March 11, 2011

Breaker Pattern Acts Like a Slingshot on Crude Oil

815am est

– We’re looking for some volume this morning

– Friday morning so we know its going to be a short day

– We had the earthquake overnight that MAY be keeping traders distracted this morning

– News @ 830am that we’re hoping will be a good jump start to our day

– Contract Rollover on many of the markets we trade

830am est

– Retail sales come out as expected

– Market has very little reaction at 830am

840am est

– We’re not surprised by the lack of volume, but disappointed

– We really wanted to get some trades early this AM on a Friday

– We have the Crude oil resting quietly around the 100.00

– We know that 100.00 will be a VERY sticky area today without any more volume.

– 100.00 = BIG big round number

– We’re at the lows of the price wedge, so we indeed in the right AREA to take a trade

– The next thing we need is BIG MONEY and SPEED in the market

915am est

– Lack of speed, lack of big money

– Lets stay patient

1000am EST

– We had consumer confidence lower than estimates

– Business inventories as expected

– We’ve taken two trades today, both were a little higher risk, so they were not Fast Track entries

– Most members took the first trade, so many people are up 10 ticks on the FT Method

– We’ve got about 50% of our goal on the advanced method

– Continue to be very conservative, not really knowing what to expect as the rest of the morning progresses.

– We always look for an early Friday morning close

– Today may be even earlier

1045am est

– We see the 06-11 DX contract has falling average true range

– We marked the recent swing low on the ATR and now its dropped below the low from earlier this morning

– This tells us the trading range is getting narrower

– Narrower = more challenging to see BIG winners