Live Trade Room Takes $240 In Profit This Mourning

Market Commentary November 9, 2009
Well it was another Monday morning trading session for the School of Trade, which means we saw lower volume overall, but we still closed our day profitable! We didn’t really have too much U.S News today; instead we were watching for the German Industrial Production numbers at 7:00am EST as well as the 9:15am EST Canadian Housing Starts, which could affect the Crude Oil prices due to its high correlation with the commodities. We took a total of 5 trades this morning, 3 of which were profitable, and due to our strict money management, we were able to end our day with profits of $240!
The first trade of the day for the School of trade came on the Crude Oil (Symbol CL). Today’s price action on the Crude Oil certainly looked like a profit taking of all the shorts on Friday as well as more buyers entering the market, once again pushing price to $80/barrel (Crude Oil Futures Day Trading Video). Even in the early morning trading hours, the Crude Oil market was in a steady uptrend. With only a brief pullback prior to the start of the Open Outcry pits trading at 8:30am EST, more volume entered the market, allowing price action to once again continue its rise. With the overall longer term trend being long for the day as well as the relatively short term trend being to the long side, we instinctively looked to take a position in the market long. We finally saw a quality School of Trade set-up at 9:06am EST with a Breaker pattern to the long side. Our order was executed and filled instantly at 78.86 and it wasn’t long before we saw our first profit target of +4 ticks (2 contracts) being executed, for a total profit of +8 ticks on our first trade of the morning.
Our second trade of the morning came shortly after the U.S Equities market opened at 9:30am EST and also on the Crude Oil market (Symbol CL). After seeing the market rally for a good portion of the morning, we knew it would eventually have to pullback, thus seeing a bit of consolidation in the market after the U.S equities open, we began to watch for trade set-ups to the short side (Sideways Market Day Trading Futures). At 9:36am EST we watched as another Breaker pattern set-up for us, this time though we entered the market as sellers. Our order was executed promptly at 78.87, and once entering the market, unfortunately we were quickly stopped out of our trade, for a total loss of -18 ticks. Unfortunately, no one wins every trade, and sometimes the market just doesn’t go in your favor, thus is trading, and to become successful at trading, you must learn to deal with rare events such as this one.
The third trade of the morning came on the Gold market (Symbol GC). The Gold market once again made new all time highs today, reaching a peak of 1111.8 in the futures market so far today. We saw some decent volume in the market this morning, but price action really kept to a tight overall range in the $1100/oz range, and is currently is looking to break back into the $1090/oz before the close of the day (Gold Futures Day Trading Video). We finally noticed some volume start to pick up once all the U.S markets were open and volume was is full flight. Shortly after the Gold market had made its new high for the day, the market quickly began to pullback as more buyers took profits and sellers entered the market to push price back down. With the short term trend being down, we decided to look for a chance to sell the market, and got our opportunity at 10:10am EST with a Breaker pattern. Without hesitation, we entered the market at a basis of 1106.1 and watched our technical indicators to ensure the best outcome for our trade. After seeing price action start to slow down, and not executing even at our first profit target, we decided it was best to be flat in the market right now, and close our trade early for a scratch +/- 0 ticks.

Our fourth trade of the day came shortly after our third, and gave us the opportunity to scalp some profits from the British Pound market (Symbol 6B) (Scalping Futures Day Trading Video). The British Pound futures had some great price action this morning, and gave us the opportunity to add some great profits to our trade account today! The European trading session had taken the market higher in price with added volume in the market, but the rally soon started to subside as the European lunch hours entered the market around 4:00am EST. With the return of volume from the European lunch and the beginning of the U.S equities market, price action soon began to take back its previous rally that had occurred in the earlier hours, and sellers began to once again push prices back down. With the trend being our friend to the short side, we began looking for possible quality trade set-ups to sell into. At 10:12am EST we were given our chance, with a great Breaker set-up. We entered the market at 1.6762 and were happily surprised when the market dropped so soon, allowing us to take profits at +4 ticks (4 contracts) +8 ticks (2 contracts) and another +5 ticks (2 contracts) for our final contracts, closing our at +42 ticks! ($262.5)
The fifth and final trade of our morning came yet again on the Crude Oil market (Symbol CL). After seeing the Crude Oil market consolidate shortly after the U.S equities open, volume finally entered the market once around 11:00am EST. With the increased volatility, price action began showing us some possible entries to the long side, and it wasn’t until 11:02am EST that we were able to capitalize on them Scalping Futures With 1-Contract To Start Video). We entered the market long off a Breaker pattern, and with a basis of 79.50 we were able to pick up a quick +4 ticks (2 contracts) for a total of +8 ticks ($80).
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