Is the FED Done Raising rates? + Futures Trading Levels for Nov. 16th

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

Updates and Bullet Points:

 

By Mark O’Brien, Senior Broker

General:

 

Here in the United States yesterday, stock index futures vaulted on the heels of the Bureau of Labor Statistics’ release of its Consumer Price Index for October, which slowed to 3.2 percent last month on a year-over-year basis, lower than the 3.7 percent reading in September and the coolest since July.  Leading the way was the Russell 2000 which climbed ±95 points, $4750 per contract move for the E-mini Russell 2000 futures contract, over a 5% uptick.  Compare that to the ±86-point / $4,325 per contract move up for the E-mini S&P 500, or the ±335-point / ±$6,700 move for the E-mini Nasdaq.

 

Investors undoubtedly anticipated the likely end to the Federal Reserve’s historical rate hike cycle and this was followed by a wave of lower CPI data from Europe when the following day (our Tuesday night) Germany, the United Kingdom and Italy all reported below-estimate consumer price readings and well below last month’s as prices abroad continued to decelerate.

 

In other news, President Biden and China’s President Xi will meet south of San Francisco during afternoon US trading hours.

 

In a development attributed to El Niño and possibly a catalyst to rising commodities prices, Central America is experiencing drought conditions so acute, the freshwater lakes associated with the Panama Canal have declined to such low levels, it’s resulted in one of the world’s largest shipping corridors having to reduce vessel traffic.  The canal sees about 5% of the world’s seaborne trade travel through it and is critical for transporting commodities with petroleum, liquefied natural gas and grains among the top shipments that pass through the waterway.  Ships are now spending weeks waiting at sea, sailing around South America or the tip of Africa, or paying exorbitant amounts to jump to the front of the line.  Last week, a Japanese global petroleum and metals conglomerate paid a record $3.975 million in an auction for preferential line placement for one of its ships.

 

In a Reuters piece earlier this week, the news wire reported that Goldman Sachs is forecasting returns of 21% on commodities over a 12-month horizon, using as its basis the S&P Goldman Sachs Commodity Index (GSCI), including gains of ±31% from energy and ±18% from industrial metals.  Currently, the GSCI contains 24 commodities from all commodity sectors: six energy products, five industrial metals, eight agricultural products, three livestock products and two precious metals.

 

Plan your trade and trade your plan.

 

 

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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.

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Futures Trading Levels

11-16-2023

#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.

Black-Scholes Webinar + Futures Trading Levels for Nov. 15th

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

Advanced Options Workshop!

We look forward to having you join the CME tomorrow for Black-Scholes workshop.

View last week’s session here to see what kind of discussions you can expect.

Please read the below information for the session on November 15 and add the event to your calendar below.

Joining Instructions:

To join the online event, please use the following link:

Black-Scholes Webinar

Webinar number: 248 142 79084

Webinar password: d2GPM8kZc42 (32476859 from phones and video systems)

Helpful Tips:

  • Please plan to join 10 minutes in advance to ensure no technical difficulties.
  • For optimal audio/video quality, disconnect from your company’s VPN.
  • We recommend using Google Chrome as your browser.
  • Please test audio prior to the start of the online event. Ensure that you are using headphones for optimal sound quality and that audio is not muted.
  • If your internet audio and/or video experience does not work, use the dial-in numbers to join by phone

Recording Disclaimer:

This online event will be recorded for the purposes of archived viewing for attendees unable to attend the live session. By participating in this online event, you are considered to have consented to the recording. All video and audio communications must remain professional and relevant to the topic and purpose of the online event. Personal views or opinions expressed during the online event are those of the participants and may not necessarily reflect the official policy or position of CME Group.

Plan your trade and trade your 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.

3b644da2 2bee 4d39 8d98 5208a20bec39

Futures Trading Levels

11-15-2023

#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.

Managing Risk: Your Guide to Hedging Live Cattle Futures

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

Mastering Risk: A Comprehensive Guide to Hedging Live Cattle on the Futures Market

Find out more about hedging cattle with Cannon Trading Company here.

