Market Commentary from Schooloftrade.com, Trade Futures 7-30-09

Market Content July 30, 2009

Yet another profitable day at the School of Trade! It was easy to see though early in the morning that volume was extremely low and price action at times seemed non-existent. We knew that we would need to be at the top of our game and take only the very best trade set-ups.

Our first trade this morning came just before the Natural Gas Storage news at 10:30am EST. We saw volume starting to increase in the Crude Oil market (Symbol CL) and initially looked for a James Wave pattern, but it became disqualifying after not making new highs. Since the Wave set-up we had failed we intuitively looked to take a trend reversal trade to the short side via the 2-step. At 10:00am EST we saw our perfect set-up and with volume on our side, we entered the market at 65.07. It wasn’t long before our initial 2 targets of +3 ticks and +6 ticks were hit and we were then able to let our third contract run for an extra +8 ticks for a total of 17 ticks ($10/tick).

The second and final trade of the day also came on the Crude Oil market (Symbol CL). After the Natural Gas news had been released at 10:30am EST, volume continued to stay strong and we were able to identify a clear 2-step pattern to the long side at 11:04am EST. After verifying price action was in our favor, via the time and sales window, we entered long at 66.25 and were able to take our first target of +3 ticks before breaking even on our remaining two contracts, for a profit of +3 ticks ($10/tick)

Today’s Trade Totals: 2 for 2 $200.00 Profit!