Thursday, January 5, 2012

An extremely volatile day on the markets

Violent moves are what best describe the state of the commodities markets today. It started this morning with the release of the ADP job numbers and never abated until the end of the pit sessions. Crude oil was especially volatile going up and down inside a pretty large trading range. My biggest winning trade was a spread trade (again?) long gold/short euro. My biggest loser was a long natgas trade I should not have placed right after the release of the EIA withdrawal numbers. Also, after analyzing the spread between wheat and corn, I noticed that wheat was selling at a discount to corn which normally is the opposite. So, I put on a spread trade long wheat/short corn but wasn't successful during this trading session. I might be back at it tomorrow if the conditions I noticed still prevail. All in all a good day but it could have been better. Net results +$773 trading 2 contracts (commissions included). Details below.


  1. The spread trades have a risk profile better suited for trading without a stop. Are they a new addition to your trading, or were you using them before you started the blog?

  2. You seem to be trading to many things. Why not just buy the ES at the lows today and hold on. You would have made much more. Or just shorted ZN and held.

  3. You made $97 trading the ES and it moved from 1259 to almost 1279. Why didn't you hold it longer?

  4. Ok, first I have been trading spread trades for at least 5 years but did not trade many since I started this blog because the conditions were not optimal for that. Over the last 2-3 weeks, market conditions have become very suitable for spread trading IMO.
    Secundo, I do not feel I trade too many things. I am used to that. The most important thing IMO is the money you made at the end of the day and not the number of instruments you used to attain that objective.
    Finally, my entry on ES was 1270.75. It was a lousy entry cause the price went down to 1259 in the following hour. After a plunge like that I was just happy to recoup my capital and didn't feel like waiting it out any longer.