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Market Commentary December 8, 2009A majority of the markets world-wide were down today. The selling began throughout the Asian tradingsession and has continued to carry into both the European and U.S sessions. It seems evident that theend of the year sell off might be here, as traders sell to not only take profits, but also look to close longterm positions for tax purposed etc. The selloff in the past few days might only be a correction in themarket, we will find out soon enough that is for sure. It didn
’t seem to affect our trading though,
because the markets have still been showing great volume, which allowed us to go 6 for 6 today for atotal profit of $920!!Our first trade of the morning came on the Crude Oil market (Symbol CL). The European trading sessiontoday brought price even lower after
yesterday’s
selloff. With Canadian news being released at both8:00am EST as well as 9:00am EST, we made sure to wait to enter the any trades until they had passed.This is because Canada is a high exporter of many commodities, and is such that their news can affectthe markets from time to time. At 9:00am EST, after the news events has been released, as well as theopen outcry pits began trading, price began to channel from 72.50
 –
73.20/barrel(Identify MarketSentiment For Day Trading Futures). With added volume coming into the market, we were able toidentify a great market turning point by taking a 2-step short trade at 9:07am EST. Our price patterngave us an entry price of 73.17 and with more sellers entering the market, it helped our positiontremendously by allowing us to scale out at all three of our profit targets, for +5 ticks (2 contracts), +8ticks and +14 ticks for a total of +32 ticks ($320).
 
After price action in the Crude Oil market began to pullback shortly after our first trade, it looked as if sellers were not done yet, and we quickly looked for a possible entry to the short side yet again(3 KeyComponents To A Day Trading System Video). At 9:11am EST, with momentum curling downward andsellers entering the market at an increasing pace, we entered the crude oil market once again to theshort side. This time around we used a Breaker pattern instead of a 2-step and were able to get a basisof 72.95. With the market already selling off as we enter the trade, we were able to scale out of ourtrade after all three of our profit targets had been executed; for +4 ticks (2 contracts) +8 ticks and +2ticks for a total of +18 ticks ($180).The third trade of the morning came after the U.S Equities market opened, and once again in the CrudeOil market. We made sure to scan all of our markets while waiting for the U.S market to open, but noneseemed to be trading like the Crude Oil market. After the equities markets began trading, we began tolook for a possible trade to take(Scalping Futures Day Trading Video). At 9:44am EST we found our trade, by using a Breaker pattern to enter the market short at 72.68. Upon entering the market sellerswere slow to show us any real follow through in price, but the volume was still enough for us to executetwo of our three profit targets; for +4 ticks (2 contracts) and +1 tick (2 contracts) for +10 ticks ($100).
 
 We didn
’t have to wait long before the Crude Oil market began to pullback yet again. Buyers began
entering the market with considerable volume, but after reading the ticker tape, we determined therewas a good probability the market might reverse. After price action showed us a great looking doubletop pattern, we looked to quickly enter the market to the short side(Price Patterns Technical AnalysisFutures Video). At 9:50am EST we entered short with a 2-step pattern; getting our order executed at72.82. As the buyers took profits and more sellers entered the market, we were able to scalp off a trade,closing with some great profits from the market, for +4 ticks (2 contracts) and +1 tick (2 contracts) for atotal profit of +10 ticks ($100).
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