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.

Quick Links: Commissions | Day Margins | Contact Us
Open An Account
Free Demo Account Subscribe Here

Weekly Newsletter: Learn a Trade Set Up + Futures Levels 8.14.2023

Posted on by Ilan

Cannon Futures Weekly Newsletter Issue # 1158

 

Join our private Facebook group for additional insight into trading and the futures markets!

In this issue:

  • Trading Resource of the Week – Keltner Channels, Volume Charts – Trade Set Up
  • Hot Market of the Week – September Dollar Index
  • Broker’s Trading System of the Week – Platinum Swing Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

  • Trading Resource of the Week – Keltner Channels, Volume Charts, Algo Signals – Trade Set Up

Watch the 5 minute video below which share a trading set up I like, using volume charts, candle sticks, Keltner Channels and proprietary ALGOs for trading signals.

Download a FREE demo of the SAME EXACT platform used in the demo here. Real time data.

8c163aa1 b068 4c37 a63d fec789b19b29
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.
September Dollar Index stabilized its sharp break last months and has been recovering higher since. The chart is also activated upside PriceCount objectives, the first count projects a run to the 102.96 area, consistent with a challenge of the early July highs.
PriceCounts – Not about where we’ve been , but where we might be going next!
9193edbe d5f3 4724 a4ae cbf74ad3f87c
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.
3b644da2 2bee 4d39 8d98 5208a20bec39
With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.
PRODUCT
Platinum
SYSTEM TYPE
Swing
Recommended Cannon Trading Starting Capital
$20,000
COST
USD 115 / monthly
cf6e5544 8246 4e7a bc98 dbba33acb47a
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.
Sign Up for a Free Personalized Consultation with a Broker from Cannon Trading Company
Questions about the markets? trading? platforms? technology? trading systems? Get answers with a complimentary, confidential consultation with a Cannon Trading Company series 3 broker.

  • Trading Levels for Next Week

Daily Levels for August 14th, 2023
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
Would you like to receive daily support & resistance levels?
Yes
S
No
S

Weekly Levels

 

1c54b194 9049 4824 9506 be8beee41575

  • Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week: www.mrci.com 
5b7cbd0d 5db4 43d1 8b05 afaec9502833

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 herein 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 judgment in trading.

 

Good Trading!
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. 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.

PPI, Michigan inflation + Trading Levels 8.11.2023

Posted on by Ilan
Get Real Time updates and more on our private FB group!

Trading levels for August 11th, 2023 – PPI as well as Univ. of Michigan consumer sentiment and inflation expectations tomorrow.

Looks like market dynamics and pace of trading may have changed?

After more than a few weeks of range bound choppy trading in stock indices futures, today’s session had much larger range, faster speed and higher volatility and volume.

96da7b21 06f5 4ac4 a761 fedb16e3df70

 

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  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 when it comes to Futures Trading.

Futures Trading Levels

08-11-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

Improve Your Trading Skills

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


Economic Reports, Source: 

Forexfactory.com

 

45eb0df5 ca1f 4ad7 8ab5 8782f0ca90d7

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.

CPI + Trading Levels for August 10, 2023

Posted on by Ilan
Get Real Time updates and more on our private FB group!

CPI + Trading Levels for August 10th 2023

CPI tomorrow at 7:30 AM Central time. Market moving report.

Why Traders Care?

Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment

Derived Via The average price of various goods and services are sampled and then compared to the previous sampling;

Acro Consumer Price Index (CPI);

96da7b21 06f5 4ac4 a761 fedb16e3df70

 

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  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 when it comes to Futures Trading.

Futures Trading Levels

08-10-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

Improve Your Trading Skills

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


Economic Reports, Source: 

Forexfactory.com

 

8bd79560 206e 4013 8566 0c216b45fd7a

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.

Week Ahead: What to Watch Out For + Trading Levels for August 8th 2023

Posted on by Ilan
Get Real Time updates and more on our private FB group!

The Week Ahead, by John Thorpe, Senior Broker

A sleepy week for market moving info EXCEPT!….     if you are trading the financial futures products you look for earnings reports and economic numbers to fuel the big moves you can profit ( or lose…) from, this week we have….

