Warrior Trading Blog

Day-trade in Crude Oil +$1,840 | Steve’s Futures Pulse 158


Hey what’s up Futures Warriors? Happy Monday. I’ve got my warrior trading hat on today, and we’re already done trading for the day. Found a nice little short selling opportunity in the light sweet crude early this morning and captured 1840 in just a few minutes. I’m going to be showing you how that trade came together, and I recorded all the action as it came to conclusion, so you can see how this trade, why it came to life and then how we brought it to a close while managing risk along the way.

Feels good to be back in the green after a red day on Friday, which I never like, but it’s been a while. So it’s good to be green. I’m looking for an exciting week ahead, and I look forward to you joining me every step of the way. Watch today’s Futures Pulse, come on!

All right traders, happy Monday, we’re off to a quick start here. Those of you following me on social media probably saw me get green slimed yesterday. Nickelodeon Slime Fest came to Chicago. I took the kids out on a rainy, cloudy, drizzly, cold day and logically thought the best thing would do, would be run around, slip and slide in a bunch of green slime. We had a lot of fun, I’ll tell you that much, but nothing’s more fun than kicking off a Monday in the green! You can see what we’ve done here already. This is light sweet crude oil. I’m going to talk you through the trade that we put on early this morning here. There we go, there’s the 10 minute chart, the 30 minute chart, in the light sweet crude. We started to see the market give us this breakdown below both the 5417 demand zone. That’s that green line. They also had a simultaneous confluence on the 30 minute time frame. See this level over here, 5402, that green line right there.

So we pulled the trigger on the short side at 5396. Many of you I see in the chat room, were able to get on board with that. You had to be quick with the fingers, 5396. Market did sell off from that point here as well. See that we came down, down, down, down. We actually bottomed off on this bar right here at 71. Along the way, we did a nice little cover at 82. I covered 11 of 12 units, and then moved my stop down from what was originally 5431, which was right about there, and we pulled that down to 5401, okay. So we’re just back inside that, above the 54 bucks a barrel mark, which basically reduces our risk on that final unit to just $50 on that runner, okay.

So closed out, you could see up here 1540 in just a few short minutes, and we’ve got $50 profit running, and the last … But we’ve basically almost taken all of the risk out of the final unit as well again, just $50 of risk left in place, so it’ll be a green trade. It might cut into this here, but at a negligible amount so we’re just continuing to watch this trade here. One area that I mentioned in the chat room here just moments ago for those of you that are just tuning in, is that we took note of this top supply area. This comes in at 5358, this level right here. See that red line right there? Whoops, hold on a second, I got my drawing tools a little messed up here. Okay. There we go.

So look at this level right here, that red line. That comes in at 5358, so we want to look to pick an exit on this here. If you’re looking for a profit target, I said 5366 which is right about here, market needs to penetrate down a little. Just a little bit lower here on this one. Our worse case again on this trade is that the market pops above that $54 a barrel mark and we’ll get 50 bucks back but again, we’re not going to complain about that given where we’re starting so far in the trade, okay.

So we’re watching this 5366 zone and the reason we’re doing that is then when we look to the left of the chart here, those areas over here are going to be the zones that we want to pay attention to. Whether they’re volume accumulation zones from our market map or if they are historical value areas. Here comes that market down here, 5375. We’re getting awfully close to that 5366. I do have a bid sitting down there for my final unit at 5366 and watch up here when I get there. We’re almost there. You’ll see boom, there we go, there’s my day, 1840. I’m done for the day. Got some landscaping to do, going to enjoy the rest of my day. I hope you do to. Thanks for joining me for a little moolah in the light sweet crude today.

So long everybody. Trade well.

I told you there’s always a valuable trading lesson inside these videos and that’s why now’s the time to subscribe so you keep getting alerts every time I post a new video as well as the other Warrior Trading mentors. Until the next video, happy learning.