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Hedging in the futures market is a strategic practice that empowers market participants, especially those in the agricultural sector, to manage and mitigate risk effectively. Among the various commodities traded on futures exchanges, live cattle holds a significant position due to its importance in the global food supply chain. In this comprehensive guide, we will explore the intricacies of hedging live cattle on the futures market, delve into the nuances of feeder cattle futures, and compare hedging strategies involving options and futures. From short and long hedges to the perspectives of hedgers and farmers, we will unravel the essential elements of hedging in the live cattle market.

  1. Introduction to Hedging Live Cattle Futures
  2. Significance of Live Cattle in Agriculture

Live cattle represent a crucial component of the agricultural sector, contributing to the production of beef and other by-products. The live cattle futures market provides a platform for producers, processors, and end-users to manage the price risk associated with fluctuations in the cattle market.

  1. Volatility in Agricultural Markets

Agricultural markets, including live cattle, are inherently susceptible to various risk factors such as weather conditions, disease outbreaks, and global economic trends. The volatility in these markets underscores the importance of risk management strategies, with hedging emerging as a key tool for stakeholders.

  1. Understanding Short and Long Hedges in Live Cattle Futures
  2. Short Hedge in Live Cattle Futures

A short hedge involves selling futures contracts to protect against potential price declines in the underlying asset—in this case, live cattle. Producers, such as farmers and ranchers, can use a short hedge to lock in a favorable selling price for their cattle, mitigating the impact of adverse market movements.

  1. Application of Short Hedge by Producers
  2. Locking in Selling Prices: Farmers and ranchers can initiate a short hedge to lock in selling prices for their live cattle. By selling futures contracts, they establish a predetermined price, safeguarding against price declines.
  3. Risk Mitigation for Selling Periods: Producers often face uncertainty regarding the future prices of their cattle, especially during selling periods. A well-timed short hedge allows them to manage this uncertainty and secure a stable revenue stream.
  4. Long Hedge in Live Cattle Futures

On the flip side, a long hedge involves buying futures contracts to protect against potential price increases in the underlying asset. End-users, such as meat processors and retailers, can employ a long hedge to secure a stable buying price for live cattle, guarding against upward price movements.

  1. Application of Long Hedge by End-Users
  2. Securing Buying Prices: Meat processors and retailers can use a long hedge to secure buying prices for live cattle. By buying futures contracts, they establish a fixed cost for their raw materials, protecting against potential price increases.
  3. Stable Input Costs: A long hedge ensures stable input costs for end-users, allowing them to plan their budgets more effectively. This strategy is particularly valuable when facing uncertainties in the commodity markets.
  4. Feeder Cattle Futures: A Specialized Segment of Live Cattle Hedging
  5. Distinct Characteristics of Feeder Cattle

Feeder cattle represent a specific category within the live cattle market. These are young cattle that are typically raised until they reach a suitable weight before being sent to feedlots for further fattening. Hedging feeder cattle involves unique considerations due to their specific market dynamics.

  1. Feeder Cattle Futures vs. Live Cattle Futures
  2. Weight and Age Differences: Feeder cattle are younger and lighter than live cattle. Hedging feeder cattle involves considering factors such as weight gain during the feeding period and the impact on the animals’ value.
  3. Price Relationships: The prices of feeder cattle and live cattle are interconnected. Traders and hedgers need to analyze the historical relationships between feeder cattle and live cattle prices to make informed decisions.
  4. Hedging Feeder Cattle Futures with Options vs. Futures

When it comes to hedging feeder cattle, market participants have the option to use either futures contracts or options contracts. Each approach has its advantages and considerations.

