Emini Day Trading

www.knightcapitalmanagement.com Learn how today trade futures with Tiger of Knight Capital Management. Our last video series showcases the Top 10 Most Frequently Asked Questions (FAQ) received from traders about how to day trade futures the right way. Have you looked into our newest product in Crude Oil called TCB? More Info: www.knightcapitalmanagement.com Twitter twitter.com FaceBook: www.facebook.com Good Trading, David “Tiger” Knight

Every Wednesday the US government releases the latest oil inventory numbers and the recent figures have not been good for those speculating on a rise in prices. The weekly Energy Information Administration (EIA) reports have been showing rises in stockpiles.

The most recent report showed that crude oil inventories rose by 0.97m barrels to 358.3m barrels. Gasoline stockpiles also increased, the latest data showed a jump of 1.59m barrels to 226.1m barrels.

Whilst the figures were unexceptional they were unexpected. Financial news agency, Bloomberg had reported that inventory levels had been expected to drop due to the 8 day shutdown of the Enbridge Energy pipeline, ie the pipelines that supplies Canadian oil to Americas Mid-West.

Buy what does this mean for the crude oil markets? According to Simon Denham of Financial Spread, We can see that the irresistible attraction of per barrel seems to be working its magic once again. Following the pattern of the past few years, the November futures contract was higher than October. Once again we can see that long-term sellers are picking up this per month price difference.

In the futures markets, this upward sloping price curve is called a contango and so far in 2010 the contango has given us more than to the bottom line. If you were spread trading with a rolling sell position held since January, you would effectively be short of the crude oil market at . With the price hovering around that would be a good position to have. Although you would need deep pockets to cover the volatility that that crude oil market often experiences.

Looking at the technical indications, at some point crude may break above the / level, having said that, do not hold your breath. As discussed above, inventories remain solid and fuel efficiency is ever improving.

For all of the growth of the world economies over the last 5 years, it is important to realise that oil production has actually fallen and yet there has been no massive strain on prices.

Given that both Brent Crude Oil and US Crude Oil (also known as Light Crude and Nymex) are priced in US dollars any weakness in the dollar will often translate into higher oil prices. And its the current dollar weakness that seems to be supporting the oil futures market.

According to Christopher Beauchamp of IG Markets, The US Federal Reserves Open Market Committee has intimated that Americas slowing inflation and sluggish growth might require further action from the US Government. That action could start as early as November 2010 and would be likely to weaken the dollar.

Although if you are trading the crude oil market note that the next price direction may not be that easy to read. The increase in supply arising from the slowing American economy stands in sharp contrast to robust consumption levels in emerging markets, Chinese demand for oil expanded by 7.6% in August 2010.

Note the spread trading carries a high level of risk and you can lose more than your initial investment. Before trading, please ensure that spread trading matches your investment objectives. Familiarise yourself with the risks that are involved. Seek independent advice if necessary.

www.sidewaysmarkets.com
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www.sidewaysmarkets.com Did you see the double-bottom on crude oil at 800am today? We used this simple clue along with a sideways range to earn +300 ticks in our live trade room this morning. Click here to see the 3 clues we used to profit on Gold & Crude Oil today
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www.sidewaysmarkets.com It’s no secret…Tape Reading can be hard to learn…but it doesn’t NEED to be. Today I want to share a simple technique that I use for learning to read the tape. Practice this for 10 minutes a day and you will be amazed how much your skills will improve, and then use our simple price patterns and you have a great trading career ahead of you! Click here to learn how to practice reading the tape!
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Crude Oil Trading +1097 Ticks Profit – Short 0739-0946 on Tu.26.Jul.2011 It has been some time since I have posted any trades. I took off the end of April and the first part of May after having my best month ever in April with a massive increase in my account. Since then I have not had many good winning trades. My shortened May was down a little bit and June was not much better. In fact it has been really hard to have many losing days – small losses, but still, losses. I followed my brokers advice and reduced my trading size to just one contract per unit in June and have only worked back up to the 3+2+1 approach as of yesterday. Today was a big surprise as it turned into the kind of trade that has not been happening lately. With some luck tomorrow could bring some more profitable trading activity. I wanted to post some of the other good winners this month but they lasted too long for youtube. I did not think of breaking up the whole long trade into short segments until now. So I hope this mornings good winner is easy enough to follow even though it is broken into sections. I made this trade while following my broker’s discretionary trading process as he guides me (and others) through trade entry, management and exits on a skype call. I currently trade his 3/2/1 unit approach for adding to my position. This recording of his commentary and the charts from my trading computer was made with CamStudio freeware. Thank you for watching. Please take a moment to READ THE FOLLOWING …
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