Monday, December 12, 2016

CLB and its synergistic Oil Trades.

From the desk of top market timer Mark Leibovit:


CLB has been a synergistic play for the recent advance in crude oil but has had several noticeable and trade able swings in the past few months between the 80-90 range and 110-120 range which we recently successful in capitalizing upon. In the attached video we look at the monthly pattern first and then jump to the daily pattern which clearly shows both how the Leibovit VR foretold a downdraft in the CLB and the recent (since October) upturn signed by first a Negative Leibovit VR and then a series of Positive Leibovit VRs.  Recall, we tie the 5/3/3/ stochastic in as a collaborative indicator in the process. VRtrader.com bought and sold CLB and is now on the sidelines.



Happy Trading

Jeff Gibby
Business Development Manager.

Monday, November 14, 2016

What does Trump's Shocking Win mean for the Markets?

This weekend we hosted our Online Traders Summit.

It was a great event.  John Thomas, one of our guest speakers had some really good points about what the Trump win will mean for the markets going forward.  

I wanted to share some of his insight with you.  Here is his special report on how the election will affect your trading.  

From the desk of John Thomas:

Global Market Comments
November 14, 2016
Fiat Lux

Special New World Order Issue

Featured Trade:
(TRUMP’S GIFT TO TRADERS)
(SPY), (TLT), (TBT), (GLD), (USO), (CAT),
 (X), (FCX), (BAC), (GS), (LEN), (ITB),




Trump’s Gift to Traders

In 50 years of trading, I have never seen markets turn on a dime as they did last week. As a result, they have created some of the best trading opportunities of the century.

The sector rotation has been fast and furious. And trading volumes across all asset classes exploded to their highest levels in years.

Of course, they were responding to the biggest election upset in history, which flipped the direction of the global economy 180 degrees in a heartbeat.

I am suddenly reminded of economist John Maynard Keynes’ most famous quote: “When the facts change, I change. What do you do sir?”

My ancestors hailed from Missouri, before they moved to California during the1849 gold rush. Their black and white tintypes adorn the walls of my Lake Tahoe estate.

Every time I cross Donner Pass on Interstate 80, I remember their gaunt grim faces.

And you know what the state motto of Missouri is?

“SHOW ME!”

Incredible as it may seem, I am already in touch with several senior officials of the Trump administration, thanks to my ancient Wall Street ties.

That will give me an early read on which Trump policies are campaign fluff, which will be seriously watered down, and the few that will get actually implemented.

And as everyone in the financial markets knows, this is trading gold.

Early indications are that the incoming economic policies will be Reagan 2.0.

I remember well the jovial, backslapping president, who served from 1982-90, and who I knew too well for 25 years.

For three decades, he campaigned from the far right, championing McCarthyism, bemoaning Rowe versus Wade, demanding a balanced budget, and constantly warning of the communist threat.

The day he got into office he forget all of this, negotiating huge arms reductions treaties with the Russians, and never lifting a finger to curtail women’s rights.

We do know how Reagan 1.0 ended. Thanks to large tax cuts and massive spending increases, the national debt skyrocketed 400%, from $1 trillion to $4 trillion. The bond market got killed.

And despite all his saber rattling on the campaign trail, Reagan never ensnared America in a single serious war.

Trump could well do the same. The big shock of the decade would be how fast trump rushes to the middle.

But he has to “show me” first.

I am expecting a similar result with Reagan 2.0. Certainly the bond market thinks so, the ten year Treasury yield adding a hair raising 40 basis points in yield in a mere three days.


What we do know for sure is virtually the entire investment industry has been caught seriously wrong footed by the Trump win.

They were all, to a man, perfectly positioned for was a Clinton win, and owned a heavily weighted Clinton portfolio.

What they got was a Trump world.

IT WILL TAKE YEARS FOR INSTUTIONS ROTATE SECTORS, AND REPOSITION FOR THE NEW WORLD ORDER.


This is nothing less than the greatest gift to traders of all time.

There is one great structural tailwind to this unbelievable sector rotation.

It takes you out of over owned expensive sectors close to all time highs that have been leading the market for most of this decade, like technology.

It moves you into under owned cheap sectors that have been despised for years, such as financials, heath care, commodities, and energy.

That’s fine with me. I was getting tired of chasing technology for small incremental gains at the risk of gigantic one day crashes, some four in the last 15 months.

You can make a lot more money buying stocks off of 5 year bottoms than seven year tops.

Maybe I can squeeze a few thousands basis points of performance out in 2016?

I have presented four Emergency Strategy Webinars for major hedge funds, clients, and the Online Trader’s Summit in as many days.

Financial advisors tell me they are finding the bullet points contained enormously helpful in explaining the New World Order to their clients.

So I am giving them in full to you below:



The New World Order

*Control of the Presidency, the House of Representatives, the Senate, and the Supreme Court means the Republicans have a free hand

*Republicans blocked fiscal spending for eight years, but will now move full steam ahead

*$1 trillion in new infrastructure spending in the Midwest amounts to Quantitative Easing 5.0

*Massive Keynesian stimulus could double US
economic growth in the short term

*Inflation will make an earlier return

*It all adds up to a big “RISK ON” and “BUY!”

