During last night’s public webinar courtesy of Trader Kingdom, I predicted towards the end that CL futures would probably span a 200-cent trading range today. The recording for that event is either online now or will be soon…and the prediction is there inside for posterity.
What I didn’t expect was a 200-cent range, straight trend fashion in two (2) textbook CM Patterns trade sequences, good for at least +50 cents each (minimum) if not more…ahead of the 10:30 am weekly inventory release.
It looks to me like that info was released well ahead of time, today.
My personal trading plan including passing up CL trades until 10:32 am eastern, then ride the post-inventory wave(s) into 2pm FOMC minutes, then trade reactions to that into 2:30 pm EST pit session close. We marked the CM Pattern trade-entry sequences ahead of time and in real-time in our live room operation in front of everyone present. I watched those trade signals confirm and go on to perform in classic, methodical fashion.
My best laid plans laid one big goose egg. So much for that. Remind me next time to ignore the pending news and simply trade the sequences as they unfold & confirm.
Well anyways, there is also the Russell 2000. Like we said the other night, I’m trading dual-filtered charts for both CL and TF, which is about all the attention span I have to offer. Nothing wrong with trading ES, NQ, YM, ZS, ZC, ZB, ZN, 6E, 6Y or xyz for that matter. I simply cannot trade everything myself, nor can anyone else. So each of us settles with what we prefer to focus on, and apply ourselves accordingly.
The dual-filtered chart approach works well. The other part of my trade plan for today was to trade TF in aggressive fashion per any & all dual-chart confirmed signals. So I followed that plan same as I adhered to my own (failed) CL trade plan.
First trade sequence today was to the short side in staggered levels. The 500-volume chart and then 200-tick chart confirmed sell signals spread apart. So I traded them both. End result at the exit was +10.2 index points combined in the “free trade” two contract scale.
Second trade sequence was a fumbled execution on my part. I shorted a continuation sell pattern sequence near 1041 – 1040 and should have just left it the hell alone. But I was juggling that, along with watching CL flop around sideways like a goldfish trapped in a septic tank following inventory “release” (cough) and simply booted the proper execution of TF.
End result was +1.1 points on a single contract overall. Should have been +4 or +5. Whatever… the usual trader mistakes.
Next sequence was long around the same area as prior shorts. Scratched out a couple of times and finally caught one blip higher from congestion to overhead resistance, which was measured ahead of time and visibly known to be right there.
End result was +2.6 points on a single contract. Good exit decision… price stalled right at our CM Patterns pre-trade measured profit objective. Right where any & all markets commonly stall… because what we do is based on price-action itself.
In my midday absence the market spiked up to stall right at the inside resistance of open-range top (upper chart)… to the exact high tick. As it often does. Then the market settled back down below open range in bearish fashion. Just like we discussed for an hour together in last night’s online webinar workshop.
Exactly as we outlined and discussed in there last night is exactly how I operated in here, today. As usual.
Anyways, subsequent short from the CM Pattern that was drawn on our live room chart for almost two hours finally broke, and reached down once again to that pre-trade, pre-measured profit objective. I closed the order at that target, it was pretty much the low of that move, and I was very much done for the day.
So even though I mistakenly passed up two solid CL trades good for at least $500 per contract each, and booted the proper management of at least one TF trade, it was a decent day overall. 10.2 + 1.1 + 2.6 + 4.1 = +18.0 TF index points cumulative (per contract) if my math is correct. Without taking my shoes & socks off to double-check and confirm, we’ll go with that.
Needless to say, CM Patterns and dual-charts filtering + moving markets = $$$ potential. It is up to you me and everyone else to unlock that potential accordingly. But, isn’t that how this profession truly works?
Last Time In 2013 (or beyond)
Part of the hosted webinar event last night was a special offer to the registrants who join our CM Team home study program for inclusion inside our live room operation from now through October 24th, at which time the room will close for everyday session use. Somehow or other, the details of that offer were confused. I have stacks of email questions in my inbox right now asking for clarity. So here it goes… anyone who joins our CM Team program now will be included with the daily live room service until it ends.
If you’d like to see how it’s done on the charts as depicted above, all of those action sequences were drawn in real time ahead of time in the room… complete with pre-measured profit objectives, as usual.
Nice to see volatility returning to the markets. We predicted that would happen many, many, many times here in the recent past. Looks like that prediction is also playing out. I would expect more of this to come, and stay while as well.
For more daily updates from Austin, visit his blog at Coiled Markets.