Wednesday, December 6, 2017

Short Trade Higher Rejection Inventory Report


Today was inventory day for crude oil so we usually wait for the outcome of the report to respond to the market. At first, I thought we were going to see the market drop early before the report in which we would probably see an inventory rally.

Not what happened. The market from the US open decided to continue to reject the 57.00 volume node area. The inventory initial move was to the upside only to get rejected at this same price level again.

Both trades were called for 56.83 short, with the first trade basically two minutes after the report was out. As you may know, the volatility and uncertainty are high at this time. Therefore when I saw the spike in bid action I got spooked to call the exit of the first trade for a -1 tick loss.

Immediately after I thought I was wrong as the trade begun to move in favor but it caught another bid only this time it rejected the same price level above to give an even more confident short at 56.83 this time moving +50 ticks.

Tuesday, December 5, 2017

Another Neutral Distribution 25 Tick Range


The London Session and the US open were trading below term structure had us in the hunt for shorts. At the open evident strong buying volume off the 57.30, I thought later that it would be a great breaking point to be in a short from the structure levels of 57.47/49 above.

Futures Trading Room:

Had three short for a total of -2 Ticks. Trades were basically exited by the lack of the trade materializing. I decided not to trade the afternoon but as I write this post I'm watching the market run higher off the 57.30 bounce. Tomorrow is another day.

Monday, December 4, 2017

Stop Outs Trading Inside The Neutral Distribution


Coming into this morning with the Friday high around 59.00 and the London session not able to trade above 58.00. Was looking for downward movement but the US open bounced off the lower volume node of 57.55 with no big follow through. Therefore I looked for a long trade to potentially begin an upward move, running stops and covering trades.

The first trade was long at 57.76 with a stop loss at 57.63 quickly was rejected at the buy gap and stopped with a loss of -13 Ticks. With the rejection of the buy gap, the next trade presented a short from the rejection of the neutral zone at 57.57. After prolonged time to many failures to move lower I called the stop and got out with a -5 Ticks.

Today's inside neutral morning with two trades both losses for a total loss of -18 Ticks.