Warrior Trading Blog

Swiss Breakdown for +$687 & Counting | Steve’s Futures Pulse 149


Hey, what’s up, fellow traders? I know the first thing you want to know is, how is the green trading day streak coming along. As you know, before yesterday’s session, I was coming into the day with 14 consecutive green trading days, and perfect for the month of May. Now, we don’t expect those sort of streaks each and every month, but they sure are nice for an opportunity to ramp up a little buffer of profitability for when we have some red days.

Well, that happened yesterday. We got stopped out in market volatility in both crude oil, as well as the cattle, and we did have some small victories on two entries in the gold, to the long side, and a late session consolation prize, as I like to call it, in the Australian dollar. But when it was all said and done and the dust had settled, I was down 32.30. I don’t like the sound of that, but guess what? We’re still well on our way to having a fantastic month here in May, and I’m looking to still finish strong the second half of the month.

In fact, in today’s session, we’re already back in the green on a short-selling bearish breakout opportunity that I took in the Swiss. I’m going to show you everything about that trade, why I took it, and guess what? It’s still underway. So, look over my shoulder for today’s Futures Pulse. C’mon!

All right, let’s dive right into this Swiss chart here from earlier this morning, it was pre-stream that we found the market start to break down below our POC level. You see that right here, that’s that aqua color line. We initiated a short position here at 99.49. Let me write that nice and big, 99.49, where I’ve drawn that yellow line, right there, just below that aqua color line. We put our stop up here, 99.61, so carried a very low-risk, 12 point risk, which equals $150 per contract in the Swiss.

I took six units on that one. Market started to give us that nice little breakdown here, start to get the breakdown, down, down, down, down, down, and we’re able to do a nice little cover at this point because we start to see the market move laterally. At that point, we’re able to cover five of our six units on that for $687. What I wanted to do was keep some skin in the game here, so I kept my runner intact, so I still have one unit left at the time of this recording. From 99.49 again, that’s right up here, but we’ve taken our risk, which started way up here at again, 99.61, 12 point risk, we’ve brought it all the way down here to 99.47, so we’re locking in a little better than two points it is, not better than two points, two points.

Our worst case scenario is that we will add $25 to our bottom line which will get us a north of $700 on our return day here and keep us in the green. But, what I’m excited about is the fact that look how the market is continued to make some progress down here. Now again, this trade is still underway, that final unit. So, it still has yet to be determined, but I like the sound of being able to add $25 worse case to already 687 closed out. But, it could be much better.

I want to show you on the 30-minute time frame, we also are going in to breakdown mode over here, which only helps the trade. Now remember, I call this slip and slide bars when you have these long-range bars here. You combo that with a breakdown below our demand zone, and moving through those long-range bars, I see we have a good chance of maybe getting down towards the 99.25 level.

If you’re still short in the Swiss, on this signal from earlier today, I have a pretty optimistic view for about 10 more points at the time of this recording. But don’t forget, worse case scenario, if you get stopped out at 47, that’s still two points better than our 49 entry.

Hey, we’re back in the green, what do you say we start a new streak? Starting right now! I’ll meet you back in the market soon, until then, trade well.

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