Big NFP / unemployment report tomorrow an hour before the stock market opens.
This is a market moving report and indices, bonds, currencies, metals and other markets will see some large swings.
I personally like to be out before the report, wait a few minutes for the zig zag to relax and then look to re-enter.
On different note:
Upgrades to the event contract suite offer more opportunities for you to trade your market views.
The size of an event contract is increasing to $100
Updated sizes align more closely to the probability of a trade’s success. For example, if the price of a position is $65 there’s approximately 65% probability that this event will occur.
Introducing longer-dated expiries
Add quarter- and year-end event contracts on E-mini S&P 500 and Nasdaq-100 futures to your portfolio. With the addition of more expiries, place your long-term prediction on the Equity Index futures markets.
What are event contracts?
With event contracts, you can express your views on whether the markets will close above a certain price by choosing a “yes” or a “no” prediction. These contracts offer an intuitive, limited-risk way to trade 11 of the world’s most important futures markets.
* 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.
Effective tomorrow, February 1, the CME Group is raising the exchange fees for a number of futures contracts.
For the CME E-mini equity products: E-mini S&P 500 (ES), E-mini Nasdaq (NQ), E-mini Dow Jones (YM) and E-mini Russelll 2000 (RTY), fees are going up by 5 cents, from $1.33 to $1.38
For the NYMEX energy products: Crude oil (CL), Heating oil (HO), RBOB Unleaded gas (RBOB) and Natural gas (NG) fees are going up by 10 cents, from $1.50 to $1.60
For the COMEX metals products: Gold (GC), Silver (SI), Copper (HG) and Platinum (PL) fees are going up by 5 cents, from $1.55 to $1.60
For the COMEX E-mini metals products: miNY gold (QO), miNY silver (QI), miNY copper (QC) fees are going up by 25 cents, from $0.75 to $1.00
All other products / symbols will remain the same.
* 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 last few FOMC meetings I looked for trades until around 930 AM Central time and then somewhat “took a step back”.
I would then follow closely around 1 PM Central when the announcement comes out but try to not pull the trigger until 1:15/ 1:30 when the smoke clears.
This is of course just my personal preferences and every trader is different.
Take notes after the trading session so you can look back and refer the next FOMC meeting….
Below are some additional tips/observations I have taken notes of for myself:
· ·Reduce trading size
· Be extra picky = no trade is better than a bad trade
· Choose entry points wisely. Look at longer time frame support and resistance for entry. Take the approach of entering at points where you normally would have placed protective stops. Example, trader x looking to go long the mini SP at 4425.00 with a stop at 4419.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 4419.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).
· Expect the higher volatility during and right after the announcement
· Expect to see some “vacuum” ( low volume, big zigzags) right before the number.
· Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
· Know what the market was expecting, learn what came out and observe market reaction for clues
· The rate announcement comes out exactly at 1 PM central. As of this morning there is a 98% chance of no change in rates.
· Traders will pay EXTRA attention to the language and the Q&A which starts at 1:30 PM Central
* 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 Week Ahead: A Big Data Rich Week! For the markets.
By John Thorpe, Senior Broker
The Super Bowl Teams are set for two weeks from now- Congrats to the NFL Conference Champions! Kansas City and San Francisco!
Quite a bit of excitement surrounds the markets this week as the following will grace our calendars.
Earnings, Jay Powell, Data.
You will have a hard time ignoring many of these direction moving events.
First, on Tuesday , Consumer Confidence and Jolts and both will be released @9:00am CST.
Second, A one-two punch, GOOGL announces earnings after the close. Average analysts guess is $1.59 EPS on Revenue of 85.3 Bil. We aren’t done, MSFT also announces after the close. $2.78 EPS and 61.1 bil revenue are the estimates here. (day one of the Fed meeting also occurs today) Other important earnings , UPS, SBUX, PFE, GM, AMD .
Then on Wednesday, FOMC Rate decision @ 1:00 pm CST , expectations are to remain. No change,
Jay Powell presser 30 minutes later.