  1. Hedging with Futures Contracts
  2. Simplicity and Directness: Hedging with feeder cattle futures contracts is straightforward. Traders can directly buy or sell contracts to offset price risks.
  3. Limited Risk Management Tools: While effective, futures contracts have limited risk management tools. Traders must rely on the directional movements of the market to achieve their hedging objectives.
  4. Hedging with Options Contracts
  5. Flexibility in Risk Management: Options provide a higher degree of flexibility in risk management. Traders can use various options strategies to customize their hedges based on market expectations.
  6. Cost Considerations: Options contracts may involve upfront costs in the form of premiums. Traders need to assess whether the benefits of options, such as flexibility, outweigh the associated costs.
  7. Hedging Perspectives: Farmers, Ranchers, and End-Users
  8. Perspective of Farmers and Ranchers
  9. Price Stability: For farmers and ranchers, achieving price stability is paramount. Hedging allows them to lock in prices for their live cattle, providing financial predictability amid market uncertainties.
  10. Cost of Production Management: Farmers and ranchers can use hedging to manage the costs of production. By securing selling prices, they gain greater control over their profit margins.
  11. Perspective of End-Users (Meat Processors and Retailers)
  12. Budget Planning: End-users rely on stable input costs for effective budget planning. Hedging with live cattle futures enables them to manage and forecast costs with more precision.
  13. Consumer Price Stability: Hedging helps end-users maintain stable consumer prices. By securing buying prices, they can avoid passing on sudden and unpredictable cost increases to consumers.
  14. Factors Influencing Hedging Decisions in Live Cattle Futures
  15. Market Conditions and Outlook
  16. Supply and Demand Dynamics: Hedgers closely monitor supply and demand dynamics in the live cattle market. Shifts in these dynamics can influence price trends and impact hedging decisions.
  17. Global Economic Factors: Economic factors, both domestic and international, can affect the live cattle market. Hedgers consider variables such as economic growth, trade policies, and currency fluctuations in their analyses.
  18. Weather Conditions and Environmental Factors
  19. Impact on Feed Supply: Weather conditions play a crucial role in determining feed availability. Changes in weather patterns can affect the cost and availability of feed for cattle, influencing hedging decisions.
  20. Disease Outbreaks and Environmental Risks: Disease outbreaks or environmental risks, such as natural disasters, can have a significant impact on the live cattle market. Hedgers factor in these risks when formulating their risk management strategies.
  21. Government Policies and Regulations
  22. Trade Policies: Changes in trade policies, tariffs, and import/export regulations can influence the international movement of live cattle. Hedgers need to stay informed about government policies that may impact market dynamics.
  23. Agricultural Subsidies: Government subsidies and support programs for the agricultural sector can influence the cost structure for farmers and ranchers. Hedgers consider the potential effects of such policies on their risk exposure.
  24. Case Studies: Practical Applications of Live Cattle Hedging
  25. Case Study 1: Short Hedge by a Cattle Producer

Imagine a cattle producer who anticipates a potential decline in live cattle prices during the selling season. To mitigate the risk of lower prices, the producer decides to initiate a short hedge.

  1. Steps Taken:
  2. Sell Live Cattle Futures Contracts: The producer sells live cattle futures contracts to lock in a predetermined selling price.
  3. Offsetting the Hedge at Selling Time: When it’s time to sell the actual cattle, the producer offsets the short hedge by buying back the equivalent number of futures contracts.
  4. Results: If live cattle prices decline, the losses incurred in the physical market are offset by gains in the futures market, providing the producer with a more predictable revenue stream.
  5. Case Study 2: Long Hedge by a Meat Processor

Consider a meat processor facing uncertainties in live cattle prices, which could impact production costs. To stabilize input costs, the meat processor decides to initiate a long hedge.

  1. Steps Taken:
  2. Buy Live Cattle Futures Contracts: The meat processor buys live cattle futures contracts to establish a fixed buying price for the cattle.
  3. Offsetting the Hedge at Buying Time: When it’s time to purchase live cattle, the meat processor offsets the long hedge by selling back the equivalent number of futures contracts.
  4. Results: If live cattle prices increase, the higher costs in the physical market are mitigated by gains in the futures market, allowing the meat processor to maintain stable input costs.
  5. Risk Management and Monitoring Strategies in Live Cattle Hedging
  6. Continuous Monitoring of Market Conditions

Hedgers need to stay vigilant and continuously monitor market conditions. Regular analysis of supply and demand factors, weather forecasts, and economic indicators ensures that hedging strategies remain aligned with evolving market dynamics.

