Know When to Stop Trading – Trade Setup 3.30.16

Today was anything but easy trading the Futures markets.  I knew to stay away from Equities because of the Yellen hangover. A bigger reason was that we had absolutely no confirmations on our charts.

These days can be so hard mentally, because after a big move in the markets we really want to be involved.  I dipped my toes in the water ((@CL)crude oil) a small bit today and got bit.  That told me all I need to know about this market.  Stay away from it!

The days where everything you touch feels like you are holding on to kryptonite, you have to have the mental strength to walk away. Always easier said than done, but after years of getting my butt kicked on days like today, you eventually learn to take the early medicine and thank the trading gods that they didn’t take more.

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Turnaround Tuesday 3.29.16

Yellen Gave us Turnaround Tuesday
Our Fed Chairwoman gave a keynote today at the Economic Club of New York, and her speech was very similar to what she said in her March press conference, but today’s speech was more dovish.  This indicated to traders that rates are less likely, or not likely at all, to go higher in the coming meetings.
This was a little bit of a shock to the market because we have been seeing some of the Fed Governors talk a bit hawkish over the past few weeks.  The immediate reaction in the markets was a rally in Equities, Euro Dollar, Bonds/Treasuries, and Gold.  However, the U.S. Dollar sold off.
As far as U.S. Equities go, we primarily follow the E-mini S&P and were looking for short Trade Setups all morning as our technicals on the long, medium, and short term all pointed to lower prices.
We had one Trade Setup in the E-mini S&P; it was a short trade that reached our first target and then eventually got stopped out on the balance. (picture 1)

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51 ticks in Crude Oil @CL. Don’t Trade With Emotion -Trade Setups Tues. 3.1.16

This morning we were testing key resistance in Crude Oil (CL) at the same time as E-mini S&P (ES).  If you are a close follower of the markets, these days CL and ES move together a lot of the time.  When the CL’s short trade alert hit the board it was pretty much the same time we had an ES short trade alert.

The ES had 3 points of risk while the CL only had 9 ticks of risk with profit potential of 50 cents.  Typically, we won’t put on the Texas hedge and get short both ES and CL at the same time, but with 50 cents of profit potential for only 9 ticks of risk it was far and away worth it.  The ES trade gave us our first target, but failed to hit us on the second, ultimately giving our traders either a small profit or a scratch (depending how they executed it).

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No video today…

No video today, and not a lot to look at in the E-Mini S&P, but we had the correct directional play on it. After seeing this, we saw an opportunity in Ten-Year @TY which was heading in the opposite direction. Therefore, we took that opportunity and shorted the Ten-Year, instead of trading the S&P.

A pic of awesome workstation…

No trade setups today, but one of our members sent us a pic of their awesome workstation. We love how he has the golf setup next to his trading desk, so he’s not forced to make any trades when there’s nothing going on. We believe it’s important to occupy your mind by doing other things when there is nothing to do in the market. It prevents you from over trading and forcing trades.

Today was a special day…

Today was a special day because we launched my favorite trade setup to be automated for our traders. From now on my favorite trade setups will automatically appear in the charts and our traders will get radar screen alerts when they are happening. This simplifies our process and allows traders to get access to my favorite technical trade setups around the clock 24/7, and in multiple markets.

Today we had signals in Gold, Ten Year, Crude Oil and E-mini S&P, but in tonight’s video I only went over the two trade setups in E-mini S&P because they were the setups that we focused on this morning in the member area. Watch this quick video to see how our automated signals are now in the charts and how we were able to catch a couple shorts for winners in the ES.

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