Cannon Trading Blog

 August gold is front month.

September bonds, 10 years, 5/2 and notes is front month.

Some days are just losing days….

Don’t fight it. You will have losing days. I have been in the futures industry for 15 years now and never have I met a trader who did not have a losing day…and I will never meet one….impossible.

Understand it and accept it. One of your hardest jobs as a day trader is to make sure a losing day does NOT become a disaster…Our human emotions and our brain is not programmed very well to learn how to lose. Yet one of the key differences between traders and those who try to become “traders”…is that traders first learn how to lose. They understand losing is part of trading. The others, refuse to take a losing day and will make many mistakes along the way to make a “normal losing” day into a disaster. That may be carrying positions overnight when they normally don’t, reversing, pyramiding and many other mistakes that they would normally not make. That turns a “normal losing day” (maybe for an account of $10,000, a normal losing day would be down $700?) into one of those days where they wipe out half of their account, if not more.

Have realistic expectations. Under the statistics of your own trading. Keep notes.

Sometimes we need to learn how to lose before we can excel in trading.

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 May 31st, 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.

 The Rest of the Short Trading Week:

By Mark O’Brien, Senior Broker

General: 

Breaking records – either multi-year or all-time – has been in style for commodities in recent months.  Notable markets to set new all-time record highs include all three major stock index futures: S&P 500, Nasdaq, Dow Jones, cocoa, gold, silver and Bitcoin.

Not to be overlooked, in February natural gas traded to lows not seen in nearly 30 years.

One other record is garnering attention lately because of its sheer persistence and no sign of ending.  And while it’s not a futures market, it is an economic indicator futures traders and others watch closely – known as an inverted yield curve, in which yields on short-term Treasurys exceed those of longer-term government debt.  Long taken as a nearly surefire signal that an economic pullback is on the horizon (it happened prior to each of the last eight downturns in the U.S.), the current yield curve inversion has now stretched for over 400 trading sessions with no measurable signs of a major economic slow-down in sight.

It harkens to one of the principal rules in trading that we strive to drill into the minds of traders: Past performance is not indicative of future results.

Energies: 

Due to the short trading week, both the natural gas and the crude oil numbers will be released tomorrow.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a collection of nations that produces 40% of the world’s crude oil are getting together to decide their strategy at OPEC’s ministerial meeting on Sunday, June 2nd.  Traders and analysts are predicting the 2.2 million barrels per day voluntary production cuts will stay in place.

Metals: 

Last Tuesday, July silver closed at $32.20/ounce and at this typing, the contract is trading barely 3 cents from there at ±$32.17 per ounce.  Sandwiched between there – within five trading sessions – the contract dropped ±$2.00/ounce then rallied right back, a ±$10,000 per contract swing in both directions.

Crypto: 

Bitcoin futures have threatened to breach the 70,000 mark over the last eight trading sessions – dating to May 20.  The front month June contract’s all-time high close on March 13: 75,900.  This is a ±$12,000 per contract move from its last correction low on May 1 near 58,000.

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 May 30th, 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’s Market Scanner

In the overview below, you’ll find our analysis of which markets present the best opportunities for long and short positions.

Our latest offering is the culmination of extensive research and rigorous backtesting of mathematical models designed to forecast the optimal direction for market engagement on any given day. The result is a comprehensive table that highlights the markets our algorithm deems most favorable for long positions, as well as those suitable for short positions. But what does this mean in practice? There are numerous strategies one might employ, yet the core principle remains: recognizing a market’s inherent bias can significantly aid a trader’s decision-making process. For instance, if there’s an identifiable long bias in a market nearing a support level, instead of considering a short position, it would be prudent to contemplate a purchase, aligning with the market’s long inclination. This is merely one instance of how such insights can be leveraged. We suggest monitoring the data closely for several days, or even weeks, taking detailed notes throughout. By dedicating yourself to this analysis, we’re confident you’ll discover the immense value of this information.