The New Big Trends
Out With the New, In With the Old



Winners:

Value
The Economy
Deregulation
Taxpayers
Domestic US stocks
Defense Stocks
Inflation
Oil & Gas
Commodity Stocks
Bridges and Freeways
The Midwest Rust Belt
The US Dollar
Savers
Homeowners
Cheap Stocks

The New Stock Plays

Get These Right and You’ll Retire Early

(CAT)
Caterpillar-Infrastructure
(X)
US Steel- infrastructure
(NUE)
Nucor Steel
(PFE)
Pfizer-Big Pharma
(LLY)
Ely Lily Big Pharma
(LMT)
Lockheed Martin - Defense
(FCX)
Freeport McMoRan Commodities
(XOM)
ExxonMobil Big Oil
(OXY)
Occidental Petroleum Energy
(BAC)
Bank of America Financials
(GS)
Goldman Sachs - Financials
(LEN)
Lenar Homes- Homebuilding


Losers:

Growth
Globalization
Regulation
Multinational Stocks
Telecom and Utilities
Emerging Markets
The Budget Deficit
Solar Energy
Bonds
Yield Plays
The Euro
The Japanese Yen
Borrowers
Renters
Expensive Stocks

The Old Stock Plays

Time to Say “Thank You Very Much” and Unload

(GOOG)
Alphabet- Technology
(AAPL)
Apple- Technology
(FB)
Facebook-Technology
(AMZN)
Amazon - Technology
(TSLA) - Tesla
Electric Cars
(FSLR)
First Solar - Solar Panels
(SPWR)
SunPower Solar Panels
(GM)
General Motors Globalization
(EWW)
Mexico ETF
(FXI)
China ETF
(FXE)
Euro ETF
(FXY)
Japanese Yen ETF
(GLD)
Gold
(T)
AT&T - Telecommunications


The Bond Market: The Fat Lady is Singing

Sell Short every 5 Point Rally in the (TLT) for the next Ten Years

*Bonds are Toast

*The first fiscal stimulus in eight years will pour $1 trillion into infrastructure
spending

*Taxes will be cut across the board, concentrated for the wealthy and business

*Replenishing of the military adds further spending demands

*All of this adds $10 trillion to the national
debt in 8 years

*Throw in a new war and that doubles
to $20 trillion

*Is a replay of the 400% rise in national
debt under Reagan during 1982-90,
when Treasury bond yields hit 12%

*Interest rates will rocket, Buy the (TBT)


Foreign Currencies-Dollar Rally Continues

*Rising interest rates have the US dollar rocketing against all other currencies

*Interest rate differentials are the biggest driver of foreign exchange rates

*Buy the (UUP) ETF, calls, call spreads, and futures on dips

*Yen fundamentals are as bad as ever, will be the last to raise interest rates, if ever, expect a long term decline, sell short (FXY), or buy the (YCS)

*Future of Euro is dependent on an EC breakup, or not


Energy-The Double-Edged Sword

*Stronger economy is oil positive

*But a trade war with China, the world’s largest marginal new consumer, could cause demand to slow there

*Any run up to $60 will see new US fracking
production pour into the market

*So sell rallies up to $52, buy dips to $40


Precious Metals-Trumped!

*Spiking interest rates are hugely negative for gold

*Current selloff creates a great entry point
 for long term investors

*When inflation really show, that I
when you want to pile back into gold

*China and emerging nations have to buy
 several thousand tonnes to bring
 holdings up to western level

Should take prices from $1,250 to
 $5,000 an ounce in 15 years



Real Estate - A 20-Year Boom


*Millennial demographic wave is about to drive US home prices northward for the next 20 years

*Only 2.4 million homes for sale, down -6.8% YOY, creating a severe shortage, normally rises in the fall, and predicts a very hot market in the spring

*US homebuilding is proceeding at less than half the peaks seen in the 2000s, despite rapidly rising demand, creating a structural shortage

*Home equity has been the top
performing individually owned
asset class for the past 5 years

*All this makes homebuilders a big
long term “BUY”




Trade Sheet- So What Do We Do About All This?

*Stocks- Buy
*Bonds-Sell
*Commodities-Buy
*Currencies- Sell
*Precious Metals –Buy
*Real Estate-Buy

Quote of the Day

Managing money is going to be fun over the next six months,” said Jeffrey Gundlach of Double Line, on the surprise Trump election win.

For more information on John Thomas, visit www.madhedgefundtrader.com.

This is not a solicitation to buy or sell securities

The Mad Hedge Fund Trader and Innovative Market Analysis are not a Investment advisors.

For full disclosures click here at
http://www.madhedgefundtrader.com/disclosures
The "Diary of a Mad Hedge Fund Trader"(TM) and the "Mad Hedge Fund Trader" (TM) are protected by the United States Patent and Trademark Office
The "Diary of the Mad Hedge Fund Trader" (C) is protected by the United States Copyright Office

Futures trading involves a high degree of risk and may not be suitable for everyone.


Monday, October 17, 2016

VOLUME REVERSAL TUTORIAL FOR AVON - AVP

In today's video, top market timer Mark Leibovit reviews Avon.