We kick off Thursday @ 7:30 am CST with Jobless claims, the 4 week MA is 202k
And hour and a half later , ISM Manufacturing index is released, this has been in contraction the past 14 weeks. Expectations are for much the same.
The Biggest news of the day will likely be earnings from AMZN (exp .80 EPS, rev +11.4% and AAPL (exp 2.10 eps, rev 117.9 bil) after the close.
Fireworks Friday begins at 7:30 am CST with the nonfarm payrolls, here are the expectations from Econoday.
Make it a solid week and always, “plan the trade and trade the plan”
* 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.
Important Notices – 2024 World Cup Trading Championship
Trading Resource of the Week – FREE Trader’s Consultation
Hot Market of the Week – April Hogs
Broker’s Trading System of the Week – NQ Swing Trading System
Trading Levels for Next Week
Trading Reports for Next Week
Important Notices –
The 2024 World Cup Trading Championships® are just around the corner.
You are invited to enter the ultimate trading challenge, where some of the world’s best Futures and Forex traders compete.
The World Cup Trading Championships have been held since 1983 and are the most prestigious trading competitions in the industry. The winners of each division will prove that they are the best of the best.
The top profitable Entrants will be eligible to receive a magnificent pewter Bull and Bear trophy or a beautiful crystal Bull and Bear Trophy.
Real-money competitions based on net returns – no entry fee required.
Take on traders from across the globe to compete for coveted Bull & Bear trophies, glory, and new career opportunities.
Contact us at 1-310-859-9572 or Visit Us on the Web
Trading Resource of the Week : Book a Trading Consultation ( FREE, no obligation!)with a Cannon Trading Series 3 Broker
Available to both Clients and prospects!
Immediately increase your software and computer competence
Valuable order entry tips
Help create a personalized workspace
Compare multiple trading software
Get to know your Broker
Learning Options strategies
In this complimentary call or screen share session, which can last up to 30 minutes, you will have the opportunity to seek guidance and pose questions to our expert on a wide range of topics. These topics include, but are not limited to:
– Gaining insight into day trading margins.
– Assessing and reviewing various trading platforms and technologies.
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.
April hogs stabilized their slide after completing the first downside PriceCount objective. Now, on the correction higher, the chart has activated upside counts and is taking aim at the first target in the 84.98 area.
PriceCounts – Not about where we’ve been , but where we might be going next!
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.
Broker’s Trading System of the Week
With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.
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.
Would you like to receive daily support & resistance levels?
* 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.
Why book a screen share ( FREE, no obligation!)with a Cannon Trading Series 3 Broker?
Available to both Clients and prospects!
Immediately increase your software and computer competence
Valuable order entry tips
Help create a personalized workspace
Compare multiple trading software
Get to know your Broker
Learning Options strategies
In this complimentary call or screen share session, which can last up to 30 minutes, you will have the opportunity to seek guidance and pose questions to our expert on a wide range of topics. These topics include, but are not limited to:
– Gaining insight into day trading margins.
– Assessing and reviewing various trading platforms and technologies.
* 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.
We frequently provide overviews of certain futures markets and their price outlook in the context of our country’s economic outlook – and with good reason. The U.S. ranks no. 1 in GDP at ± $20 trillion annually based on the most recent data available from the World Bank. But as far as futures traders should be concerned, the country that should be watched is China.
China’s GDP of ±$17 trillion (2021 est.) is second in the world and accounts for around 18% of the global economy. It has been the world’s largest manufacturing nation since 2010, the second largest in high-tech manufacturing since 2012, is the world’s leader in electric vehicle consumption and production and it leads the world in e-commerce, accounting for over 37% of the global market share in 2021. For 124 other countries, China is the number on trading partner. Notable for commodity traders, China is the world’s biggest importer of natural resources. Think crude oil (no. 1 at ±10 million barrels a day), coal (no. 1), iron ore and copper (no. 1 at 58% of the world’s imports). It’s the number one wheat and corn importer. It imports a staggering 65% of the world’s soybean production (no. 1). China accounts for roughly 30% of world’s beef imports (no. 1 at over 6 billion pounds annually and almost twice that of no. 2 U.S.)
