Playing Defense On All Sides Of The Fence Today To Keep Profits

Welcome back everyone!  This video is being shot intra today.  It contains everything you need to know about how we are handling everything.

We are just playing defense today for a couple reasons.  For instance, today’s contract roll over day with the Stock Index Futures.  This is when most of you wake up and your brokers have already taken it upon themselves to roll you over to the new month.  Here is the problem with that.  The reality is that for the average retail trader, that is not a good thing.  If you take a look at the volume here.  We will look at a RUSSELL contract first.  You will see on the left, on a five minute bar it did 288 contracts.  On the right it did 25 contracts in the same five minute bar.  You can see the December contract shows a huge disparity.  That is effectively five contracts a minute versus 60 contracts a minute.  You should weigh 25 contracts versus 288 contracts.  That means that more people are trading the September contract versus the December contract.  I know the brokers always hate me telling you guys this.  It is just so much easier for them to roll you over because then they don’t have to worry about you guys holding on to stuff till expiration.  It might not be as much of an issue on the S&P per say.  However it could be even more of an issue for other contracts that people are trading.  The best way to handle contract roll over, for the actual trader, is to wait till the 5 minute bars start showing more volume in the front month that in the prior.

The S&P had 1,786 contracts on the last December bar versus 7,578 contracts on the last September bar.  You essentially have a 5 to 1 ratio there.  There is five times more volume on the September contract still at lunchtime on Thursday afternoon.  I am not here to appease to the brokers.  I am here to take care of you as my student family.  What is better for most of you is to change back to the September contract until more volume takes place on the December contract.  That is the first key thing I wanted to point out to you guys.

You can see here that we had multiple accumulation bars this morning.  We also had a positive divergence take place.  That is where were making a higher low in indicators but a lower low in price.  There are a lot of indications telling us that the first 30 minute sell off was not going to continue on.  What ended up happening was that people who jumped in there short, they ended up getting hurt.  Fortunately since my group was playing defense they did not get hurt.  The focus this week was to make money like always.  It was also to play defense to not lose money.  These markets are due for some huge moves.  I have been pointing that out to you guys in the nightly videos all week.  The goal is to keep the money in our pockets!  If you haven’t been doing that be sure to join my trading room.  I look forward to being with you guys in the trading room tomorrow morning or in the weekend videos.

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