Learn to Profitably Trade the Global Futures Markets

Market Content July 21, 2009

Today was a great example of why we trade multiple markets and how our trade set-ups can provide you with profits on those markets! All of our four trades today came on the Crude Oil market (Symbol CL) ($10/tick).

We started our morning off at 8:10am EST, again watching the Crude Oil. We did notice though up until about 8am EST the Crude market was in a sideways market, but after taking a closer right around 7:30am EST volume spiked up and started to increase into the open of the commodities market open at 8:20am EST. Originally the Crude Oil market gave us a James Wave long, but we were able to disqualify it due to a stutter step in price, which gave us a 2-Step to the short side, where we entered at 65.81 and took +3 ticks of profit before closing the trade with a scratch on our other 2 contracts. Giving us a profit of 3 ticks or $30.

The next trade set-up on Crude Oil came at 9:13am EST in the pattern of a 2-step short. We followed our rules and waited for 5 minutes after the BOC Rate Statement news came out at 9am EST, once this occurred Crude Oil started to move again—originally we saw a wave to the long side, but price did a classic stutter step after breaking resistance, where we instantly looked for a 2-step short at the highs. We entered short at 66.50 and took profits at +3 ticks, +6 ticks and +3 ticks totaling 12 ticks on 3 contracts or $120.

Our third trade came, again, in the form of a 2-step short. Prior to getting into this trade Ben Bernanke was speaking at 10am EST, we realized this and knew ahead of time to keep a very close eye on price action, incase price slows down on us while in a trade and gives us an early exit signal. So at 10:02am EST we entered short at 66.03 where we took profits off the table at +3 ticks, +6 ticks and finally closed the trade with +29 ticks on our last contract for a total of 38 ticks on the trade. Our rules got us into this trade and our management of the trade is the only reason we were able to lock in the profits we did, closed with $380 of profit.

The last trade of the day for us came at 12:02am EST on the CL. We once again went long off a James Wave 2-step at a basis price of 65.05. We took our initial +3 ticks of profit and were then scratched out of the rest of our trade, locking in a profit of $30 ($10/tick) Our trade management automatically moves our stop to break-even once we reach our first target, so this enables us to lock in profit very quickly and close our trades with a profit instead of a loss.

Today’s trades totaled 56 Ticks on the Crude Oil market ($10/T), totaling $560 on 3 contracts.

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