Guest:
Tracy @chigrl – Professional Oil Futures Trader
Dear Traders,
Today we had a very knowledgeable guest when it comes to day-trading oil. She is a professional futures trader who’s built a career around the oil markets.
We discuss the many reasons why oil has moved back to $40 and what would indicate the next moves.
Tracy explains the benefits of using Market Profile and how it identifies tops and bottoms. She also tells us why $40 oil is not having a major impact on the equities markets.
Finally, she reveals a “break-even” graph helps her gauge the fundamentals in the oil industry.
Tracy and I had a great technical trading discussion today. I hope you enjoy it as much as we did. Take care and thank you for listening to the show.
Biggest Takeaways:
- Biggest reasons Oil has moved back to $40. Where it goes from here.
- Using Market Profile to identify weak tops and bottoms.
- Explains why $40 oil isn’t having a major impact on equities.
- How the “break-even” graph helps Tracy gauge fundamentals in oil.
Answers to the 4 rapid fire questions at the end of the show:
- Favorite Book About Trading:
- James Dalton. Mind Over Markets.
- Favorite Movie About Trading:
- The Big Short
- Best Advice Ever Received About Trading:
- Trade what you see, not what you think.
- Advice to Give to Others About Trading:
- Trade level to level. Don’t try and hit home runs all the time. Go for base hits.
Resources:
Twitter: httpss://twitter.com/chigrl
Website: https://chigrl.com/
Link to James Dalton: https://www.jdaltontrading.com/james-daltons-books/
Quotes:
The market profile likes to be a nice bell curve.
Usually higher volatility = More positive correlations to oil stocks.
Relevant charts pertaining to guest’s comments:
Below: Red arrows indicate areas where above there will be stops.
Below: blue arrow shows weak top/bottom…red arrows show week areas in profile where next day market revisited and filled.
Below: break even prices.
