FOMC Announcement

Today was the FOMC, so I prepared myself to trade CL and was able to make a 5 minute video on Jing which I have posted to the Screencast sharing site.  As usual my first entry was too early but my second entry was very nearly perfect.  I also added 2 further positions as the trade went in my favour, but it was on the breakout rather than pull back method.  Here is the link.

http://www.screencast.com/t/ZeO3GgP4458u

I could not trade ES on the FOMC announcement as I was trading CL, but the RPM gave an extremely good short signal on the 4 range and 1K tick charts, that was worth up to 10 points.  See the attached screenshots.

On Monday I wrote that I was expecting more down move on ES and to short the larger rallies.  Yesterday, price rallied strongly from early morning into the open and then fell about 25 points from there.  The fall occurred just below a Throwback level and the 10K tick chart gave a great RPM 2 bar reversal short signal at the time.  See the 3rd screenshot.

Apart from the FOMC trade, I took another 4 trades on CL, all shorts, in a rising market.  The first was another 2 positions, again, I was early on the first but the 2nd entry was better.  I scaled 1 position just above a demand level for 29 ticks, and held on to the second for another demand level below.  Unfortunately price turned at the first demand level and I was stopped out on the second position for a loss of 3 ticks as I did not trail it down.  So, the 2nd position which was 60 ticks in profit at one stage, turned into a 3 tick loss.  'Truly Amazing' is all I can say.

The next two shorts I tried was trying to call the top of the up move and both were losers, 8 and 9 ticks respectively.  The second one got stopped to the tick and then fell, around 150 ticks from there.  I did manage to get in on another short for 22 ticks, but should have held it to the demand zone around 15 ticks lower. And then I got in the FOMC short where I rode it down to another demand level for a good exit. Pity I did not reverse there as price has since rallied over 100 ticks from there.  See the last screenshot with my trades marked on it.