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 May 28th, 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 # 1195

• Important Notices – Memorial Day Trading Hours
• Futures 101 – Simplify Your Day Trading
• Hot Market of the Week – Dec 24/Dec 25 Corn Spread
• Broker’s Trading System of the Week – NQ Swing System
• Trading Levels for Next Week
• Trading Reports for Next Week

Important Notices – Next Week Highlights:

• Short trading week. Monday most markets are either closed or observe a modified schedule. Memorial Day Trading Schedule HERE
• Light Data Week: Consumer Confidence Tuesday, jobless claims and GDP Thursday, Chi PMI Friday
• Roll June Gold futures to the August contract: symbol (Q) (micro, mini and full)
• Earnings features: Costco, Salesforce and Dell. ( a number of discount retailers as well)

Treasury Bond Auctions and Price Action Watch video below. Ever traded the ES or MNQ and all of a sudden around 1:01 PM Eastern time a large move takes place and you wounder what happened? Watch video below….

Simplify Your Day Trading

• Hot Market of the Week – Dec 24 – Dec 25 Corn Spread

Would you like to receive daily support & resistance levels?

Yes Select

No Select

Daily Levels for May 27th 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’s Market Scanner

In the overview below, you’ll find our analysis of which markets present the best opportunities for long and short positions.

Our latest offering is the culmination of extensive research and rigorous backtesting of mathematical models designed to forecast the optimal direction for market engagement on any given day. The result is a comprehensive table that highlights the markets our algorithm deems most favorable for long positions, as well as those suitable for short positions. But what does this mean in practice? There are numerous strategies one might employ, yet the core principle remains: recognizing a market’s inherent bias can significantly aid a trader’s decision-making process. For instance, if there’s an identifiable long bias in a market nearing a support level, instead of considering a short position, it would be prudent to contemplate a purchase, aligning with the market’s long inclination. This is merely one instance of how such insights can be leveraged. We suggest monitoring the data closely for several days, or even weeks, taking detailed notes throughout. By dedicating yourself to this analysis, we’re confident you’ll discover the immense value of this information.

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 May 24th, 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

By Mark O’Brien

General:   

At their April 30 – May 1 meeting, according to its minutes released later this morning, Federal Reserve officials once again expressed concern that inflation wasn’t moving lower quickly enough, a theme that has started to weave its way into the “higher for longer” narrative expressed by the central bank through the last several meetings.  Moreso, participants assessed that while policy was “well positioned,” various officials mentioned a willingness to tighten policy further if warranted.

Energies:  

The Biden administration announced yesterday that it would sell off one million barrels of gasoline over the coming weeks from a strategic reserve in the Northeast, a move it said was designed to keep gasoline prices in check for consumers ahead of the July 4 holiday. The sale of the government-owned stock was mandated by Congress in the spending bill it passed in March, and will culminate in the closure of the reserve, which has facilities in the New York Harbor area and Maine.

Softs:  

After a brief reprieve at the start of the year, orange juice futures have resumed their ascent to new all-time highs.  The key fundamental factor was the announcement by Brazil, the world’s main producer (sorry Florida) forecast their production this current season is expected to yield a 24% decline in their harvest from the prior year and the lowest harvest since 1989.  The front July contract traded up ±90 cents/lb., a $13,500 per contract move in just the last 10 trading sessions to close at $4.633/lb.

Metals:  

After hitting an all-time record high above $5.19/lb. intraday on Monday – breaking a two-yr. record -July copper prices fell today in their worst single-day performance over the year to date, as the market decided to cash in on the commodity’s recent rally.  Over the last two months, copper futures have increased ± 25% from $4 to over $5/lb, a blistering $25,000 per contract move.  Today’s ± 30-cent/$7,500 drop likely forewarned greater volatility related to long-term supply concerns and the world’s efforts to aggressively mine this important industrial metal.

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 May 23rd, 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.

Futures brokerage firms play a crucial role in the commodities market, offering services that enable traders to participate in futures trading. A standout example of such a firm is Cannon Trading, Inc., established in 1988, which has distinguished itself through a combination of excellent customer service, a wide variety of trading platforms, and a diverse range of products.

Cannon Trading’s reputation for exceptional service is reflected in its perfect 5-star rating on TrustPilot, the highest in the industry for customer satisfaction. Reviews from TrustPilot highlight Cannon’s personalized service, with one client noting the quick and efficient responses that make interactions feel personal and another praising the professionalism and friendliness of the staff. Such testimonials underscore the firm’s commitment to its clients and its effectiveness in fostering a supportive trading environment.

