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.

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Trading Gold Futures: Strategies, Exchanges, and Techniques

Posted on by Cannon Operations

Read more about trading gold futures with Cannon Trading Company here.

Trading gold futures offers traders the opportunity to capitalize on the price movements of one of the world’s most cherished and sought-after precious metals. In this comprehensive guide, we will delve into the intricacies of trading gold futures, exploring the prominent gold futures exchanges in the US and globally, discussing day trading techniques specific to gold futures, examining gold futures options, and highlighting Cannon Trading Company’s renowned customer service and impressive TrustPilot rating.

Understanding Gold Futures Trading

Gold, often referred to as a “safe-haven” asset, has historically been valued for its ability to retain its worth during economic uncertainties. Gold futures contracts allow traders to speculate on the future price of gold, whether they anticipate the price to rise or fall. These contracts offer a standardized way to buy or sell a specific quantity of gold at a predetermined price on a future date.

Exchanges for Gold Futures

Gold futures are actively traded on several exchanges around the world, providing liquidity and price discovery for traders. Notable exchanges for trading gold futures include:

  1. Commodity Exchange (COMEX): Operated by the Chicago Mercantile Exchange (CME) Group, COMEX offers gold futures contracts that are among the most widely recognized and traded in the world. The contracts are denominated in troy ounces.
  2. Multi Commodity Exchange (MCX): Based in India, MCX offers gold futures contracts that cater to the Indian market’s demand for gold trading. These contracts are popular among both retail and institutional traders.
  3. Tokyo Commodity Exchange (TOCOM): TOCOM provides gold futures contracts to traders in Asia, particularly Japan. These contracts are traded in yen per gram.
  4. Shanghai Gold Exchange (SGE): The SGE is one of the world’s largest physical gold exchanges and offers gold futures contracts denominated in grams. It primarily serves the Chinese market.

Day Trading Techniques for Gold Futures

Day trading gold futures involves taking advantage of short-term price movements within the trading session. Successful day traders employ various strategies and techniques tailored to the unique characteristics of gold futures.

  1. Technical Analysis: Utilizing technical indicators, chart patterns, and candlestick analysis can help traders identify potential entry and exit points. Moving averages, relative strength index (RSI), and Fibonacci retracement levels are commonly used tools.
  1. Volatility Analysis: Gold can exhibit significant price volatility, influenced by economic data, geopolitical events, and market sentiment. Traders can use volatility indicators like the Average True Range (ATR) to gauge potential price swings.
  1. News and Economic Data: Day traders should stay informed about economic releases, central bank decisions, and geopolitical developments that can impact gold prices. Unexpected news events can lead to rapid price changes.
  1. Range Trading: Range-bound markets can provide day trading opportunities. Traders can look for support and resistance levels and trade within the range, aiming to profit from price fluctuations between these levels.
  1. Scalping and Breakout Strategies: Scalping involves making quick trades to capture small price movements, while breakout strategies focus on entering trades when prices break out of established levels. Both approaches require rapid decision-making.

Trading Gold Futures Options and Options on Futures

Gold futures options provide traders with the flexibility to speculate on gold price movements while managing risk. Options on gold futures allow traders to establish positions that benefit from price increases (call options) or price decreases (put options) without the obligation to buy or sell the underlying futures contract.

  1. Speculation: Traders can use gold futures options to speculate on the future price direction of gold. Buying call options can provide exposure to potential price increases, while buying put options can provide exposure to potential price declines.
  2. Risk Management: Gold futures options can be employed as a form of risk management. Gold producers, for example, can use put options to hedge against potential price declines that could impact their profitability.
  3. Spread Strategies: Options spread strategies involve trading multiple options contracts simultaneously to capitalize on price differentials. Vertical spreads and calendar spreads are commonly used strategies to manage risk and profit from price movements.

Cannon Trading Company: Customer Service and TrustPilot Rating

Cannon Trading Company is a reputable brokerage firm known for its services in facilitating various types of trading, including gold futures and options on futures. The company is recognized for its dedication to delivering top-notch customer service and support to traders of all experience levels.

Customer Service Excellence: Cannon Trading Company’s experienced brokers provide personalized assistance, market insights, and trading strategies to clients. Their commitment to customer service ensures that traders have the resources they need to make informed decisions.

