Cannon Trading Blog

Lower volume than usual today across the board, with choppy action in stock indices.

Summer trading? 4th of July extended vacations to some of the larger money? perhaps the light calendar and maybe it is all of the above.

Looks like a Light week ahead, based on reports below BUT we have CPI, PPI as well as:

Heavy Fed Speak and Data :

We have Treasury Secretary Yellen and Fed Chair Powell providing testimony to congress’s Semiannual Monetary Policy report, Tuesday its the U.S. Senate Committee on Banking, Housing and urban affairs. Wednesday it’s Before the U.S. House Financial Services Committee. In addition to 4 other Fed Speakers, Barr, Bowman, Goolsbee and Cook.

On the data front, impressive releases: Used Car Data, Consumer Inflation Expectations, Consumer Credit, NFIB Business Optimism Index, Jobless Claims, CPI, PPI, Michigan Consumer Sentiment

And Finally, WASDE release on Friday @11 a.m. Central

Daily Levels for July 9th, 2024

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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.

Bullet Points, Highlights, Announcements     

By Mark O’Brien, Senior Broker

Happy Independence Day eve. Heads up traders. While tomorrow, July 4th is a holiday, the next day, July 5th is the first Friday of the month and for traders it marks the release of the Labor Department’s monthly Non-farm payrolls report. The report is widely considered to be one of the most important and influential measures of the U.S. economy. It’s released at 7:30 A.M., Central Time.

The economy is expected to have added 190,000 jobs in June, a step down from the 272,000 new jobs in May. The unemployment rate is forecast to hold steady at 4%. Average hourly earnings are expected to decline from 0.4% in May to 0.3% in June, in a potential good sign for the Fed.

Stock Indexes:

The Nasdaq climbed to new all-time highs today as traders continued their buying into the excitement surrounding artificial-intelligence technology.

The S&P 500 rose to set an all-time high for the 33rd time this year.

4th of July modified trading hours! Full schedule HERE

https://www.cannontrading.com/tools/support-resistance-levels/4th-of-july-2024-holiday-schedule-for-cme-exchange-hours/

Daily Levels for July 5th, 2024

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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.

Choppy, Exhilarating Market week, yet to come..

By John Thorpe, Senior Broker

Look for a quiet July 3rd trading morning due to an early trading halt in the stock indices, 12:15 Central time to be exact.

HOWEVER, the rest of the futures markets will be closing normal times.

After the equity market Halt in Wednesday, FOMC Minutes will be released @ 1:00p.m. Central. Watch the outside markets react, Currency’s, Interest Rates, Metals to get an Idea of how the equities will react when they re-open on the Eve of the 4th of July.

Friday at 7:30 a.m. central, the very meaningful, Non-Farm Payrolls will be released.

In celebration of America’s 248th birthday, our team decided to take a look at this holiday through the fascinating lens of numbers. As it Turns out, these figures paint a vivid picture of what makes the Fourth of July such an extraordinary celebration. With that in mind, we thought we would share what we found with you:

• $9.5 billion – The estimated amount Americans spent on 4th of July food in 2023 — about $93.34 per person.
• 150 million – The number of hot dogs consumed each 4th of July — enough to stretch from D.C. to L.A. more than five times. It’s also the number of American flags sold in the U.S. each year.
• 2 million – The number of people who tuned in to watch 2023 Nathan’s Famous International Hot Dog Eating Contest champs Miki Sudo and Joey Chestnut consume approximately 102 hot dogs combined.
• $3 billion – The estimated amount of dollars Americans spent on beer and wine for the Fourth of July in 2023. If you partake, just remember to enjoy responsibly!
• $2.3 billion – The total U.S. consumers spent on fireworks in 2023.
• 50.7 million – The number of people who traveled 50+ miles from home for the 4th of July, up 4% from 2022.

These numbers highlight how Americans like to go all out in our nationwide Independence Day celebrations!

https://www.cannontrading.com/tools/support-resistance-levels/4th-of-july-2024-holiday-schedule-for-cme-exchange-hours/

Daily Levels for July 3rd, 2024

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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.

Short week ahead but packed of action.

Tomorrow, we have both JOLTS report as well as Powell speaking.