  1. Adjustments to Hedging Positions

Given the dynamic nature of commodity markets, hedgers may need to make adjustments to their positions. This could involve rolling over futures contracts, adjusting options positions, or even exiting or entering new hedges based on changing circumstances.

  1. Scenario Analysis and Stress Testing

Scenario analysis and stress testing involve simulating various market scenarios to assess the impact on hedging positions. This proactive approach allows hedgers to identify potential vulnerabilities and refine their risk management strategies accordingly.

  1. Educational Resources for Live Cattle Hedging
  2. Training Programs and Workshops

Many commodity trading platforms and industry organizations offer training programs and workshops on hedging strategies. These educational opportunities provide participants with practical insights and hands-on experience in live cattle hedging.

  1. Online Courses and Webinars

Online courses and webinars cover a range of topics related to live cattle hedging, including fundamental and technical analysis, risk management techniques, and the application of options in hedging strategies.

  1. Educational Materials from Industry Experts

Publications, articles, and research papers authored by industry experts provide valuable knowledge on live cattle hedging. These materials delve into advanced concepts, case studies, and best practices in risk management.

Hedging live cattle on the futures market is a sophisticated yet indispensable practice for stakeholders in the agricultural and meat processing industries. Whether employing short hedges as a cattle producer or long hedges as a meat processor, participants in the live cattle market can harness the power of futures and options to manage risk and achieve greater financial stability.

Cannon Trading, with its commitment to providing comprehensive support and educational resources, stands as a reliable ally for those navigating the complexities of live cattle hedging. The platform’s expertise, combined with its array of tools and personalized assistance, empowers hedgers to make informed decisions in a market characterized by both opportunities and uncertainties.

It’s essential to recognize that live cattle hedging is not a one-size-fits-all endeavor. The effectiveness of hedging strategies depends on a thorough understanding of market dynamics, diligent risk management, and the ability to adapt to changing conditions. By embracing these principles and leveraging the resources available through platforms like Cannon Trading, stakeholders can navigate the live cattle market with confidence, turning challenges into opportunities and securing a resilient position in this vital sector of the global economy.

Ready to start trading futures? Call US 1(800)454-9572 – Int’l (310)859-9572 email info@cannontrading.com 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.

**This article has been generated with the help of AI Technology. It has been modified from the original draft for accuracy and compliance reasons.

***@cannontrading on all socials.

Plan your trade and trade your plan.

Download your FREE copy of Order Flow Essentials!

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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.

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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

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: CPI, PPI & Govt. Shutdown + Futures Trading Levels for Nov. 14th

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

The Action Packed Week Ahead: Govt releases inflation numbers, over 2k earnings numbers, the Budget talks Friday deadline and 11 fed speeches.

By John Thorpe, Senior Broker

 

A respected daily futures market analyst : Hightower (free with a live trading account using the E-Futures trading platform, no charge) says about this week in the equities market:

“The next five days of trade could present historical volatility “

The Reasons are varied, from the issuance of the inflation numbers this week, CPI and PPI, to the Debt ceiling and the Moody’s downgrade of the U.S.’s debt to the middle of earnings season.

Tuesday:

For CPI Expectations tomorrow morning @ 7:30 a.m. CST.

This from the Analysts desk at Morningstar: The Consumer Price Index report for October 2023 is forecast to show a continued overall decline in inflation, led largely by moderating energy prices.

However, economists expect core CPI (which excludes volatile food and energy prices) to show stickiness rather than improvement, holding at levels well above the Federal Reserve’s target.

According to FactSet, the overall CPI is forecast to come in at a 3.3% annual rate in October, down from 3.7% in September. Meanwhile, core CPI is expected to remain at September’s levels, with a 4.1% increase from a year ago.

