Market Commentary, Went 2/2 Today, Crude Was Good For US!

Market Content July 27, 2009

Yet another profitable summer day at the School of Trade! The key to our success in such a low volume market like this is to be patient, and wait for the absolutely perfect set-ups.
We saw our first perfect set-up in the market today at 10:24am EST. We watched the Crude Oil market closely just before news was to occur at 10:30am EST. We quickly noticed that price had broken above its recent swing highs, but wasn’t showing any confirmation of staying there. Next we began to read the tape and see if price action and momentum would give us a chance to take a counter-trend 2-step trade. Sure enough it did, and we entered short at 68.17 on the Crude Oil (Symbol CL) where we were able to lock in profits at +3 ticks and +6 ticks for a total of 9 ticks ($10/Tick) on 3 contracts.

Our second and final trade for the day came once again in the Crude Oil market (Symbol CL). A
2-step was forming to the short side once we saw price make a double top at a key level of resistance. After checking our multiple timeframes to ensure the best entry price, at 10:55am EST we entered short at a basis of 67.87 where we were able to take profits at +3 ticks, +6 ticks and letting our third contract run for +3 ticks totaling 12 ticks ($10/tick).

Today’s totals= 2 for 2 = $210 in profit!