OPEC meeting today took crude oil and products into even higher volatility.
In my opinion, many markets took que from crude oil price movement, especially stock index futures.
While this may be a temporary situation, you may want to watch crude oil prices even if you are trading only the mini SP or even grains for that matter….
Crude oil daily chart for your viewing pleasure….
DON’T FORGET we have monthly unemployment numbers tomorrow…NFP, non farm payroll.
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 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.
Potential long signal was generated today( based on personal technical factors I use) – Looking at the quote below, my biggest battle in this hypothetical example would be:
Entry level ( market? wait for lower price? enter if price breaks above?)
Exit in case of loss
Exit in case of profit
Trade size?
If at a loss will I exit all? or in parts?
If profit achieved will I exit part of the trade? ( assuming I am trading more than 1 contract or perhaps MICROS)
Do I need to bring stop to breakeven at any point ( if certain profit achieved?)
Obviously the answer to all of the above will change from trader to trader but bringing these points up can hopefully help you approach trading from a different angle.
“Every battle is won or lost before it is ever fought.”
Sun Tzu
The Art of War
This passage – dating back the 6th century B.C. – can aptly be applied to trading futures. Prepare for each trade. Set your risk. If the initial outcome is favorable, use your enemy’s resources (move your stop) to sustain your trading.
Don’t engage in extended battles (over trade) and consume your resources (money, time, mental energy).
Your “enemy,” (the market) only has the power to destroy your account if you let it.
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 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.
A dynamic research tool for Futures traders based on revolutionary algorithmic IP. Experienced management team has combined decades of trading experience with superior programming capability to produce this unparalleled algorithmic trading product.
Daily email to traders identifying trading opportunities (signals) on more than 20 specific tickers per a discrete set of rules and conditions/algorithms.
Packages are signals only (Basic, $99/month) or signals with execution suggestions by VAREA trading specialists (Premium, $199/month) and get a free month of the Premium product when you sign up. Contact your broker for implementation instructions to get you started.
The market trading against resistance on the weekly chart. Failure at these levels can generate a quick sell off, a break above $70 can trigger the next leg up.
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 when it comes to Futures Trading.
Futures Trading Levels
6-7-2021
Weekly Levels
Reports, First Notice (FN), Last trading (LT) Days for the Week:
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
Trading 102: Day Trading Commodities with Crude Oil Futures
Crude Oil Futures Volatility Offers A “Different Market Personality” Than Stock Index Futures. Here Is Some Of The Things You Need To Know About Day Trading Crude Oil Futures:
By: Ilan Levy-Mayer, Cannon Trading Commodities Broker & VP
Crude Oil is one of MY favorite futures market for day trading. Before I dive in and share with you how the volatility in crude oil fits my risk tolerance for day trading and provide a couple of chart examples, we should review some of the specifications of Crude Oil Futures.
Crude Oil Futures have monthly expiration. So each month we trade a different contract month, so one needs to know when is the first notice day and last trading day for crude oil futures in order to always make sure we are trading the proper month with the most liquidity and avoid any chance of getting into delivery situation.
Next is the contract size. Crude Oil futures are based on 1000 barrels. To be honest from a day trading perspective all I care is that each tick or 1 cent fluctuation is $10 against me or in my favor per contract. That means that a move from 92.94 to 92.74 = $200.
Another factor is trading hours. At the time I am sharing my thoughts with you, April 8th 2013, crude oil futures trade on the CME Globex platform and trade from 5 PM CDT until the next day at 4 PM CDT. That is 23 of straight trading hours. I definitely don’t recommend day trading this market 23 hours…but it is good to know the trading hours.
Volume in crude oil futures is pretty good to trade in my opinion. Averaging about 300,000 contracts per day.
One last pointer to touch on is the API (American Petroleum Institute) report that normally comes out Wednesday at 9:30 CDT (on short weeks, holidays etc. , this report will be pushed to Thursday at 10 AM CDT). I tell my clients that this report is way too volatile and I like to be out 5 minutes before and not resume trading 5 minutes until after the report comes out. This report by itself deserves a writing but on short, the report provides information on how our stock pile is doing ( = supply/demand) and the market will move based on the numbers versus what was expected. Again as a day trader, your main job is to know about this report, when it comes out and in my opinion stay out of the market during this time..Fill out the form below to read the full article.
