Still Squeezing

Even though today was not a spectacular trading day, there was still some good meat to eat.

I want to point out the typical advance warning the FRO gives you before a pivot takes shape.

On the 3000 tick above we had a 30 minute warning. OK, try sitting quietly for 30 minutes without falling asleep, turning on the TV, picking up a book, going to the bathroom or whatever. Thirty minutes is a lot of time to know what is going to happen next. That's more notice than my bladder gives me!

Next question; Is $500, $5,000, $50,000 or $500,000 in an hour a lot of money to make (in your bathrobe)?

Looking at the 240 Minute above it looks like we are going to breakout to the upside and have our Santa Claus rally. I said that for the worry warts who just have to know. Like I always say, We will know what to do when tomorrow comes.

A different perspective on the 12,000 tick chart above reveals that today was a sideways day. The spring is winding tighter. This sideways price action will give us a nice profitable pop.

And finally the answers to Friday's quiz question. Once again the FRO gave us hours of advance warning that price would go higher in answer #1.

Answer #2 is the classic buy signal at 9:30 am. It's that simple. Advanced warning and the exact execution point.

WARNING: Trading futures is extremely risky. You can lose all of your money doing it. In fact you should never attempt to trade futures without consulting your Federally licensed, government approved, financial consultant to see if trading futures is suitable for you. The information posted on this blog is strictly for entertainment and informational purposes only. Do not attempt this on your own.

Holding Our Breath

I'm going to jump around a little. Are you ready? OK, Here we go.
First a little quiz. Looking at the 5000 tick chart above, How did you know price was going to go higher after the open? CLUE: There are two indications. I'll post the answer Monday.


Looking at the 12,000 T, 10,000 T, 240 Minute and Daily charts we could be in for a significant correction to the downside. No point in worrying about it now. We'll know come Monday and we'll trade accordingly. Besides, a good correction would help alleviate the narrow trading ranges we've been dealing with lately. And a good dose of fear right now would give us some very profitable days with higher volume and volatility.

Rules Are for Fools

Do I need to say anything else?
To be fair sometimes these 'rules' appear to work.
But so does Voo Doo... sometimes.
And I count on the fact that other traders are following rules while I read buying and selling pressure.

Google around for "chart formations" "flat top triangles" " bull pennants" "bear flags" "candlestick reading" and any other technical trading formations. You find a whole religion out there. This is one time when I'm OK with the 'masses' being asleep.
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WARNING: Nothing on this site is telling you that you can make a lot of money trading. I'm telling you you can lose a lot of money trading. Everthing stated on this site is for entertainment purposes only. And as this demonstration above illustrates it's also for humor. Before trading you should consult a government licensed financial adviser to see if trading is suitable for you.

The Case for "Mental" Stops

Most traders (I'm beginning to wonder if I should keep referring to them as traders or losers.)

use stop loss orders to protect them from a move against them when they enter a trade. As you can see above, if you 'protected yourself with a stop above your sell entry, you could have gotten stopped out and taken a small loss -- then missed a great sell-off.

I use a 'mental' stop loss meaning I don't enter it in the executioners platform. I just watch to see if there is some level (in this case) above my entry where price could pop up to. Then if I don't like the trade I can exit manually with a small loss.

But I don't want to be 'spooked' out of a good trade.
Your broker can educate you on the use of market orders, stop loss orders and limit orders.

WARNING: Trading futures involves risk of capital. You can lose all of your money. Before you try this you should consult a government liecensed financial adviser to determine if futures trading is suitable for you.

Zoom - Zoom - Zoom

Things look pretty bad on this Thanksgiving Day.
Almost 30 points off of recent highs in just one day.


But are they really that bad?

Were we due for a little pullback on the Daily chart?

Doesn't look so bad from here on the Weekly chart.

And looking at the Monthly chart, we're still on a push to the upside.

Wow, what a difference "zooming in and out" makes.

This thing could develop into a bigger correction. I don't know. But I do know that on a day-to-day basis, I will know what to do.

