Webinar

There's a little something here for everyone: camouflage and counterintuitive set-ups, plain-vanilla 'x' and mechanical entries, one-offs -- even a little sausage for traders who like spicy challenges. What there is not is a bonafide trade in real time, only one that we avoided in December Gold, for reasons that are closely rationalized and therefore bound to enlighten.

The markets have slowed to a crawl this week, so we didn’t look particularly hard for real-time trading opportunities. Even so, there was a perfect ‘camouflage’ pattern to be exploited in the E-Mini S&Ps. It comes at the very end of this recording, so check it out if you want to see what absolute perfection looks like in miniature. There’s also some material that explains a ‘counterintuitive’ trade in gold that I had touted the night before.

We looked high and low for trading opportunities during this session, which took place two hours before a scheduled FOMC announcement. The markets were stagnant in anticipation of the news, and so our focus was mainly on camouflage entries designed to keep us out of trouble no matter what. Much of the hour took place on charts of three-minute degree or less, including some stalking in Tesla and Facebook that offered the alert day trader odds of as much as 10-to-1.

There are two main points of interest here: a closely reasoned trade in gold, which had just turned higher from within $1 of a clear Hidden Pivot support; and another in TSLA, which was in the throes of a bounce from a major ‘hidden’ support that could have produced a $4000 profit for any trader alert to the opportunity. Both trades fell in the ‘camouflage’ category, but there is also a detailed discussion of a ‘counterintuitive trade that surfaced in August Gold as we watched in real time.

Stocks were rangebound when we went hunting for real-time trading opportunities during this session. As a result, we were unable to squeeze off a trade in the vehicles we looked at: T-Bond futures, crude and gold. However, the last half of the session contains material that may be of particular interest if you trade options. Specifically, we considered option ‘gamma,’ which measures the change in delta value in response to a one-point movement in the underlying stock. If you’ve ever contemplated buying, or shorting, straddles, this lesson will help you to better understand the risks.

Hidden Pivot novices will find this lesson easy to absorb, since, instead of stalking trades on the lesser charts as we so often do, this time we focused on the basics. Good scalping opportunities were unusually difficult to find, but the longer-term charts yielded some rich analytical information for possible use in the future. Of particular interest was the segment dealing with long-term interest rates, which, as it turns out, could go even lower than the 1.64% I’ve been forecasting for quite a while for the 30-Year T-Bond. How low? Check out the last 20 minutes of the recording and be prepared for a shock.

Sometimes a trading vehicle’s progress on a chart from point A to B can be so herky-jerky that it’s difficult to qualify the trend-leg as a usable impulse leg. We often do so anyway, treating a gnarly A-B leg as though it were an uninterrupted, straight line. However, it must meet certain qualifications before we can do so. During this session, we considered an exotic example that helped us clarify the rule. There is also some material dealing with trading the nastiest sonofabitch of them all, the E-Mini S&Ps. Turns out that even on the four-second bar chart, we must stalk it like a rabid badger and bend the rules in order to produce a ‘camouflage’ entry signal that is likely to work.

With the markets flatlining ahead of more drivel from Yellen, we considered a trade set-up in the E-Mini S&Ps, then moved on to yen futures and GDX. The latter is optionable, so we looked at shorting at-the-money straddles carrying premiums of about $4.50 for two weeks of duration. This would have been plenty of cushion for the steep rally that just occurred. The yen has been in a strong uptrend as well, and our focus was on ‘camouflage’ entry tactics to significantly limit the risk of buying into a mature rally. This is a must-view, since the ‘external’ peaks we would use for this purpose were as subtle as they come, recorded back in October.

This sessions offers a tight summary, through examples in real-time, of many of the trading tactics and system-based rules taught in the Hidden Pivot webinar. I emphasized the fundamentals, including mechanical and counterintuitive trades, for the benefit of the relatively large audience, many of whom are registered for the June 28 webinar. We lingered on the E-Mini S&P’s lesser charts in particular, since potential day trades took shape before our eyes. One of the trades involved a counterintuitive entry. It failed to trigger, but another – a mechanical trade – did and was still profitable two hours later. The recording is recommended in particular for all who will be attending the June class, since it provides a demonstration of some of the Hidden Pivot Method’s most useful capabilities.