{"id":16337,"date":"2020-10-30T12:15:49","date_gmt":"2020-10-30T20:15:49","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=16337"},"modified":"2020-10-30T12:15:49","modified_gmt":"2020-10-30T20:15:49","slug":"weekly-newsletter-1027-margins-update-circuit-breakers-dow-jones-chart-trading-levels-11-02-2020","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/weekly-newsletter-1027-margins-update-circuit-breakers-dow-jones-chart-trading-levels-11-02-2020\/","title":{"rendered":"Weekly Newsletter #1027 &#8211; Margins Update, Circuit Breakers &#8211; DOW Jones Chart &#8211; Trading Levels 11.02.2020"},"content":{"rendered":"<h1 style=\"text-align: center;\"><strong>Cannon Futures Weekly Letter Issue # 1027<\/strong><\/h1>\n<p>Dear Traders,<\/p>\n<div align=\"left\">\n<div align=\"center\">\n<div align=\"center\">Like us on FaceBook!<\/div>\n<div align=\"center\"><a href=\"http:\/\/www.facebook.com\/CannonTrading\" target=\"_blank\" rel=\"noopener noreferrer\" shape=\"rect\">www.facebook.com\/CannonTrading<\/a><\/div>\n<\/div>\n<\/div>\n<div style=\"text-align: left;\" align=\"center\">\n<div align=\"center\">\n<div align=\"center\">Get Real Time updates and\u00a0<a href=\"https:\/\/twitter.com\/CannonTrading\" target=\"_blank\" rel=\"noopener noreferrer\">market alerts on Twitter!<\/a><\/div>\n<\/div>\n<\/div>\n<div align=\"center\"><\/div>\n<div align=\"center\"><\/div>\n<div>\n<div align=\"center\">\n<div><\/div>\n<\/div>\n<\/div>\n<div style=\"text-align: center;\">\n<div><\/div>\n<\/div>\n<div>\n<h2 align=\"center\"><strong>MARGINS UPDATE:<\/strong><\/h2>\n<div align=\"center\"><\/div>\n<div align=\"center\">Upcoming elections fear, COVID resurge and other factors really helped spike up volatility.<\/div>\n<div align=\"center\"><\/div>\n<div>Most of Cannon clearing partners and risk managers have increased margins to full overnight or what we call 100% margins even during the day.<\/div>\n<div>This does NOT apply to all platforms and clearing houses we work with. Some only raised margins for during the night session and some also raised margins through out the day.<\/div>\n<div><\/div>\n<div>Most platforms will provide a notice when you login regarding margins.<\/div>\n<div><\/div>\n<div>Cannon offers over 10 different platforms via 5 different clearing houses.<\/div>\n<div><\/div>\n<div align=\"center\">If you are a client who day trades and utilize day trading margins &#8211; PLEASE confirm with your broker what are the current margins based on the platform you use and the markets you trade.<\/div>\n<div align=\"center\"><\/div>\n<h2 align=\"center\"><strong>During this Time:<\/strong><\/h2>\n<div align=\"center\"><\/div>\n<div align=\"center\">*Expect the unexpected&#8230;<\/div>\n<div align=\"center\">* 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!<\/div>\n<div align=\"center\">* Think money management, hedging risk while you are still trying to figure out how to profit.<\/div>\n<ul>\n<li>Try to use preset brackets\/ automated stops and limits etc. if you are able to with your software.<\/li>\n<\/ul>\n<div align=\"center\">* Know what is going on, reports, current margins, current limits and more.<\/div>\n<div align=\"center\">*Trade smaller. The bands are much larger. Watch the VIX. MICROS and smaller sized contracts like mini Silver and mini crude are good alternatives.<\/div>\n<div align=\"center\">* DO NOT assume anything&#8230;if you are not sure,<a href=\"http:\/\/r20.rs6.net\/tn.jsp?f=001ga3O0-Klo9_mRRCDuFsutt1qAe2mgxCg-alFVj4cSmxsh9JU_47HBG942gHWcUUyrbmCStZEaksHl3qs2Qvc0g1vn7lxpFRfvJwnijYr-LbL_Er4enzLkJC7bByx3dQb1EGsxh7LK4F4f5NebNn10qNTub-GfpmoHfDG9dONz-FQKZqUTSx63g==&amp;c=&amp;ch=\" target=\"_blank\" rel=\"noopener noreferrer\">\u00a0<\/a><a href=\"http:\/\/r20.rs6.net\/tn.jsp?f=001ga3O0-Klo9_mRRCDuFsutt1qAe2mgxCg-alFVj4cSmxsh9JU_47HBG942gHWcUUyrbmCStZEaksHl3qs2Qvc0g1vn7lxpFRfvJwnijYr-LbL_Er4enzLkJC7bByx3dQb1EGsxh7LK4F4f5NebNn10qNTub-GfpmoHfDG9dONz-FQKZqUTSx63g==&amp;c=&amp;ch=\" target=\"_blank\" rel=\"noopener noreferrer\">contact us<\/a>\u00a0and we will try our best to assist with the combined, vast experience we have here as a team.