5 min Emini Nasdaq 100
Moving averages are sloping down... Price gapped down from the opening bell.. Today is obviously not a day to go LONG..
I waited for a chance to go short and the chance came when stochastics and MACD was cutting down the signal line, I shorted 1 contract at 1923 and exited at 1913 when stochastics cut up the signal line again.. Profits of $200.
5 min Emini Nasdaq 100
Hi,
Today's trade is another classic pattern. Price plunged from the opening, I did not enter... I was waiting for some confirmation.. It then rebounced and found resistance from the moving averages..
There is good risk / reward if you place your stop loss just above the moving averages.. The resistance from the moving averages held and stochastics and short-term MACD started to move down, cutting the signal line.. I entered one contract at 1952 and exited at 1939 when stochastics and short-term MACD cut their signal line and started to move up.. Profits of $260.
5 min Emini Nasdaq 100
Hi,
The market i s rally for now and what remains to be seen is how this small rally can carry on... There are bound to be slight corrections even in a rally,, and it is unlikely that price will just sky rocket all the way up up and up...
You might think that shorting here is dangerous. But look at it carefully, my shorting is not without reason and in fact well supported.. Furthermore, there is good risk/reward, if it doesnt work out... I dont lose that much either..
Reasons
1 Price had been above the moving averages for the most part, the moment it cut my green line, I shorted 1 contract at 1955.
2 This was accompanied by stochastics making a turning point and cutting the overbought line.
3 Similar case for the short-term MACD which cut its signal line..
4 My stop loss is at 1960.5, just slightly above the moving average.. Good risk / reward...
I exited only when price rebounded from the moving averages followed by an up turn in stochastics and short-term MACD at 1944.
Profits = $220
5 min Emini Nasdaq 100
Hi,
How is it going lately? The market is in a turmoil,, but at least today there is a short upturn.. It has been some time since I last went long with some confidence..
Price pulled back to the moving averages and at around 11:00 am, you can see that Stochastics and short-term MACD were already forming a pattern to cut up the signal line. I was getting ready to go long... and the rebound from the moving averages provided a good chance...
I longed 1 contract at 1864 and only exited when Stochastics cut down the overbought line at 1882 with profits of $360.
5 mini Emini Nasdaq 100
Hi,
Price gapped up.. then it pulled down to the moving averages and rebounded from the moving averages.. This is accompanied by a double bottom pattern in Stochastics... I longed 1 contract at 1859.. However, you can see that the high formed by the morning session is the immediate resistance line... I did not like the price action almost as soon as I entered this trade.. It is too sluggish and all the candlesticks had short bodies..
Stochastics started to cut down and I immediately sold at 1867 with profits of $160.
5 min Emini Nasdaq 100
Hi,
Price started out with strong momentum at the market open... It gave the false impression that market is going up and up.. I didn't believe that and was looking for a chance to short.
My chance came when stochastics and short-term MACD began to turn down. I shorted 1 contract at 1858 and another 2 more contracts at 1847... I exited only when price found support at the moving averages and bounced back.. Stochastics and short-term MACD also turned up and cut their signal line. profits of $880.
5 min Emini Nasdaq 100
Hi,
Market gapped up only to close the gap and rebound from the moving averages... I am not too impressed with the market movements.. One simply couldnt tell where it is going.. We are in a ranging market now..
However, there was a good chance to go long when price formed a double bottom pattern and rebound from the moving averages.. There is goood risk/reward here and I longed 1 contract at 1844.. At the same time, you can see that stochastics is up and short-term MACD is also up.. However, when price hit the high formed by the morning session, it started to be sluggish... Stochastics and short-term MACD also started to cut their signal lines.. There is obviously resistance around this area and I exited at 1860 with profits of $320.
5 min Emini Nasdaq 100
Hi,
There were some optimism about the government bailing out Fannie and Freddie, and price gapped up during the open... however, the gap immediately closed and price moved in short spurts... Look at the candlestick body and how Short-term MACD behaved..
Short-term MACD is basically hugging the zero line.. Moving averages are almost flat... We have no reason to trade.. NO TRADE TODAY!
