March 7, 2011
- in Uncategorized by schooloftrade
Crude Oil Drops and we bought the lows before the POP
8:00 am est
– We’re just getting started with another week in the live trade room
– Gold at new highs
– Crude Oil at new highs
– Euro new highs
– Russell trading inside the range from Friday
805am EST
– We don’t have any news to worry about this morning
– With the expectation of the US Market OPEN, we don’t have much to worry about
– Expect a slow start to a Monday without any news
– Pace of tape indicator shows me the speed is very slow at this time
810am EST
– We see the dollar is dropping, which gives us buying opportunities on the markets we trade most.
– As the dollar makes new lows, we can buy pullbacks on the crude, gold, euro, and Russell.
– Today, with the dollar dropping, the higher percentage trades will be LONG
– Dollar dropping = short term selling opportunities and long term buying opportunities
– Scalp the short side, and look to hold with the long side
815am est
– We see the speed of the tape is still quite slow
– Monday morning without any news, we somewhat expect that
– We see higher lows on the dollar index average true range, this gives us some hope that we will get a decent day out of this Monday morning.
– Lets stay patient and be ready for what this market has to offer us.
900am est
– We’re seeing a strong uptrend on the crude oil futures
– We want to buy at support levels as price rises, not buying into the highs, or with overbought momentum
– The most challenging aspect to a trending market is just knowing where the best place is to get in.
– Most professionals will wait for a pullback on a trending upside market, or wait for a retracement on a falling market.
930am est
– We tried to buy the lows on the crude oil channel, but the price action and the overhead resistance did not make it possible.
– Then we tried to sell the break of the lows, but we got chopped up b/c of a poor trade decision on Joe’s part, getting us in at the lows of the channel and the BMT and trend line support in our way
– We took our first trade as a loss on the Fast track, it was a bad trade decision
– We then waited for new lows to be made, and took our 2nd trade on the fast track for a winner, buying the lows.
– 2nd trade happened quite quickly, so we had to be on our toes
– New lower lows, with oversold momentum, will ALWAYS be a great buying opportunity.
– We have 1 winner on the advanced method for 20 ticks
– We are breakeven on the fast track method
– Speed has been very slow this morning
– The dollar is setting up for a wave short
– Lets look for buying opportunities on the markets we trade most.
1037am est
– Price action is very sluggish right now
– All the markets we’re trading are around the BMT
– We know the news is few this morning
– We know the speed and the ATR have both been very slow.
1100am est
– We see the crude oil futures trading in a wedge pattern on the 34range chart
– We want to sell the highs of the wedge, buy the lows of the wedge.
1110am est
– Gold futures and crude oil futures both showing slower speed
– Both showing narrowing price action
– Both showing wedge patterns on the slower timeframes
– Gold looks really tough, we see flat trigger lines across all timeframes
– All the trigger lines are also the SAME PRICE
– This means that gold is flat, and has been flat for a very long time.
1155am est
– We finished our day with 4 winners in a row on the FT method
– We hit our daily goal for the 6th day in a row
– We had to work through the Euro loss
– We had to work through the poor trade decision for the first trade fo the day
– And we also took a bad trade @ 925am est for a loss
– If you remove the POOR decisions these are almost all winners
– 1 loss on euro, everything else were winning trades.
