Market Commentary November 13, 2009

Market Commentary November 13, 2009

It was yet another great Friday trading session for the School of Trade! We same some great volatility in the markets and enough in the Crude Oil market alone to satisfy all of our trading needs. We took a total of 6 trades today, all of which were executed in the Crude Oil market! We managed to navigate through all the news events this morning fairly well, the Canadian news especially, due to its great impact on the Crude Oil market (Identify Market Sentiment For Day Trading Futures). With the majority of the news being released at 9:30am EST as well as 10:55am EST, we really had a great window of available trading time. We ended up going 5 for 6, (the sixth trade being a scratch) for a total of $460 in profits!

The first Crude Oil (Symbol CL) trade of the morning came at 9:10am EST. The market in general sold off pretty heavily yesterday, and today we weren’t quite sure what to expect, because the possibility of a pullback in the market was inevitable, and today could have been that day. Looking back in the European trading session, it looked as if today was the day, but the rally was ever so brief, and the sellers once again jumped in the market to push price even further downward. By the time the U.S open outcry pits began trading at 9:00am EST, the market was testing yesterday’s lows around the $76/barrel range. This range provided the market with a strong base for price to bounce off of today, and sellers seemed to find a bottom for the time being around $75.60. As price bounced off yesterday’s lows, we initially looked for a long position in the market, but as we continued to watch our technical indicators, they proved to be correct in telling us sellers were about to change the short term trend (Price Patterns Technical Analysis Futures Video). With more sellers entering the market, we decided to join them at 9:10am EST with a 2-step short pattern. Our order was executed with a basis of 75.93 and price action soon filled out first profit target at +4 ticks (2 contracts) for a total of +8 ticks ($80).

The second trade of the morning came after the U.S Equities market opening at 9:30am EST, as well as the passing of some major Canadian news, their Trade Balance to be exact, which would most certainly have a strong affect on the Crude Oil market. After the added volatility in the market had passed and price action once again returned to its norm, we looked to enter the market yet again (3 Key Components To A Day Trading System Video). We found a great long set-up at 9:45am EST, taking a Breaker pattern with the short term trend at 76.20. With our order being promptly executed, the market didn’t waste much time in filling our first profit target of +4 ticks (2 contracts) for a total of +8 ticks ($80).

Our third trade on the Crude Oil came shortly after our second, and in the same direction as well; to the long side. With price action hitting the lows of the day once again, the ticker tape told the story for this trade, by rejecting the further selling pressure at the lows, meaning the market could only go one direction, up ( Crude Oil Futures Day Trading Video). At 10:03am EST we entered the market long with a Breaker price pattern. After price had broken our trigger line, we entered the market at a basis of 75.88 and were able to get filled, what seemed like almost instantly, for +8 ticks (1 contract) and another +2 ticks (3 contracts) for a total of +14 ticks ($140)!

The fourth trade on the Crude Oil (Symbol CL) came roughly a half hour later, once the market decided on an overall direction to move in, instead of just consolidating at its daily lows (Swing-High Swing-Low Technical Analysis Day Trading Futures Video). With the buyer pressure ever building in the market off the lows, it was only a matter of time before the market would try and take back some of its sell off for the day. When the buyers looked to finally be pushing price back up, we looked to enter the market with the trend as well. At 10:43am EST we were finally able to see a School of Trade price pattern to enter the market long, with the Breaker. We entered the market at a price of 76.21 and were able to scalp off some quick profits of +4 ticks (2 contracts) for a total of +8 ticks ($80).

The fifth trade of the day was placed only minutes after our previous one. The buyers had quite a rally since our previous trade, and from the looks of the price action, were beginning to take profits (Scalping Futures Day Trading Video). With a clear double top in price forming, we quickly looked to exploit this short term pullback, and entered the market short at 10:47am EST with a 2-step pattern. Our order was executed at a basis of 76.13 and we were able to pick up +4 ticks (2 contracts) rather quickly for a total of +8 ticks ($80).

The sixth and final trade of the morning was taken closer to the U.S lunch hours and the market’s price action looked to be slowing down ever so slightly (Sideways Market Day Trading Futures). More volume though seemed to enter the market briefly into the 11:00am EST hour, sending the market lower, and giving us one last opportunity to short the market. We decided to enter in the direction of the trend, which was short, with a Breaker pattern at 11:12am EST. With the order being filled at 76.25, we carefully monitored price to see if there was going to be any real follow through to the short side. Unfortunately, price action slowed even further, and we knew it was time to get out of the trade before we risked taking a loss. So, we decided to close our order early and take a scratch trade +/- 0 ticks.