5 min Emin Nasdaq 100
Price is undecided and for a moment around 14:00 I thought that there was support at the moving averages.. I was looking for signs to go long... but apparently price broke further down.. First Stochastics formed a double top pattern, and short-term MACD cut the signal line... I shorted 1 contract at 1850 and only coverd my position at 1828 when stochastics and short-term MACD cut back signal line. Profits of $440. Notice that I only hold 1 contract recently? The recent market condition does not allow me to play 3 contracts.. there is no trend...
5 min Emini Nasdaq 100
Hi,
The market is undecided and moves in short, unpredictable spurts... Take a look at the short bodies and long shadows of the candlesticks in the morning session..
Things turned out to be better in the afternoon session.. Price started to find support at the moving averages... at 14:00.. I started to look for signs to go long...
Notice the double bottom pattern formed by stochastics? at the same time, short-term MACD cut up the signal line and subsequently the zero line.. Price rebounded from the moving averages. This is a good risk/reward opportunity!!! I longed 1 contract at 1848 and only exited at 1869 towards the end of the market session. Profits of $420.
5 min Emini Nasdaq 100
Hi,
Price gapped up by an amazing 20 points today.. But moving averages are flat and price moved in small steps. Just take a look at the body of the candlesticks..
I had intended to stay out of the market today... But at around 1500, price started to show support at the 1810 band.. (take a look at the dotted yellow lines), stochastics started to cut its signal line and short-term MACD rebounded from its signal line.. I longed 1 contract at 1820 .. This proofed to be the right move and price continued all the way up, only to meet resistance at the highs formed by the morning session.. Stochastics and Short-term MACD started to show signs of turning downwards and I exited at 1843 with $460 profits.
5 min Emini Nasdaq 100
Price maintained the downtrend throughout the day, but I only shorted after 14:00. I was looking for a good entry point...
This came only when Stochastics went up and price rebound from the moving averags.. I shorted 1 contract at 1950 and another 2 more contracts at 1836 when price broke through the support line.. I exited at 1824 with $1000 profits.
5 min Emini Nasdaq 100
Hi,
Market gapped down toady and there was a strong pullback to close the gap... but as soon as it closed the gap... price rebounded from the moving averages... It was moving down again with a sinking feeling... I cant tell where the market is going... there is no signal....
12:30, price started to show some signs of stabilization... there was strong support at 1825... at the same time, stochastics and short-term MACD cut the signal line... but I am still hesitant to going long..
Mid-term MACD started to cut its signal line and short-term MACD rebounded from its signal line as well.. I longed 1 contract at 1835. price reached the high fromed from the morning session and went further up.. I was feeling that it might get a little shaky and started to look for signals to get out... Stochastics cut its signal line down and I exited at 1860, with $500 profits.
5 min Emini Nasdaq 100
Hi,
Judging from how the market behaved these few days, it is highly unlikely that I would go long... Price went up after 11:00 am all the way to touch my moving averages.. It ranged for sometime before starting to show signs of weakness again..
Stochastics and short-term MACD cut down their signal lines, I shorted 1 contract at 1927.5 and another 2 more contracts at 1917 when it pulled back.. However, this proved to be a wrong move as price did not move much further down..
Stochastics and short-term MACD started to cut up again and I exited at 1912.50 with profits of $480.
5 min Emini Nasdaq 100
Hi,
Market is still in a stage of uncertainty and I advice all beginners to stay out unless you are absolutely certain. there is no point in trading excessively..
Price bounced off the moving averages this was accompanied by stochastics cutting the signal line and stochastics cutting the signal line as well.. Mid-term MACD cut the zero line which is another signal for us to go short.
I shorted 1 contract at 1937 and another 2 more contracts at 1930 only to exit when price touch the neckline at 1920..Profits of $740.
5 min Emini Nasdaq 100
Hi,
The market gapped down by around 10 points today. Price try desperately to cover the gap, but it never happened... My chance came when price formed a small shooting star briefing touching the moving averages.. This was accompanied with the stochastics turning down.. I shorted 1 contract at 1964 and another 2 more contracts at 1954... But I exited at 1948 when price approached the low formed earlier (see support line) and stochastics and short-term MACD started to cut up their signal lines.. Profits of $560.
