- in Uncategorized by schooloftrade
Market Commentary from Schooloftrade.com, 7-29-09
July 29th , 2009
Quote of the Day
“Fate rarely calls upon us at a moment of our choosing.”
Market Commentary
Another great day for the School of Trade! We started this morning off a little bit behind, but were able to end the day with a rally in profits after the open of the U. S markets. Here are the trades we took today:
We started off with a 2-step formation to the short side today on the Dax Futures (Symbol FDAX). Our trade set-up at 4:00am EST where we entered the market at 5220.5, once in our trade, we began our active management routine, but once reading the tape and seeing price action slowdown we decide to exit the trade with a small loss of 6 ticks or 3 full Dax points ($35/point).
Not long after our first trade, we decided to take a short 2-step yet again on the Dax Futures (Symbol FDAX). Our trade was triggered at 4:11am EST at a basis price of 5228.5, shortly into the trade we realize we had made a mental mistake and did not take into effect the support that was below us, we ended up taking a loss on the trade for 6 ticks or 3 full Dax points ($35/point).
Our third trade of the day occurred roughly 15 minutes later, but this time on the Crude Oil market (Symbol CL). We ended up seeing a classic 2-step formation short and decided to enter the market at 4:28am EST with an entry price of 65.80. We quickly got a great push in volume and took profits at +3 ticks, +3 ticks and our final contract at +8 ticks for a total of 14 ticks profit ($10/tick).
Then we did not take our next trade until after the opening of the U.S Equities market, due to news affecting the market. Our fourth trade came on the Mini-Russell (Symbol TF) at 9:40am EST in yet again a 2-step, this time taking it to the long side. We entered the trade with a basis of 454.0 and were quickly able to get our first target of +3 ticks before getting scratched out of the remaining 2 contracts, closing with a profit of +3 ticks ($10/point).
Moments after our trade on the Russell, we saw another 2-step to the long side set-up on the Euro Futures (Symbol 6E). After watching the 2-step formation closely we entered the market at 9:44 with a basis of 1.4087 long. Our trade management took profit for us at +3 ticks, +6 ticks and then our final contract, which we manually trailed, got us +10 ticks, and getting out of the trade just before the 1.4100 resistance level.
Just prior to the DoE’s Crude Oil/Gasoline/Distillate Inventories news, we were able to scalp some profits from the Crude Oil market (Symbol CL). At 10:05am EST, we took a 2-step trade long, and with a basis of 65.27, our automatic trade management took profits for us at +3 ticks and +6 ticks. Our third contract, which we trailed to see if we could lock in anymore profits, was closed at break-even, for a total of 9 ticks on the trade ($10/tick).
Also before the DoE news at 10:30am EST, we were able to take a quick trade on the Euro Futures (Symbol 6E). This was once again a 2-step, this time to the short side. We entered the market at 10:18am EST, with momentum on our side, at a price of 1.4093. Unfortunately, we quickly saw price stall out on the tape as well as test our 1st target 3 times, so when this happens, we always revert to our trade management rules and closed out the trade at break-even; nothing gained or lost.
After waiting for the Crude Oil Inventories news to be released, and giving ample time for the market to react, we looked to the Dax Futures (Symbol FDAX) for our next trade. We noticed a great 2-step pattern setting up and entered the market long at 10:42am EST with an entry price of 5285.5. We quickly got filled on our 1st target of +4 ticks and then, after testing our 2nd target 3 times, we decided to manually close our trade with another +3 ticks of profit. This trade totaled 7 ticks or 3.5 full Dax points ($35/point).
The final trade of the day came just before most of the U.S market goes to lunch at 10:58am EST. We noticed a James Wave to the long side was failing in the Crude Oil (Symbol CL), and knew instinctively to look to our 2-step pattern for a trend reversal entry. We then took the Crude Oil short at 10:58am EST, receiving an entry price of 64.23 and automatically taking profits at +3 ticks, +6 ticks, and then letting our third contract run on increased price action for another +7 ticks, totaling 16 ticks ($10/tick) on the trade to end the day with a great winning trade.
Today’s Trade Totals: 7 for 9, with a profit of $570.00
Did you know that our LIVE TRADE ROOM opens at 245am EST Monday – Friday? Come watch us trade 6 different markets LIVE in REAL TIME! Trade along with the pros and learn the newest methodology that will put cash in your pocket instead of the markets. Visit our home page below and receive a Free 3 Week Trial, come and test it out!
