Cannon Trading Blog

Cannon Futures Weekly Letter Issue # 1199

• Important Notices – USDA Reports, Presidential Debate and Heavy Economic Data
• Futures 101 – Essentials of Order Flow
• Hot Market of the Week – Dec. Corn
• Market Scanner – For Monday June 24th
• 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, FedSpeak, Presidential Debate and Heavy Economic Data including Bank Stress Test results.
  • FedEx, Micron and Nike report after the close T, W, Thu. In that order Highlight the earnings calendar next week.
  • Fed Members are in Europe next week, Mon. 2 am CST Waller speaks from Rome, Daly at 10 am CST.
  Tues. 6 am CST Bowman, 11 AM Cook. Fri. Barkin 5 am CST, Bowman 11 am CST.
  • Data Begins Mon. (Please review Calendar below for specific times) Dallas Fed Manufacturing Index,
  • Tues. Chi Fed Nat’l Activity Index, Housing Data, Consumer Confidence
  •  Wed. Building Permits, 3:30 CST
  • Bank Stress Test results
  • Thu. Core PCE Q over Q, Jobless Claims, Durable Good, GDP Final, Retail and Wholesale Inventories, Presidential Debate
  • Fri. Core PCE M over M final. Chicago PMI
  • USDA grains stocks and planted acreage Friday, June 28th

• Hot Market of the Week – December Corn

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Daily Levels for June 24th 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.

Today’s somewhat volatile but choppy/ two sided price action in stock index futures,  encouraged me to share the following with you on the different types of trading days:

• In my opinion there are 3 main types of trading days.

1. The most common day are two sided trading action with swings up and down – this type of trading day is most suitable for using support and resistance levels along with overbought/oversold indicators.

2. Strong trending days, mostly one directional – this type of trading day is the least common, many times will happen on Mondays and maybe 3-5 times a month at most – this type of trading day is most suitable for using ADX, MACD crossovers and pretty much looking for pullbacks to jump on the trend.

3. Slow and/or choppy trading days – this type of trading day is best suited for taking small profits from the market by looking at volume spikes, using stochastics as possible entry signals and usually wait for a pullback before jumping in.

• A good question I’ve been asked is how can one asses what type of trading day we will have while the market is still trading….I have been doing some work in finding the answers and will be happy to hear feedback via email but here are some initial observations:

1. Was the overnight session a wide, two sided trading range? If the answer is yes, good chances for similar trading day during the primary session (primary session is when the cash/stock market is open)
2. Mondays have the highest chance for trending days
3. The behavior of the first hour of trading can also suggests the type of action for the rest of the day.
4. If the first 30 minutes of the trading day have good volume, better chances for type 1 or type 2 trading days.
5. Low volume during the first 30 minutes can suggest a choppy (type 3 trading day)

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 21st, 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.

Today is Juneteenth and markets closed early.

Reports & levels for a much busier and regular trading day below.

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 20th, 2024

Improve Your Trading Skills

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.

Tomorrow is Juneteenth and markets will observe modified trading schedule

Juneteenth Day 2024 Holiday Schedule for CME Exchange Hours (including Globex & ICE Exchange)

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 19th, 2024

Improve Your Trading Skills

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.

A few Tips worth repeating as we go head on into the summer months

By John Thorpe, Senior Broker

From time to time I am asked by my clients for a viewpoint that is separate from the application of technical indicators to overcome some of their perceived, faulty analysis.

Without restructuring anyone’s methodology, I think it fair that a self-assessment applying some common biases that will easily reveal weaknesses in their trade and risk management selection process be applied to your decision making process.

If you practice exposing these biases during your trading decision process and write down in your journal when they occur with the net result of the trades, you can quickly tighten up your game plan.

It takes 21 days to create a habit according to Steven R. Covey in his  best seller “Seven Habits of Highly Effective People”

Technical analysis is not a flawless science and it can be prone to various biases.

I will try to make this brief; however, this topic requires a much deeper dive. Here is a list of some common biases.

1 Confirmation Bias-Preconceived notions about a market/ Actively seek out other technical signals.

2 Regency Bias-ignoring long term trends/ don’t rest your analysis simply on price action in shorter time frames.

3 Anchoring Bias-fixate on Price and refuse to adjust.

4 Availability Bias-rely too heavily on recent news.

5 Gamblers Fallacy- traders believe the past events increase the likelihood of future events. / eval trade independently.

