As the sun shines in beautiful Southern Ontario reaching temperatures into the 30’s Celcius, the market has been hotting up too. It’s not closed yet, but at the time of this writing the current Nasdaq Futures trade is turning into another monster. The chart above represents daily candles and shows the current trade entry 4 trading days ago. The trade is currently up $4,500 per contract in the Nasdaq E-mini futures (22% return in your entire bank in one trade based on our conservative risk controls). I am delighted to say the system grabbed another bottom as it has done so many times before.
If you are in it, or even the QLD ETF system, congratulations, this is setting up for a move to a new all time high in the Nasdaq and likely the S&P 500 too. So let’s see where it goes and enjoy the ride, the stop will be moving higher in the morning, so watch out for my next text alert.
The Nasdaq Futures held the 7000 mark again. It has been bouncing of that area for a number of days now. I was surprised by the ferocity of the sell-off on Tuesday. The market was set to close at 1pm EST and it sold-off right into it. While I wasn’t expecting it, that support area held again and looks to me like that will be the last time we visit it for a while. My expectation is a move higher again from here, with tomorrow being key. The Nasdaq Futures have to take out the 7150 point to solidify my interpretation, and it closed at 7125.75, so not too far away.
This latest trade like any other requires patience. In the game of swing trading, where you are in for bigger wins in terms of multi-day/multi-week trends, you must have patience. Recently at the course I held in June I talked about the phenomenon of almost always being in the red of the first day I enter a trade. It’s almost universal, yet the ultimate outcome is always unknown….back to patience…
Bottom line, trading is not easy, never will be and even thought this latest trade is now back in the black and making money, the important thing for me to remember is that this is a game of math. I know there will be losses, but I know also that MOST of the time there will be gains, and the gains will be on average 3x the size of any losses, those are pretty good odds in the long run…even the short run.