5 min Emini Nasdaq 100
Hi,
The market is still in a ranging mode.. I am still not too sure where it is heading.. But as far as today is concerned, there have been some slight improvements.. If you observed, the moving averages are slanting upwards, this is a good signal.. furhtermore, the moving averages are expanding.. you can see that the faster moving averages are moving further and further away from the slower moving averages as time passes..
I was waiting for a pullback to enter the market. There was a pullback at 12:15 with stochastics slightly cutting up the signal line but I was still uncomfortable with entering the market. I only entered at 13:15 when I saw a hammer and apparently price found support at the moving averages... I entered 1 contract at 1975 and exited only at 1987 when price became heavy and stochastics, short-term MACD started to show signs of topping over. Profits of $240.
5 min Emini Nasdaq 100
Hi,
The market is still relatively flat.. If you know observe the moving averages, they are pretty flat.. this is not the ideal trading condition and I am pretty cautious about going into the market. However, towards the end of the market session, there was a chance...
Price formed a double bottom supported by the moving averages. Furthermore, stochastics rebounded sharply and cut the signal line. I immediately longed 1 contract at 1953 but got out when price showed that there wasnt enough momentum to cut the high formed from the morning session. I exited at 1965 with $240 profits.
5 min Emini Nasdaq 100
Hi,
Price gapped today and it continued going up with some momentum within the first 30 minute. But as soon as it hits my moving upper moving averages, it started to rebound, I shorted 1 contract at 1948. this was followed by stochastics and short-term MACD moving down. But I exited at 1940 when price failed to continue closing the gap. I would have shorted another 2 more contracts should price move pass the opening price. It is quite obvious the market is still in a state of uncertainty and there is no clear trend at all. Profits of $160.
5 min Nasdaq Emini 100
Hi,
Price moved down again. The signal for entering is quite different from the usual signals from MACD or stochasitcs. Today, the market started by going down.. you can see that moving averages are slanting downwards... In the first 30 minutes of trading, you can see that there is only white candle. I shorted at 1960 after a huge red candle appeared. I further shorted another 2 more contracts at 1951 but this turned out to be at almost the end of the downtrend... shortly after I made my second entry, stochastics and short-term MACD started to turn up and cut their signal line.. I exited at 1946.5 with profits of $450.
Frankly, if you are not comfortable with the market situation today, I would advise you to stay on the sidelines first. Even though I made money today. I did not really like the risk/reward that I am getting.
5 min Emini Nasdaq 100
Hi,
I have just returned from my extremely long vacation.. I have been doing nothing but watching the market for the past 2 weeks.. Now I am back in action... Sorry for the long absence.. The market was not performing well,, ranging from side to side and I needed to take a break.. So,, well, afterall the aim of trading is to allow me to take a vacation whenever I want to.. :)
Well, Last Monday, the market fell by around 70 points.. which is really bad. so do we expect this momentum to be carried over to Monday? Frankly I dont know, in fact today's trade is a LONG....
At around 15:20, price formed a double bottom pattern and stochastics was up, you can see that short-term MACD and mid-term MACD both cut their signal lines. I longed 1 contract at 1958 and another 2 more contracts at 1970 when price reached the neckline of the double bottom pattern. I continued all the way till price touched my outermost moving average at 1987. The market closed and I got out with profits of $1260.
Nasdaq Emini 100 5 min Chart
Hi,
Alot of readers have been asking me what I have been up to the past few days... I apologize for the lack of updates.. Well, if you observed, the market has been extremely range boung and volatile during the past few weeks.. So what's the best thing to do for day traders like us who can take leave whenever we want to?
Yup, I took a holiday.. :p I decided that it's a good chance for me to rest, relax and stop thinking about the market... This is good to refresh your mind and when you return,, sometimes you might find new perspective to the way you trade...
Ok, enough of my personal stuffs, today's trade is simple... reasons for shorting:
1 obvious downtrend, market gapped down and never recovered
2 Stochastics cut down.
3 Price bounced off the moving averages.
Enough reasons for me, I shorted 1 contract at 1766 and another 2 more contracts at 1756 when it broke the morning's support line.. But this turned out to be a bad decision... price did not move much further after I shorted the 2 contracts... and stochastic exhibited signals of cutting up the oversold line... I exited at 1751 with $500 profits.
