Spank the Markets - CL Edition Trading Blog: April 2011

Friday, April 29, 2011

Market won't stop

Have a good weekend!

Tuesday, April 26, 2011

Market hitting new 2+ year highs, oil ~$112

As of the time I am writing this:

Dow: 12,578
ES: 1343.25
CL (06-11): $112.12

How I trade:

-> I first identify the context of the market. This is done by drawing trend lines where price has proven them already, and then most times, taking a parallel of these lines, and drawing ‘potential’ or unproven trend lines.

-> Once the trend lines are identified, I will locate key areas where price has failed to breakout/down, or has shown support/resistance on more than one occasion. I give the most “weight” to the most recent price action at that point.

-> Wait for price to approach a trend line, as well as have potential support/resistance in the same area, and then take the trade.

-> I trade 1-5 contracts. Full stop <$600. I look to trade from 7:30-10:30 CST.