6E is a sensible, technically clean instrument to trade. I think "they" put something in CL (akin to MSG in Chinese food) that makes you compelled to trade it when in fact you know in your heart 6E is much healthier for you. Wimp.
Does anyone here trade the /ZB? UST 30 YR Bond futures. I discovered it today and looks like there is a lot of action and $$ to be made. Thanks.
Too rich for me - $31.50 a tick. Looked into ZF (5 year bonds), but currently all my CPU cycles are being sucked up with CL. But I hear 6E whispering my name.
the spread is huge in the ZF, must take forever to get a fill on the way out. i think the ZB is a good trade on clear trend days when big news breaks. a short position at the futures market open last night would have worked very well. i'm watching it like a hawk, no sudden violent moves on the ZB like CL.
I trade the 5yr T-Notes, great volume and it reads better than the others, I like some markets to be slow like the ES. Whereas the Crude and 6E trade a little faster cause nature of the beast, meaning if you look at the DOME, not a lot of Volume on the price levels, so that is one of the reasons it is all over the place. But whether slow or fast, and even though they have different personalities, they all trade the same way. One of many reasons traders have problems is they can't identify want the day is presenting to them, so many are looking at the trees, they forget the forrest, just cause you day trade, should always know where price is doing on monthly, weekly, daily charts. One of them might be able to show where chop is coming in which in short means smaller profit targets. If you can spot congestion coming in, then you know trendlines are not going to work for breakouts. You don't have to be the first one at the party to have a good time, in other words, sit on your hands and let the market show which direction it wants to go first. Many ask when a market will turn or end in a trend, one of the things I look for are smaller moves from last pivot high/low. On hard sustained moves, CL can got 80 cents or more from last pivot high, but when the distance from one pivot high to last pivot high gets smaller and smaller, you can sometimes see a rounding effect, and often shows me that the end might be near.
This was me today. I saw the big uptrend and made several attempts to get in with it. More stupid counter trend trading. Lost 4 ticks on 3 trades. Although it could have been worse, it SHOULD have been a whole lot better.
I woke up at midnight cause believed CL wanted to get to big "00", (90.00) and once 90.18 was breached, look out below. Have made a couple attempths of finding low last 45 minutes as price is slowing down to downside. CL has gone above monthly highs of April, weekly highs of early November, so most of the time this means a pullback of some kind.
Spread is one tick. Maybe you're still watching December, we rolled to March 2011 last week. You need to see an auction to change your mind regarding violent moves. You'll think oil inventories are a birthday party. ZN auction tomorrow 1:00 EST. ZB's on Thursday 1:00 EST. http://www.bloomberg.com/markets/economic-calendar/