<\/div>\n<div align=\"center\">* Wash hands, take this seriously and do your best to stay healthy&#8230;.<\/div>\n<div align=\"center\"><\/div>\n<div align=\"justify\"><\/div>\n<h2 align=\"center\"><strong>Circuit Breakers:<\/strong><\/h2>\n<div align=\"center\"><\/div>\n<div align=\"center\">I\u2019ve received\u00a0some questions about the\u00a0price\u00a0limits or circuit breakers we have seen mostly in stock index futures.\u00a0Hopefully this\u00a0explains\u00a0things\u00a0a bit better:<\/div>\n<div align=\"center\">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<div align=\"center\"><\/div>\n<div align=\"center\">This is for Stock Index futures but keep in mind MANY other markets are experiencing LARGE swings and moves.<\/div>\n<div align=\"center\">Overnight limits (5:00 P.M. \u2013 8:30 A.M., Central Time): the futures contract is limited to a 7% price move up or a 7% price move down, based on the futures contract\u2019s prior day\u2019s settlement price (3:15 P.M., Central Time).<\/div>\n<div align=\"center\"><\/div>\n<div align=\"center\">If PRICE LIMITS hit 7% up or down and trading will cease until the NYSE cash market opens at 8:30am Central Time.<\/div>\n<div align=\"center\"><\/div>\n<div>This is for Stock Index futures but keep in mind MANY other markets are experiencing LARGE swings and moves.<\/div>\n<div>Overnight limits (5:00 P.M. \u2013 8:30 A.M., Central Time): the futures contract is limited to a 7% price move up or a 7% price move down, based on the futures contract\u2019s prior day\u2019s settlement price (3:15 P.M., Central Time).<\/div>\n<div>Further, if a contract market moves beyond +\/- 3.5% within an hour during the overnight session, trading will be paused for two minutes.<\/div>\n<div>If PRICE LIMITS hit 7% up or down and trading will cease until the NYSE cash market opens at 8:30am Central Time.<\/div>\n<div>This applies to the main stock index futures contracts available, such as the ES, MES, NQ, etc.<\/div>\n<div>What is so dangerous you may ask?<\/div>\n<div>If you are long an ES during the night session and the market is limit down (7%) 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 13% limit without you being able to exit. That means that on certain situations you can lose MORE than you have in your account.<\/div>\n<div>If you don&#8217;t understand how the circuit breakers\/ price limits work&#8230;make sure you call us and talk to a broker at + 1 310 859 9572<\/div>\n<div>This only applies for the overnight session ending at 8:30 A.M. Central Time. At that point, a new set of rules kick in ONLY to the downside.<\/div>\n<p style=\"text-align: center;\">-7% Trading Halt 15 mins<\/p>\n<p style=\"text-align: center;\">-13% Trading Halt 15 mins<\/p>\n<div align=\"center\">-20% Closed for rest of day<\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n<div style=\"text-align: center;\">\n<h2><strong>Trading 101: One of the Most Important (and often overlooked&#8230;.) Aspects of Day Trading &#8211; Learn to Accept Losses<\/strong><\/h2>\n<div><\/div>\n<div>(I think this is a very important read during this time.)<\/div>\n<div><\/div>\n<div align=\"justify\">I am frequently asked, (and many times I ask myself) about the keys to trading success in general and futures trading in specific. The list is long and, to be honest, it is not an exact science.<\/div>\n<div align=\"justify\"><\/div>\n<div align=\"justify\">Successful trading is a mix of art and math, personality and discipline and much more in between. I have seen many different ways to make money in the futures and commodities world. I saw and still see clients trade and make money.<\/div>\n<div align=\"justify\"><\/div>\n<div align=\"justify\">Yet, the list of clients who lose money is bigger than the ones who make money&#8230;.Why?