Well, the major earnings reports seem to be behand us but we still have companies that are proxies for gauging economic health,  this week’s biggest one is UPS, on Tuesday before the open.   Yellow trucking is bankrupt, what say UPS and it’s delivery wagons?  I snipped this from Seeking Alpha The consensus EPS estimate is $2.50 and the consensus revenue estimate is $23.12 billion.

  • Over the last 2 years, UPS has beaten EPS estimates 88% of the time and has beaten revenue estimates 63% of the time.

Fewer economic numbers this week but we have a whopper on Thursday early, July CPI will be released at 7:30 am CDT

PPI is on Friday morning and for you stalwart grain traders Friday @ 9:00 CDT WASDE, Crop production and USDA Supply and Demand , these numbers are critical to marketing efforts this time of year and could create large price swings call you broker and ask about grain options before the reports to take advantage of Friday Grain Volatility and beyond!

 

 

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  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 when it comes to Futures Trading.

Futures Trading Levels

08-08-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

 

Improve Your Trading Skills

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


Economic Reports, Source: 

Forexfactory.com

3183cd0d 19ec 49a6 92b7 332c5309b298

 

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.

Wheat Futures in the US: A Comprehensive Overview

Posted on by Cannon Operations

Learn more about trading wheat futures with Cannon Trading Company here.

Wheat futures are an essential aspect of the American agricultural landscape, serving as a vital risk management tool for farmers, traders, and consumers alike. Understanding wheat futures requires an exploration of the growing areas in the United States, futures contract sizes, exchanges where wheat futures are traded, as well as the seasons for planting and harvesting. Additionally, weather patterns, including droughts, significantly impact wheat production and prices. Furthermore, there are various types of wheat grown in the US, such as winter wheat and spring wheat, each with its unique characteristics and uses.

Growing Areas in the United States

The United States is one of the largest producers of wheat in the world, with numerous regions contributing significantly to its cultivation. The primary wheat-growing areas include the Great Plains region, commonly known as the Wheat Belt. This vast expanse encompasses states like Kansas, North Dakota, South Dakota, Nebraska, and Oklahoma. The region’s fertile soils, semi-arid climate, and adequate rainfall provide optimal conditions for wheat cultivation.

Other significant wheat-producing states include Montana, Texas, Colorado, Washington, and Idaho. Each state has distinct climatic and soil conditions that influence the type of wheat grown and its overall yield.

Futures Contract Sizes

Wheat futures contracts are standardized agreements that allow traders to buy or sell a specified quantity of wheat at a predetermined price and delivery date in the future. In the US, wheat futures contracts generally represent 5,000 bushels of wheat. This standardized contract size provides liquidity to the market and enables efficient trading and hedging against price fluctuations.

Exchanges where Futures are Traded

The primary exchange for trading wheat futures in the US is the Chicago Board of Trade (CBOT), which is part of the CME Group. The CBOT, with its long-standing history, provides a robust platform for wheat futures trading, attracting a diverse range of participants, including farmers, millers, and speculators.

Seasons for Planting and Harvesting

Wheat cultivation in the US follows seasonal patterns, with planting and harvesting occurring at specific times of the year. The exact timing varies based on the type of wheat and regional climate conditions.

  1. Winter Wheat: Winter wheat, which is the most widely grown type in the US, is typically planted in the fall, from September to November. The young wheat plants go through a period of dormancy during the winter months and resume growth in the spring. Harvesting takes place in late spring to early summer, between May and July, depending on the region.
  2. Spring Wheat: As the name suggests, spring wheat is planted in the spring, from March to April, once the soil temperatures have warmed sufficiently. This type of wheat requires a shorter growing season and is typically harvested in late summer, between August and September.

The planting and harvesting schedules are carefully planned to optimize the use of resources and align with the climatic conditions that best support each type of wheat.

Weather Patterns and Droughts

Weather patterns have a substantial impact on wheat production and prices. Wheat is a hardy crop, but its yield is greatly influenced by factors such as temperature, rainfall, and soil moisture.

