Market Commentary from Schooloftrade.com

Market Content July 23, 2009

We started trading early this morning by taking a 2-step on the Dax Futures (Symbol FDAX). At 3:50am EST we entered the market short at a basis of 5128.5. While reading the tape, we saw the market quickly move in our favor after breaking dynamic support, where we locked in profits at +4 and +8 points, getting scratched out of the trade on our third contract for a total of 6 points on the Dax ($35/pt). Tomorrow should also be an interesting market to watching because the Dax broke above its 4 month highs later this morning!

Our second trade for the day came just prior to the open of the US market, this time on the
Crude Oil (Symbol CL). At 9:01am EST, we took a 2-step long at 65.17, once in the trade we noticed the tape sped up and got us our first target for +3 ticks ($10/tick) then with some overhead resistance playing an important role in our trade management, we were scratched out of the rest of our position, closing with a profit of +3 ticks.

The third trade of the day came shortly after our Crude Oil trade, at 9:07am EST we saw opportunity to the short side on the Euro Futures (Symbol 6E). We entered the market at 1.4206 with a James Wave set-up short. This was a higher risk trade because we were trading near a round number, but we were able to take profit quickly and got out of the trade after we didn’t see any real follow through after our first target was hit. We ended up closing our 2nd and 3rd contracts out manually and taking profits at +4 ticks, +2 ticks and being scratched out of our
third contract, for a total profit of 6 ticks (12.50/tick).

Our final trade came once again in the formation of a 2-step on the Crude Oil market. At 11:24am EST this morning we took the 2-step trade long with a basis of 66.43. This trade set up because the James Wave set-up actually failed, so intern, when the wave fails the 2-step will prevail. Entering the market at 66.43, we took our profits quickly as we always do and closed the trade with a +3 tick winner ($10/tick)

Today’s totals: 4 for 4, totaling $345 in profit!