More Of That Good Ol’ Market Commentary

Market Content July 24, 2009

Well we at the School of trade would love to have more summer Fridays like this one. We took quite a few trades today and boy did they pay off!
Our first trade was early this morning on the Dax Futures (Symbol FDAX) at approximately 3:50am EST. We quickly noticed the Dax was failing to keep its new highs for the day, and automatically looked to go short with a classic 2-step to exploit it. We were able to take the Dax short at 5243, where we took profits at +4 ticks, +8 ticks and then just barely missed out third target to close the last contact out at a scratch. We still closed out the trade with 6 points of profit on the Dax though! ($35/point)

Our next trade came shortly after our first, and yet again on the Dax Futures (Symbol FDAX). While watching price action closely, we noticed that a potential James Wave set-up was becoming disqualified due to the overhead resistance it faced. So we then quickly began to look for our 2-step trend reversal trade. At 4:15 we were able to get into a 2-step short at 5298 taking our profits off the table at +4 ticks, +8 ticks and our final contract netting us +14 ticks for a total of 26 ticks! (13 full points/$35/point).

Quickly after the open of the commodities market, we saw a chance to scalp some quick profits off the Crude Oil (Symbol CL). We saw a great 2-step forming to the long side and decided to take it at 8:27am EST, getting our initial fill at 67.00. We got our first profit target at +3 ticks and then our automatic trade management kicked in and scratched us out of the rest of our trade at break-even.

We then saw another great 2-step set-up on Crude Oil (Symbol CL) at 8:51am EST, this time looking to take it short. This trade was more of a high risk due to support below us, but we decided to take it anyways and were filled at 67.21. The risk turned out to be right and we decided to get out of the trade early due to price action slowing down, and not in our favor, we took a small loss of -3 ticks/contract or -9 ticks total on 3 contracts,

The trades just kept on setting up for us today, and especially in the Crude Oil market (Symbol
CL). Around 9am EST we noticed Crude Oil was breaking out of a recent choppy market and we were quick to look for potential set-ups. After Disqualifying a James Wave short due to our trigger line not making lower lows, we instinctively looked for a 2-step to form. At 9:10am EST we took the Crude Oil long at 67.00, with profits being taken at +3 ticks and +6 ticks, our third contract was closed at break-even.

After waiting for the US markets to open up at 9:30am EST, we decided to scalp the Crude Oil market once again. At 9:48am EST we took a great 2-step short, getting filled at 67.34 and taking profits at +3 ticks before closing the remaining 2 contracts at break-even.
Within minutes, after continuing to watch the Crude Oil, we decided to get back into the market on a re-entry of our 2-step to the short side. At 9:50am EST, based on our previous trade, we re-entered the market at 67.34 where we took profits off at +3 ticks, +6 ticks and +10 ticks, for a total of 19 ticks.

Our final trade of the day could not have been any better, at 10:09am EST we saw yet again a 2-step setting up on the Dax Futures (Symbol FDAX). After referring to our rules to make sure the trade had the highest probability of success, we entered the market short at 5234.5. We were able to take our profits fairly quickly at +4 ticks, +8 ticks and +11 ticks for a total of 23 ticks or 11.5 full points ($35/point)

Totals total’s came out to be 7 trades for 8 taken, totaling $1,295 in profit! Again, this was a great way to end the week, especially in the summer.