Excessive rainfall during the growing season can lead to waterlogged fields and increase the risk of diseases, potentially reducing the crop’s quality and yield. On the other hand, drought conditions can severely affect wheat production. Insufficient moisture during critical growth stages can cause stunted growth and poor kernel development, resulting in lower yields and diminished grain quality.

Droughts, in particular, pose a significant risk to wheat farmers and can lead to reduced harvests, higher wheat futures prices, and increased volatility in the market.

Types of Wheat

In the US, various types of wheat are grown, each with its distinct characteristics and uses. Some of the major types include:

  1. Hard Red Winter Wheat: This is the most widely grown type in the Wheat Belt. It is known for its high protein content, making it suitable for bread production.
  2. Soft Red Winter Wheat: Primarily cultivated in states like Ohio, Illinois, and Indiana, this type has lower protein content and is commonly used for pastries, cakes, and cookies.
  3. Hard Red Spring Wheat: Grown in northern states like North Dakota and Montana, this wheat has high protein content and is often used for bread and other baked goods.
  4. Soft White Wheat: Cultivated mainly in the Pacific Northwest, this wheat is used for products like cakes, pastries, and crackers.

Wheat futures in the US are a critical component of the agricultural industry, allowing farmers and traders to manage price risk and ensure stability in the wheat supply chain. Understanding the growing areas, contract sizes, trading exchanges, planting, and harvesting seasons is vital for participants in the wheat futures market. Furthermore, the impact of weather patterns, particularly droughts, cannot be overstated, as they significantly influence wheat production and prices. With various types of wheat cultivated in the US, each with its unique characteristics, wheat futures continue to play a pivotal role in ensuring a stable and resilient wheat market in the United States.

Ready to start trading futures? Call 1(800)454-9572 and speak to one of our experienced, Series-3 licensed futures brokers and start your futures trading journey at 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.

Weekly Newsletter: Trading Around Economic Reports + Levels for August 7th

Posted on by Ilan

Cannon Futures Weekly Newsletter Issue # 1157

 

Join our private Facebook group for additional insight into trading and the futures markets!

Have a safe Memorial Day Weekend. Trading Schedule HERE

In this issue:

  • Trading Resource of the Week – Trading Key Economic reports
  • Hot Market of the Week – September Crude Oil
  • Broker’s Trading System of the Week – NQ Day Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

  • Trading Resource of the Week – Trading Key Economic Reports

As a trader, you will come across many factors that you must consider before entering or exiting the markets. Some of the most important aspects to look for are economic events that can move the markets drastically one way or another.
There are many types of economic events including releases by a governing body, changes in sales or consumption of commodities, and increases in supply and demand. All of these can affect the markets you trade, making it important for you to know how and when these changes are happening.
  • What is GDP?
  • About the Retail Sales Report
  • What is NFP ( non farm payroll) Report?
  • Understanding US housing Data
  • FOMC
  • Understanding Oil Data Report
  • Importance of Consumer Confidence Survey

 

ACCESS THE COURSE NOW

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.
September Crude Oil completed it’s first upside PriceCount objective and had a brief break. At this point, if the market can maintain the bullish tone, the next upside PriceCount objective comes at 89.31
PriceCounts – Not about where we’ve been , but where we might be going next!
7f0ff57c c8e5 44b4 8878 3d075d53315e
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.
3b644da2 2bee 4d39 8d98 5208a20bec39
With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.
PRODUCT
SYSTEM TYPE
Intraday
Recommended Cannon Trading Starting Capital
$30,000
COST
USD 255 / monthly
5fb18316 b96d 43a4 82f2 7d437d41d864
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.
Sign Up for a Free Personalized Consultation with a Broker from Cannon Trading Company
Questions about the markets? trading? platforms? technology? trading systems? Get answers with a complimentary, confidential consultation with a Cannon Trading Company series 3 broker.

