Thursday, September 18, 2014

A Low-Risk Short in December Crude that Worked

– Posted in: Tutorials

Skip to around the middle of this lesson to see how we found a profitable trade in December Crude on a day when the markets had ground to a halt waiting for the usual ‘momentous’ announcement from the Fed.  We used a bearish, big-picture target to inform our bias; then we identified a very subtle, downtrending ABC pattern on the sub one-minute chart to find our entry point. The initial risk was just seven ticks, and we were able to cover three quarters of the position before the session ended.  Potentially ‘easy money’ awaited at the target, since we had a nice profit to cushion a generous stop-loss on any bottom-fishing attempt.

December Gold Closing on a Key ‘Hidden’ Support

– Posted in: Free Rick's Picks

December Gold is closing on an important low I'd targeted a while back. If you've been short for at least a portion of the ride south, you can bottom-fish there aggressively with a tight stop-loss. If you are positionless you can still try it, but I'd recommend doing so only via a 'camouflage' entry.  If I'm in the chat room when the target is hit, I'll provide detailed, real-time guidance by opening up a virtual trading room. If the futures plummet in the wee hours Thursday, though, night owls may have to go it alone. Click here for free trial access to all of Rick's touts and the chat room.

ESZ14 – Dec E-Mini S&P (Last:1994.75)

– Posted in: Current Touts Free Rick's Picks

A subscriber noted in the chat room yesterday that Hidden Pivot targets have been working very precisely in numerous vehicles: "For what it's worth," he wrote, "the Hidden Pivot Method has recently become accurate to-the-penny in GDXJ, JDST and JNUG. Prior to this month, like Crude Oil futures, these vehicles needed some leeway. No longer. They are absolutely brilliant vehicles at the moment."  My response was that this is exactly what we should expect when stocks are trending strongly up or down, as opposed to just meandering. One thing's for sure: On the lesser charts, tradable price action can be quite predictable even in such ornery vehicles as the E-Mini S&Ps. Yesterday, for instance, with the futures thrashing their way higher on news that the Fed, as always, was planning to do nothing, I posted a 2003.50 target as my minimum rally objective as the E-Minis were hitting a then-intraday high of 2000.00. Although they dove to 1994.00 immediately after my post, they subsequently rallied to exactly 2003.25, recording an intraday high just one tick from the forecasted top; then they relapsed nearly 12 points to finish the day. The trade could have been worth almost  $600 per contract to anyone who got short at the top. As it happened, one subscriber did get short -- then took spectators ringside as he announced his follow-through in real time. At 3:12 p.m., with the futures trading 2002.50, he posted the following: "Scalp-trade order parked to short ESZ at 2003."  Then, the rest of the story:  3:15: "c'mon boyz, u can get there"; 3:17: "done at 03"; 3:18: "04.25 hard stop; switched to 1.5 trailer"; 3:22: "$2600 in 5 mins...not bad"; 3:32: "covered 1/2 at 98.5"; 3:36: "Wow, they may take this red!"; 3:40: "-10 s&p points in 12 mins...awesome!" Awesome indeed.