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Dear Traders,<\/div>\n
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Some very large swings and intra-day moves across more than a few markets!<\/div>\n
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Volatility is increasing.<\/div>\n
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When that happens, my personal opinion says:<\/div>\n
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*Reduce trade size<\/div>\n
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*Be a bit more stubborn in entry points with the thought of, “No trade is better than a bad trade”<\/div>\n
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Just in case….Here is a refresher about limit moves and circuit breakers:<\/div>\n
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A price limit is the maximum price range permitted for a futures contract in each trading session.\u00a0\u00a0When markets hit the price limit, different actions\u00a0can\u00a0occur depending on the product being traded. Markets may temporarily halt until price limits can be expanded,\u00a0they may\u00a0remain in a limit condition or\u00a0they may\u00a0stop trading for the day, based on regulatory rules.<\/div>\n
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This is for Stock Index futures but keep in mind MANY other markets are experiencing LARGE swings and moves.<\/div>\n
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Overnight limits (5:00 P.M. \u2013 8:30 A.M., Central Time): the futures contract is limited to a 5% price move up or a 5% price move down, based on the futures contract\u2019s prior day\u2019s settlement price (3:15 P.M., Central Time).<\/div>\n
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This applies to the main stock index futures contracts available, such as the\u00a0ES, MES, NQ,\u00a0etc.<\/div>\n
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Detailed information here.<\/a><\/div>\n
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What is so dangerous you may ask?<\/div>\n
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If you are long an ES during the night session and the market is limit down (5%) you can NOT get out. There is a chance that when the market opens up at 8:30 AM CDT that the market will then go down the 7% limit with out you being able to exit. That means that on certain situations you can lose MORE than you have in your account.<\/div>\n
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If you don’t understand how the circuit breakers\/ price limits work…make sure you call us and talk to a broker at + 1 310 859 9572<\/div>\n
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This only applies for the overnight session\u00a0ending at\u00a08:30 A.M.\u00a0Central\u00a0Time.\u00a0At that point,\u00a0a new set of rules kick in ONLY to the downside….<\/div>\n<\/div>\n<\/div>\n
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-7% Trading Halt 15 mins<\/div>\n
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-13% Trading Halt 15 mins<\/div>\n
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-20% Closed for rest of day<\/div>\n
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Current Price Limits can be found here<\/a><\/div>\n<\/div>\n<\/div>\n
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So we went from 6 weeks of lower volatility, overall higher stock prices to Dow being down over 1900 points at one point today!!<\/div>\n
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This is MAJOR alert in my opinion that market sentiment has changed.<\/div>\n
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Be aware and if the below applies, you are in a better spot….<\/div>\n
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If you know how to take a loss.<\/div>\n
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If you know how to reduce trading size based on volatility.<\/div>\n
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If you know how to trade spreads ( NQ vs ES?)<\/div>\n
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If you understand options spreads.<\/div>\n<\/div>\n
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THAN there are some very interesting set ups out there ( STILL with HIGHER RISK than normal). However if none of the above applies to you, the risks outweighs the potential opportunities. –\u00a0PERSONAL opinion<\/div>\n
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On a different note, if you are NOT a Cannon client yet, you may want to\u00a0read this recent review!!<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n
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<\/div>\n<\/h3>\n
Futures Trading Levels<\/strong><\/h3>\n
<\/h3>\nGood Trading<\/h3>\n
Trading Futures, Options on Futures, Gold Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.\u00a0 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.<\/p>\n
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Futures Trading Levels<\/strong><\/h3>\n06-16-2020<\/p>\n
\n<\/div>\n![\"\"](\"https:\/\/files.constantcontact.com\/3dc00ef7001\/8d6d2897-0016-4ff2-b0bb-ccf4e3a7a7bf.jpg\" "\\"\\"")
<\/div>\n<\/div>\n<\/div>\n<\/div>\nDid you know?<\/div>\n<\/div>\nCannon will\u00a0Match or Beat Your Current Commission Rates!<\/a><\/div>\n<\/div>\nCannon offers o<\/a>ver 12 TRADING PLATFORMS\u00a0CLICK HERE<\/a>\u00a0for a demo<\/div>\n
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Did you know?<\/div>\n
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Cannon will\u00a0Match or Beat Your Current Commission Rates!<\/a><\/div>\n
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Cannon offers o<\/a>ver 12 TRADING PLATFORMS\u00a0CLICK HERE<\/a>\u00a0for a demo<\/div>\n
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