PS: I might be taking another long holiday, this time maybe a month, bringing my family for a tour.. but we are really still planning it... ;)
5 min Emini Nasdaq 100
Hi,
The markets have been extremely volatile lately, I have not seen such volatility for a while now.. I would advise all traders who are new to this game, to stay out of the market for a while.. Just obseve how it moves.. Don't trade, more than likely you would get whipsawed out of your positions easily.
As Stochastics formed a double bottom and Short-term MACD cut up the zero line, I longed 1 contract at 1772 for a gap closure play... Yes, the gap did close but almost immediately, the next candle was a doji... this was bad signal for me, and I did not double up my position... I exited at 1780 with profits of $160.
5 min Emini Nasdaq 100
Hi,
You might think that I missed out on a long trade today... but I have my reasons on why not to trade...
1 Price action is sluggish... If you observed, there are alot of doji candlesticks with long whiskers.
2 Short-term MACD is rarely below the zero line. Hence although it cuts it signal line... it does not constitute a powerful cut. There is not enough momentum for it price to go up.
If you think that stochastics are signals good enough for you to go long, then you are wrong. We use an arsenal of technical indicators to make a decision. Never use an indicator in isolation.
5 min Emini Nasdaq 100
Hi,
Market just went down and down today,, but there was not a clear signal to short. I wasn't even thinking of going long.. if you look at stochastics, you might find several signals for you to go long. But do you want to take the risk? Is the reward worth the risk? I don't think so... When price broke below the moving averages, I knew that things were going to turn sour... I just patiently waited for a chance to short...
Finallly my chance came towards the end of the trading day... when price formed something like a double top, never managing to break above the moving averages and stochastics started to turn down... I shorted 1 contract at 1837 and another 2 more contracts at 1832.. I held it all the way till the end and exited at 1826 with profits of $460.
5 min Emini Nasdaq 100
Hi,
If you have observed, the gaps in the past few days closed nicely before market starts moving in the opposite direction.. Well, this simply means market direction is unpredictable and that volatility is high... but, we should definitely capitalize on this...
Market gapped up today and when up a little before exhaustion and starting to fall back... A red candle appeared together with stochastics cutting the oversold line... I shorted 1 contract at 1855 and anothe 2 more contracts at 1844 when it pulled back mid-way to closing the gap... The exit was straight forward when price hit my moving averages and bounced a little... I closed off at 1837 with profits of $840.
5 min Emini Nasdaq 100
Hi,
Today's trade is not the usual trade that I usually do.. One of the greatest advantage we have as day traders is to stay nimble and react to market situations..
Market gapped down today... I thought that it was going to go down again.. You never know when there is so much talk of recession in the news and so much pessimism among the investors... I took a wait and see atitude to how the market would develop today... Price did not go down below the opening price.... it was wriggling up to close the gap... But was this enough to go long? NO! There were no good signals and price action was simiply too sluggish for my liking...
BUt at 11:25 price closed the gap with one big candlestick... and if sentiments were weak, it would have bounced right back... But NO! It didn't bounce back... on the contrary... price continued another surge... Mid-term MACD also cut the signal line nicely and Short-term MACD cut the zero line... I longed 1 contract at 1814 ...
Price action was promising after that, but it fell.... That didn't make me panic because I was still in the black... I decided to let it run... and at 1819 I entered 2 more contracts as stochastics bounced off the oversold line... After that, price made small steps increases upwards and I would say the trade was smooth sailing... I exited at 1844 when price felll in one big red candle with Stochastics, MACD all crashing down... profits of $1600.
5 min Nasdaq 100
Hi,
Fed assured the markets that it was going to take more action to soothe the turmoil... It cut rates by 50 basis as expected.. and market jumped up on that announcement...
So what did I do? I went long 1 contract almost immediately after the announcement at 1815 and another 2 more contracts at 1827 when price pulled back.. I held my position all the way till price started to topple and Stochastics cut down, Short-term MACD also cut the signal line and Mid-Term MACD also appeared to be turning down... I exited at 1834 with profits of $660.