4th of July holiday is Thursday and markets will have modified schedule.

Please see below for:

1. Important reports for the week
2. First Notice and Last trading Day for July

Daily Levels for July 2nd, 2024

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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.

Cannon Futures Weekly Letter Issue # 1200

• Important Notices – 4th of July Modified Trading Schedule +Busy Short Week Schedule
• Futures 101 – Essentials of Order Flow
• Hot Market of the Week – Sept. Silver
• Broker’s Trading System of the Week – Mini Nasdaq Swing Trading System
• Trading Levels for Next Week
• Trading Reports for Next Week

Important Notices – Next Week Highlights:

• Earnings:  no significant earnings for the large indices, a quiet one next week on this front
  Fed Speakers:
  • The fireworks start here with Fed Chair Powell, Speaking from Sintra , Portugal at the ECB Central Banking Forum 8:30 am CST Tuesday
  • 6 a.m. CST Wednesday Fed Gov. Williams
  • Also on Wed. FOMC Minutes 1 p.m. Central / 45 minutes after the Equities close ( all other financial markets remain open until 4 p.m. central)
  • Friday early, 4:40 a.m. CST Fed Williams , speaks again
  Econ Data: Potentially biggest fireworks display ignited by the following:
  • Construction Spending, ISM manufacturing, Redbook, Jolts, Economic Optimism Index, ADP Employment change, US Balance of trade, Initial Jobless claims, S&P Global PMI, Factory Orders, FOMC Minutes, Non-Farm Payrolls.
  Please read down for dates and times in our calendar
  • 4th of July hours below and in depth HERE

• Real Time Email and/or Text Alerts

• You will receive an email each time there is an entry or exit in a simple language along with the current price for that specific market.
• Example: Sell June MBT ( micro bitcoin) at market. Target will be 61920 Stop at 70540
• A licensed series 3 broker at your fingertips
• Email alerts available to US and Canada and Int’l clients
• Alerts available for: Stock Indices, Grains, Metals, Rates, Currencies, Meats & Softs
• Alerts are SWING Trades
• See an example of a recent trade alert for Micro Bitcoin Futures in the image below – a new trade alert from June 14th

• Hot Market of the Week – September Silver

Would you like to receive daily support & resistance levels?

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Daily Levels for July 1st 2024

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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.

Tonight’s debate may trigger some short term volatility – hard to tell.

research into the medium term affect, shows not much to be expected.

That being said, we may see some wider moves tonight and then tomorrow we have PCE which will impact indices, metals, rates as well as big USDA report which will affect the entire grain complex.

To add a bit more fuel to the fire…..tomorrow is the last trading day for June. Last trading days of the month usually see higher volume and at times volatility.

When in doubt – stay out!

If you are a day trader, below you will see markets that our proprietary ALGO has identified as being more suitable for attacking either from the long side or the short side for the next trading session.

Questions? We are happy to help!

Daily Levels for June 28th, 2024

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Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

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* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

The Rest of the Trading Week……

by Mark O’Brien, Senior Broker:

General:  

The focus this week will be on the U.S. Personal Consumption Expenditures Price Index, the Fed’s preferred inflation gauge, which could shed light on the central bank’s interest-rate path.

Also on the radar are U.S. first-quarter gross domestic product estimates and the first debate between President Joe Biden and the presumptive Republican presidential candidate and former president Donald Trump on Thursday.

Metals:     

Gold futures prices fell ± $20 or ± 1% to their lowest level in more than two weeks today, likely on the heels of continued U.S. dollar strength.  The front month August contract traded within a few dollars of $2,300 per ounce – which is ±$160/oz. from its mid-May all-time high (Aug. gold closed at $2,461.70/oz. on May 20th).  Conversely, the September U.S. Dollar futures contract dollar rose 0.4% to ± 105.75, a near two-month peak against its main rivals, thus making gold more expensive for other currency holders.

Energies:    

After a ± $8.00 per barrel rally in the last three weeks and trading between $80 – $82 per barrel over the last seven sessions, crude oil futures held steady in the face of the strong dollar.  Traders appear increasingly confident that global oil inventories will inevitably feel demand pressure – particularly in the northern hemisphere coming into its summer driving season.  Geopolitical risks in the Middle East and a ramp-up in Ukrainian drone attacks on Russian refineries are also underpinning oil prices.

