Tutorials

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.

During this session, we pulled the trigger on a gold futures trade that quickly put us in the comfort zone. Although the trade lagged the real-time opportunity by half a step, the rationale and risk management were true to actual events as they unfolded over the span of about seven minutes. There is some additional material related to the E-Mini S&Ps, and although we were unable to squeeze off a trade in this vehicle, you may find that our reasons for not doing so are just as illuminating.

Shortly before Yellen was scheduled to blather, we stalked some subscriber favorites, including NFLX, the E-Mini S&Ps, Comex Gold and Nymex crude oil. There are some subtle points covered during this session, although paradoxically, due to the Fed ‘news’ that was about to come, the stock market was shortly about to launch into its wonted, wild spasms. Even so, you’ll see that Hidden Pivot Analysis still managed to nail the over/under bet pretty well.

We stalked a possible trade in TLT toward the end of this session, looking for an impulse leg subtle enough to get us aboard a mature rally with as little risk as possible. The key to the trade was as fine a specimen of the look-to-the-left-peak as we have come across, created so long ago that few other traders or technicians would have been paying much attention to it. For a finely nuanced refresher on impulse legs and the lengths to which we will go to qualify them as such, skip to the final 20 minutes of the recording and enjoy the show