Day Traders Gold, Market Up-Date, Futures Day Trading.

Market Content for July 31, 2009

Well I think it is safe to coin today as “Good Friday” to say the least! The School of Trade ended the week and the month of July with some great profits today. Let’s recap the trades that got us our profit today:

At 4:01am EST we noticed some great volume in the Crude Oil market (Symbol CL). Initially we looked for a James Wave to the long side, but after it broke our rules for an acceptable trade we looked to take Crude short with a 2-step. Before we could enter the trade we needed to read the tape and see if we could get active sellers below 67.24, once this happened we entered the market short getting filled at 67.21. We were able to take profits at +3 ticks, +6 ticks and with trailing our final contract; we were able to get an extra +8 ticks for a total of 17 ticks ($10/tick

Our next trade came very shortly after our first at 4:13am EST on the Crude Oil once again (Symbol CL). We were looking for a James Wave to the short side after our first trade carrying Crude lower, but this set-up failed after breaking our rules. So, we quickly looked for a trend reversal and a 2-step set-up perfectly to the long side. We entered the market at 66.91 and took profits at +3 ticks, +6 ticks and +6 on our last contract for a total of 15 ticks on the trade ($10/Tick)

The third trade into the early morning came once again on the Crude Oil market (Symbol CL) at 4:37am EST. This was another 2-step to the short side. Before entering the trade we needed to see conviction in the tape below the 67.00 level. Once this occurred we knew it was time to enter short, and we got filled at 66.98 where we were able to take profits off at +3 ticks, +6 ticks and +18 ticks on our final contract. Totaling 27 ticks for the trade; what a great way to start our summer Friday! ($10/tick)

The next two trades also came in the Crude Oil (Symbol CL). We took a break until about 7:30am EST because historically price action slows down due to European traders going to lunch. We entered the market once again though at 8:58am EST, this time to the long side in the form of a 2-step pattern. We were able to enter short at a basis of 66.33, but once in the trade we noticed price action had begun to slow down and after testing our first target and not getting filled we closed the trade early with a loss of -4 ticks or 12 ticks total on 3 contracts ($10/tick)

The next and last trade we took on the Crude Oil market today came at 9:14am EST, where we looked to take a James Wave long. We were able to get filled on the trade at 65.41, but soon realized we had made a mental mistake and noticed not only did we have overhead resistance, but that it was 9:15am EST. Our rules tell us not to trade in anticipation for the U.S Equity markets opening, and so we instantly closed out of the trade to protect capital and took a small loss of -3 ticks or 9 ticks total when trading 3 contracts ($10/Tick).

We then took a small break due to not only the US market open, but also because there was numerous news events. After all the news had been released we looked to the Mini Russell 2000 (Symbol TF) for our next trade. At 10:05am EST we took the Russell long after seeing a 2-step pattern and entered the market at 556.3. We watched the tape closely and it was not long before we were able to take profits at +3 ticks, +6 ticks and then ended up getting +1 tick on our final contract, for a total of 10 ticks ($10/Tick)

Our next trade came almost instantly after we had closed our last trade on the Russell (Symbol TF). At 10:10am EST we looked for a re-entry to our 2-step to the long side, but missed our entry due to a very fast pace of the tape, so instead of rushing into the trade, we waited for a pullback in the form of a James Wave long. We entered the market at 557.5 with momentum curling up in our favor and closed the trade with +3 ticks in profit ($10/Tick).

We couldn’t have asked for a better trade to end the day today then the one we took on the Euro Futures (Symbol 6E) at 11:25am EST. We noticed a James Wave setting up perfectly to the long side and not only did we have momentum in our favor, but we saw large buyers enter the market just before we entered and knew we would at least get our first target. Well, we got our first target and then some! Taking this James Wave long at 1.4217 for +3 ticks, +6 ticks and trailing our third contract for an additional +25 ticks for a total of 37 ticks to end the day ($12.50/tick).

Today’s Trade Total’s: 6 for 8 $950.00 Profit on 3 contracts