Happy Thanksgiving!

Reading The Details PART2

Here we have a close up of each little pivot in price activity.

Today was one of those days that really started it's move at 6PM the night before from the 1089 level. These days can be frustrating in terms of having missed a significant piece of the move-up during the overnight session. The range went from 1089 to the high of 1111 -- 22 points.

But the 9:30 open saw us at 1103 which was only 8 points from the high of 1111.

I took the time to put up an exagerated view of the FRO to illustrate how the indicator expresses changes in buying and selling pressure that dictates future movements.

I suggest that you print these out and memorize these formations. Ask yourself, "What happened?" after each formation.

What happened after the "LML" and "HMH" peaks and valley's?

Remember, you are building up your "sight vocabulary" of formation recognition.

Most -- almost all -- of the traders in the world have no clue how this indicator so precisely forecasts coming moves. And it does so in a way that allows you to pull cash out of the market.

Today was about 8 points up and 8 points down -- 16 points @ $50 per point = $800 per contract. Multiplied times whatever number of contracts you trade.

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WARNING: Trading futures involves risk and you can lose alot of money. The information contained in this entire blog is not intended as financial advice. It is posted at no charge, strictly for information and education and entertainment purposes. Past performance is not a guarantee of future results.

Reading The Details PART 1

These are snapshots of Monday 11/23 just before the 10AM Existing Home Sales Report.

As you can see these charts are indicating a reversal. Meaning price will go down from the 1109 level.

At 10 AM when the numbers were released the market shot up 2 more points before the market began its long slow descent back down to the opening level.

I continue on the next post above PART2.

Some Tips For New Blog Members

Welcome to the journey.

1. I want to stress that the best way to study this material is to go back to the February post and work your way forward.

2. Everything you need to know is in the charts.

3. Carefully observe what happens to the candles after you see the various formations in the Futures Risk Oscillator at the bottom of the chart.

4. Most important; You don't want to share or sell this information to anyone.
If just one trader with several million dollars in capital gets hold of this, your results will suffer.

5. The markets can be treacherous enough without adversaries trading against you with your own secret strategy.

6. You may not realize it for days or weeks but you have the tool for real wealth in your hands. A mechanism that can turn your PC into an ATM machine.

7. The goal right now is to develop a sight vocaulary in order to recognize the various formations that occur. These formations tell you when to buy or sell.

8. By entering this blog using your access ID, you acknowledge that the information here is for educational purposes only. There is no guarantee of results implied or stated. You also ackowledge that trading can result in loses of capital and you do so at your own risk.

Stay the course.

*To enlarge each chart just click on it.

Rock Climbing

Sometimes it feels slow, like rock climbing.
Just get quiet...
And look at how the FRO coincides with the candle formations...
That's how rock climbing goes sometimes. You reach a point where you just stop...breath...look around and you see the next ledge or cranny to push off of.

Perspective on the Daily. Still climbing.

So Easy

I don't know what to say. Some onlookers just don't get it. But this chart tells the story. Its about relaxing and trusting the indicators.

Oh, In case you're thinking, "Well anybody can see that price would sell off AFTER it happens."

Well to those I say, "Yes. But that's not how I make money. I make money by knowing what nobody else knows...really."

As you can see below I called the sell trade at around 8am.


WARNING: Trading futures involves risk. Past performance is not a guarantee of future results. Consult your government licensed financial adviser before attempting to trade.

Man Trades

That Was Fast

On Friday we were watching a squeeze, But today we had a surprise. That squeeze didn't last long. It broke out Sunday night. Which gave us a perfect pullback for the open today (Monday).
Unfortunately when a squeeze pops early it runs out of power fairly quickley. So we had only one good pop in the morning and a decent sell off in the afternoon.

Looking at the Daily chart above, we broke through the October highs around 1103 and closed there. We'll watch for that previous resistance to become our support. And hopefully we'll power through 1128.
I'd rather have a nice sell-off right now because it would give us some big profit days going into the holidays. But we'll take what the market gives us.

