6/6 In Trades Today, Just Shy Of $1000

Market Commentary November 6, 2009

Well another Friday has come and gone, and with it brought yet another profitable day for the School of Trade! We had a good amount of news evens come out throughout the trading day, from the Non-Farm Employment Change and Unemployment Rate for the U.S at 9:30am EST to Canadian news and European news as well earlier in the morning. With all this added volatility, it certainly had us being extra cautious when taking trade, but didn’t stop us from making money! We were able to take six trades today and went 6 for six with a total profit of $932. The beauty of our style of trading is that all you need is a $4,000 dollar account! Because, for example today we took trades on the Euro futures, which has a $500 margin/contract and the Crude Oil, which only costs $1000 in margin/contract. This also provides you with a nice 1.5:1 RISK/REWARD RATIO! (Futures Day Trading Account Management Video)

Our first few trades of the day came on the Crude Oil market (Symbol CL). The Crude Oil market basically trended down the entire day, with brief periods of pullbacks. Initially in the early morning hours the Crude Oil market sold off quite strongly, due to the Canadian Employment Change and Unemployment Rate, which came out at 8:00am EST. Once those negative numbers had passed, we began to look for our first possible trade, given the added volume in the market at that time (Identify Market Sentiment For Day Trading Futures). We didn’t have to wait too long, because with the open outcry pit trading beginning at 9:00am EST, more volume was beginning to enter the market. At 8:54am EST we established that our classic breaker pattern had set-up in the market and we entered the market long with a basis of 77.59. As our stop limit order was executed, we saw more buyers enter the market, via the ticker tape, and were able to lock in profits at +4 ticks (2 contracts) and +8 ticks, for a total of +16 ticks ($160).

Our second trade of the morning, which also came on the Crude Oil, was taken shortly after the open outcry pits began to pick up in volume at 9:00am EST. With the added volume in the market, we noticed that price action was beginning to find a brief top for the moment being, and we quickly looked to take the market short with our trend reversal trade, the 2-step (Price Patterns Technical Analysis Futures Video). At 9:18am EST we entered the market short with a basis of 77.77; the selling pressure didn’t last long, but we were still able to scalp off +4 ticks (2 contracts) before closing our trade out at a profit of +8 ticks ($80).

The third trade of the morning came shortly after the second, and once again on the Crude Oil (Symbol CL). After the U.S news had been released and the volatility had died down some, we looked to enter the market once again, but this time with the trend, which was to the long side. With the U.S Unemployment rate coming out, the Crude Oil market began a strong rally, at which point we decided to jump on the trend and scalp a few ticks from it ( Crude Oil Futures Day Trading Video). At 9:38am EST we entered the market long with a breaker pattern and a basis of 78.41. As the market continued its rally, we were able to take profits at our first profit target of +4 ticks (2 contracts) for a total of +8 ticks before closing the trade ($80).

The fourth trade of the day came on the Euro futures, (Symbol 6E). The euro market had kept itself in a rather tight range in the early hours, but as more volume entered the markets, its range began to expand, but still produced a rather choppy market overall. With most of the news events being released for the day, the volume was showing a steady increase in the Euro market and we noticed that more buyers were beginning to enter the market, as our Pace of the Tape indicator flashed green for the go ahead (Euro Currency Futures Day Trading Video). At 9:41am EST we finally entered the Euro market long, with a breaker pattern. Our stop limit order was executed at 1.4890 and we quickly watched as the Euro trended higher, triggering all of our profit targets at +4 ticks (2 contracts) +8 ticks and an additional +9 ticks for our final contract, giving us a total profit of +25 ticks ($312).

Our fifth trade of the day had us returning to the Crude Oil market one last time. It wasn’t long after our last trade on the Crude Oil market, that it began to quickly reverse in its uptrend, and began its sell off for a majority of the remaining trading day. With the overall trend to the downside, we began looking for possible trade set-ups. We finally saw a perfect breaker pattern to the short side at 10:26am EST. We entered the market at 77.70 and watched price action closely to see if more sellers would enter the market (Scalping Futures Day Trading Video). As the larger sell orders came across the ticker tape, we were able to take profits at +4 ticks (2 contracts) +8 ticks and another +3 ticks for our final contract, giving us a total profit of +19 ticks (190).

The final trade of the day came on the Gold market (Symbol GC). With the gold market continuing to make new all time highs seemingly each day, today was no different. The U.S news events seemed to give the market the extra volume to set yet another all time high for the price as it rallied past 1100/ounce post U.S equities open at 9:30am EST (Gold Futures Day Trading Video). Once the market had set the new highs for the day shortly after the U.S Equities open at 9:30am EST, the buyers quickly began taking profits and more sellers began to pull price back into the 1090’s. At 10:31am EST we finally saw a great set-up to take with the short term trend, our breaker pattern. We entered the Gold market short with a basis of 1093.0 and quickly saw sellers push price further down, triggering our first profit target of +4 ticks (2 contracts) before closing our order for a total of +8 ticks ($80).