If you are a day trader, below you will see markets that our proprietary ALGO has identified as being more suitable for attacking either from the long side or the short side for the next trading session.

Questions? We are happy to help!

Daily Levels for June 26th, 2024

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.

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.

In light of this weeks impactful “Grain Stocks” report out Friday morning

by John Thorpe, Senior Broker:

This 8 ½ x 11, well worn, sheet of paper version has been pinned to the corkboard in my office for decades and is worth a share. Called “Voice from the Tomb”, I have noticed a web page dedicated solely to this Myth or Non Fiction? Lore or Fact? and his experiences following the execution dates.

It’s interesting to contemplate the prospective impact of following the note left to family members, in light of some of the upcoming dates provided. What follows is simply a brief of the contents, feel free to google search the topic to follow the trader’s experiences, you too may end up saving the primary authors advice.

Voice From The Tomb

This is the legend of a wise grain trader that made a fortune trading “seasonals” in the pits of the Chicago Board of Trade.

“After his wife died, a millionaire grain trader dedicated his life to raising their children. The children were lazy and thought they’d inherit all of their father’s money. He felt that his children were wasteful and believed they took him for granted. When he died, all the money went to charity. All he left them in his will were the following dates of when to buy and sell. The will said that if they strictly followed his advice, they’d have the fortunes they always thought were going to drop in their laps.”

So what is a “seasonal”? “Seasonality often plays a part in determining prices for commodities in regular cycles throughout the year. Normal increases and decreases in supply and demand for particular commodities seem to occur every year in fairly consistent patterns. Commodity seasonal patterns might appear to be an easy trading strategy for commodities, but seasonal tendencies are just that – tendencies.” Chuck Kowalski

• Sell March Wheat on January 10
• Buy May and/or July Wheat on February 22
• Sell July Wheat on May 10
• Buy December Wheat on July 1
• Sell December Wheat on September 10
• Buy March Wheat on November 28

Corn

• Buy July Corn on March 1
• Sell July Corn on May 20
• Buy December Corn on June 25
• Sell December and March Corn on August 10

 Disclaimers:

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

** SEASONAL TENDENCIES ARE A COMPOSITE OF SOME OF THE MORE CONSISTENT COMMODITY FUTURES SEASONAL THAT HAVE OCCURRED OVER THE PAST 15 YEARS. THERE ARE USUALLY UNDERLYING FUNDAMENTAL CIRCUMSTANCES THAT OCCUR ANNUALLY THAT TEND TO CAUSE THE FUTURES TRADING MARKETS TO REACT IN A SIMILAR DIRECTIONAL MANNER DURING A CERTAIN CALENDAR PERIOD OF THE YEAR. EVEN IF A SEASONAL TENDENCY OCCURS IN THE FUTURE, IT MAY NOT RESULT IN A PROFITABLE TRANSACTION AS FEES, AND THE TIMING OF THE ENTRY AND LIQUIDATION MAY IMPACT ON THE RESULTS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT HAS IN THE PAST OR WILL IN THE FUTURE ACHIEVE PROFITS UTILIZING THESE STRATEGIES. NO REPRESENTATION IS BEING MADE THAT PRICE PATTERNS WILL RECUR IN THE FUTURE.

If you are a day trader, below you will see markets that our proprietary ALGO has identified as being more suitable for attacking either from the long side or the short side for the next trading session.

Questions? We are happy to help!

Daily Levels for June 26th, 2024

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.

Two markets stood out to start the week, both with a sharp, negative move.

Cocoa was down 12.5%! or the equivalent of -$10,000 if you were on the wrong side…..

Bitcoin futures also finished the day down 7.5% and now trading below the psychological 60,000 level.

Major reports for the week ahead below as well as tomorrow’s specific trading levels for major markets and detailed reports for June 25th.

If you are a day trader, below you will see markets that our proprietary ALGO has identified as being more suitable for attacking either from the long side or the short side for the next trading session.

Questions? We are happy to help!

Daily Levels for June 25th, 2024

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.