a valuable tool for achieving a broad range of financial goals. Conduct thorough research and consider your financial condition and strategy before engaging in futures trading. For more information, click here.

Ready to start trading futures? Call us at 1(800)454-9572 (US) or (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 E-Futures.com 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

Weekly Newsletter: 25 Options Strategies, Soymeal Outlook, NQ Automated System

Posted on by Ilan
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Subscribe to our YouTube Channel

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Cannon Futures Weekly Letter Issue # 1204

In this issue:
  • Important Notices – Earnings, PPI, CPI, Iran/Israel, USDA Crop
  • Futures 101 – 25 Options Strategies
  • Hot Market of the Week – December Soymeal
  • Broker’s Trading System of the Week – Mini NQ Day Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

  • Important Notices – Next Week Highlights:
    • Monday, Aug. 12 

      ·        “The crop report:” USDA World Supply & Demand, U.S. Crop Production

       

      Tuesday, Aug. 13

       

      ·        Producer Price Index / Core PPI

       

      ·        Notable Quarterly Earnings:

       

      → Home Depot (Mkt. Cap.: ±247B)

       

      Wednesday, Aug 14

       

      ·        Consumer Price Index / Core CPI

       

      ·        Notable Quarterly Earnings:

       

      → Tencent ADR (Mkt. Cap.: ±437B)

      → Cisco (Mkt. Cap.: ±184B)

      → UBS Group (Mkt. Cap.: ±92B)

       

      Thursday, Aug. 15

       

      ·        Initial Jobless Claims

       

      ·        Retail Sales

       

      ·        Industrial Production / Capacity Utilization

       

      ·        Empire Mfg. Survey

       

      ·        Philadelphia Fed. Manufacturing Survey

       

      ·        Notable Quarterly Earnings:

       

      → Walmart (Mkt. Cap.: ±546B)

      → Alibaba (Mkt. Cap.: ±190B)

      → Applied Materials (Mkt. Cap.: ±159B)

      → Deere & Co. (Mkt. Cap.: ±95B)

       

      Friday, Aug. 16

       

      • ·        Consumer Sentiment

 

 

  • Futures 101: 25 Proven Strategies for Trading Options

    If you are currently trading options on futures or are interested in exploring them further, check out our newly updated trading guide, featuring 25 commonly used options strategies, including butterflies, straddles, strangles, backspread and conversions. Each strategy includes an illustration demonstrating the effect of time decay on the total option premium involved in the position.

    Options on futures rank among our most versatile risk management tools, and are offered on most of our products. Whether you trade options for purposes of hedging or speculating, you can limit your risk to the amount you paid up-front for the option while maintaining your exposure to beneficial price movements. To learn more about CME Group options, you can also visit our Options page

    Complete the simple form and you will receive a link to download the 25 Proven Strategies brochure immediately. This eBook is free to you and no-obligation. Learn about the 25 Proven Strategies for trading options on CME Group Futures for FREE!

25_trading_strategies_lg image

 

 

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  • Hot Market of the Week – December Soymeal

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.

December Weekly Soymeal

The weekly chart in soybean meal failed to close its gap objective and reversed lower with a possible outside week lower developing. At this point, follow through to the downside into new sustained lows would project a run to the third PriceCount objective to the $296 area.
PriceCounts – Not about where we’ve been , but where we might be going next!
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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.

Boston A – Mini NASDAQ

PRODUCT

NQ – Mini NQ

SYSTEM TYPE
Intraday
Recommended Cannon Trading Starting Capital
$35,000
COST
USD 55 / monthly

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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
S
No
S

Daily Levels for August 12th 2024

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Trading Reports for Next Week

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First Notice (FN), Last trading (LT) Days for the Week:
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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 in Flux: Will Friday Bring Stability?

Posted on by Ilan
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Listen to our Market Recap Podcasts on Apple Podcasts

 

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Will the Markets “relax” a bit on Friday?

The V type of moves from one day to another does not make much sense….

For example, metals and stock index futures sold off extremely hard yesterday on the last hour of trading, YET an hour later on the reopen started a V shape type of reversal….

Make sure you have a game plan in mind and you have preset stops in your order entry ( my opinion) as the markets are moving way too fast to take the approach of ” “let see what the market does…”

 

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Daily Levels for August 9th, 2024

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Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
b338f040 ea74 44bc 863e 8da380102004

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

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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.

Traders Stay Alert: High Volatility and Key Economic Events Ahead

Posted on by Ilan
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Listen to our Market Recap Podcasts on Apple Podcasts

 

C88

 

Traders Stay Alert!

By Mark O’Brien, Senior Broker

General:  

 

High volatility across the major financial commodities carried forward from last week, particularly Monday.  Price ranges coming into today’s close include over 1200 points in the E-mini Dow Jones ($6,000 per contract), ±$82 for Dec. gold ($8,200 per contract), over 10,000 points for Bitcoin futures ($10,000 per contract), over 225 points in the E-mini S&P 500 ($11,250 per contract) and more than 1,200 points for the E-mini Nasdaq ($12,000 per contract).

If the rest of the week sees a falloff in unevenness among these markets – an unlikely presumption – it’ll be a short rest.  Next week another raft of economic data comes to the markets, including key inflation measurements with the release of the U.S. Labor Department’s Producer and Consumer Price Indexes (Tue. and Wed., respectively) and the Census Bureau’s Thurs. report on Retail Sales.

