Friday, December 15, 2017

Crude Oil Distribution Reversal And Emini Pullback


Been a busy week with a few distractions which led to a roller coaster of a ride this trading week. Haven't had the time to get recaps posted to the website as I just starting using new market profile charts which I've been adjusting each day.  This may have had me trying to be smarter than the market and more creative in my trades in the beginning of the week. I was able to finalize adjustments and straighten out my thought process and the backside of the trading week improved very well.

Crude Oil +20 Ticks

Today's trading day we noticed the London distribution closed slightly bullish with an evident reversal if it broke through 57.30 to the downside. The opening did print one tick higher but nothing to move the market entered. We notice the upward rejection and low volume, therefore, the short was in play. Short trade was at 57.28 reaching over 30 ticks of profit looking for a 50 tick target. The second attempt of the 57.00 failed and a rebound was quick to move causing the exit for +20 ticks. 

Emini +2 Points

We noticed both overnight distributions inventory was extremely bullish. We thought the 9:30 open would give us a pullback to be able to jump on the first upward reversal. Emini could not even break 2666.00 and it looks like all the informed traders got long at 2668.25. Being preoccupied with the crude oil trade I was late to this parade. Forced to wait for the first pullback showing evident volume exhaustion was an entry at 2672.50 reaching 2678.75. Called the exit much prematurely at 2674.50 for two points as I noticed the rejection at the first big move was reversed at 2675.50. Should have tightened the stop rather than called the exit as it would have produced a much stellar result.