TrustPilot Rating: The company boasts an impressive TrustPilot rating of 4.9 out of 5 stars, reflecting the high level of customer satisfaction it consistently achieves. This rating is indicative of positive customer experiences and the value that Cannon Trading Company provides to its clients.

Trading gold futures offers traders the opportunity to engage with a precious metal that holds both historical significance and contemporary economic relevance. Understanding the intricacies of gold futures trading, employing effective day trading techniques, and considering options on gold futures can enhance a trader’s ability to navigate this dynamic market. Choosing a reputable brokerage partner like Cannon Trading Company, known for its exceptional customer service and TrustPilot rating, can provide traders with the support and resources needed to succeed in trading gold futures and related derivatives.

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.

Cycle Detrending: Can you use Cycles to fortify your trading acumen?

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

Cycle Detrending: Can you use Cycles to fortify your trading acumen?

by John Thorpe, Senior Broker

I have accumulated a small library of important works in the study of futures trading over the years so instead of writing about the week ahead as I normally do on Mondays, I thought I would change pace ( I was enjoying a long weekend out of town ) so today, based on the work of Walt Bressert and The Foundation for the study of Cycles (Cycles.org) ,Jake Bernstein and others, I thought it would be important to briefly discuss another layer of technical analysis we all could use when trading becomes too myopic. The study of Cycles, simply put Cycle study is dedicated to the study of recurring patterns in the economy, markets, natural sciences and the Arts.  We are not looking to trade the big bottoms and tops that occur as the trend reverses, but the bottoms and tops of the shorter-term cycles occurring in the direction of TREND. One tool to identify the cycles within a trend is called “Centered Detrending” With “CD” you can visibly observe cycle bottoms and tops. Because this takes the mystery out of cycles you can look back over a considerable amount of time(History) and see the consistency and tradability of cycles. Most trading cycles in the futures markets tend to cluster between 18 and 22 bars. What we want to do is CD the chart and calculate a moving average the same length as the potential trading cycle. But instead of plotting the Moving Avg. (MA) from the last day it should be centered in the middle of the cycle; for instance if it is a 20 day MA, move it back 10 days from the most recent close. this will show you a linear representation of the cycles relative to price movement.

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You are half way home now, since this will only show historical cycles it can’t be used for real-time trading. You now will need an Oscillator to overlay. To use an oscillator to identify cycle tops and bottoms look for three characteristics: (there are a number of oscillators on your trading platform, play around with a few)

  1. The oscillator turns when prices turn
  2. The oscillator does not “wiggle” much at cycle tops and bottoms
  3. The oscillator has amplitude moves that take it to the extremes of an allowable range as the cycles bottom and top..      I hope this gives you a different perspective to learn best how to trade a trend. My compliments to the decades of analysis put out there by Bressert, Bernstein , Edward Dewey Chief Economist for the Hoover admins Dept. of Commerce.

 

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

08-17-2023

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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

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

Cannon Trading: The Pinnacle of Trustworthiness in Futures Trading

Posted on by Cannon Operations

Learn more about futures trading with Cannon Trading Company here.

In the fast-paced world of futures trading, finding a reliable and reputable broker is paramount. With numerous options available, traders are often faced with the challenge of selecting a partner that offers not only a robust trading platform but also a commitment to customer satisfaction. Amidst this landscape, Cannon Trading emerges as a shining beacon of trustworthiness and excellence, garnering the highest rating of 4.9 out of 5 stars on TrustPilot. As the highest rated futures broker in the US, Cannon Trading has proven itself as a dependable partner for traders seeking success in the futures market.

Unveiling the Highest Rated Futures Broker in the US

Cannon Trading’s impressive 4.9 out of 5-star rating on TrustPilot speaks volumes about the quality of service it provides to its clients. This rating, which stands as a testament to the satisfaction of traders, underscores the company’s commitment to fostering long-term relationships based on trust, transparency, and exceptional performance. Cannon Trading’s dedication to upholding the highest standards of customer care sets it apart from the competition, solidifying its position as a premier choice for both novice and experienced traders alike.

TrustPilot: A Reflection of Excellence

TrustPilot, a renowned online review platform, is widely recognized for its impartial and authentic feedback system. Achieving a stellar rating on TrustPilot requires more than just offering a platform for trading; it demands consistently delivering on promises, providing superior support, and empowering traders to make informed decisions. Cannon Trading’s outstanding performance on this platform signifies its unwavering commitment to ensuring traders’ success.