In the late 1990s, Cannon Trading Company embraced the digital revolution by transitioning into online trading, a pioneering move that significantly enhanced its service offerings and accessibility. As the internet began reshaping various industries, Cannon Trading recognized the potential to leverage this technology to benefit futures traders worldwide.

The shift to online trading allowed Cannon Trading to offer more efficient, faster, and more accessible trading solutions. This transformation was not merely about adopting new technology but also about innovating the way trading was conducted. By integrating sophisticated online trading platforms, Cannon provided its clients with real-time data, advanced charting tools, and direct market access, which were once only available to professional trading floors.

This strategic move proved to be visionary as it positioned Cannon Trading at the forefront of the futures brokerage industry. It enabled them to expand their client base globally by providing tools that catered to both novice and experienced traders. The online platforms featured user-friendly interfaces that simplified the trading process, making it easier for new traders to enter the market while providing powerful analytical tools that seasoned traders sought.

Moreover, Cannon Trading’s early adoption of online trading technologies laid the groundwork for continuous innovation. It allowed them to keep pace with evolving market demands and technological advancements. As online trading platforms evolved, Cannon Trading continually upgraded and expanded its offerings, ensuring that clients had access to the best possible trading technologies and services.

This foresight and adaptability have been critical to Cannon Trading’s enduring success, demonstrating the company’s commitment to leveraging technology to enhance customer service and satisfaction. By pioneering into online trading during its nascent stages, Cannon Trading not only capitalized on early opportunities but also set a standard in the futures brokerage industry for technological adoption and customer-focused service.

What separates Cannon Trading from other firms in the futures brokerage industry is not only its long-standing history and high customer satisfaction but also its comprehensive offerings. Cannon provides access to all major U.S. futures exchanges and many international ones, offering platforms like E-Futures International and Sierra Chart, known for their user-friendly interfaces and robust capabilities. Clients benefit from competitive commission rates, low day-trading margins, and no monthly fees for platform use, which are significant advantages for both new and experienced traders.

Moreover, Cannon’s dedication to education and support is evident through its offerings such as weekly newsletters, video tutorials, and a robust trading library, aimed at enhancing traders’ knowledge and skills. These resources are complemented by personalized support from experienced brokers, making Cannon an excellent choice for traders who value a blend of professional guidance and comprehensive trading tools.

In conclusion, the best futures brokerage firms, like Cannon Trading, stand out by providing outstanding customer service, a wide array of trading tools, and educational resources that cater to the needs of their clients. Cannon’s ability to maintain high standards of service, combined with its commitment to client education and support, positions it uniquely in the competitive futures brokerage market.

Top of FormReady to start trading futures? Call US 1(800)454-9572 – Int’l (310)859-9572 email info@cannontading.com and speak to one of our experienced, Series-3 licensed futures brokers and start your futures trading journey with Cannon Trading Company today.

Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  Past performance is not indicative of future results. You should carefully consider whether 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 writing are of opinion only and do not guarantee any profits. This writing is for educational purposes. Past performances are not necessarily indicative of future results. 

**This article has been generated with the help of AI Technology. It has been modified from the original draft for accuracy and compliance.

***@cannontrading on all socials.

Some thoughts and pointers to help you day-trade by Cannon Trading:

Trading carries inherent risks, but adhering to eight essential money management principles can help safeguard your capital while enhancing your trading skills with Cannon Trading.

1. Seek out markets with high volume and narrow spreads to ensure prompt order execution and high volatility, offering 2 to 4 viable trades daily. The Emini S&P500 Index Future exemplifies such a market, with each point valued at $50, divided into 4 ticks worth $12.50 each, and 4 contracts annually traded on the Chicago Mercantile Exchange. For smaller accounts, explore the Micro NQ, Micro crude oil as well as gold and other markets. Cannon broker can be an excellent resource if you like feedback on different futures markets.

2. Try to limit your risk to 1% of your capital per trade; this way, your funds can withstand 100 consecutive unsuccessful trades. Even top-tier systems encounter 20% losing trades, so this rule provides flexibility. If your account size is not big enough, you can try adjusting the above to 2-3% and the math will still make sense.

