Crude Oil And Stock Index Profits Continue To Flow

Welcome back, everyone. Tonight’s theme is going to be consistency in approach. Many times you hear me talk about my approach to looking at the daily charts. Particularly on the Stock Index Futures, we look at them as being like walking in the door and looking to see if we are above the speed lines on all four charts or below the speed line. That helps me determine a buy side or sell side bias. Well, this morning when we walked in the door, we were in the speed lines on ALL four of the Stock Index Futures. We basically said, “Look, we have to break out above, which I would like to have happen, because the path of least resistance would be up above. OR if we start breaking back down below the speed lines, we will look for shorts.” What happened initially was it started to break down. So we focused on short side trading and making money on the short side in the Russell. We took our profits there as I talk about in the premium video tonight – about the setups, mindsets, and what causes us to back off.

We then switched over to Crude Oil. If you recall, last night’s title was the Crude Oil was “On Tap”. Today, as soon as we got done with the Stock Index Futures shorts, we turned out attention to taking multiple long side trades in Crude Oil. That was fantastic stuff, gang. Breaking this down for a moment, we continue to hold above this channel. We had the 2 bar break, pulled back to the channel, and started taking back off from there. Of course, I’ve been focusing on long side trades. Today, we had almost every single indicator that I have at my disposal firing off a buy signal. 14 out of 15 of my indicators were firing off buy signals. As you can imagine, we focused on buy side there and rightfully and profitably so. As we walk into tomorrow’s session, Crude Oil is going to continue to remain on tap. I am going to be watching the 54 dollar level really closely. You can see that there was been a lot of trading activity near the 54 dollar level. I want to make sure that everybody pays attention to that and just how important that area is. You can see a lot of trading activity – opens, highs, lows, and closes in that area. Now we are almost back to that price again today. We are going to be really watching the 54 dollar area. Remember, there are a lot of great opportunities to the upside if we can sustain this. I am not going to back off of the short side until we close back down in the channel. Even once we do close in the channel, I will still look to see if and when we get above 54 for further longs. 54 is a pretty important place for me going into the coming trading sessions.

Our strategy going into tomorrow is to focus on Crude Oil. Also, for the Stock Index Futures, if we open up above the speed lines, we will focus on long side trades. We do have some distribution in the backdrop from yesterday. But we will see if we can get some follow through. Basically, it is going to see if we are above or below the speed lines tomorrow morning. You guys have a fantastic night. Let’s do it all over again tomorrow morning in the Live Trading Room. Or we will see you in tomorrow night’s videos. Take care everyone.

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