3 For 4 $320 In Profit

Market Commentary November 16, 2009

It has been another great Monday morning for all of us at the School Of Trade. We saw some great price action this morning, and the market really started to pick up after the U.S released better than expected Retail Sales this morning at 9:30am EST (Identify Market Sentiment For Day Trading Futures). After this news had passed, we decided it was best to be patient and pick our trades carefully with the added volatility in the market. Our patience certainly paid off, as we went 3 for 4 today with $320 in profits!

All of our trades today came in the Crude Oil market (Symbol CL). The Crude Oil market has currently rallied quite significantly today, mostly due to positive U.S Retail sales being released at 9:30am EST. The market has ranged today from a low of roughly 76.60 to a high of 79.24, taking off to the long side once the U.S Equities market opened. After the news had been released, we waited for our perfect set-up to form, and thought we had found it at 10:00am EST ( Crude Oil Futures Day Trading Video). With the trend being up, we decided to enter in its direction, long, with a Breaker pattern. Our order was executed at a basis of 77.92, which at the time was the high-of-day. We initially saw positive price action in our direction, but it wasn’t long before the sellers quickly changed the direction of the market, pulling price back and stopping us out at a loss of -18 ticks ($180).

Soon after our first trade of the day was taken, we once again saw a possible School Of Trade set-up occurring. The market had continued to push forward after our trade, and finally seemed to be creating a top. With the buying pressure becoming lesser and lesser, we decided to look for a possible trend reversal trade to enter the market on (Price Patterns Technical Analysis Futures Video). That trend reversal came a 10:17am EST with a 2-step pattern short. We were able to execute our order with a basis of 78.38 and got a great fill, because the market soon collapsed, allowing us to take profits at +4 ticks (2 contracts), +8 ticks and finally an additional +3 ticks for a total of +21 ticks ($210).

The third trade of the morning, which came shortly after our second trade, was also taken on the Crude Oil market (Symbol CL). With the market continuing to pullback in price from its rally at 9:30am EST, the sellers looked to push price even further downward and we looked for another opportunity to enter the market short (Scalping Futures Day Trading Video). We found this opportunity once the market had finally broken its recent lows, and we entered the market short at 10:34am EST. With our 2-step pattern setting up perfectly, it wasn’t long before more sellers jumped in the market, allowing it to sell off even further than before. Our order being executed at 78.23 proved to be a great entry, because we were able to take some great profits off the table at +4 ticks (2 contracts), +8 ticks and +3 ticks, for another +21 tick winner! ($210).
After our first three trades in the market, we continued to scan all possible opportunities in any market. Our fourth and final trade of the morning came about an hour later and once again on the Crude Oil (Symbol CL).

With the markets taking a break in their volatility prior to U.S news at 11:00am EST, we decided it was best to sit patiently and wait for the market to come to us, instead of forcing a trade (3 Key Components To A Day Trading System Video). After the U.S Business Inventories had been released at 11:00am EST, volume also entered the market with it. The market quickly began to rally once again after the news had been released, and we continued to qualify possible trade set-ups. After a brief pullback in price, we were finally able to identify a possible long set-up with our Breaker pattern. We entered the market long at 11:36am EST with a basis of 79.14; as we executed our order, the market took off to the long side, giving us a great chance to lock in some profits at +4 ticks (2 contracts) for a total of +8 ticks on our last trade of the morning ($80).

Review Our Trades From Yesterday!
See All Of Our Previous Trades
Click Here To See How We Set-Up Our Workspace