In This Issue

Labor Day Futures Trading Schedule

September Futures Forecast

Economic Calendar

September 2nd, 2009 - Issue #496

Labor Day Futures Trading Schedule

* All times listed in Central Time

Friday, September 4

CME Group
Floor: Regular Close

NYMEX
Floor: Regular Close

GLOBEX
3:15 pm Close: Foreign Exchange, CBOT Financial, CME Interest Rate and NYMEX/COMEX/DME products
* All other products regular close

ICE
Regular Close

EUREX
Regular Close

OneChicago
Regular Close

NYSE
Regular Close

Sunday, September 6

CME Group
Floor: Closed

NYMEX
Floor: Closed

GLOBEX
Regular evening open *(excluding: CME Commodity, GSCI, Weather, CBOT/KCBT/MGEX Grains, CBOT Ethanol, TRAKRS, Dow AIG ER and ETF products)

ICE
Regular evening open *(excluding: Soft products)

EUREX
Closed: US Equity Derivatives

OneChicago
Closed

NYSE
Closed

Monday, September 7

CME Group
Floor: Closed

NYMEX
Floor: Closed

GLOBEX
10:30 am Close: Equity products
12:00 pm Close: Foreign Exchange, CBOT Financial, CME Interest Rate, Real Estate and Forestry products
12:15 pm Close: NYMEX/COMEX/DME products on Globex
* Regular evening open for trading date of Tuesday, September 8 for all GLOBEX products

ICE
Closed: Soft and open outcry products * All other products regular close

EUREX
Closed: US Equity Derivatives

OneChicago
Closed

NYSE
Closed

*All times listed in Central Time The above calendar is compiled from sources believed to be reliable. Cannon Trading assumes no responsibility for any errors or omissions. It is meant as an alert to events that may affect trading strategies and is not necessarily complete. The closing times for certain contracts may have been rescheduled.

If you have any questions please contact your broker at 800-454-9572.

September Futures Forecast

by Trade The News

One Year After Lehman

Measured from the collapse of Lehman Brothers, the global financial crisis will have its one year anniversary this month. Lehman went into its final death spiral last September, imploding as the Fed and Treasury decided to use the demise of the relatively small investment bank as a lesson to Wall Street about moral hazard. This decision has been labeled the regulators' biggest blunder, as it exposed the intricate web of credit relationships between the world's largest financial institutions, nearly causing a domino effect across the financial sector. The collapse was only staved off by an unprecedented series of government led actions including the nationalization of AIG and the GSEs, the TARP program, massive worldwide stimulus programs of varying success, and quantitative easing in the form of government bond purchases by the Fed and Bank of England. One year later, markets are stabilizing and data show signs the economy may be in the earliest stages of recovery. The always tempestuous month of September may have some surprises in store as political and economic events unfold, even as the media rakes over the coals of the epic events unleashed by Lehman's collapse as its anniversary approaches.

Stock Markets Portray Confidence Returning

The S&P 500 is over fifty percent off of its low (March 6) about six months after Lehman collapsed. Many analysts are now eyeing a level around 1150, which would be a fifty percent retracement back to 2008 highs. Though September is historically the worst performing month for equities, analysts are betting that stocks can continue to climb the 'wall of worry.'

Nowhere is the debate over sustainability of the recovery rally more evident than in Asia, where equity markets in Japan, Korea, Australia, and Shanghai all hit 2009 highs in August. But just as investors in mainland China painfully discovered through Shanghai's 20% free-fall from highs in mid-August, even mere speculation of the government or central bank withdrawing the stimulus safety net is sufficient to precipitate a retreat. Chinese authorities are clamping down on lending growth. The fiscal package is helping to accomplish this task by driving up investment, but at the cost of building overcapacity. Thus severe challenges remain ahead with 2010 potentially more painful than 2009. This month, we may begin to see whether concerns over a swift transition from excess demand, inflated by bazooka-sized policy response and infrastructure-centric stimulus, to overcapacity are justified. If external demand remains lukewarm, credit for small to medium-sized companies will remain tight, and underinvestment in domestic programs will persist. The threat of a "recovery bubble" will continue to weigh on China's markets. Any extended pullback in Asian markets-the economies at the vanguard of the recovery-will surely have a ripple effect on the West.

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Economic Calendar

Source: Moore Research Center, Inc.

* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.

** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.

*** 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!