Fundamentals:
The Federal Reserve delivered powerful new relief to people and businesses squeezed by the ailing economy Wednesday, cutting interest rates ever deeper in an effort to avert or at least soften the blow of a recession.
The bold, half-point reduction approved by Fed Chairman Ben Bernanke and all but one of his colleagues came as President Bush and Congress raced to enact a separate rescue package -- including tax rebates for individuals and tax breaks for companies -- to help energize an economy in danger of stalling.
Heartened by the Fed's newfound aggressiveness, Wall Street rallied but then pulled back, still wary. The Dow Jones industrials jumped more than 200 points after the announcement but ended up down 37.47.
Commercial banks followed the Fed action by lowering their prime lending rate by the same half percentage point -- to 6 percent, the lowest in nearly three years. That prime rate applies to certain credit cards, home equity lines of credit and other loans.
Hours before the Fed's action, the government reported that the nation's economic growth had stumbled to a virtual halt. The economy grew at just a 0.6 percent pace from October through December, and for all of 2007 it logged its weakest performance in five years.
The collapse of the housing market, sour mortgage investments and much harder-to-get credit are weighing on people and businesses alike. Foreclosures have hit record highs, and banks have racked up multibillion-dollar losses. The fallout has shaken Wall Street, catapulted the economy to Topic A among worried families and galvanized political figures, including those vying to be the next president.
"The economy is hanging by a thread," said Stuart Hoffman, chief economist at PNC Financial Services Group.
While Wednesday's interest rate cut was welcome, the Fed's blunt new assessment of the economy was sobering for everyone from business owners to people worried about debts to anyone without a job -- or fearful of losing one.
"Credit has tightened further for some businesses and households," the Fed said. "Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets."
In its 9-1 decision, the Federal Reserve dropped its key rate to 3 percent at the end of a two-day meeting. Richard Fisher, president of the Federal Reserve Bank of Dallas was the sole dissenter. He preferred no change.
5 min Nasdaq 100
Hi,
Today's trade is easy...price formed a double bottom pattern and there was positive divergence with the stochastics and Short-term MACD...
Everyone's waiting to see if the FED will cut rate another 50 bps... But that's not really my concern... The double bottom and positive divergence is enough for me to go long...
I longed 1 contract at 1788 and another 2 more contracts at 1793... I only exited when price hit the moving averages and bounced back abit... I exited at $1803 with profits of $700.
5 min Emini Nasdaq 100
FEB announced an emergency rate cut of 75bps? That is a huge cut! imagine most of the time they adjust by 25 bps... now all of a sudden its 3 times more..
Market gapped down nonetheless and in fact it went down even more and for a moment we all thought that the market was going to crash again... but at around 13:00, my Mid-term MACD started to cut the signal line and stochastics was also cutting the oversold line...
I longed 1 contract at 1711 and another 2 more contracts at 1720... I held it all the way till Short-term MACD cut the signal line down again...and I exited at 1738... with profits of $1260...
5 min Emini Nasdaq 100
Hi,
How is it going? Yesterday was Martin Luther King's day and there was no trading,,, market dropped by almost 100 points... It further gapped down when it opened today... but it was pretty obvious that market was oversold and stochastic was up... Short-term MACD was also pointing up and cutting the signal line...
I longed 1 contract at 1757 and another 2 more contracts at 1777... I held all the way until stochastics cut the overbought line again Short-term MACD also turned down... I exited at 1800 which is also a resistance line with $1780 profits.
5 min Emini Nasdaq 100
Hi,
Market gapped down slightly, covered the gap and immediately met resistance at the moving averages, bouncing down with a sharp turn of stochastics... I shorted 1 contract at 1880 and another 2 more contracts at 1874... Price was choppy but went down as expected... I only exited when stochastics cut up the oversold region. I exited at 1866 with $600 profits.
Fundamentas:
Credit concerns also dogged Wall Street after rating agency Moody's Investors Service placed bond insurer Ambac Assurance Corp. on review for a possible downgrade. That possibility alarmed Wall Street because it would place all bonds insured by Ambac on review as well. Ratings agencies are concerned that bond insurers would be unable to absorb a spike in claims.
Investors fears of a slowing economy again dominated trading.