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
3-22-2021
Weekly Levels
Reports, First Notice (FN), Last trading (LT) Days for the Week:
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
Tried to think about something worth sharing, information that can help traders and to be honest I could not think of anything I have not shared with you before so Decided to share a weekly chart of crude oil futures as we are sitting against MAJOR weekly support level at a 4 year lows. It will be interesting to see if we consolidate around here, have an initial bounce or break through and continue the slide we have seen. The next FIB level I draw on the weekly is at 53.90 just an FYI since you can not see it on the chart below.
PS: Crude Oil is one of the more active/volatile markets out there and is an interesting day trading market to say the least……
Volatility has picked up again! Make sure you adapt as markets are always changing and what may work for range bound/ low volatility days will not work for wide range/ higher volatility days.
I see major support for SP500 at 1795 and it will be interesting to see price reaction if we test this level in the next few days.
On a different note, I wrote a quick analysis along with chart for Crude Oil futures at:
For 2014 I would like to wish all of you discipline and patience in your trading!
Voted Best Blog 2013 by Trader Planet
Thanks everyone who voted!! Appreciate your help in winning the #1 blog for futures trading by Trader Planet!! Please feel free to forward our daily blog to friends and other fellow traders who might be interested.
Another two markets I like to touch on when it comes to “other markets to daytrade beside the mini SP 500” are crude Oil and Gold futures.
More than a few similarities between the two markets.
They are both volatile, can move VERY fast. I have seen some very large moves happen in matter of minutes if not seconds. The “fear & greed” factor really plays a role in these specific two markets.
Both have active trading hours starting with Far East trading around 10 PM est all the way to the next morning until about 3 PM est. Good volume generally speaking but not close to the mini SP or ten year notes. So you may see some slippage on stops but the volume is more than enough to trade size.
Each tick on gold is $10, so every dollar move =$100 against you or in your favor. Crude is similar, each tick = $10. One full $1 move = $1000.
Both markets were quiet today relatively speaking but even on a quiet day, the range on gold was $21 or = $2100 wide using one futures contract. Crude ranges today was less than $1 or about $890 between hi/lo.
I like using overbought/ oversold indicators on the two markets as well as using range / Renko charts.
If you never traded these markets before, I highly recommend exploring in simulation/ demo mode. get a feel for the explosiveness, volatility, personality for a few weeks before trying in live mode.
As always, any questions, please feel free to email me.
Two charts from today’s session of gold and crude for your review below ( if you like to try the charts I am using along with indicators displayed, send me an email):
Crude 18 ticks range bar Feb. 11th 2014
Gold, 36 ticks range bar Feb. 11th 2014
GCE – Gold (Globex), Equalized Active Continuation – Range Bar =, 18 Ticks Units
While our stock indices markets ( SP, Dow, NASDAQ and Russell ) been trading in very narrow range ( today was a small exception), the crude oil market continues to show the double edge volatility day-traders are looking for.
Below is a daily chart of April Crude oil futures.
PS: Stock index futures have shown in the past tendency to go through periods of low volatility and then change to periods of high volatility. The VIX index is a good indicator, which i will try to share more about tomorrow but my point is, be ready for shift in volatility and wider ranges on stock indices….as always, the question is when.
CLE – Crude light (Globex), Equalized Active Daily Continuation
Wishing you all a great weekend. Amazing how fast short February went by and Monday will be the last trading day of the month.
I expect the higher volatility we have seen over the last few days to stay with us for a while….so as mentioned before be aware of it, adjust your trading parameters accordingly and stay disciplined!
Below you will see a screen shot from the crude oil futures chart I share intraday. We also execute this crude day-trading system in-house as an “auto traded ” trading system with letter of direction.
The day-trading system is up slightly more than $1,000 NET per contract traded since we launched live trading on Jan. 28th 2011.* *These are risky markets and only risk capital should be used.
Past performances are not necessarily indicative of future results.
If you are interested in more information, would like to see detailed LIVE results, please send me an email or speak with your broker.
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.
