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Tag: Volatility in the Markets

Weekly Newsletter 1077: Adjust your Trading with Volatility & Futures Levels for the Week Ahead

Posted on by Ilan

Cannon Futures Weekly Letter Issue # 1077

Dear Traders,

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Trading 201: Adjust your Trading with Volatility

Unemployment report along with Omicron along with an already “very spicy markets” encouraged me to share some of the following pointers.
Hope it helps.
*While I have no idea were the market is going from day to day, minute to minute, week to week etc. I do know that in the past, some of the sharpest and largest rallies were short covering after a large sell off. More often than not market sell offs and volatility like we are seeing do not end up as V type of action but more like U or W when it is all said and done.
*Expect the unexpected…
* Have an idea of what you are looking to do, keep in mind possible risk and have a game plan. Now more than ever, plan your trade and than trade your plan!
* Think money management, hedging risk while you are still trying to figure out how to profit.
* Know what is going on, reports, current margins, current limits and more.
  • Consider short term options instead of futures and/or MICROS
*Trade smaller. The bands are much larger. Watch the VIX.
* DO NOT assume anything…if you are not sure, contact us and we will try our best to assist with the combined, vast experience we have here as a team.
* Wash hands, take this seriously and do your best to stay healthy….
My colleague, John Thorpe, Ex floor broker, contributed the following on the VIX and the VVIX:
We recommend all stock indices intraday traders to keep an eye on the VIX for directional clues and study, many of you have access through other means to view this critical trading barometer, VIX now trades 5 days per week ,23 hours per day. if you need to add the VIX data to your trading platforms , it’s 3 bucks per month, penny wise and pound foolish if you don’t. Contact your broker on how to add the Volatility Index traded through the CBOE to your trading platform
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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

12.05.2021

Futures Trading Support & Resistance Levels 12.05.2021

 

Weekly Levels

Futures Trading Support & Resistance Weekly Levels

 

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

https://mrci.com

Date Reports/Expiration Notice Dates

MRCI Reports

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

VERY VOLATILE Trading Day in the Futures Markets & Support and Resistance Levels 12.02.2021

Posted on by Ilan

Dear Futures Trader,

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If the first day of December is any indication of what’s to come….then watch out because it was a VERY VOLATILE day.

While risking sounding like a broken record,.. I must share the below once again – you need to adjust your thinking , action and discipline or risk blowing up your account if caught in any of the following:
Not being focused
not using stops
revenge trading
hoping
doubling down
etc.
  1. Learn to reduce trading size. Perhaps trade smaller contracts like the micros.
  2. Adjust stops and entries based on volatility ( ATR/ Parabolics).
  3. Be extra picky on entries without chasing trades.
  4. Understand that loses are part of trading and this is definitely not a good time to “fight the markets”.
  5. Focus more on risk management and ways to protect certain positions as needed. Survive to trade another day.
  6. Consider possibly utilizing short term options rather than futures.
Useful link, just in case – LIMIT PRICE MOVES

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

12-02-2021

Support and Resistance Levels 12.02.2021


Economic Reports, source: 

https://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 COVID Variant Looms and Markets React w/ Extreme Volatility, Support and Resistance Levels 11.30.2021

Posted on by Ilan

Dear Futures Trader,

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

On Friday, Omicron, the new COVID-19 variant took the oxygen out of newsrooms.

Detected first in South Africa, this mutation is being described as potentially more contagious than the Delta variant. It is unknown whether the currently available vaccines will provide protection from it.
The result was one of the most post Thanksgiving Friday trading session I have seen in over 22 years!
Intraday Volatility in stock index futures is extremely high. Actually across many markets BTC futures leading the volatility but metals, energies ( Natural Gas down 11% today!!) and grains have seen higher volatility.
  1. Learn to reduce trading size. Perhaps trade smaller contracts like the micros.
  2. Adjust stops and entries based on volatility ( ATR/ Parabolics).
  3. Be extra picky on entries without chasing trades.
  4. Understand that loses are part of trading and this is definitely not a good time to “fight the markets”.
  5. Focus more on risk management and ways to protect certain positions as needed. Survive to trade another day.
  6. Consider possibly utilizing short term options rather than futures.
The risk is MUCH GREATER than I have seen, yet some traders look for it.
That is ok, as long as you :
Know the rules, understand current margins, know where the circuit breakers are/ limit moves.
Figure out your max risk.
After you do all that, feel free to trade but jumping in and trying to trade without the basic knowledge above is like jumping into a stormy ocean without a life vest…..At any time, feel free to contact us with questions/feedback/resources.

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

11-30-2021

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Economic Reports, source: 

https://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.

FOMC Day Aftermath: Volatility in the Markets | 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
5. Earnings Releases

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1. Market Commentary

Note to our clients who are trading with TransactAT:

The latest version is now TransactAT 5.2.2 (download). The newer version can be installed over the older version. Please contact you broker if you need any help.

FOMC came like a hurricane as the market sold off sharply after the announcement with some heavy volume.

Last couple of days I shared my mini Russell 2000 chart along with the potential sell at 693 and target at 673. This trade idea is completed.

Below you will see my mini SP chart with potential levels both below and above as my guess is we will see volatility going both directions.

ALWAYS EXPECT THE UNEXPECTED! When volatility skyrockets like now, moves become extreme, the speed of the market really picks up and this is when one must adjust their trading size lower to accommodate for the wilder and wider moves. Continue reading “FOMC Day Aftermath: Volatility in the Markets | 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.