  • Trading Levels for Next Week

Daily Levels for August 7th, 2022
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
Would you like to receive daily support & resistance levels?
Yes
S
No
S

Weekly Levels

a061e890 f8c1 47a7 987e efdfdac49a02

 

  • Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week: www.mrci.com 
4351474b 5535 4e04 bd6c d18a7ccf8388

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 herein 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 judgment in trading.

 

Good Trading!
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. 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.

Corn Futures in the US: An In-Depth Overview

Posted on by Cannon Operations

Read more about trading Corn Futures with Cannon Trading Company here.

Corn futures play a pivotal role in the American agricultural industry, serving as an essential risk management tool for farmers, traders, and consumers alike. Understanding the dynamics of corn futures requires delving into the growing areas in the United States, major silos, futures contract sizes, the exchange where corn is traded, as well as the seasons when corn is planted and harvested. Additionally, weather patterns, including droughts, significantly impact corn production and prices.

Growing Areas in the United States

The United States is the world’s largest producer and exporter of corn, with several key states contributing significantly to its production. The primary corn-growing regions include the Corn Belt, which spans across the Midwest and consists of states such as Iowa, Illinois, Nebraska, Minnesota, and Indiana. These states boast fertile soils, favorable climates, and abundant rainfall, creating optimal conditions for corn cultivation.

Other significant corn-growing states include Ohio, Kansas, South Dakota, Wisconsin, and Missouri, while states like Texas, North Dakota, and Kentucky also contribute to the overall production.

Major Silos

Corn storage is crucial for preserving the harvested crop and ensuring a steady supply throughout the year. The US is dotted with numerous grain silos, elevators, and storage facilities, which are primarily concentrated in the Corn Belt and other major corn-growing regions. These silos are owned and operated by both private companies and agricultural cooperatives, providing farmers with options for storing their corn after harvest until it is sold or delivered for processing.

Futures Contract Sizes

Corn futures contracts are standardized agreements that facilitate the buying or selling of a specified quantity of corn at a predetermined price and delivery date in the future. In the US, corn futures contracts typically represent 5,000 bushels of corn. This standardized contract size allows for efficient trading and risk management, providing participants with the flexibility to hedge against price fluctuations.

Exchange where Corn is Traded

The primary exchange for trading corn futures in the US is the Chicago Board of Trade (CBOT), a subsidiary of the CME Group. The CBOT has a long-standing history of corn futures trading, dating back to the mid-19th century, making it one of the oldest and most respected agricultural futures markets in the world. Traders and hedgers actively participate in the CBOT to manage price risk, speculate on corn prices, and establish supply contracts.

Planting and Harvest Seasons

The planting and harvesting of corn in the US are subject to seasonal patterns influenced by climatic conditions. Typically, corn planting commences in the spring, between March and May, when the soil temperatures rise and become suitable for germination. The exact timing of planting varies across regions based on local climate conditions and soil moisture levels.

Harvesting takes place in the autumn, from September to November, once the corn reaches maturity and the moisture content is ideal for storage. Harvesting periods also vary depending on factors such as the specific corn variety planted and regional climate variations.

Weather Patterns and Droughts

Weather patterns, particularly rainfall and temperature, significantly impact corn production and prices. Corn is highly sensitive to weather conditions during critical growth stages such as planting, pollination, and grain-filling. Adequate rainfall and moderate temperatures during these periods are crucial for achieving optimal yields.

Conversely, droughts can have devastating effects on corn crops. A lack of sufficient moisture during crucial growth stages can lead to stunted growth, poor pollination, and reduced grain-filling, resulting in lower yields and smaller, lower-quality corn. Droughts can drive up corn futures prices as concerns about supply shortages and crop failures emerge.

In recent years, climate change has introduced additional uncertainty to weather patterns, making it more challenging for farmers and traders to predict crop outcomes accurately. Extreme weather events like prolonged droughts or severe storms can cause price volatility in the corn futures market.

