A Trade A Day

I haven’t put a chart up, but if you look at the DOW it would appear that the bull market is on hold, at least temporarily. You want to approach any swing trade with caution untill the market picks a direction. Because we’re technically still in an uptrend, I’ll be looking for longs.

Here’s a nice ascending triangle. Look for a breakout on the third test of the 40.60 area. Heavy volume will be important on the breakout.

My Lean Hogs trade is technically invalid because price broke my stop level. However, I like the pattern so much, I’m going to let the break slide.

The Euro trade has setup nicely. Currently it looks like the price is taking a break.

See you tomorrow!

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Before going any further, if you are not familiar with the futures market, there’s a rule you should be aware of. The rule is: “To make small fortune in the futures market, start with a large one”.

I’m not sure where that quote originated, but it is more true than not. The limit moves can be hazardous to your account. I still love to trade them. There’s just something about jumping up on my desk and yelling “Soy, soy, soy!!!” that gets me going.

In all seriousness, there are alot of opportunities to make money. I just stay small and stay liquid. If I were going to learn to trade futures, I would stick with the most liquid electronic markets I could find (e-minis). So unless you are an experienced futures trader and your account can handle large price swings, sit this one out.

Check out what’s going on in Lean Hogs right now…

I’m thinking if the contract can drop past the 69.3 area you’re looking at the 67.000 level and then the 63.000 area.

In stocks FTEK is no longer a valid trade as the price has smashed through my stop.

In forex, the EUR/USD trade has setup.

See you tomorrow.

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Interesting opportunity in the Euro. I would suspect if resistance breaks here that it will be a long climb.

However, this is only the second test of major resistance. Ideally, I would like to see this attempt fail, price would fall back down and in another month or two price would comeback to test resistance. This would setup one of my favorite patterns, the triangle.

But, what I want is irrelevant. If prices move higher this test, I’ll be in for the run up.

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Hi All

I’m back from some much needed time off. During my vacation, I thought long and hard about what this blog was going to be about. The answer is a source for trading ideas like the tag line states. For a short time, I started to drift from my original plan. I was making market commentary and writing articles on trading. So like any good trader who deviates from their trading plan. I stopped. Now I am restarting and will endeavor to stick with my “blogging plan”.

Which is to open a window into my watchlist. Each day, I will pull a potential trade from my personal watch list in the stock, futures, or forex market and post it here. My intention is to create some discussion. Trading is lonely! I like the interaction.

None of my trades should be construed as investment advice. All charts are for demonstrative purposes only. I mean c’mon. You should have a fully fleshed out risk management and trading plan. My posts are just to create discussion and show you what I research and trade.

Now, enough blabbering and let’s get to the trade:

FTEK should give you some food for thought. I would guess it is ramping up for another climb. My target is set at 43 based on the previous move, but honestly I can never tell how high it will or will not go. As always, I’ll be making my exit decisions based on how it moves after break out.

See you tomorrow!

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