6 Emotional Bias Fear, Greed clouds judgement.

Plan your trade and trade your plan

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 18th, 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.

Cannon Futures Weekly Letter Issue # 1198

•  Important Notices – Rollover, Juneteenth
• Futures 101 – Unlock the Secrets of Day Trading Futures
• Hot Market of the Week – July Hogs
• Market Scanner – For Monday June 17th
• 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:

• Juneteenth is this Wednesday, June 19th. Modified trading schedule.
• Rollover is here! Start trading September mini SP, mini NQ, Micros etc.
• Heavy Private Sector/Consumer Data: Tues: Retail Sales, Wed: Housing market Index, Thur: Bldg Permits, Housing Starts, Jobless Claims, Philly Fed, Fri PMI Flash, Existing Home Sales.
• Heavy Fed Speakers:  7 Count ’em! , Mon: Cook,  Tues. Collins, Kuglar, Logan, Muselem, Goolsbee,   Thu. Barkin
• Light Earnings: ACCenture PLC is the highest Cap stock reporting and it’s pre market open on Thursday.

Watch video below on how to rollover if you are a stock index trader on our E-Futures Platform!

• Hot Market of the Week – July Hogs

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Daily Levels for June 17th 2024

Improve Your Trading Skills

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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.

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.

For all of you index traders, you may have noticed the shrinking Open Interest and Volume in the June contracts. It’s that time when volume shifts to the next quarterly expiration contract. September! the symbol is U.

June volume will be drying up quickly, don’t get stuck next Friday morning with a June contract at the crack of dawn when the carousel stops.

I personally start trading the September, U contract this Monday but many traders will start switching as of today….just make sure your charts are aligned – meaning that both the DOM and the charts use the same symbol.

Watch video below on how to rollover if you are a stock index trader on our E-Futures Platform!

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 14th, 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.

Bullet Points, Highlights, Announcements

General: 

It’s looking like it’s going to be a slog of a summer for Fed policy as officials once again took a wait-and-see approach as the Federal Reserve left interest rates unchanged in their June decision.

Based on the most recent economic data – including this morning’s lower-than-expected Consumer Price Index

reading – the central bank predicted it would cut borrowing costs just once before the end of 2024, a sign that they plan to be patient before turning a corner in their fight against inflation.

Powell suggested any change in policy will depend on inflation slowing, but that rate cuts could also come if the job market breaks down unexpectedly.

The consumer price index held flat in May though it increased 3.3% from a year ago. Both numbers were 0.1 percentage point below market expectations.

Next up tomorrow at 7:30 A.M., Central Time, the Bureau of Labor Statistics releases its latest reading on prices at the wholesale level: its Producer Price Index.

Stock Indexes:

The E-mini S&P 500 jumped to a record and closed above 5,400 for the first time Wednesday after May inflation data pointed to easing pricing pressures and the Federal Reserve’s latest policy announcement.

The E-mini Nasdaq gained about 1.5%. Both the S&P 500 and Nasdaq hit all-time intraday highs and closed at all-time record highs today.

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 13th, 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.

FOMC and CPI Tomorrow!

CPI will be first and the last 10 CPI or so reports have been pretty volatile with large moves happening as soon as the numbers come out. Be careful of “vacuum”, lack of liquidity for few seconds when the report comes out.

Once the report settles, cash stocks open we will have the energy numbers and then a couple of hours before FOMC rate decision…

FOMC Rate decision tomorrow.

The following are my PERSONAL OPINION on trading during FOMC days:

·    ·Reduce trading size

·    Be extra picky = no trade is better than a bad trade

·    Choose entry points wisely. Look at longer time frame support and resistance for entry. Take the approach of entering at points where you normally would have placed protective stops. Example, trader x looking to go long the mini SP at 5325.00 with a stop at 5319.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 5319.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).

·    Expect the higher volatility during and right after the announcement

·    Expect to see some “vacuum” ( low volume, big zigzags) right before the number.

·    Consider using automated stops and limits attached to your entry order as the market can move very fast at times.

·    Know what the market was expecting, learn what came out and observe market reaction for clues

·    The rate announcement comes out exactly at 1 PM central. As of this morning there is a 99.1% chance of no change in rates.

·    Traders will pay EXTRA attention to the language and the Q&A which starts at 1:30 PM Central

·    Be patient and be disciplined

·    If 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 12th, 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.