Why Cannon Trading Stands Out

  1. Comprehensive Trading Solutions: Cannon Trading boasts a comprehensive suite of trading solutions tailored to meet the diverse needs of its clients. From commodities and options to Forex and indices, the broker provides access to a wide range of markets, enabling traders to diversify their portfolios and capitalize on various opportunities.
  2. Cutting-edge Technology: Staying ahead in the fast-paced world of futures trading requires cutting-edge technology. Cannon Trading provides traders with state-of-the-art trading platforms, equipped with advanced tools for analysis and execution. This empowers traders to make well-informed decisions in real-time, enhancing their chances of success.
  3. Educational Resources: Recognizing that knowledge is power in the trading arena, Cannon Trading goes the extra mile by offering a plethora of educational resources. Webinars, articles, and tutorials are readily available to assist traders in sharpening their skills and staying informed about market trends.
  4. Personalized Customer Support: Cannon Trading’s dedication to customer satisfaction is exemplified by its personalized customer support. Traders are not treated as mere numbers but as valued partners. The company’s experienced support team is always ready to address queries, provide guidance, and offer solutions, contributing to a positive trading experience.

Cannon Trading’s remarkable TrustPilot rating of 4.9 out of 5 stars is a testament to its position as the highest rated futures broker in the US. With its unwavering commitment to providing exceptional service, advanced technology, comprehensive educational resources, and personalized customer support, the broker has garnered the trust and satisfaction of traders from all walks of life. For those seeking a reliable partner to navigate the complexities of futures trading, Cannon Trading stands tall as an embodiment of excellence and trustworthiness.

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.

 

 

The Week Ahead for Commodities + Trading Levels for August 15th 2023

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

The Week Ahead

by Mark O’Brien, Senior Broker

General: 

 

As the duel between the United States and China continues, seemingly on several fronts, a new sign emerged the first half of the year: China’s imports to the U.S. accounted for the smallest percentage of goods arriving here in 20 years.  Just 13.3% of all imports to the U.S. came from China the first half of 2023.  Compare that to its peak of 21.6% for all of 2017 and its low point of 12.1% in 2013.  The downturn is not due to any list of stand-out products or industries, nor has any country or small number of countries jumped up to import a bigger share of anything.  Rather, slow-moving supply chain shifts across dozens of industries and nations are driving the trend.  When the dollar values of exports and imports are combined, Mexico is now America’s no. 1 trading partner, followed by Canada, pushing China to third place.

 

Last Thursday, the Labor Department reported the consumer-price index increased 0.2% in July, the same as in June. That is down sharply year-over-year looking at the 1.2% gain in June 2022.  If the downward trend continues – now over a year from its June 2022 peak reading of 9.1%, inflation is on a path to draw near the Federal Reserve’s 2% target by late 2023 or early 2024.

 

What could stand in the way of that trend?  Geopolitical events and weather could impact food and energy prices.

 

After Saudi Arabia and Russia announced reductions in their oil production last month, unleaded gas prices, which tend to lag behind crude oil prices, traded to 1-year highs on Friday (basis September) within less than two cents of $3.00 per gallon.

 

Further regarding Russia, last month it withdrew from a deal that allowed Ukraine to export grain through the Black Sea and has since attacked key port facilities in Odesa.  Ukraine is one of the world’s largest grain suppliers including 13% of global corn exports and the 12% of wheat.

 

Add to all this, scientists watching the periodic climate pattern called El Niño are now anticipating it arriving this winter more likely as “moderate,” and possibly a “strong” event than how they assessed conditions in May.  Ocean surface temperatures in the central Pacific Ocean have warmed enough off the coast of South America to trigger an El Niño, meaning possibly a warmer, dryer winter here in the U.S. and higher temperatures globally. This can cause disruptions to crops in some of the world’s most important commodities sources.

 

Keltner Channels, Volume Charts, Algo Signals – Trade Set Up

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

Volume charts, candle sticks, Keltner Channels and proprietary ALGOs for trading signals.

 

 

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

08-15-2023

#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

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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.

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.

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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!
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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.
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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
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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
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Weekly Levels

 

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  • Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week: www.mrci.com 
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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 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.

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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

 

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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.

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);

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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

 

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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.

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

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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.

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

 

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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!
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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.
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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
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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
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Weekly Levels

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  • Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week: www.mrci.com 
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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 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.
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.