Cannon Trading Blog

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

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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

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.

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.

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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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’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

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.

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.

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.

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.

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.