System trades – Jan. 21, 2016

Well that’s more like it!

After a scratchy, scrambly choppy day on Wednesday when the prices pushed through Nat’s inflection lines almost at will (see yesterday’s post) today she got a little respect. Both oil and the ES provided great profits for traders who trusted Nat’s calculations.

ES

160121-ES-1

ESH6 Jan. 21, 2016

On the ES the overnight price touched her control line and moved up almost to the Sell level in the pre-market session.

It dropped back within 4 points of the Control line for the day session open, and moved up 40 points to stall for the day at her Sell level,.

There were a couple of ways to trade that. Traders who were more aggressive could have caught most of the move by entering at the first bounce off the opening price — a decision that was easier for traders listening to Nat’s live calls in the trade room.

If you missed the first move, there was still time to get short in the afternoon, when the price was unable to hold above her Sell level.

And some traders did both. For them, the potential gain was 65 points for the day: 40 points on the way up and 25 points on the way down.

Oil

CLH6 Jan. 21, 2016

CLH6 Jan. 21, 2016

The oil results were very similar. The morning session price came close — within $0.50 — of the Buy level but never touched it. That may have dissuaded traders from taking the first long trade, around the 28.00 level.

But in the afternoon session the signal was unequivocal. The futures moved above the Control line, stalled there over lunch, but were unable to move below it, a pattern that screamed for a long entry.

. When serious trading resumed in the afternoon, the price moved firmly up about $1 before falling back a little into the close.

It doesn’t look like much on the chart, but a $1 move in oil is worth $1,000 per contract, which makes a nice afternoon’s work.