2/2 Over $400 In The Trade Room Today

Market Commentary October 27, 2009

It was yet another great day in the markets for all of us at the School of Trade. We were able to take 2 trades, and went 2 for 2 with a total profit of $470.00 on 4 contracts. Both of our trades this morning came on the Crude Oil market (Symbol CL). The Crude oil market retraced off its highs yesterday afternoon, and never looked back, closing inside the $78/barrel price at the end of the day. The commencement of trading in the open outcry pits at 9:00am EST this morning as well as the U.S Equities opening at 9:30am EST only brought the market lower yet again, into the $77 price level. It wasn’t until the late morning when price action began to trend back up towards $80/barrel (Identify Market Sentiment For Day Trading Futures).

When we finally saw the pace of the tape increasing at a speed we liked (showing green P.O.T bars), and noticed more and more participants entering into the market, we knew it was time to take a trade. At 10:19am EST we noticed that price was beginning to retrace off its lows of the day, and after a slight pullback in price, we noticed the sellers might not be finished with the market. We decided to enter the market to the short side with a Breaker pattern completing its formation, and our order was executed at 78.32 ( Crude Oil Futures Day Trading Video). Once in the market, we kept a keen eye on all of our technical indicators to ensure the best possible outcome. It wasn’t long before our momentum was turning to the short side, and more sellers came across the ticker tape, allowing us to take some quick profits at +4 ticks (2 contacts) for a total of +8 ticks on our first trade of the morning ($80).

Our second trade came shortly after our first was closed at a profit and was also taken on the Crude Oil market (Symbol CL). The selling pressure didn’t last long, and hindsight showed us we got out at just the right time, because buyers began to quickly file into the market and sellers raced to take profits (Scalping Futures Day Trading Video). With strong buying pressure entering the market, and larger than normal order flow ticking across the tape, we looked for a possible entry signal into the market. At 10:26am EST we got exactly that, and entered the Crude Oil market long with a Breaker pattern. Our stop limit order was filled instantly, with a basis of 78.75; and we watched as the buyers soon took over the market, pushing price much higher than we expected, allowing us to take profits at +4 ticks (2 contracts), +8 ticks and an additional +23 ticks on our last contract, netting us a total of +39 ticks on our final trade of the morning ($390).