CL Redux

Quote from Visaria:

Has this thread died? Or maybe the market has died? maybe both!!!!
More...

One of two died. CL posted a $3,500 per contract range yesterday... and consistently offers trade swings of +40 cents to +100 cents most every session.

Whenever you have guys trading via the, "I think it's going up because..." or "I'm holding short into the 500-cent rally because news is bearish" or "I'm looking to scalp 12 - 20 cents without stops so I don't take a loss" mentality, it's only a matter of time before they go to the great alias resting place in the sky.

CL is an awesome trading vehicle, same as it has been for years & decade, same as it will be for years & decade ahead. Just a job for experienced professionals, and it's a completely different world than ES or stock markets.
 
Quote from austinp:

One of two died. CL posted a $3,500 per contract range yesterday... and consistently offers trade swings of +40 cents to +100 cents most every session.

Whenever you have guys trading via the, "I think it's going up because..." or "I'm holding short into the 500-cent rally because news is bearish" or "I'm looking to scalp 12 - 20 cents without stops so I don't take a loss" mentality, it's only a matter of time before they go to the great alias resting place in the sky.

CL is an awesome trading vehicle, same as it has been for years & decade, same as it will be for years & decade ahead. Just a job for experienced professionals, and it's a completely different world than ES or stock markets.
More...

austinp,

can you explain "completely different" statement as difference between ES and CL?

thanks,
tihfa
 
Quote from tihfa:

austinp,

can you explain "completely different" statement as difference between ES and CL?

thanks,
tihfa
More...


They're just completely different.

CL is a commodity
ES is not
CL trades on geopolitical risk, demand/ surpluses, etc
CL is correlated with the dollar whereas ES may or may not be depending on the day

the list could go on and on. I'm just pointing out the larger differences. They have almost nothing in common, whatsoever. You'll get 2%+ spikes down or up in CL whereas ES that's highly, highly unlikely.

Again, the list could go on.




How'd you guys appreciate that fakeout to the top of that desecnding triangle on the 1m chart?
 
Quote from tihfa:

austinp,

can you explain "completely different" statement as difference between ES and CL?

thanks,
tihfa
More...

Most CL traders migrate from stocks or stock-index futures to commodity markets (first & foremost CL) because stock market action is dull and flat.

But they bring with them their impression of what stock markets are like into the CL. In other words, they think that fading "extended" moves and looking for reversal spots are where it's at. CL will eat those type of "faders" alive, sooner than later.

CL can be asleep for hours and all of a sudden make huge moves out of nowhere. Or it can trend huge all day. Or it can make huge sideways swings all day. But sometimes, once in awhile, it chops a pretty small range intraday.

CL trading demands much more patience & discipline than any other market because of its extremes nature. But once a skilled trader harnesses that, there is no other market with nearly the same consistent potential.

Not an easy trade... nothing is easy in this profession. But CL almost always gives a patient trader at least one if not several spots to bank +$500 per contract intraday. Way more days than not.

Today was no exception to its own rule and was actually quite mundane compared to yesterday... but still behaved methodically around its open range (and other key S/R zones) as usual.

Just gotta be patient, wait for the key sequences to confirm and then execute without hesitation on the pre-determined entry AND the exit alike :)
 

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Sometime between 10:32am est and the close of trading, CL should offer a +100 cent (or greater) trade. That didn't happen last week... price went dead past the inventory news.

Seeking that trade all the way today, from 10:32am once the ripsaws settle until it unfolds or the session ends. Whichever comes first :)
 
If we get a close below 102.00, it's going to trigger some more downside pressure. I was in a short around 102.00, but got stopped out on some whipsaw before that 75 tick drop lower. I still haven't figured out how to manage the volatility with stops just yet. Maybe you can't due to its nature. I really don't want to be in it without some safety nets though due to the major tick spikes.
 
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