Bulls Were Completely Knocked Out of the Park

[MichelGJulien 10]

The highlight of the day was that bulls were completely massacred today. Normally, when there's a bloodbath like that it starts with London and then it goes on with New York, but often times to a lesser degree. Today was different in the sense that the massacre didn't start with London but with New York instead. Other than that, it was bears heaven all day long. Every time bulls tried to raise their head a little bit they were knocked out of the park all together. Price eventually went as low as 98.05 after the close of the pit, representing a $4 drop in 2 days.

 

Today, the bears were in heaven. Will it be the bulls turn tomorrow?

 

 

The market opened at 99.68, i.e. within yesterday's range, but outside of the value area. We still had the same unfilled gap at 101.12 that we had yesterday but this level now looks in the stratosphere compared to where the price is at the moment. Initial balance was 65 ticks or 19% below its 10-day average. According to my stats the volatility was set to increase sometimes during the remainder of the session. And boy did it increase! My fear of a bull trap above 100 was founded finally but I really wasn't expecting that MUCH of a rejection after price briefly broke above it. From that moment on, price never stopped falling. To a point where I tweeted: "Next step below is 97.85 (don't think we get there today though)". We came within 20 ticks of that level. When crude oil is in liquidation mode, it really means business.

 

I took 3 trades today:

 

1. Long 100.00 at 9:55am, exit 100.00 at 9:58am for a breakeven trade.

1. Short 100.00 at 10:25am, exit 99.85 at 10:43am for a +15 ticks profit.

1. Long 98.96 at 11:47am, exit 99.21 at 12:01pm for a +25 ticks profit. Result: +40 ticks today

[dasziel 10]

Good review!

 

Why yu trade Dec Future and not Current expiration?

 

Thx,

[MichelGJulien 10]

December IS the current futures contract dude :-0