Futures, Market Commentary, Schooloftrade.com

Market Content August 11, 2009

Well, we might have thought yesterday’s price action was the slowest of the summer, but I suppose I was wrong, TODAY was! Today was a great testament to the School of Trade’s discipline to sit on the sidelines and wait for the perfect set-up to come; and wait we did….

The one and only trade we took today set-up on the Crude Oil market (Symbol CL). The European session brought little volume to the market and so we waited for the US equities market to open, hoping to see some much needed volume. Once the US market was open, volume slowly began to trickle in, and it wasn’t until 11:05am EST till we took our first and only trade of the day. Initially we looked to take a 2-step short in the Crude market, but price action moved so quickly we could not get a quality fill.

So, we now looked for a James Wave short to set-up. After seeing a strong move in price action to the down side our James Wave set-up perfectly; pulling back quickly to our trigger line, so we could short it. We entered the market at a basis of 69.30 and were able to quickly get our first targets of +4 ticks (2 contracts) +8 ticks and then our final contract ran for another +4 ticks for a total of 20 ticks ($10/tick).

Today’s Trade totals: 1 for 1 $200
Today’s totals: 2 for 4 $20 in profit