CSCO Cisco earnings after the close1.03 EPS estimate

TGT Target earnings in the middle of the day EPS 1.46 sh estimate

Wednesday:

For PPI final demand the econoday estimates are as follows:

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Thursday:

Ahead of the open Walmart WMT analysts expect 1.41 / EPS

Jobless claims @ 7:30a,m, CST the consensus range is 201k -225K new claims

Industrial Production @ 8:15 a.m. CST

Friday:

Housing Starts and Permits @ 7:30 a.m. CST

And a total of 5 fed speakers through out the day.

Plan your trade and trade your plan.

 

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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.

3b644da2 2bee 4d39 8d98 5208a20bec39

Futures Trading Levels

11-14-2023

#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: Intraday Automated Bond (ZB) Systems, Wheat Daily Chart + Futures Trading Levels for Nov. 13th

Cannon Futures Weekly Newsletter Issue # 1171

 

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

In this issue:

  • Important Notices – Thank you Veterans!
  • Trading Resource of the Week – 2Essentials of Order Flow
  • Hot Market of the Week – March Wheat
  • Broker’s Trading System of the Week – ZB Day Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week
  • Important Notices – Thank you Veterans!

We salute to all US Vets, Saturday is Veterans Day is a federal holiday, most government agencies and schools are closed. Thank you for fighting for our freedom and your service!!
The U.S. House must, at a minimum pass a continuing resolution by Friday November 17th to keep the Government open. That is the deadline for either a complete budget or a continuing stop gap resolution.
Tuesday: CPI @ 7:30 a.m. CST  Earnings-HD Home depot after the close
Wednesday: PPI @ 7;30 A.M. CST Earnings-CSCO Cisco and TGT target after the close
Thursday: Pre open WMT Walmart earnings and BABA Alibaba.
Some of the softs (Sugar, Cocoa) active month is already March 2024. Check volume or check with your broker.

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  • click above for a LIVE demo, streaming prices

 

  • Trading Resource of the Week 

Essentials of Order Flow – FREE PDF

Order Flow has been presented as a mystique to potential Traders as well as seasoned Traders. In many cases it is assumed to be an insanely difficult concept to understand. Order Flow is, at its core, the transaction between a Buyer and a Seller. As a Veteran Trader using Order Flow to base my decisions, I can say that order flow is the very core of any market.
In this FREE booklet, you will learn:
·    What is order flow?
·    Volume by Price
·    Footprint
·    Time & Sales
·    DOM
·    Tying it all together
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 Wheat completed its second downside PriceCount objective and has developed a sideways range trade. At this point, IF the chart can resume its break with new sustained lows, the third count would project a possible run to the $5.08 area.
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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  • 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.
PRODUCT
SYSTEM TYPE
Intraday
Recommended Cannon Trading Starting Capital
$15,000.00
COST
USD 65 / 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.
Would you like to receive daily support & resistance levels?
Yes
S
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  • Trading Levels for Next Week

Daily Levels for November 13th, 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
Trading Reports for Next Week
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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.

8 Steps for Better Trading + Futures Trading Levels for Nov. 10th

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

8 Steps for (hopefully) Better Trading

1. Education

Hopefully if you are already trading you have completed your initial education: contract specs, trading hours, futures brokers, platforms, the opportunities as well as the risk and need to use risk capital in futures, and so on. Understanding this information is essential to good futures trading strategies. The second type of education is ongoing: learning about trading techniques, the evolution of futures markets, different trading tools, and more.

2. Find A System

I am definitely not advising you to go on the web and subscribe to a “black box” system (using buy/sell triggers if don’t know why they are being generated). What I am advising is developing a trading technique: a general set of rules and a trading concept. As you progress, you may want to put the different rules and indicators into a computerized system, but the most important factor is to have a focus and a plan. Don’t just wake up in the morning and trade “blank.”

3. Survival

This is the key! Do what you need to do in order to survive this brutal business and give yourself the chance of being here down the road with more experience and a better chance of success. Survival is probably the biggest key for beginning traders. There is a saying in this business: “live to trade another day.” It is so true!

To Read The Remaining Steps Please Fill In The Form Below!

 

 

Plan your trade and trade your 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.

3b644da2 2bee 4d39 8d98 5208a20bec39

Futures Trading Levels

11-10-2023

#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

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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.

