Messages

Forum Index : Investments : Messages
Author: [Investments] Topic: Crude oil play....Aug 9-10
bigvern1013 send a private message View Space | Blog | Friends | Playbook | My Sportsbook: BookMaker |
bigvern1013
Participation Meter
Veteran
Joined: Oct 2006
Posts: 1465
Location: Montana
#1
Posted: 8/9/2012 11:01:06 PM

Tough position trade going into the weekend, but  a nice breakout play off of the Sept 12 contract....

If we break to the low side:

Sell 9299, should see 9200 tommorrow, 9178 absolute bottom for tommorrow...

If we break to the high side:

Buy 9426,  should see 9575 as absolute high tommorrow....this may be a good spot to take a position back to the 100 mark.

Right now we are showing 9343, dead center.....will check european open for the breakout, nice play for 100 ticks either way.

A failure to the low breakout will ensure we are going back to 100 within the next week or so.

A failure break to the high could be a consolidation period, essentially a broken run to the low.

Put the coffee on, long night here.......

quote
bigvern1013 send a private message View Space | Blog | Friends | Playbook | My Sportsbook: BookMaker |
bigvern1013
Participation Meter
Veteran
Joined: Oct 2006
Posts: 1465
Location: Montana
#2
Posted: 8/9/2012 11:02:27 PM

We are talking the CL Sept 12 contract.......Light sweet crude, sept contract, getting ready to roll to october next week.

quote
wallstreetcappers send a private message View Space | Friends | Playbook |
wallstreetcappers
Participation Meter
Covers Linesmen
Joined: Feb 2003
Posts: 49714
Location: United States
#3
Posted: 8/9/2012 11:19:35 PM
Trading futures contracts right before the new one rolls out..


Why oil futures vs some other instrument like the options or some oil ETFs?
quote
bigvern1013 send a private message View Space | Blog | Friends | Playbook | My Sportsbook: BookMaker |
bigvern1013
Participation Meter
Veteran
Joined: Oct 2006
Posts: 1465
Location: Montana
#4
Posted: 8/9/2012 11:49:32 PM

Agreed that trading before the true rollover adds some uncertainty.  With the volume being split between contracts,  we are more likely to see a lack of steam and follow through.  The good news is that volatility should be limited...meaning I will have a set of parameters to exit, and more importantly things should not happen too quickly.

To answer your question on why I trade oil futures..... the front month futures contract on Crude oil outrights is what I have specialized in trading and was initially trained to trade. 

Admittedly, I am a novice when it comes to options.....I understand the basic principles (when they expire in relation to the futures contracts) but I am not sure what the best way  is to implement my specific approach.  As far as ETFs go, I have heard the term in the past, but I do not know exactly what they are.

Showing 9321 as of now....looks like asia is pushing us down a bit towards the low.

Looking to rack the profits before morning, if not, I like a breakout on open, from 930-1030 (mountain time), or on the close @ 1145-1215 (mountain time).

We have Import/export #'s @ 630 and treasury budget @ noon...coast is clear, here we go.

quote
bigvern1013 send a private message View Space | Blog | Friends | Playbook | My Sportsbook: BookMaker |
bigvern1013
Participation Meter
Veteran
Joined: Oct 2006
Posts: 1465
Location: Montana
#5
Posted: 8/10/2012 10:33:44 AM

That was a  big trade for me....Cashed in early this morning, broke fairly hard from 9299, saw 9200 near the open this morning.

As of right now the low for today is 9171, my absolute low was 9178......not too bad of a call.

The only thing that is sort of a bummer is that I don't get an abundance of setups like this one......everthing lined up near perfect, and the ability to take a full dollar (100 ticks, 1k per contract) in a few hours is pretty rare.

Long night, it is miller time.  Man, that was a big trade.

quote
Forum Index : Investments : Messages
You have entered the forum as a GUEST. 
You must login/register to post or reply.