October 28, 2011
- in Uncategorized by schooloftrade
Predict Sloppy Markets Before you Lose your Cash
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Friday’s are always the same, we need to come in early, and get out early, with the goal of waiting for those 30-minute windows of great price action.
All eyes on the dollar index this morning while we continue to read the reaction to the EFSF approval on Wednesday. We will be looking for clues using the dollar index correlation.
830am EST
News comes out with very little reaction from the dollar index.
Average true range is the lowest its been all week, so we know we need to be patient.
900am EST
Crude oil futures moving in the middle of the range with ATR rising.
We are seeing the average true range move higher by the minute so we know to stay patient we should be getting opportunities soon.
Very sloppy still this morning after 900am.
915am EST
We’re now sitting on hands ahead of the US open @ 930am
We are now starting to think the best price action won’t come our way until AFTER the 955am consumer sentiment.
935am EST
Market personality is still leaving us looking for more.
We may not get anything until after 10am, so lets stay patient.
1015am EST
Time to nail down our trading plan of attack now that we are post-news this Friday morning.
Dollar index is moving higher, but very sloppy. 1 tick higher-highs and then tumbles 10 ticks back down, so we need to focus on selling at resistance after a retracement on the markets we are trading this morning.
Mini-Russell Futures trading in a bear price channel, and we need to wait to sell the highs of the price channel with the dollar index moving the way it is.
1020am EST
Crude oil futures changing direction after the BULLISH consumer sentiment.
1045am EST
Dollar index is now dropping, a very different personality than we had 35 minutes ago.
Questions from trade room
Auto-trader
– Or you can manage the trades manually
– Works on any market
– Any timeframe
– Overnight margins, or only day margins
Tradethenews.com:
– Watch this lesson on the blog about how we use the economic news every day.
– Test drive the news data with this link.
My favorite markets to trade
– Crude oil futures
– Mini-Russell Futures
– Euro currency futures
– Gold futures
– FDAX is an old friend, but we got separated in late 2007 during the credit crunch.
o $25eur/point
o Ticks in .50 increments
o High margins of $2500usd++
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What is big money (elephants)? It depends on the market:
Illiquid markets:
– Crude = 5-10
– Russell = 5-10
– Gold = 5-10
Liquid Markets:
– ES = +100
– ZB = +100
– FESX = +100
– Euro = +50