China is truly one of the most consequential players in international trade, a primary force for commodities prices. If you trade commodity futures, their economic health – or lack of – is worthy of your attention.
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.
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 2024 World Cup Trading Championships® are just around the corner.
You are invited to enter the ultimate trading challenge, where some of the world’s best Futures and Forex traders compete.
The World Cup Trading Championships have been held since 1983 and are the most prestigious trading competitions in the industry. The winners of each division will prove that they are the best of the best.
The top profitable Entrants will be eligible to receive a magnificent pewter Bull and Bear trophy or a beautiful crystal Bull and Bear Trophy.
Real-money competitions based on net returns – no entry fee required.
Take on traders from across the globe to compete for coveted Bull & Bear trophies, glory, and new career opportunities.
Contact us at 1-310-859-9572 or Visit Us on the Web
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.
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 Week Ahead: Earnings, Economic data, and quiet Federal Reserve Board voting Members.
By John Thorpe, Senior Broker
We have entered the FRB blackout period which always begins 8 days prior to the FOMC meeting which is currently scheduled for Jan 30-31
Tuesday After the close the biggest earnings number will be from Netflix NFLX. The forecast is for 8.8 Billion in revenue while adding 9million or more subscribers in the final quarter of 2023. Watch for surprises here as it’s clear that NFLX is the undisputed king of streaming services with a backdrop of consumers consolidating their preferences.
Wednesday after the close Look for TSLA Tesla stock to announce Q4 23 numbers with earnings forecast for .74 cents per share with Rev @ 25.6 bil. Will the current EV price war challenge the analysts estimates?
Thursday is kicked off with the ECB Rate decision @ 7:15 a m CST, expectations are to hold rates steady for the lending rates in the Eurozone. 15 minutes later @ 7:30 a.m. CST a slew of Data hits the wires.. Durable goods, GDP, Jobless claims followed by New Home Sales @ 9 a.m. CST
And ends with Intel INTC Earnings after the close. Expectations are 49 cents per share with 15.2 billion in revenue.
Friday market action will largely be reflective of the absorption the week of data and the evening of traders positions before the weekend.
Make it a solid week and always, “plan the trade and trade the plan”
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.
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.
Join our private Facebook group for additional insight into trading and the futures markets!
In this issue:
Important Notices – 2024 World Cup Trading Championship
Trading Resource of the Week – Why Most Traders Lose?
Hot Market of the Week – March Feeder Cattle
Broker’s Trading System of the Week – MidCap Swing Trading System
Trading Levels for Next Week
Trading Reports for Next Week
Important Notices
The 2024 World Cup Trading Championships® are just around the corner.
You are invited to enter the ultimate trading challenge, where some of the world’s best Futures and Forex traders compete.
The World Cup Trading Championships have been held since 1983 and are the most prestigious trading competitions in the industry. The winners of each division will prove that they are the best of the best.
The top profitable Entrants will be eligible to receive a magnificent pewter Bull and Bear trophy or a beautiful crystal Bull and Bear Trophy.
Real-money competitions based on net returns – no entry fee required.
Take on traders from across the globe to compete for coveted Bull & Bear trophies, glory, and new career opportunities.
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.
March feeder cattle stabilized their break last month after satisfying the fourth downside PriceCount objective. On the correction higher, the chart activated upside counts with the first objective projecting a run to the 238.53 area.
PriceCounts – Not about where we’ve been , but where we might be going next!
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.
Broker’s Trading System of the Week
With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.
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.
Questions about the markets? trading? platforms? technology? trading systems? Get answers with a complimentary, confidential consultation with a Cannon Trading Company series 3 broker.
Would you like to receive daily support & resistance levels?
First Notice (FN), Last trading (LT) Days for the Week: www.mrci.com
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.
