Today we saw decent overall volume in the markets, but still far from optimal. Early on the in the morning we noticed the volume was rather sluggish, and it really took the U.S market opening to get price action up to speed. This didn’t prevent us from trading though, as we exercised discipline and patience, the trades soon came to us. We were able to go 4 for 4 today, with a total profit of $690! Also, remember this +10% return today was all done on a $4,000 account trading account! (Futures Day Trading Account Management Video)
The first trade of the morning came on the Gold futures market (Symbol GC) roughly an hour after it began trading in the open outcry pits at 8:20am EST. Once again, the Gold futures were on its way to making new all time highs early on in the trading day, eventually reaching a top of 1153.4. During this impressive rally, there were periods of minor pullbacks in price, allowing us to take full advantage of them (Identify Market Sentiment For Day Trading Futures). At 9:20am EST, we decided to go against the trend and take the Gold market short on one of these pullbacks. We entered the market based off a 2-step short pattern, and were filled rather quickly at 1149.1. Once the order had been executed, we began to manage it through our ATM strategy as well as keeping a keen eye on our technical indicators. The market quickly sold off, allowing us to lock in profits for at least one price target of +4 ticks (2 contracts), leaving us with a total profit of +8 ticks ($80).
Shortly after our first trade was taken, along with the opening of the U.S Equities market, we found yet another opportunity to trade the Gold market! With the opening of the U.S Equities market at 9:30am EST, also brought more volume, and with it, new all time highs in the Gold futures market. As we continued to watch price action though, it was clear the buyers that took the market to new highs were quickly starting to take profits and sellers were more than willing to help push price back down (Gold Futures Day Trading Video). With this trend reversal occurring, we reacted hastily by entering the market short as well with a 2-step pattern to the short side. Our order was executed at a basis of 9:49am EST, giving us a basis in the market of 1152.3. This turned out to be a great entry price, because more sellers began to join the market, fueling it to the downside and giving us profits at +4 ticks (2 contracts), +8 ticks and +13 ticks, for a total of +29 ticks ($290)!
After closing out our second trade, we had to wait once again for the market to show us another trading opportunity. That opportunity came shortly after the Crude Oil market released its Inventories at 10:30am EST, bringing the market to life once again. For the most part the Crude Oil market consolidated throughout the day at $80/barrel, and has only recently made its push back below $79/barrel (Sideways Market Day Trading Futures). With the news being released at 10:30am EST, it gave the Crude Oil some great volatility and with it, great trading prospects. Not too long after the Inventories were released, we watched as the Crude Oil market climbed higher in price, giving us a chance to enter to the long side as well at 10:35am EST. We took our third trade based off a Breaker pattern long with a basis of 80.11. Our price pattern soon paid off, giving us a quick profit of +4 ticks (2 contracts) and +2 ticks (2 contracts) for a total of +12 ticks ($120).
The fourth and final trade of the morning came closer towards the end of our trading session, as we usually will continue to watch the market until price action tells us otherwise. Our entry price on this trade, oddly enough, was the same as our third trade. As the Crude Oil market continued its fade off the recently made highs, a brief pullback in price gave us a great chance to enter long. At 11:28am EST we entered the market long at 80.11, due to our Breaker pattern coming to fruition. As we watched price action closely with a live order in the market, price quickly pushed upward, with larger buyers scrolling across the ticker tape and allowing us to scalp some profits from the market (Scalping Futures Day Trading Video). We were able to close our final trade of the morning with profits of +4 ticks (2 contracts) and an additional +1 tick (2 contracts) for a total of +10 ticks ($100).
Market Commentary November 18, 2009