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MichelGJulien

Switching to the December Contract Today

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When I started trading today, I was still using the November contract. This morning, I was so concentrated on my charts that someone on StockTwits had to remind me that December had already more volume than November and maybe, just maybe, it would be in my interest to switch now. Too bad I was already in a trade when that reminder came but anyway it wouldn't have changed the outcome of what was to become my first losing day in a while. We had what I consider broken markets again today. Stocks were up pre-open as well as bonds. This shouldn't be like that. I know some traders may not agree with me here but normally bonds & stocks move in opposite directions. When they don't, markets are not correlated and when they're like that I find that price behavior is often jiggery and trading more uncertain.

 

attachment.php?attachmentid=37240&stc=1&d=1382135351

 

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Momentum may be in the basement but the direction is crystal clear

 

Technically speaking, the market opened at 101.49, i.e. outside and above yesterday's range and value area. The 2 unfilled gaps in the area were above at 102.29 and below at 100.63. Only the one at 100.63 got filled around lunchtime. Initial balance at 102 ticks was pretty wide today registering at 31% above its 10-day average. The 1st hour of the pit was very volatile so, FWIW according to my stats, the rest of the session was expected to be quieter, and indeed it was. Going back to my trade, I set a fixed stoploss at some point in the trade which I don't do very often. Problem with fixed stops is that sometimes they take you out of a trade (by 1 or 2 ticks) that finally goes your way afterward. Other times they save you from monster losses. This morning I wasn't able to make up my mind as to what price was going to do next. Uncertainty about your own decisions is also a part of trading. A trader has to learn how to live with that.

 

I took 1 trade today:

 

1. Short 100.89 at 9:53am, exit 101.09 at 10:39am for a -20 ticks loss. Results: -20 ticks today, +66 ticks this week. Have a good weekend!

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LOL!

 

I was still on November CL yesterday morning too. The volume had not dropped-off enough and you could have traded either month (November or December) in the morning. Monday folks will see a big difference in volume.

 

Yes, the markets are "broken" and will stay broken as long as the FED keeps printing monopoly money and handing it to Goldman-Sachs and J.P. Morgan and the other insiders to gamble with, interest free.

 

Wouldn't it be nice to have a "free" trading account that you could gamble with every day? Taking 100 lots in whatever market you wanted and, if you won big you kept the cash but if you lost the account would be magically funded again the next day . . . That's what our U.S. politicians are allowing right now.

 

There's no other reason the stock market keeps rising with such a badly damaged U.S. economy. Bonds are up because the U.S. will not "default" in the near future.

 

Good Luck!

Chartsky

Edited by tradingwizzard

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