Oil found near Gulf of Mexico --> Oil price falls --> Market rises --> $500 profits
5 minutes Emini Nasdaq 100
Hi,
How's your trading? Long break after Labor day? Well, it's a good thing that there's an easy set up today to profit from... .
When market opened, it spiked down and I wasn't prepared to short as the general trend is still up. I decided to wait for a rebound. My chance came at 11:15 am when the double bottom pattern was formed and CNBC was full with news of chevron finding new oil along the gulf of mexico.
Technically, the double bottom with the short-term MACD crossing the zero line was evidence enough to go long.
Fundamentally, oil prices are easing and this spells good news for stocks. Most of you know I don't base my judgement on fundamental news, I only use them as supplementary information, that's what I am doing here.... I would have gone long whether or not Chevron found new oil...
I longed 1 contract at 1591 and another 2 at 1595 when there was a slight pause in price momentum... Price shot right up after that and I decided to remove my price target and let the profit run.... However at 12:00 pm.. red candlesticks start to appear and I started to feel abit uneasy... I exited at 1602... before any possible pullbacks after such a vigorous run... Profits of $500.