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Tag: Futures Trading Rollover

Weekly Newsletter 1078: Rollover Notice and Trading Tips During Rollover & Support and Resistance Levels for the Week Ahead

Posted on by Ilan

Cannon Futures Weekly Letter Issue # 1078

Dear Traders,

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Trading 201: Trading During Rollover

Rollover Notice for U.S. Stock Index, Currency and Financial Futures
Heads up traders! We’re approaching important dates on the trading calendar.
Monday, December 13th is Last Trading Day for December currency futures. It is of the utmost importance for currency traders to exit all December futures contracts and start trading the next quarterly futures contract and the new front month: March ’22. Currency futures are DELIVERABLE contracts. By holding any December futures contracts through the close of Last Trading Day, you will be subject to delivering (short positions) or taking delivery of (long positions) the full notional value of the futures contract.
For stock index futures traders, on Friday, Dec. 17th, the Dec. ’21 futures contracts will officially halt trading and the exchange will cash settle all open positions at 8:30 A.M., Central Time.  Thursday, December 9th marked the traditional date traders started rolling Dec. stock index futures trades to the next quarterly futures contract and the new front month: also March ’22. Come forward to the new front month for the next ±90 days.
Finally, for financial futures traders (Ultra bonds, 30-yr. T-bonds, 2-, 5-, 10-yr. T-notes, etc.) the traditional roll-over day was Nov. 30th/First Notice Day (the date all open LONG positions became subject to delivery). The next front month – and now by far the more liquid – is also March ’22. For all longs and shorts not in the deliverables market, it’s time to trade March ’22 contracts.
The March exchange symbol for all these futures contracts is “H.” Check for the appropriate complete symbol for these new front month futures contracts on your trading/charting software. Make sure your quotes, charts, DOM’s are set to the correct futures contract month.
 Keep in mind the following:
  • Currencies are DELIVERABLE and you must be out and trading March as of today, Friday Dec. 10th
  • Stock index futures are cash settled on Friday Dec. 17th at 9:30 AM Eastern Time.
  • During the rollover period, especially with stock index futures, I noticed that the first few days will have two sided, volatile action. Think about it, you have large traders and institutions who are NOT day traders and carry large positions as speculation or a hedge and now they need to rollover from Dec. to March.
  • In my opinion, counter trend methods, mean reversion techniques can work better during rollover period but one must be very aware as past performance is not indicative of futures results.
  • Keep in mind, back in the days, many floor traders would “trade the spread” specifically with different techniques. I believe some traders still do using the screen.
  • Bottom line is know that this is rollover period, do research on past rollover periods, start trading the March contract and good trading and happy holidays!
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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

12.13.2021

Support & Resistance Levels 12.13.2021

 

Weekly Levels

Weekly Support & Resistance Levels

 

Reports, First Notice (FN), Last trading (LT) Days for the Week:

https://mrci.com

Date Reports/Expiration Notice Dates

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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

Rollover Notice for US Stock Index Futures / Currencies / Financials – March Contract 2022

Posted on by Ilan

Dear Traders,

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Rollover Notice for US Stock Index Futures / Currencies / Financials

    Friday December 10th is rollover day in US stock index futures. Currencies and Financial Markets.

Starting Monday many traders will start trading the March 2022 contract rather than the December 2021 contract.

Symbol for March is H.

Example: ESH22

The rollover period will be complete by next Friday when December contracts expire into cash.

Here are a few pointers from a Cannon Trading Broker:

With the volume looking to change in the equity indices my recommendation is to make sure you are trading strategies on larger time-frames till the end of this week. If using volume indicators be more cautious on the data that has been gathered. The December contract will start rolling into the March over next few days until the December futures expire next Friday, December the 17th.  tomorrow. I recommend switching your charts and trading to the December month by days end.

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.

 

Rollover Indices/ Currencies/ Financials, FOMC Tomorrow & Support and Resistance Levels 3.16.2021

Posted on by Ilan

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Dear Traders,

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It’s that time of the year where June contract is the front month for all stock indices/ currencies/ financials and other markets!
Rollover!!
Tomorrow we have FOMC.
Normally the volatility is around the actual rate cut/increase….This time it is 99.99% of no change. Language in the statement will be the main feature.
However, FOMC days do have unique behavior and this time my guess is, it will be around the language used after the announcement.
The following are my PERSONAL suggestions on trading during FOMC days:
·    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 3925.00 with a stop at 3919.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 3919.75 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.
·    Keep in mind statement comes out at 1 Pm Central time, the news conference which dissects the language comes out 30 minutes later so the volatility window stretches out.
·    Know what the market was expecting, learn what came out and observe market reaction for clues
·    Be patient and be disciplined
·    If in doubt, stay out!!

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

3-17-2021

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Economic Reports, source: 

 www.BetterTrader.co

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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.

New Front Month – Futures Trading Rollover Day for Minis and Currencies Tomorrow | Support and Resistance Levels

Posted on by Ilan

In this post:

1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini S&P 500 Futures Chart
4. Economic Reports

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1. Market Commentary

FRONT MONTH FOR EQUITIES IS DECEMBER. THE SEPTEMBER MINI SP ( AND OTHER MINIS WILL STOP TRADING TOMORROW MORNING!! ALSO CURRENCIES WILL ROLLOVER TO DECEMBER TOMORROW. PAY ATTENTION AS DELIVERIES AND MISTAKES CAN BE QUITE COSTLY.

SYMBOL FOR DECEMBER IS Z

As far as price direction, I am still not sure how to attack this market (outside of quick day-trades which I review live). We are against some resistance levels on the daily chart and I am curious to see the market reaction as the September contract is few hours from expiration.

When in doubt, it’s best to stay out, even more so in trading. I think that many successful traders will agree that the trades you DON’T take are probably more important than the ones you do. Continue reading “New Front Month – Futures Trading Rollover Day for Minis and Currencies Tomorrow | Support and Resistance Levels”

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.