Warrior Trading Blog

Holy Hogs +$1,190 | Steve’s Futures Pulse 187


Hey, what’s up, fellow traders? Happy Monday. Well, we’re all done trading for the day. Today we found an opportunity in an unexpected place: lean hogs. All right.

Last Thursday, didn’t make any trades on Friday. I started the day down and worked my way all the way back to lose just $88, so it felt good to finish our Monday to start the week in the green for 1190. How did we do it? Well, when we looked at the lean hogs we saw it was a big gap down lower, but volume accumulation started to to grow. We looked for our new value area, bullish breakout as the market simultaneously filled through the gap and we broke outside of our value area levels.

I’m going to show you in today’s recap as I show you how the chart pattern looked and why we took the trade, and how we decided to get out; and guess what? It kept on going. Maybe I left the little on the table, but guess what? I’ve got the rest of my day to myself. Enjoy today’s Futures Pulse. I look forward to meeting you back tomorrow. …

Okay, for those of you just turn it in. I’m up here on the top right, your friend, trader Steve. Giving you a recap here while we’re still live in this trade here. We took a break out mode trade to the upside in October contract lean hogs. What we saw here emerge is our favorite alligator jaws set up, right? Volume down below volume at the top, and then when we saw is what I like to call the perfect plywood or super plywood. What that means is that notice how most of the time when we’re looking at our TAZ boxes levels, there’s a a middle line that’s aqua in color called the point of control. It looks like it’s invisible here, but those that spend time here in the room know that that actually means it’s under either the supply area red line or the green demand zone. As you look over at the data window right here, I put it right there and you could see 61 97 it sets up a stronger support. That’s why the market really launch padded off that area.

We took the break. We set this up as a buy stop up here and we got triggered in at 63 47 half. That was the buy stop entry into the trade. Market did follow through relatively quickly. I had six units on that. I sold out a total of five on the break up to 63 85 and I’ve since now reduced my risk all the way down to 63 37 half, so I only have a $40 give back. Basically I’ve closed out 750 bucks, and my give back risk on the remainder is just $40; so you can see right there.

I’ll make worst case pre slippage or any fees and whatever exchange fees, $710, but we’re still on this trade. We’ve still got $140 in running. Basically if you combine 750 realized and 150 in running, about $900 on this little breakout mode opportunity here in the the October lean hogs. Okay. That was watching the 10 and the 30 minute chart if you’re wondering the time horizon.

Okay, big gap down we saw this morning. We’re playing the fill. It’s a low stress trade, or a no stress trade really at this point. It’s going to be a green one. That’s the way we like to start a Monday. …

All right, we get a little push higher here, 64 20. Here we go, 64 35. We’re off to the races now. There we go. You can see now three 50, three 60, three 70 and running, three 80 and running. Look at that push higher just as we were looking for. Here it comes, 64 40. Here we go. We’re filling up towards the 64 half, and it’s a good little place here. A good little place to be looking to do some profit taking, guys. 50% of the way through that open gap right there. See the gap right here? Right there. We’re over 50% of the way through it.

I mean, I’d love to sit and hang out with you guys all day, but come on, we’ve got things to do. We’ve got life to enjoy. 64 57 half. I just sold out my last unit. I’m gonna cancel my stop from 63 37, that just put me flat. Let me see where we finished here for the day. 11 90, there you go. 11 90. All done. Thank you, hogs. 11 90. Now what am I going to do with the rest of my day? I’ve got a couple ideas. It’s still summer time and the kids are out of school. I’m sure I can find something to do. Guys, have a great rest of the day.

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