Warrior Trading Blog

My 43 Minutes with Beef +$600 | Steve’s Futures Pulse 172


Hey what’s up fellow traders? Happy Monday to you. Back in the saddle with a full week of trading ahead. Now that I’m back from my vacation and guess what? We are quietly putting together five consecutive green trading sessions, of the trading sessions that I’ve traded while I’ve been moving about.

Anyways, today’s trade was in the live cattle market. We found a breakdown opportunity. And although we only grabbed $600.00 on the trade, it still was worthwhile in under 45 minutes. Take a look at the charts down below for today’s futures plus, I’m going to talk to you about the technical breakdown that we saw.

So here you go, this is the live cattle 30 minute chart, side by side with the 10 over there on the left. Big thing we saw here is the emergence of one of my favorite chart patterns that I call the alligator jaws, okay? And this has to do with the fact that sometimes in market profile you’ll see a situation where the market goes sideways and it aggregates all this volume you see up here, you look, see how it looks like the side profile of the top jawline of an alligator jaws and then same thing down below, from that sideways price action here, we put in the bottom jawline. But in between, there’s a big open mouth there and time and time again we see markets fill through that open alligator’s mouth and that’s exactly where the opportunity exists.

So the short position came in at 10680, just below our demand zone, that green horizontal line compliments of Taz Boxes Indicator. So 10680, we initiated short. And in this instance, I didn’t want to put the stop way up above this technical high here. When we see an outlier, a long range bar with a technical high way up there, we don’t want to add 30 or 40 percent risk to the trade just to get outside that one extra bar. So we put the stop, 10740, for 60 points, just $240.00 risk per contract on this one, and did six units on this one.

Early on in the trade, we saw the market break down, we were able to cover, a total of five of the six at 10657 and a half, and that locked in $450.00 profit. And we pulled the stop down at that point from 10740 all the way down to 10690, just a 10 point risk at $40.00 a point, just $40.00 risk left on that final unit. Market was a little stagnant thereafter and guess what? My time stop kicked in, which means unlike a hard stop that we rest in the market, like the initial stop and our trailing stop, time stop means I’ve got things to do. I’ve got a life to live. I might go to the ice cream shop with my kids here very shortly. But I move the, we saw the market grind lower and we covered that final unit at 10642 half. All told, you can see we grabbed $600.00 being six by six, that’s buy six, sell six, actually just the opposite. We sold six, then we bought six, which is what we do when we short.

And whatever, $600.00, we’re in the green, we’ve got five green days in a row of the sessions I’ve traded, and we’re off to a good start this week. I’ll meet you back at the market soon. Until then, trade well.

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