Classic Syndicate Trader Action

Today we had a positive FOMC report yet the price action had nothing to do with the report. It was more of an excuse to lure the herd into long positions with an uptrend until the FOMC minutes were released. When the report came out the market took off and broke through new one year highs only to get slammed down 20 points in 90 minutes to the 7 day support level.

Its days like this that the FRO proves it's ability to track deliberate market manipulation. It was about drawing traders in long followed by heavy selling to trigger panic selling. The FRO is a "forensic trading" tool. It identifies and protects you from these manipulators.

You can see clear, cross confirmed sell signals at the top pivot where the "crime" was committed.

You really want to know how amazing the FRO is? Look at the "LML" notations along the dips on the FRO. That was your warning that price would go lower than the price level noted. And in spite of that rocket launch on FOMC release, price did go much lower than that morning low right into the close.

AMAZING!

P.s. I had to mark the spot where I took a wrong way trade. I looked at the more sensitive charts and lost my way momentarily with a one-tick lucky profit. My bad.

Warning!

You can lose money -- alot of money -- trading.

All Distraction Is Self-Distraction

Friday 9/18 was a range bound day.
My first inclination on a range bound day is to wait and watch for a breakout.

Friday it never happened so I waited and I spent 8 hours watching with zero results. Not good when I have a month's end goal of $58 million. Now that goal gets pushed out to Friday 10/2.

The FRO signaled 8 good trades but I distracted myself with things like focusing my attention on the 800 tick chart. The 800 had so many false alarms that I gradually lost faith in it.
Meanwhile the rest of the 'team', the 8000, 4000, 3000, 2400 and the 1597 tick charts were all quietly trying to get my attention to take 30 points worth of good trades.

Classic mistake.
Why?

I was afraid to make a mistake so I cranked-up the 'microscope' and zoomed in so tight with the 800 tick sensitivity, that I lost sight of the bigger (far more relaxed) picture.

There is not an external distraction around that can stop me from profiting like my own fear driven, self-distractions.

Look at the charts and the cross-confirmations below and you'll see all the classic buy/sell signals begging to provide a 'payday'!

The Longer The Squeeze The Better/Bigger The Pop

We all like to see our profits add up quickly, take our profits and get out of the trade. But what we often do is despise the time it takes for a good squeeze to develop -- play out-- and break out.

Is 36 points worth the waiting and watching?

That's $1,800 per contract --

1 contract = $1,800

10 contracts = $18,000

100 contracts = $180,000

1,000 contracts = $1,800,000

10,000 contracts = $18,000,000 -- for 8 hours of easy labor.

How many contracts do you want to trade?

Would half of any of the numbers above be worth a day's work for you?

When you have this kind of clear, very early warning, you will develop the confidence to go in boldly and have stunning results.

How much time are you willing to devote to mastering this kind of simple chart reading to accomplish these unimaginable results?

Well here's the joke...This is a daily opportunity in the mini S&P once you've mastered reading buying and selling pressure.

Warning!

Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

FOMC? No Problem!

Federal Open Market Commitee or FOMC announcements are cause for apprehension for market watchers and many traders. On days like this we know we're going to see more extreme volatility so we dial up to an even longer interval chart like a 12,000 Tick pictured below. If you're a scalper and you want to kill brain cells taking every trade then this approach is not for you.
But if you just want to take 20 points per contract ($1,000) and leave with $10K, $100K, $1 mil. or $10 mil. and call it a day then you'll "adjust your microscope" and zoom out.

For entry and exit use a magnified view like the 1000 Tick chart below. We had three clear confirmations for the buy around 4am, 8am and 9:30. So you knew which way it was going long before it went.

Warning!
Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Where Did The Breakout Start?

Thursday was a squeeze for the last half of the session. The S&P was setting-up for the Friday break-out. That process actually began at 10:30-11:00 AM Thursday. Sixteen hours advance warning!

So here is my question....Was it the "less bad", non-farm payroll report? Or was it just that the market had been in a sideways channel for 3 days?

My answer is.... It doesn't matter! It was a 40 point per contract day! $2,000 per contract.

Every squeeze pops.

Look at the 10,000 Tick and look at the 3000/8000 Tick above. This market was going to break no matter what. The only difference might have been that the market might have gone higher if it was not a Friday in August.

But we had a clear sell signal at 1:30.

Warning!
Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

The Lazy "W"?

Warning!
Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Buy/Sell Pressure vs. Volume

The difference between Buy/Sell pressure and volume is as different as night and day. Both charts above are Daily S&P mid-July when the world was focused on the 'head and shoulders' formation. The word was, "The Market Is Going Down".

Fast forward to the chart above. As you now know we went past the "head" of the "head and shoulders" and right through the Daily 50% level of 989 from the launch around 865.

Almost 130 points in 10 trading days!

I call their method voodoo chart reading. They take a formation that works 10 times out of 100 and they run around telling each other, "Head and shoulders! Head and shoulders! The fake rally is over! As if repeating it enough times will make it come true. I think it just helps the "Casino Traders" feel better because they hate the land of "Not Knowing".

Volume can't tell you direction until after the trade is gone.

Only buying and selling pressure can give you actionable, advance notice.

Buying and selling pressure can't lie.

Volume lies all the time.

The herd gets slaughtered. Without them we don't eat.

How about YOU?

Warning!
Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.