 

The following week, traders will turn their eyes and ears toward Jackson Hole, Wyoming and the world’s most exclusive economic get-together: the Federal Reserve Bank of Kansas City-hosted Economic Symposium.  And once again, the most hotly anticipated event will be a speech by Federal Reserve chair Jerome Powell that typically takes place on Friday morning.  Often his speech is a chance for the central bank to send a signal about monetary policy and in the context of the recent shakiness in financial markets, his words will make headlines.

 

So much for summer doldrums.

 

Energies: 

 

September crude oil jumped ±$2.00/ per barrel today on the heels of a six-week ±$10 per barrel slide from ±$83/barrel to $73/barrel going back to early July.  The rally ensued after data showed a bigger-than-expected draw in U.S. crude stockpiles which have declined for six straight weeks.  On the demand side, worries about weak oil demand in China persisted.  Reports today showed that China, the world’s biggest importer of crude reported its lowest average daily import level for the month of July since September 2022.  China’s imports of other major commodities including iron ore, coal, copper and natural gas have also lost momentum or at best remained flat in recent months.

 

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Daily Levels for August 8th, 2024

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Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
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Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

Explore trading methods. Register Here

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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.

Note About Recent Volatility: Stay Cautious and Informed + Futures Trading Levels for Aug. 7th

Posted on by Ilan
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trading chart

 

Note About Recent Volatility:

 

The current trading environment is quite volatile and unpredictable to say the least. Most of our clearing houses have temporarily raised intraday margin requirements. Intraday price swings have been considerable. Be aware, be careful, don’t jump into stormy seas if you are not an experienced swimmer.

 

Many of us brokers here at Cannon have been around for many years and have seen some very wild times, such as during the COVID pandemic, the housing bubble collapse in 2006-2007 and the 9/11 terrorist attack in 2001. Some were trading during the Oct. 1987 crash. So, feel free to reach out to our experienced group. We are here to help.

 

First Notice & Last Trading Days:

Below are the contracts which are entering First Notice or Last Trading Day for the upcoming month. Be advised, for contracts that are deliverable, it is requested that all LONG positions be exited two days prior to First Notice and ALL positions be exited the day prior to Last Trading Day. If you have any questions please contact your broker.

 

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Daily Levels for August 7th, 2024

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Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
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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

3b644da2 2bee 4d39 8d98 5208a20bec39

* 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.

Limit Moves/Circuit Breakers + Futures Trading Levels for Aug. 6th

Posted on by Ilan
Get Real Time updates and more by joining our Private Facebook Group!
Subscribe to our YouTube Channel
Listen to our Market Recap Podcasts on Apple Podcasts

 

C87

 

I’ve received questions about price limits or circuit breakers applied to futures contracts, so here’s some clarification:

 

A price limit is the maximum move permitted for a futures contract.  When markets hit their price limit, different actions can occur depending on the product being traded. Markets may temporarily halt until price limits can be expanded, they may remain in a limit condition or they may stop trading for the day, based on regulatory rules.

The CME Group applies price limits to many futures contracts across assets classes including agricultural, energy, interest rates, equity index and others.

 

Here are some specifics related to equity index products, including the E-mini S&P 500, the E-mini Nasdaq, the E-mini Dow Jones, the E-mini Russell 2000 and others.

 

→ From 5:00 P.M. to 8:30 A.M. Sundays through Fridays as well as from 3:00 P.M. – 4:00 P.M., Mondays through Fridays, only 7% up-and-down price limits are effective.

 

→ From 8:30 A.M. to 2:25 P.M., Central Time, Mondays through Fridays, 7%, 13%, and 20% price limits are applied to the futures price.

 

∙ 7% price limit trading halt: 15 mins

 

∙ 13% price limit trading halt: 15 mins

 

∙ 20% price limit trading halt: rest of day

 

→ From 2:25 P.M. to 3:00 P.M., only the 20% price limit will be applied to the futures price.

 

CME Group U.S. equity index price limits are designed to coordinate with circuit breakers provisions as applied by the New York Stock Exchange (NYSE).

 

The 7%, 13%, and 20% price limits are calculated during the 30 seconds of trading using a volume weighted average price (VWAP), from 2:59:30 P.M. – 3:00:00 P.M.

Note to New Traders:

The current trading environment is quite volatile and unpredictable to say the least. Most of our clearing houses have temporarily raised intraday margin requirements. Intraday price swings have been considerable. Be aware, be careful, don’t jump into stormy seas if you are not an experienced swimmer.

 

Many of us brokers here at Cannon have been around for many years and have seen some very wild times, such as during the COVID pandemic, the housing bubble collapse in 2006-2007 and the 9/11 terrorist attack in 2001. Some were trading during the Oct. 1987 crash. So, feel free to reach out to our experienced group. We are here to help.

 

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Daily Levels for August 6th, 2024

b85df08d f8ed 4ab9 83d0 fe814e2b424b

Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)
4db78e8b 0530 4c24 96f2 debb0c788a2b

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

3b644da2 2bee 4d39 8d98 5208a20bec39

* 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.

RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.