3. Maintain a minimum risk capital of $10,000-$15,000 per Emini S&P500 contract traded—a loss of $1,000-$1,500 then represents just 10% of your capital, a recoverable amount unlike a $3,000 account where the same loss constitutes 50% of your funds, increasing the likelihood of depleting your capital. If this is not viable, consider trading the MICROS which are 1/10 the size.

4. Constrain your trading hours—we advocate for the initial 60-90 minutes of the market, which often sees a solid trend before the midday lull, a preferred window for many professional traders. As of late we noticed that the last 10-30 minutes of the CASH MARKET trading session brings in high volume and large moves as well.

5. Cease trading if losses reach 5-10% of your capital in a single day; such losses are manageable and suggest a misinterpretation of the market. Pause, assess your mistakes, and document them in your Trading Journal.

6. Maintain a Trading Journal, chronicling all transactions. Over time, the mind tends to overlook unsuccessful trades and habits. Record detailed charts and emotional responses. Noteworthy considerations include:

• Ensuring you’re trading based on the charts, not desperation after a few losses.

• Avoiding weak signals due to missing a significant move, which leads to chasing trades or opting for countertrend positions based on the assumption that the market can’t rise further. FOMO (Fear of Missing Out)

·        Take note of the different economic reports and market behavior!

7. Strategically set your stop loss and targets based on chart analysis, not random point selections. Utilize technical indicators like double tops, swing highs and lows, or retracements to moving averages for tighter stops and more favorable profit-to-risk ratios. Trade what the chart presents, not your desires or emotions.

8. Exercise patience!! If possible, try to trade a minimum of 2 contracts, securing 1 for a 2-3 point gain, your initial target, and allow the other to run with a break-even stop. A successful runner can outperform numerous small gains.

By following these guidelines, you can hopefully navigate the trading landscape more confidently and effectively with the help of a Cannon Trading broker when needed.

IMPORTANT PLEASE NOTE: TRADING COMMODITY FUTURES AND OPTIONS INVOLVE SUBSTANTIAL RISK OF LOSS. THE RECOMMENDATIONS CONTAINED IN THE LETTER IS OF OPINION AND DOES NOT GUARANTEE ANY PROFITS. THERE IS NOT AN ACTUAL ACCOUNT TRADING THESE RECOMMENDATIONS.  THESE ARE RISKY MARKETS AND ONLY RISK CAPITAL SHOULD BE USED. PAST PERFORMANCES ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

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 May 22nd, 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.

Monday Market wrap

By John Thorpe, Senior broker

July orange juice continued to make contract highs @ 4.5325 but couldn’t hang on to that historic level and closed down@ 4.4595 down $2.50

Batman where did all the Copper go?

Where is the supply of this non ferrous asset Robin?

Supply tightness globally has changed market sentiment to “you can’t bring copper onto the market quickly” continued concerns about the ability to ramp up production in Panama, Peru and Chile are being reflected in historic highs and a continuing increase in longs from Friday’s CFTC Commitment of trader’s report.

The Gluten is back! And the Wheat is rising!

SRW Chicago Wheat saw its prices move near “limit Up” with the July contract closing up 5.64% or 36 ¼ cents or $1800.00 per contract at $6.88 per bushel. ( limit up in all wheat contracts is .40 https://www.cmegroup.com/trading/price-limits.html )

The HRW KC Wheat was not far behind, up 34 cents and the Minneapolis spring wheat Rallied .27 ¾.

Weather remains the key driver of the moment as ongoing dryness and the recent frost/freeze events turning to hot weather in S Russia and surrounding crop areas in Ukraine and Kazakhstan are further trimming wheat and canola production ideas Here at home, waves of rain have slowed the pace of planting which is adding to the overall row crop supply side anxiety in the trade where funds have been working to get less short this month.  For this afternoon’s crop progress report. We look for Spring wheat to advance from 61% planted last week to 75% vs. 73% average. Winter wheat conditions steady at 50% G/E.

These are Weather markets , talk to your broker about seasonal price tendencies and they are just that, tendencies.

Stocks are holding firm, waiting for the FOMC minutes to be read on Wednesday.

Gold and Silver are clearly in an inflationary trance, expect higher volatility to continue for weeks to come.

 Memorial Day is next Monday, see schedule 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 May 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.

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.