Corn futures in the US are an integral component of the agricultural sector, providing a mechanism for farmers and traders to manage price risk and ensure stability in the supply chain. With the primary growing areas in the United States, major silos, standardized contract sizes, and the CBOT as the primary exchange, corn futures trading has evolved into a sophisticated market. Additionally, the seasonal nature of corn planting and harvesting, coupled with the impact of weather patterns and droughts, contributes to the dynamic nature of corn prices and the corn futures market. Overall, corn futures play a crucial role in sustaining the American agricultural landscape and food supply chain.

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.

NFP – Non Farm Payrolls Tomorrow – Futures Trading on August 4th

Posted on by Ilan
Get Real Time updates and more on our private FB group!

NFP, Non Farm payrolls or Unemployment numbers will be released tomorrow at 7:30 AM central. This is currently he biggest report as fed policy depends quite a bit on the labor market.

Be aware of the report, what market is expecting and how the market reacts.

I normally like to be flat 2 minutes before and stay that way for few minutes after until the “smoke clears” but every trader is different.

Source: Bureau of Labor Statistics (latest release) Measures Change in the number of employed people during the previous month, excluding the farming industry;

Usual Effect ‘Actual’ greater than ‘Forecast’ is good for currency;

Frequency Released monthly, usually on the first Friday after the month ends; Next Release Sep 1, 2023

Notes: This is vital economic data released shortly after the month ends. The combination of importance and earliness makes for hefty market impacts;

Why Traders Care? Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity;

Also Called Non-Farm Payrolls, NFP, Employment Change

 

 

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  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 when it comes to Futures Trading.

Futures Trading Levels

08-04-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

 

Improve Your Trading Skills

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


Economic Reports, Source: 

Forexfactory.com

 

3e5b82f1 e305 4814 b76c 53811b346cc8

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.

Rest of the Trading Week: What to Watch Out For + Trading Levels for August 3rd 2023

Posted on by Ilan
Get Real Time updates and more on our private FB group!

Rest of the Trading Week, by Mark O’Brien, Senior Broker

General:

 

The answer is: Germany, Denmark, Netherlands, Sweden, Norway, Switzerland, Luxembourg, Singapore and Australia.

The question is: name the remaining countries whose credit is rated AAA by all three ratings companies – S&P Global, Fitch and Moody’s – after Fitch downgraded the United States’ debt rating from its top-tier AAA, down to AA+.

 

Among the contributing factors leading to the downgrade, Fitch cited, “the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance . . . that has manifested in repeated debt limit standoffs and last-minute resolutions.”

 

Remember in 2011, even though at that time a debt-limit deal was reached, S&P Global lowered the U.S.’s credit rating from AAA down to AA+ and it has not recovered since.

 

Canada is rated AAA by two of the ratings companies.

 

Stock Indexes:

 

Probably not surprisingly, as of this typing, stock indexes reacted negatively to the ratings news with the E-mini Dow Jones losing more than 300 points, roughly a 2% haircut. The E-mini Nasdaq is off ±325 points, a similar 2% correction.

 

Energy:

 

As the stock market foundered, crude oil felt weak in the knees as well and by mid-session, the September contract had sold off $3.00 per barrel from its Sunday opening. This despite today’s EIA crude oil stocks report showing a 17 million barrel reduction in U.S. crude stocks; the largest drop in inventories since 1982.

 

Grains:

 

After trading within 13 cents of its April 2022 highs last week, November soybeans factored in an expected conga line of wet weather fronts moving broadly over the U.S. Midwest and sold off ±$1.00 down to ±$13.25/bushel, a $5,000 per contract move, the bulk of which comprised just three trading sessions. Estimates for this year’s crop are a virtual wild card given the approach of August, its most critical growing period, so expect volatile price movement throughout.

 

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  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 when it comes to Futures Trading.

Futures Trading Levels

08-03-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

Improve Your Trading Skills

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


Economic Reports, Source: 

Forexfactory.com

3d697f7b c0af 4f39 8307 1e6cba2d59e7

 

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.

E-Mini S&P 500: Origins, Viability, and the Rise of Micro S&P Products

Posted on by Cannon Operations

Find out more about trading E-Mini S&P 500 contracts with Cannon Trading Company here.

