• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
Download
 
Market Commentary December 4, 2009All together, many of the markets worldwide today closed at about a breakeven level, starting in theAsian session late last night and from the looks of it, have continued into the European and US tradingsessions. With the better than expected Unemployment Rate for the United States released today at8:30am EST, it helped in rally markets, but did not last long, and now many of the major indices are atabout break-even for the day(Identify Market Sentiment For Day Trading Futures). Even with the price action being somewhat sideways for many markets, the School of Trade was still able to take a total of 5trades this morning, going 5 for 5 with a total profit of $1,040!Market participants in the Gold market clearly had a difficult time setting a specific trend yesterday, thusresulting in a rather choppy price action. Today though, it was clear to see that most traders were in theshort camp as far as Gold was concerned. As better than expected news was released for the U.S at8:30am EST in terms of employment, Gold continued to selloff by breaking back into the 1100/oz range.With volume entering the markets at a steady pace, we were able to see a great Breaker long patternset-up in the Gold market at 9:05am EST. As our price pattern continued to form, we decided to set abuy stop limit order at 1192.4, and were promptly filled once the market reached our price(PricePatterns Technical Analysis Futures Video). After the market had filled our order, buy orders quicklyfilled the ticker tape, and it was evident to see we would be able to scale out of our trade, which we did,for +4 ticks (2 contracts) and +5 ticks (2 contracts), giving us a total of +18 ticks ($180).As we got closer to the opening of the U.S Equities market at 9:30am EST, the Gold market began pullingback off its lows. With an obviously taking of profit from the sellers, the market continued to trend
 
higher, and we continued to look for our next trade set-up(Gold Futures Day Trading Video). After a minor pullback in price, and with selling volume decreasing, we were able to identify a great buyingopportunity with our Breaker pattern. At 9:27am EST we entered into a higher risk trade (because theU.S equity markets were opening soon) by taking a breaker pattern long at 1197.0. Upon entering themarket, we noticed one of the technical analysis indicators we use, the stochastics, to begin to curlupwards, telling us more buyers were entering the market with us. This gave us the opportunity to takesome quick profits from the market, for +4 ticks (2 contracts) and +1 tick (2 contracts) for a total of +10ticks ($100).Our third trade of the morning came just shortly after the U.S equity markets opened at 9:30am EST, butthis time on the Crude Oil market (Symbol CL). Similar to Gold yesterday, the Crude Oil market alsoconsolidated, producing a sideways trend for most of the day. This overall choppy price action continuedinto today
’s
early market hours, until the open outcry pits began trading at 9:00am EST, at which time,the Crude Oil market rallied into the U.S equities open(Crude Oil Futures Day Trading Video). As more volume entered the market, it was clear to see the buyers were slowing down, and there was a highprobability of a pullback in price. At 9:39am EST, anticipating a pullback, we were able to enter themarket short after seeing a 2- step pattern set-up for us. We were able to short the market at 77.63,which proved to be the right decision because we were able to take profits at two of our profit targetsbefore closing the trade; taking profits at +5 ticks (2 contracts) and +1 tick (2 contracts) for a total of +12ticks ($120).
 
 The Gold market
’s rally into the U.S equity open didn’
t last long, as sellers began to push price backdown. With more and more sellers entering the market, we patiently waited for the market to give us anopportunity to enter short as well. Finally, after a small pullback in price, we were able to take a Breakerpattern short at 9:54am EST, allowing us to obtain an entry of 1191.9(Scalping Futures Day TradingVideo). Once in the market, sell orders began flowing into the market, via the ticker tape, allowing us toscale out of our trade with two profit targets getting executed, for +8 ticks (1 contract) and +6 ticks (3contracts) for a total of +26 ticks ($260).
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...