08/31/2012 Example Trade

It was really great to have some volatility back in the markets.  The much anticipated Bernanke Jackson Hole speech released at 10am EST had analysts debating future Fed action.  Speculation about the speech pushed European and US markets up overnight, but the initial reaction quickly wiped most of that out.  After about 15 or 20 minutes of volatility, it became time to start looking for trade opportunities.  The first opportunity came as price topped at the DTG 07.75 level.  The annotated chart below gives  some details of the thought process leading up to the opportunity.  The day has provided several other opportunities as can be inferred from the level recap post above.

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