The E-Mini S&P 500 is a widely traded stock index futures contract that provides exposure to the S&P 500 index. In this article, we will explore the history of the E-Mini S&P 500, understand its viability as a futures contract, and examine the evolution of micro S&P products. We will delve into the conception of trading the S&P 500 index as an E-Mini futures contract, the reasons behind its success, and the subsequent development of micro S&P contracts.

I.Origins of the E-Mini S&P 500:

The E-Mini S&P 500 came into existence as a response to market demands and advancements in technology. Its creation was driven by the Chicago Mercantile Exchange (CME), which sought to introduce a more accessible and cost-effective way for traders to gain exposure to the S&P 500 index.

  1. Conception of E-Mini Futures: The concept of trading the S&P 500 index as an E-Mini futures contract was conceived by the CME. The exchange recognized the need for smaller-sized contracts that would allow individual traders to participate in stock market index trading without the capital requirements of full-sized contracts.
  2. Introduction of E-Mini S&P 500: In September 1997, the CME launched the E-Mini S&P 500 futures contract, marking a significant milestone in the evolution of stock index futures trading. The E-Mini S&P 500 contracts represented a fraction of the value and margin requirements of their full-sized counterparts, making them more accessible to a wider range of market participants.

II. Viability of the E-Mini S&P 500 Futures Contract:

Several factors contribute to the viability of the E-Mini S&P 500 as a futures contract:

  1. Broad Market Exposure: The S&P 500 index is widely regarded as a benchmark for the overall performance of the U.S. stock market. Comprising 500 large-cap U.S. companies, it represents a diverse range of sectors and industries. The E-Mini S&P 500 futures contract provides traders with exposure to this broad market index, allowing them to speculate on or hedge against market movements.
  2. Liquidity and Efficiency: The E-Mini S&P 500 is one of the most liquid futures contracts globally. Its popularity and high trading volume ensure ample liquidity and tight bid-ask spreads. This liquidity, combined with electronic trading platforms, allows for efficient price discovery and ease of trade execution.
  3. Market Influence and Visibility: The S&P 500 index’s importance in the financial industry contributes to the E-Mini S&P 500’s viability as a futures contract. The index is widely followed by investors, analysts, and market participants worldwide. Its performance influences market sentiment and serves as a reference point for various investment strategies.

III. Evolution of Micro S&P Products:

Building upon the success of the E-Mini S&P 500, the CME introduced micro S&P products to further enhance accessibility and cater to individual traders.

  1. Introduction of Micro E-Mini S&P 500: In May 2019, the CME launched Micro E-Mini S&P 500 futures contracts. These contracts are one-tenth the size of the E-Mini S&P 500, allowing traders to participate in the market with even smaller capital requirements. Micro E-Mini S&P 500 futures provide greater flexibility and precision for traders with limited capital or those seeking to fine-tune their exposure.
  2. Advantages of Micro S&P Products: Micro S&P products offer several advantages. They require lower margin requirements, making them more accessible to retail traders and smaller institutional investors. Additionally, they enable traders to more precisely tailor their positions, adjust risk levels, and scale their exposure based on their trading strategies and capital availability.
  3. Micro E-Mini Success: The introduction of micro E-Mini S&P 500 contracts has gained significant traction in the futures market. The smaller contract size, lower margin requirements, and high liquidity have made micro S&P products popular among individual traders and allowed for increased participation and diversity in the market.

The E-Mini S&P 500, conceived by the CME, revolutionized stock index futures trading by providing accessible and cost-effective exposure to the S&P 500 index. Its viability stems from the broad market exposure, liquidity, and market influence associated with the S&P 500 index. The subsequent introduction of micro S&P products, such as the Micro E-Mini S&P 500, further enhanced accessibility, flexibility, and precision for traders. The rise of micro S&P products has attracted retail traders and smaller institutional investors, fostering increased participation and diversification in the futures market. Overall, the E-Mini S&P 500 and micro S&P products have played instrumental roles in democratizing access to stock index trading and shaping the landscape of futures markets.

Ready to start trading futures? Call 1(800)454-9572 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.

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.