New Micro Nat Gas, Crude Oil Chart + Futures Trading Levels for Nov. 9th 2023

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

Updates and Bullet Points:

By Mark O’Brien, Senior Broker

 

General: 

We have a new futures contract.  It started trading on Monday.  This is the Micro Henry Hub Natural Gas futures contract and corresponding options.

 

To quote directly from the CME Group web site, “The introduction of Micro Henry Hub Natural Gas futures and options responds directly to customer demand for a smaller, more precise instrument for managing natural gas price exposure. At one-tenth the size of the benchmark Henry Hub (NG) contract, Micro Henry Hub Natural Gas futures and options offer more granularity and smaller margin requirements with the same robust transparency and price discovery of the larger Henry Hub contracts.”

 

Follow the link below to the contract’s full contract specifications on the CME Group web site:

 

https://www.cmegroup.com/markets/energy/natural-gas/micro-henry-hub-natural-gas.contractSpecs.html

 

Heads up: most FCM’s / clearing firms, including the five FCM’s Cannon Trading Co. partners with, will monitor a new futures contract for sufficient liquidity before making it available to its clients.  Give Cannon Trading a call to find out the availability of the contract.

 

Energy: 

Incidentally, natural gas (basis Dec.) dropped ±50 cents (a ±$5,000 move) over the last six trading sessions to ±$3.10 /mmBtu. down to new 2-year lows on forecasts for above-normal temps. across the U.S. for the next fifteen days and continental U.S. production remaining near all-time highs,”

 

Financials: 

Stock index futures are struggling today to extend their longest winning streak in two years – clocking seven straight daily gains – as we approach the close of trading.  At this typing, the E-mini S&P 500 is trading just a few ticks either side of unchanged, while the E-mini Dow Jones and E-mini Nasdaq are slightly off.

 

More energy: 

Crude oil extended its more than 2-week sell-off to its lowest level in over three months.  From an intraday high of $89.85 per barrel on Oct. 20, the front month traded through $75.00 per barrel this morning – a ±$15.00 per barrel / $15,000 per contract move.

 

DAILY CHART BELOW

 

News pushing prices south include global demand worries, record U.S. production and ebbing supply concerns surrounding the Gaza conflict.

 

Given its ability to create a ripple effect, the ±15% price decline dragged U.S. pump prices down to levels not seen since March.  It has also helped rein in inflation expectations and worrisome bond yields.

 

While this paints a picture that fears are subsiding that a wider conflict could be emerging in the Middle East and disrupt supplies, traders should remain on high alert for signs to the contrary.

Plan your trade and trade your plan.

 

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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.

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Futures Trading Levels

11-09-2023

 

#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

835b94c2 c47e 4330 aeee 1692c32ea977

 

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.

Powell and other Fed members speak tomorrow + Futures Trading Levels for Nov. 8th

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

Powell and other Fed members to speak tomorrow. Bond auctions have been moving the markets at least on the very short time frame.
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Plan your trade and trade your 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.

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Futures Trading Levels

11-08-2023

#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.

The Week Ahead: Earnings, Govt Reports, Powell Speech + Futures Trading Levels for Nov. 7th

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

The Week Ahead: Earnings, Govt Reports, Powell Speech and any geopolitical developments

By John Thorpe, Senior Broker

 

Earnings, Govt Reports, Powell Speech and any geopolitical wrangling’s, events or additional crises always have the potential to move markets away from their trading ranges.

First up are the earnings reports, This week, due to the fact we don’t have any big names ( FAANG) reporting. Those 5 stocks individually can swing the markets violently on their respective earnings days with any surprises.

Instead, this week, we have 1400 plus earnings reports out on some names you would certainly be familiar with like Disney. The market is looking this week at sector earnings since there is no large cap phenom reporting the week.

IF the biomedical group stumbles with earnings this week, or the retail sector shows signs of weakening, construction sector, finance, the market will be looking at the health of sectors this week as earnings are pumped out before the open, during and after the trading sessions. So don’t expect sharp movements in the stock index prices this week from Earnings, but you can expect markets turning over in a more measured manner as reports flow.

