Price analysis you see is CLZ12, for the week of October 19th, 2012:
Market Overview: The much anticipated November US Presidential election and the very worrisome 'fiscal cliff' are quickly approaching and one can see the market setting itself up for the event. Crude Oil itself recently pushed up to the psychologically important $100/barrel level only to back off just as quickly. Given energy's significant role within the electoral process, one has to wonder if a little 'tinkering' has gone on of late by those in power to remain in power. Regardless, the summer seasonally long trade in the energies has come and gone; now it appears it's time to do some back-filling...
Weekly
highlight: This past week saw yet another bearish price pattern emerge. The failure through 90.27 registered a double top price pattern and suggests sellers are still in control.
Trading
Strategy (1 month): While consolidating of late, the market continues to point bearishly towards the low to mid $80 area. The recent double top failure on the daily charts suggests we have further to go on the downside but suggests too that price action higher ought to be limited for the time being.
Mental
State Review: My confidence is very high IF I am patient and wait for set ups. My problem is impatience right now. My goal for this coming week is to do less trading and try to only take trades based on my plan - regardless how few they may be....
Trading
Plan for this coming week: Watching for and using 'OTE' setups to identify buying and
selling opportunities at key
support/resistance levels on the 60m/4hour charts. Once trade zones are
entered, drill down to 5m/15m for OTE entry points (coupled with momentum/volume divergences) and follow the trade
process.
Picture
everyday my ideal trade....looking for momentum divergences at or near
OTE zones on 1hr/4hr charts; tight reversal, clean additional OTE entry signals on shorter time frames where
tgt is +.42 and stop is -.21....I have come to see that profitable day traders do not always have to trade....so there simply is no hurry. Trades they do enter are ideally looking for a 'range extension' in the opposite direction. While trading 1 lots does limit this participation, consistently shooting for +40 tick trades seems like a realistic target/goal for the $30,000 ($500/day max risk) combine account.
Trade
Process: Once 60m/4hour OTE sweet spots are entered and market has confirmed vol/mom divergence, b/s 1
aoco (-.21/+.41) at 5m OTE entry levels where prev. peak (+/-.10) is no
greater than 21 ticks....Either 2 immediate losses ($-430) or three wrong trades in a row = -$645.00 equates to end
of day. Gains of more than $1000/day equates to end of day.
That's all for this post,
Brian Beamish FCSI
The Canadian Rational Investor
the_rational_investor@yahoo.com
http://www.therationalinvestor.ca
http://crisdaytrading.blogspot.ca/
Monday:
Today started with a nice rally into an OTE short ss (90.98) and a subsiquent sale. Below is a screen capture of the trade setup, entry and exit. A very good start to the week!
Brian Beamish FCSI
The Canadian Rational Investor
the_rational_investor@yahoo.com
http://www.therationalinvestor.ca
http://crisdaytrading.blogspot.ca/
Monday:
Today started with a nice rally into an OTE short ss (90.98) and a subsiquent sale. Below is a screen capture of the trade setup, entry and exit. A very good start to the week!
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