Feeling like a yo-yo

Day 4 Live Funded Trader at TopStepTrader

Friday: January 22nd, 2016

Crude Oil Futures Day Trading

Early market behavior has me looking at this as a false rally up … and looking for selloff volume to go SHORT.

At 8:30AM CST, I took my best shot at the short side I have seen this morning. I am short from 3161 at 8:30AM CST.

The Crude Oil Futures Market made it to my 1P Profit Target of 3135 at 8:36AM. I am at Breakeven on the trade now. I am looking for a 3P Profit Target overall on the day trade in the Crude Oil Futures Market today. This places the Crude Oil Futures Market to 3084 on a retracement of the move up recently.

We had a BBV of 1885 that had me looking to get short along with a failure up at R2.

Can or Will We be able to Hold below the 200 SMA BAR on the trade? We are at the critical point in the trade now … will it continue to move down or go back up on the trading day.

One of the good things … if you can call it that … is the breech of the 200 SMA BAR allows me to pull my profit stop in a bit and allow for a couple more ticks of profit, if the downward move is over.

Next downward profit target is 2P. Today this is located at 3110, which is 2P not 3P as shown on the chart … I am after a 3P Profit Target which places the trade at 3084 on the way down.

At 8:49AM CST, we saw our first fake out come onto the charts … this is normally a good sign for continued weakness is it came without volume to support the quick move up. Normally, this supports a further downward reversal move in prices to continue to go lower.

The Crude Oil Futures Market drove up to my protective profit stop located at 3153 allowing for an 8 tick gain overall on the trade.

Looks like the 1st trade should have been the only trade on the day … take what I can on a Friday and move on. EIther the market will trend or it won’t … don’t try to intrepret “my beliefs” into the price action.

I had 5 trades overall today. I went up 4 ticks on the trading day. After commision costs, it is enough to get a Happy Meal and Mick D’s.

On the trading week, I had 3 positive trading days and one losing trading day. I was unable to catch a breakout trading opportunity overall on my trading week. There were a couple of 3P movements available, but I was unable to capitalize on any of them during my trading week.

I decided to shut it down and LIVE to FIGHT (trade) another day!!

Good Trading,

David M. Knight

About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.