09:25am  A nice late start to my day, I’ve already had a bracing cycle ride along the coastal path and now the rest of the morning will be spent here in the study catching up on emails, Skype calls and also doing some chart watching.

Market Update:

Wednesday is the U.S. oil stock numbers release day as you probably know and even though numbers where up quite significantly (up over 10 million barrels) futures traders did not take the opportunity to sell and the price of WTI Crude rose 75 cents on the day to end at $34:71.  The bullish sentiment seems to be based on the rumours that forthcoming meetings are going limit production between large producers including Saudi Arabia and Russia and also the fact that U.S. production has dropped for the 6th consecutive week.  Having said that, my daily WTI chart does hint at a fall soon with the price quite overbought and this morning the price has fallen to $34:58 currently with the 4hr chart looking quite bearish at the moment.

Equities in the U.S. are starting to tread water ahead of tomorrow’s monthly job figures and futures are fairly flat this morning after a bullish end to yesterday;s session caused mainly by the spike in oil prices. Janet Yellen and the FOMC have stated in the past that any rate rise will be data dependent so tomorrow’s Non Farm Payroll numbers will be watched keenly by traders all around the world in the hope they can guess whether we will see a rise in U.S. interest rates in June – the bookies favourite at the moment.

Asian equities were also fairly subdued overnight in the run-up to Non Farm Payrolls and the European open this morning shows mixed trading across the indices with lower than usual volume.

Trading Diary:

12:10pm    Not had much time to look at my charts this morning as I’ve been on Skype for most of the time but I’ve just had a quick glance and there’s a couple of possibilities.

 13:15pm   If the S&P-500 price drops below 1982:80 in the next hour or so it will trigger a trendFX startegy-3 position. The U.S. trading session open is soon so it is quite a risky trade if the price does drop  and not one for new/inexperienced traders.

13:40pm   The S&P-500 price has dropped so I am in the above position, my stop loss is 30 pips.

14:55pm   The price has been quite volatile (as expected) so I am now out of my position as it looked like a bullish reversal was taking hold. I managed +31 pips.