WARNING: You can lose alot of money trading. Check with your government agent and/or federally licensed financial adviser before trading.

Buying Held Up Today

Not much to say, but plenty to see. Thursday's buy signal going into the close, held up through the day and now we appear to have a squeeze to deal with on Monday. This is not a "maybe". Its what will happen.

WARNING: Don't trade unless you consult a government licensed financial adviser. Its dangerous and you can lose all of your money. And past performance is no guarantee of future gains.

Whole Lotta' Sellin' Goin' On

Do me a favor... scroll down and check the November 9 post titled, "Something To Watch". Today was that "Something" I was talking about.
We had heavier selling these last two days. But We have a buy signal for the overnight and morning trade. Will it hold? I don't know. But I will know in the morning.

The Daily above and the Weekly below have not given us any clear sell signals so we may just chop around before we go on to hit 1128.

I normally don't "VooDoo Trade" looking at another market to get clues. But the U.S. Dollar has appeared to be trading precisely opposite the S&P for quite a while.

It just seems like we're due for a rally -- big or small -- in the Dollar. Currency moves are usually played out over a long term. And since I'm bullish on equities, I think we may see a de-coupling between the Dollar and equities.

Doesn't matter. Either way somebody will make money everyday.

WARNING: Trading is very dangerous and you should not do it unless you seek the professional advice of a government licensed financial con sultant.

We just do this for entertainment. Results are not guaranteed.

Finally!

We finally returned to the October high at the 1100 area. Today we just poked through to 1103.
With the Veteran's Day holiday it was a quiet day and the trading range was narrow, Still a good day.

WARNING: Trading is risky. Always check with your government licensed financial adviser before you trade.

Gamer Dude!

Trading the FRO can be so easy some days. You just just click off a few thousand dollars almost like playstation.

Any dude or dudette can do this.

Even the dudes who are loaded for bear.

And dudes that look and act like me.

These set-ups are so obvious, I'm not even going to commentate.
Except to mention that the two charts below are the chart above stretched out so you can see a little more detail.

Oh yes. WARNING: Even experienced Gamer Dudes/Dudettes can lose all their money trading. So contact an official, Federally licensed financial adviser to see if you should do this.

Something To Watch

The weekly chart below is at a possible turning point of resistance.
The FRO has NOT signaled a sell yet. But two things cause me to be cautious on the long side.
We're coming against the upper trendline and the most recent ascent has been fast. This could be a time to get jammed by selling manipulation designed to shake out longs and cause panic selling.
The other reason I have these thoughts is the USD. The Dollar is due for a bounce. And given the connection between the falling Dollar and rising equities, a bounce in the USD could cause a sharp drop in equities. Either way we will profit. No matter what.

WARNING: The government wants you to know that anything you see here could be a trap to get you to start trading for yourself. And they want you to know that you could lose ALL of your money. So go talk to a government licensed financial advisor before you do anything.

One-Way Monday

Last week's run continued today and the market hit some records for one day performance.
The 12,000 tick chart above gave us a crystal ball today riding on the back of the Friday squeeze that popped Sunday night. We had a high peak in the FRO

(5am, 4 1/2 hours before the open) which warned of higher price for today.

It wasn't the greatest day for profits. One-way days usually are not good point profit days. There were no sellers willing to buck the trend. This made for a boring day with no sell signals. There were also a lot of short position holders panic buying and helping each pop go up.

WARNING: The government says you can lose all your money trading. This information is for entertainment purposes only. Consult a government licensed financial advisor before you attempt trading.

Happy Ending

The week ended with a gain in U.S. equities. The last few days have been a process of solidifying support.

Today was billed as an "up" day but it was more consolidation and squeezing -- without a break-out.

Looking at the Daily below we get a different perspective. Price has been a little steep which usually ends up pulling back abruptly. But the FRO is telling us that price is going to continue to advance towards 1128. We'll see. And no matter what, we'll profit everyday.

Hey don't forget. You can lose a lot of money trading. I had to say that.

And this information is strictly for educational and entertainment purposes.