Tutorials

This session continued an emphasis on mechanical trades, with examples drawn from real-time price action in such favorites as the E-Mini S&Ps, Comex Gold and some of the institutional ‘lunatic’ stocks. Counterintuitive entry tactics are also on display, and although there were no set-ups that allowed us to pull the trigger, you’re bound to find the clarity of the examples instructive.

We typically use Hidden Pivot patterns to project price targets for stocks, commodities and index futures. But were you aware that ABC patterns work just as well for purposes of forecasting the highs nd lows of puts and calls? With the goal of buying swing lows and taking precisely timed profits in options positions, we looked at the charts of puts and calls associated with some of the stocks covered regularly in Rick’s Picks. Tradestation makes it easy to call up option charts for this purpose, but most trading platforms offer a similar feature.

During these weekly session, I have increasingly emphasized what I would call 'workarounds' -- mainly mechanical and 'counterintuitive' trades that exploit the increasing tendency of the algos and math majors to use ABC patterns the way we used to use them. The new methods add some powerful tools to our trading arsenal without requiring much additional knowledge, since they are adaptations of what you already know. Check out this recording for a potpourri of trading set-ups in real time. (Note: I’ve skipped the August 26 recording because it was pretty boring.)

The mechanical trades we’d hoped to find were in short supply on this particular day, but we found plenty of countertrend entry opportunities at p and p2. We also looked at some ‘counterintuitive’ trades, the best example of which, in crude oil, can be found toward the end of the recording. For a demonstration of how to force a trade when opportunities are scarce, check out the final 15 minutes.

The focus of this session is almost entirely on the relatively simple rules of the ‘mechanical’ trade. As is our practice during these weekly small-game safaris, we looked for quick profits in real time. In this case we came up with an instant winner in Netflix -- as perfect and precise an execution as you could imagine, with risk under very tight control, from entry to exit. Each step of the process is explicitly rationalized in accordance with our Hidden Pivot criteria. The precise outcome, and its quick, easy success, speak for themselves. The lesson is a must-view for all who have taken the Hidden Pivot Course.

We went back to the basics during this session, focusing on the rules that govern impulse legs in order to clarify our outlook for the stock market. The broad averages appear to be building a broad top with a series of marginal new highs that stretch back to December. More recently, however, a downdraft in the Dow breached two prior lows on the weekly chart. How significant is this? For a precise answer, check out this one-hour recording, which also includes material on ‘mechanical’ trades and the camouflage technique.

This lesson contains some of the most explicitly detailed information I’ve offered to date on the ‘mechanical’ trade. It’s all here: minimum bar-counts, breakout levels and the rules that govern countertrend entries from points p, p2 and even x. The material takes up about a third of the recording and begins around the halfway point. In addition, we also looked at some camouflage opportunities and found a trade to like in BIDU during one of the most tedious sessions we’ve encountered during a string of boring weeks