Best Market to Trade Overnight

I’m often asked what the “best” market is for overnight hours by traders who have jobs, careers or commitments during regular U.S. day time hours. Without hesitation for one split second, my response has ALWAYS been crude oil futures number one, followed by currency markets (futures or spot FX) as a near second choice.

Crude Oil 500 Volume Chart

This morning I was awake at 3am est for non-market related obligations and same as yesterday, opened the charts to see what might be taking place. CL was on layered sell signals per our CM Patterns approach, and as highlighted in the chart link above I shorted the 90.72 and 90.58 sell zones accordingly. Each position soon worked with ease while taking no heat at all on the customary -5 cent/tick initial stops.

When price reached premeasured (before any trades were ever taken) profit objectives I closed out at 90.14 and left to handle my early morning obligations. +58 and +44 cent/tick gains respectively, while never for a moment risking more than -5 cents/ticks at any time made for a successful premarket sequence.

Of course only in hindsight do we see where CL price continued on down to the 88.18 current lows or roughly +$2,000 per each CL contract greater past my own exit. Oh well… that’s how CL trading goes. It makes more price moves of far greater $$ distance than any other liquid futures market listed anywhere on this planet.

Like I’ve told many traders before: you can readily make the same or greater potential gains trading crude oil during the overnight markets as you can inside the U.S. pit session market. The fact that crude oil is both a quasi-currency and the most necessary consumable product needed by the entire world apart from food means it can never be governments controlled for long, and will react sharply to all global happenings around the clock.

Trade Well

For more daily updates from Austin, visit his blog at Coiled Markets.