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Warrior Trading Blog

Crude Reality Breakdown +$790 | Steve’s Futures Pulse 152


All right, we’re short, light, sweet crude, 58 73 right here. See market’s starting to break here a little bit here, a quick few cents. Got the stop sitting up here, 59 22, worse case scenario. I call it the apocalypse prevention plan. Let’s hope we don’t have the apocalypse, not in the market, anyway. Look at the fall off in volume here, see how the indention is quite steep here? That will often times give us that fast and vertical market here as we … If we get the good fortune to have this market press on new lows, initial target I’m looking for here, 58 23; which is right here.

We’re short. … Looking for this market to make a run towards that demand zone, moving through slip and slide bars, those long range bars on the ride up. We’re just being patient here right now. (silence)

Just added three units to the short position, same price, 58 73. So added three, so I still like the trade set-up, really like the trade set-up here. I think it’s just a matter of time that we’re going to get the break. (silence)

Here we go, 58 62. (silence)

Here we go, 58 65. Get ready. (silence)

Keeping a close eye here. The 10 minute chart has the market in balance. You see we’re pressed right on that 58 63 level. (silence)

All right, EIA’s coming out here imminently here. Risk reduction for it beyond this one here. I’m covering all but one unit here. I’m covering all but one unit. I’ll carry one runner here on this one. … Closed out $400 to the good. … Just a runner down to a single unit. … Stop’s at 5901 as well, on that.

You’re watching light sweet crude. You can see it written up here, okay? Down to a single unit. We’ve closed out $400. All but one unit, still short just one. Moved the stop down to 5901. …

All right, my stop’s at 5901. …

Still watch that 58 23 level. …

It trims the risk all the way down to just 18 cents, from 49 to 18 cents. … So it makes it … basically it made this one makes it be a free trade here. Again, I did close out 400 on eight and nine. Still got one short. We moved the stop down from 59 22 to 5901, trimming the risk all the way down to 18 cents. Just $180 left at risk, so closed out 400. $180 worth of risk. We’ll be in the green no matter what, but we want to see this thing break. Here it comes, [singing 00:11:00]

Watch that 58 23 mark, it’s right here. It’s just before we get to that demand zone right here. Here we go. Here’s the market break, and we’re up $200 on that last unit. Here it comes. … Watch 58 23. It’s right here. Okay, that’s where I’m looking to get here. There we go, come on down. Almost there. 38, 58, 38, 40. … I’ve got that bid at 23. If we get to 23, … that’ll be for $500. Here you go. You can see the market, 58 35, closed out 400 already. We got 350 and running right now. …

Nice job. …

Bouncing right, look at it. Look at where this low came in right here, 58 27. We’ve got a bit at 23. …

I’m covering right here. That’s enough. Market’s retreating off that level. Just covered a moment ago. Final unit. … 58 34.

So the way this went down, we ended up amassing nine contracts, 58 73, covered eight of nine at 68. That last one, we set our initial target at 58 23. Market retreated off that. It bounced off that. No guarantee it doesn’t turn right back around, especially during volatile report time EIA. We covered 58 34, which is awesome because we basically got $390 on that last unit. Okay, it took us eight units to get 400, but that was a risk reduction move. That’s what I want you to be mindful of. That was a risk reduction move that we skipped just before the report.

Still like the bearish position, just didn’t want to carry the risk. We don’t like to leave things to chance if we can avoid that. Remember, we get to maneuver the risk here as traders. I ended up grabbing another $390 on that single unit for a total of $790 here in the crude oil today.

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