"The Philadelphia Fed just announced dreadful numbers," said John O'Donoghue, co-head of equities at Cowen & Co. He said if you look back at Philadelphia Fed data for similar numbers, it takes you back to the 2001 to 2002 recession.
"It's not rocket science - the economy is slowing dramatically, and it's being reflected in economic reports."
5 min Emini Nasdaq 100
Hi,
Market's still volatile and I am usually very cautious in such markets... Today's trade a little different from my usual trade. I traded only one contract and held it for a much longer time... I was prepared to exit if I sustained a slight loss....
Market gapped down today and it plunged further.. didn't seem too assuring that an trend reversal to uptrend is coming... I went long 1 contract at 1868 when stochastics formed a double bottom and cut up the oversold region... My stop loss was immediately below that at 1955... I wasn't prepared to lose too much...
Price met resistance when it hit the opening price... it bounced back again... I was tempted to close the trade... but I didn't I expected it to close the gap... and I already had a limit order at 1908... Also, I did not pyramid my position by entering a second trade...and I was not losing money.. I decided to let price fluctuate and run...
After some consolidation, price shot up again... and it hit my limit order at 1908 .. I was exited with $800 profits.
Notice how price went down again after I exited? Morale of the story? Stick to your price target and don't be overly greedy.
5 min Emini Nasdaq 100
Hi,
Market is still volatile and I can't really tell where it is going... I tend to be cautious in such markets... Today, I only entered 1 contract instead of the usually 3 contracts...
I didn't really like the price action but it bounced off an almost flat moving average with stochastics moving up.. this means a good risk/reward for me.. I longed 1 contract at 1945... and exited when price hit the morning high at 1959 with profits of $280.
5 min Emini Nasdaq 100
Hi,
How's it going? market is lacking in direction and it is ranging today... It gapped down a little but quickly covered it up.. The moving averages are flat... There might be possilbe trading signals on highsight ( Look at the areas I circled) but I did not enter.
Firstly, stochastics did not really cross up from the oversold region... It sort of just bounced off the the oversold line at 20....
Secondly, the biggest reason is I don't like the haphazard price action with the flat moving averages.. Flat MA usually mean no trend... You don't have to force yourself to trade when the odds are not in your favor.
5 min Emini Nasdaq 100
Hi,
Market volatilite makes it more difficult to get a sensing of direction... Normally, after a few red candle days you would expect today to go up... but... it went further down today... Be extra cautious in this market and play according to the signals... Don't let your pre-judgement of what the market should be like affect the way you trade.
Today's trade is based on resistance lines and double top formations... Basically, I watched the morning session closely and discovered that the moving averages presented pretty strong resistance... My tendency was to go short.... I was just waiting for an appropiate signal...
Finally at 14:30, Price hit the high formed by the morning session and immediately went down, forming a double top... Stochastics and MACD also cut the signal lines and went down with it.... I figured that if I shorted here, there would be good risk/reward since my stop loss is just going to be on top of the resistance line... pretty tight...
I shorted 1 contract at 1980 and another 2 more contracts at 1967.. I held my position all the way till stochastics started to turn up and a white candle appeared... I exited at 1947... with profits of $1460.
5 min Emini Nasdaq 100
Hi,
Market is very volatlie these few days. I recommend that if you don't see a signal, stay out of the market. Market started today ranging and then started to plunge down... DId I go short? NO! was there a signal ? NO! So I waited till 10:40 when a white candle finally appeared and stochastics cut up the oversold line.. I longed 1 contract at 1954 and another 2 more contracts at 1977 (this 2nd entry turned out to be a loss) when there was another price surge above a pullback region...
Price was exhibiting considerable resistance from the moving averages and I knew that I shouldn't have gone long the 2 more contracts... Stochastics started to turn... and I prepared to exit... I exited at 1975 with profits of $320.. but making a loss of $80 on the 2nd leg of the trade... I had no choice but to exit because stochastics was turning down and in fact cut the overbought line...
5 min Emini Nasdaq 100
Hi,
The market's whipsawing up and down and I would suggest that if you are unsure of market direction, just stay out of the market... Today's trade is based on resistance and support lines and the surge in price during the last few minutes of trading...
