Yes We Are Human, We Do Take Losing Days…

Market Content August 26, 2009

Today we actually saw some increase in the overall volume of the market, most likely due to a few news events that occurred during the US session. With the increase of volume, came more trading opportunities for us to trade. Here are the three trades we took this morning:

Our first trade came at 10:10am EST this morning on the Crude Oil market (Symbol CL). We noticed that the Crude Oil had come off its highs of yesterday pretty sharply, and although an attempted retrace was made earlier this morning, the highs did not hold. With the market continuing its down trend, we first looked to take a James Wave to the short side, but when we noticed price had made a stutter step, we knew it was time for a quick trend reversal trade in the 2-step. At 10:10am EST we entered the market above the most recent swing high in price at 70.91 and were long as a basis of 70.94. While watching the Pace of Tape indicator as well as reading the tape itself, we noticed the buyers began to step into the market, and we were able to close out of the trade after hitting all of our targets of +3 ticks (2 contracts), +6 ticks (1 contract) and +8 ticks on our final contract; giving us a total of 20 ticks ($10/tick).

The next trade came shortly after our Crude Oil trade, but this time on the Dax Futures (Symbol FDAX). We noticed increasing green Pace of Tape indicator bars on the Dax futures, and began to look for any possible trade set-ups. We quickly noticed the Dax making new highs and began to qualify a James Wave set-up to the long side. Once we saw our higher high in price as well as our trigger line, we entered the market long at 5548.5. Once in the trade, price initially ran up and just missed filling us on our first profit target, but quickly reversed. Once seeing price action slow down and red Pace of Tape bars showing, we decided to close out trade early for a loss of -3 points(4 contracts) (12 points total) ($35/pt).

Our final trade of the day came once again in the Crude Oil market (Symbol CL). After the crude oil market continued to short into the near 71.00 level, we noticed that the sellers were beginning to weaken and a possible reversal was developing. Price finally began reversing, giving us a possible 2-step formation and at 10:38am EST we entered the market long with a basis of 71.43. Once the trade had been entered, we began to read the tape, looking for large orders to come across in our favor, as well as watch the Pace of Tape indicator to see any indication of a slowdown in price. We quickly got our first target of +3 ticks (2 contracts), before getting scratched out of our remaining contracts, for a total of 6 ticks ($10/tick)
Today’s trade total’s: 2 for 3, for a small loss of $160

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