<\/div>\n<div><\/div>\n<div><a href=\"https:\/\/www.cannontrading.com\/community\/newsletter\/Natural-Gas-Spread-Review-and-Learn-to-Accept-a-Losing-Day#one\" target=\"_blank\" rel=\"noopener noreferrer\" data-segment-action=\"add\" data-segment-id=\"42dd3290-dd7d-11e3-91c2-d4ae529a8639\">Please click here to read the rest of the article<\/a><\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n<div style=\"text-align: center;\"><strong>Dow Jones Industrial Avg. Cash Index\u00a0WEEKLY chart<\/strong> below. Notice the levels and notice the turning up in volatility on bottom of the chart.<\/div>\n<div align=\"center\"><\/div>\n<div align=\"center\"><\/div>\n<div align=\"center\"><img decoding=\"async\" src=\"https:\/\/www.cannontrading.com\/community\/newsletter\/202010\/10302020DJ_Industrial_Average_Weekly.png\" alt=\"\" title=\"\"><\/div>\n<h3 style=\"font-variant-ligatures: normal; font-variant-caps: normal; orphans: 2; text-align: start; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; word-spacing: 0px;\"><strong>Good Trading<\/strong><\/h3>\n<p style=\"font-variant-ligatures: normal; font-variant-caps: normal; orphans: 2; text-align: start; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; word-spacing: 0px;\">Trading Futures, Options on 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<p>&nbsp;<\/p>\n<h3><strong>Futures Trading Levels<\/strong><\/h3>\n<p>11-02-2020<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/files.constantcontact.com\/3dc00ef7001\/394520fd-48f7-4fe4-a832-531b54f7f505.png\" alt=\"\" title=\"\"><\/p>\n<p>&nbsp;<\/p>\n<h2>Weekly Levels<\/h2>\n<p><img decoding=\"async\" src=\"https:\/\/files.constantcontact.com\/3dc00ef7001\/8238abab-bdd0-4d94-a780-bb6847f96eda.png\" alt=\"\" title=\"\"><\/p>\n<h3><\/h3>\n<h3><strong>Economic Reports, source:\u00a0<\/strong><\/h3>\n<p><a href=\"https:\/\/mrci.com\" target=\"_blank\" rel=\"noopener\">https:\/\/mrci.com<\/a><\/p>\n<div class=\"pagearrange__layout-row full\" data-row=\"1\">\n<div class=\"pagearrange__layout-column pagearrange__layout-column--full full\" data-column=\"0\">\n<div class=\"pagearrange__layout-cell\" data-cell=\"0\" data-compid=\"Calendar_Copy1\">\n<div class=\"flexShell\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><img decoding=\"async\" src=\"https:\/\/files.constantcontact.com\/3dc00ef7001\/449f4599-2f0f-4a62-8666-af96e53b131c.png\" alt=\"\" title=\"\"><\/p>\n<p>This is not a solicitation of any order to buy or sell, but a current market view provided by <a href=\"https:\/\/www.cannontrading.com\/company\/about\">Cannon Trading Inc<\/a>. Any statement of facts\u00a0here in\u00a0contained are derived from sources believed to be\u00a0reliable,\u00a0but are not guaranteed as to\u00a0accuracy, 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\u00a0judgement\u00a0in trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cannon Futures Weekly Letter Issue # 1027 Dear Traders, Like us on FaceBook! www.facebook.com\/CannonTrading Get Real Time updates and\u00a0market alerts on Twitter! MARGINS UPDATE: Upcoming elections fear, COVID resurge and other factors really helped spike up volatility. Most of Cannon clearing partners and risk managers have increased margins to full overnight or what we call [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[67],"tags":[],"class_list":["post-16337","post","type-post","status-publish","format-standard","hentry","category-future-trading-news"],"_links":{"self":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/16337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/comments?post=16337"}],"version-history":[{"count":1,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/16337\/revisions"}],"predecessor-version":[{"id":16338,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/16337\/revisions\/16338"}],"wp:attachment":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/media?parent=16337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/categories?post=16337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/tags?post=16337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}