Notice that when price hit the moving averages, it started to move down again? Downward pressure is great.... I had to wait till 15:40 to find a decent trade... price bounced off the support lines.. which is great, since my stop loss would just be below the support line giving me great risk/reward ratio...Also, stochastics went up nicely...
I longed 1 contract at 2060 and another 2 more contracts at 2068 when price broke the resistance line formed in the earlier sessions...I held my position till the closing bell and exited at 2077 with profits of $700.
5 min Emini Nasdaq 100
Hi,
How is it going? Market had a bad start, price was heavy on the upside and it just went down and down... today's trade is more based on price action than anything else.... I did not enter the market immediately... at 10:25.. there was a slight rebound and if price stage a comeback, there was still a chance of an uptrend... but... price simply broke it... this is my first signal... but I did not enter since I needed more conviction .. All my indicators where "underwater" in the oversold region...
Then at 11:15, when price cut through 2090 which is a support line... I shorted 1 contract at 2085... I am cautious on this trade as all my other indicators were already "underwater"... its not unusual for price to turn up anytime soon....
I only shorted another 2 more contracts at 2075 and exited at 2066 when stochastics cut up from the oversold region.. notice that shortly after, Short-term MACD also cut its signal line...Profits = $740.
Fundamentals:
Crude Futures Hit Record $100 a Barrel on Supply Concerns After Violence Breaks Out in Nigeria
Crude oil prices briefly soared to $100 a barrel Wednesday for the first time, reaching that milestone amid an unshakeable view that global demand for oil and petroleum products will outstrip supplies.
Surging economies in China and India fed by oil and gasoline have sent prices soaring over the past year, while tensions in oil producing nations like Nigeria and Iran have increasingly made investors nervous and invited speculators to drive prices even higher.
Violence in Nigeria helped give crude the final push to $100. Bands of armed men invaded Port Harcourt, the center of Nigeria's oil industry Tuesday, attacking two police stations and raiding the lobby of a major hotel. Word that several Mexican oil export ports were closed due to rough weather added to the gains, as did a report that OPEC may not be able to meet its share of global oil demand by 2024.
Light, sweet crude for February delivery rose $4.02 to $100 a barrel on the New York Mercantile Exchange, according to Brenda Guzman, a Nymex spokeswoman, before slipping back to settle at a record close of $99.62, up $3.64.
Oil prices are within the range of inflation-adjusted highs set in early 1980. Depending on how the adjustment is calculated, $38 a barrel then would be worth $96 to $103 or more today.
The White House on Wednesday said it would not release oil from the nation's strategic reserves to drive prices lower.
5 min Emini Nasdaq 100
Hi,
Today was a down trend day... Price gapped down and never really got to close it... you can see huge swings in stochastics and market was generally volatile... When price first broke the moving averages without closing the gap, we can tell that chances are it will continue to trend down... I did not enter because of the overall volatility and I couldn't tell where price will bounce back.. there was no good signal for entry...
At around 14:30, price touched the moving averages and rebounded downwards... At the same time stochastics turned sharply down from the overbought region... This was a good risk/reward trade in that I could place my stop loss just above the moving averages.... I shorted 1 contract at 2142 and another 2 more contracts at 2133 when price broke the low formed by the earlier session... I exited only at 2127 when stochastics turned up and price seemed to bounce back from the support line formed by the channel.. profits of $540.
Fundamentals:
Oil futures rose Thursday after the government reported larger-than-expected declines in crude and heating oil inventories.
In its weekly inventory report, the Energy Department's Energy Information Administration said oil inventories fell by 3.3 million barrels last week, more than double the 1.3 million barrel decline analysts expected. Inventories of distillates, which include heating oil and diesel fuel, fell by 2.8 million barrels, much more than the expected drop of 800,000 barrels.
"(Heating oil) stocks are just plunging," said Stephen Schork, a trader and analyst in Villanova, Pa.
Crude and heating oil supplies have declined more than expected for several weeks running, exacerbating a perception that supplies may be inadequate to meet winter demand.
Light, sweet crude for February delivery rose 65 cents to settle at $96.62 a barrel on the New York Mercantile Exchange after