I’m sure that many traders woke up with the Monday morning “blues” as most markets traded lower. Regardless of direction, though, there were many opportunities across the board. If you trade multiple products, it could have been a difficult day trying to keep up with all the signals. Today was a clear case for good “audibles” from your signal generator.
Early birds in Crude were thrown a monster trade first thing out of the gate Monday with a short from 44.90 staying intact down to 44.25 for a quick 65 ticks. An hour later the market added desert with an additional 42 tick decline, that ended up adding another 16 ticks to the day. While the balance of the day provided ample op’s to trade from both the long and short side the net ticks per move contracted a bit.
Overall strategy in the CL netted +120 ticks per contract. Check out the chart below for today’s trades.
The equity market indices reeled in some of the “irrational exuberance” on Monday quickly forming a downside chain of kick or hit the bids. The first two hours of trade were basically contained within sharp periods of selling interspersed with feeble rally attempts or running chop. The ES began the session with a failed rally attempt as opening orders provided some of the best short entries on the day. Once “lunch hour” kicked in there were periods of stronger follow through on rallies which ultimately culminated into the last hour push higher. Here as in crude traders were kept busy and I received the same feedback in the Trade Room from YM and NQ traders.
Check out the chart below for today’s trades and discussion: