Warrior Trading Blog

10 Green Fingers +$675 | Steve’s Futures Pulse 207

Steve_9.5

Ten! We did it. Today we closed out our 10th consecutive green session. That’s right. No, I didn’t trade every single day because Tuesday, after the holiday, I did a no-trade day. The weather was terrible and there was lots of distractions. But for the last 10 days that I did trade, guess what? I kept it green.

Today was no exception, scored 675 over two trades. I made 250 in the Canadian dollar, and 425 in a breakdown trade in the [inaudible 00:00:31]. Let me show you what it looks like on the chart for today’s futures pulse as I give you a recap.

Don’t forget to join me tomorrow to see if I have to break out my toes to see if we go for 11 consecutive green trades. Okay, I’ll keep my toes in my shoes but come on, take a look over my shoulder.

All right, we’re going to kick it off here on the Canadian dollar. This is the 10 in the 30 minute time horizon that we are watching here this morning. The signal that came into play here on the Canadian dollar was a breakdown signal. We initiated short positions at 7560 and a half. I’m going to highlight where that was on these charts, which is right about there, that yellow line there. And then, over here on the 10, we were already in a breakdown mode right here. This is where we initiated short positions, put the stop up there at 87 so risk on the trade was about $235 on this one. Again, initiated short position, 7560 half. This one we got actually the move we were looking for relatively quickly, but then we started to stall out.

I was very aggressive in the profit taking on this one. Went onto take profits at 7556 and a half. Again, just four points, but on five units that put $200 in the realized profits territory. Then, shortly thereafter, another point lower at 55 and a half, we covered that last unit. That’s basically how we ended up amassing to that point $250 return in pretty short order. You can see that right here, [Symbol 6CU9 00:02:04] there at the top, six by six bought and sold, actually sold and then bought to be more accurate, and the $200 that we realized there.

Then, let’s go take a look at the [inaudible 00:02:17] trade in similar fashion here. Look for short directional bias on this one. I want to show you why because there were some interesting things that started to set up that was the precursor to me initiating, again, a nice little short breakdown trade in the [inaudible 00:02:32] .

This one, as I kind of look back at my logs here, the breakdown trade came at 2980 which is right here, and then over here, 2980 is over here on the 30. What really was one of the big motivators on this one is the exhaustion that we saw out of Taz navigator. So when we get these pink magenta color warnings here on this indicator down below it means the market’s exhausted, and you can see that comes in in a real nice place when the market’s exhausting here, we put in a highs in that early move higher up at a 2986 and a half on both these technical tops right there. So the market was starting to grind its way down inside what we call the value area. That’s between the red and the green line, compliments of Taz boxes indicator there, and so we wanted to lean on a short side position here because also when I went into the 60, this kind of gave me that final kind of pushed me over the edge to initiate the short. We started seeing that the market was actually exhausted also on that 30 minute, which is actually a swing time frame trade.

So let’s go back in time over here. Let’s go back to the 30 and over here is my [S&P 00:03:37] chart on 1500 tic we started seeing again. This is a tic based chart. When you’re looking at tic based charts remember, you’re not closing out bars at a predetermined time like the 10 and the 30 minute, okay. Where a certain period of time passes then the bar closes out. A tic based chart counts tics, okay. Closes out after 1500 meeting of the minds come to life here, okay.

So again, you start seeing also some bearish tendencies here. So we put it all together with a navigator leading the way that the market was exhausted, exhausted, exhausted across again, all those time horizons and I felt good about that short position, 2980. I did take six units on that one pretty quick on the trigger again, and this one as well to cover some profits.

Covered five of six units at 78 in a quarter, a point in three quarters on that. But it was not that long into the trade. We’re talking, I’m looking at right now, 9:47 AM and 9:58 AM, so about 11 minutes plus or minus. That was our time risk in the trade. So whenever I can mitigate the amount of time I’m in trade, I to try and keep that in mind. Even though this was a small window, you know, 11 minutes in the market of risk. Being able to grab over $400 is a good thing ultimately, okay.

Market is volatile today. Some things that showed me that the market was indeed volatile is the edge. This is a utility that I use that is called market internals. It basically tracks the S&P and gives me kind of like the poker chip count between the bulls and the bears and you can see at one point this green line gets way up here, which is the bulls. At one point they had nearly 80% of the market where it was bullish. Again, the market was way up there. It was up over 40 points here to start the day.

But then you start to see the tide’s turned. Look at the green line comes down here, the red line, which represents the bear and the percentage of bears, that starts to climb. Earlier this morning it was down 9%, one out of 10 stocks were in the bear camp, not that many, but now look where it is. Even now kind of during my analysis here of 34% and it’s climbing. Again, that red line is climbing. As you see that climb, you’ll get some pressure on the market and we would expect some more downside from here if that trend continues.

So long story short again to get you up to speed here on that one. So we covered five of six units at 78 and a quarter and then I just covered that final unit at 80 and a quarter because I was done trading for the day. As you know, I try to minimize my length of time in front of the screen because my time’s valuable. I like to do other things. It’s the first day of the football season today. I’m not going to the game even though it is right here in Chicago. But I’ve got some things to do during the afternoon. Hey, it’s called a life stop, right? Stop trading because I don’t know, life calls you elsewhere. That’s one of the many perks of being a trader. You don’t have to be stuck in front of your “job” all day. Trade, reach your goals, exceed your goals, hopefully some days and then and then get on with your day. Enjoy this little known thing called life.

So that’s how it all shook out here today. Again, kind of a short lived time in the market, but between the two trades, 250 on the Canadian, 425 on the [inaudible 00:06:49] for a total 675 and again, our 10th consecutive green trading day. Now you’re probably going to want to join me tomorrow because it’s going to be fun. It’s a Friday, which means it’s TGI-futures day. I’m going to try and go for my 11th consecutive day and if I do, I promise you I’ll break out my toes because I’m running out of fingers to count our green streak here, okay? I’m just kidding.

But look forward to meeting up with you again soon until then, trade well and be well. Bye bye.

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