Governmental Reports: yes we have a few but they tend to by a bit more fringe than say NFP or CPI, we do have a Jobless claims number this week on Thursday @ 7:30 CST.

Claims for November 4 week are expected @ 220K vs 217K the week prior.  If you are looking for strong undercurrents in the markets you may find that Wednesday and Thursday will be your best bets. FRB Chair Powell will be speaking both days at separate events, Wednesday very early @8:15 CST followed by a later 1PM CST Thursday talk.

Plan your trade and trade your plan.

 

 

 

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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.

3b644da2 2bee 4d39 8d98 5208a20bec39

Futures Trading Levels

11-07-2023

#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

5dce0b42 bd1f 4173 b724 282870869a47

 

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: Daylight saving officially ends, ES Daily Chart + Futures Trading Levels for Nov. 6th

Cannon Futures Weekly Newsletter Issue # 1170

 

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

In this issue:

  • Important Notices – Daylight saving officially ends
  • Trading Resource of the Week – 25 Options Strategies
  • Hot Market of the Week – December Mini SP
  • Broker’s Trading System of the Week – NQ Day Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week
  • Important Notices – Daylight saving officially ends

Heads up traders in the United States. Get ready to set your clocks back one hour this Sunday, November 5th. Daylight saving officially ends on the first Sunday in November for the United States, which is this coming Sunday.
This follows the UK and European Union adjustment, which takes place the last Sunday in October, so our European traders have already “fallen back.”
Over 1900 stocks report earnings next week . Main feature for Equities markets with an over quiet week of Govt Rpts, Consumer Credit Tuesday and Jobless claims on Thursday would be the two majors the Fed will be looking at hence may impact short term market direction.
On the Ag front the Monthly WASDE numbers will be released on Thursday and will be an important one for the size of our harvested crops.
There will be 7 speeches / presentations next week by Fed Governors, 2 by Fed Chair Powell. The first, Wednesday @ 8:15 am CST @ the Research and Statistics Centennial Conference in D.C. . The second Thursday@ 1:00 p.m. CST At the 24th Jacques Polak Annual Research Conference, Washington, D.C.
Lastly , in a salute to all US Vets, Friday is Veterans Day is a federal holiday, most government agencies and schools are closed. Many banks are also closed on Veterans Day, as it’s a designated federal holiday. All markets will remain open for your trading pleasure.

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  • click above for a LIVE demo, streaming prices

 

  • Trading Resource of the Week 

Strategies For Trading Options

Learn about the 25 Proven Strategies for trading options on CME Group Futures for FREE!

If you are currently trading options on futures or are interested in exploring them further, check out our newly updated trading guide, featuring 25 commonly used options strategies, including butterflies, straddles, strangles, backspread and conversions. Each strategy includes an illustration demonstrating the effect of time decay on the total option premium involved in the position.
Options on futures rank among our most versatile risk management tools, and are offered on most of our products. Whether you trade options for purposes of hedging or speculating, you can limit your risk to the amount you paid up-front for the option while maintaining your exposure to beneficial price movements. To learn more about CME Group options, you can also visit our Options page.
Download the 25 Proven Strategies brochure immediately. This eBook is free to you and no-obligation. Learn about the 25 Proven Strategies for trading options on CME Group Futures for FREE!
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.
December Mini SP500 satisfied it’s second downside PriceCount objective last month and is correcting higher. At this point, IF the chart can resume its break into new sustained lows, the third count would project a possible run to the 4,015 area. It would take a trade below the December reactionary low to formally negate the remaining unmet upside objectives.
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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  • 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.
PRODUCT
SYSTEM TYPE
Swing
Recommended Cannon Trading Starting Capital
$30,000.00
COST
USD 155 / 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.
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Questions about the markets? trading? platforms? technology? trading systems? Get answers with a complimentary, confidential consultation with a Cannon Trading Company series 3 broker.
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  • Trading Levels for Next Week

Daily Levels for November 6th, 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
Trading Reports for Next Week
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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.