Enjoy.

Happy Trading
Jeff Gibby
Business Development Manager

Monday, September 26, 2016

Looking at Twitter

Top Market Timer, Mark Leibovit takes a look at Twitter in this four minute video:

https://youtu.be/tnHSirklu4w

Happy Trading.


Wednesday, September 14, 2016

Adding a list of Weekly Options to MetaStock


A frequent question from MetaStock users is how to get a list of weekly options into MetaStock.  

 I've prepared a Spreadsheet that includes all of the CBOE Weekly Options Symbols.  Since I've put all the symbols in the Reuters Instrument Codes, it is ready to be used in MetaStock.  

To add these to MetaStock simply follow these simple instructions.

1) Open the spreadsheet file here.
2) Choose the Download option in the upper right hand side of your screen. 
3) Open the File when it completes Downloading.  
4) Open MetaStock and Click on the Chart option in the PowerConsole.
5) Right Click on the Custom Online Data List as shown in the screen capture below













6) Choose New
7) Type in name for your list under List Name
8) Go back to your spreadsheet and highlight column A by clicking on the column header.  
9) Click Ctrl-C to copy the list to your clipboard.  
10) Toggle back to your new custom list. 
11) Hover your mouse over the blank area and use Ctrl-V to past your clipboard into the new list

It should look like this:



















Click on the Save button to save this.  

Your new list is available and ready to use!












Thanks for using MetaStock!

Happy Trading.

Jeff Gibby
Business Development Manager.  

Tuesday, September 6, 2016

Friday, August 19, 2016

Day Trading E Mini S&P 500 Profitably using CUE Global

From the desk of Sagar Nandi and Superior Profit

Day Trading on E-Mini Future is possible almost 24 hours a day. Almost every day of the week.

CUE Global is a complete system that is used by investors and traders. From Long Term Investment to Swing Trade to Day Trade. All over the world.

Traders use CUE System to trade all sorts of instruments: Stock, ETF, Option, Future, Forex.

On 15th August 2016 I had posted a blog describing in detail one way I use CUE System for Forex Day Trading. You may read that Forex Day Trade blog here.

And just a few days before that; on 11th August 2016; I also posted a blog describing a real life Stock Day Trade using CUE Charts.  You may read that Stock Day Trade blog here.

Some readers requested me to post a blog on Day Trading E-Mini Future using CUE System. I am writing this blog to explain that.

CUE System techniques used to Day Trade Stock, Forex, Future, etc. are interchangeable. So all E-Mini Future Day Traders will gain valuable insight from the two blogs mentioned above. Just as Stock and Forex Day Traders will gain valuable insight from this post.

In the Stock and Forex examples, I looked at only the instrument that I was trading. I did not use correlated instruments. Instead, I looked at Longer Timeframe (Daily and; optionally; Weekly) to decide my Trade Direction and used Real Time CUE Chart to execute the Day Trade in that pre-planned direction.

That is not the only approach I use for Day Trading. Sometimes, I look at multiple correlated instruments; using same Real Time Intraday Timeframe, and then choose the one that is likely to give me the Highest Probability of Success or Best Reward Risk Ratio or both.

For E-Mini Day Trade, I often use this correlation approach. 

I will use two symbols. One is ES - E-Mini S&P 500 Future. And the other is NQ - E-Mini Nasdaq 100 Future. These two symbols are usually strongly correlated. Moving up and down together on an intraday time frame.  But not necessarily with the same force. Some days ES is stronger. And some other days NQ is more powerful. For Day Trading in the Long direction, we chose the stronger of the pair. And for Shorting, we use the weaker of the pair.

Now, what is meant by "strong" and "weak" here? Is it the different percentage moves that we see in Real Time data feed? Obviously, that is one estimate of strength. However, from a Superior Profit Day Trader's perspective, that is not the optimal way to measure force and use it in a trading decision. 

What works a lot better is to see the movement of the two symbols within a set of reference price levels or Pivots. The CUE Fine Tune Real Time template is ideal for that.

This CUE Fine Tune template is designed specifically for Day Trading. You can also use it for precision entry of Swing Trading.

Fine Tune template has automatically calculated dynamic pivot levels (horizontal dotted lines) as well as very smart auto-drawn-trendlines; Memory Lines as we call them. These provide the reference price levels to help us decide which symbol is stronger and which one is weaker.

CUE Fine Tune also has the very responsive (and thus; suitable for Day Trading) Stretch Release up/down arrow signal to decide quickly and unambiguously exactly when to enter a "reversal" trade; trade opposite to the immediately prevailing direction. 

Let us put all that together in a real life case. This Day Trade opportunity came during regular E-Mini trading hours on 15th August 2016. I will use the 10-minute chart here. However, traders can use 5 Minute or 1 Minute interval too if they choose to do that. Personally, for Day Trading E-Mini Futures, I find 5 or 10 Minute interval provides the balance between being on the trade early. So I can capture a significant chunk of the move. But not too soon that I get whipsawed often. 

Here are the charts of ES and NQ - side by side - using CUE Fine Tune template using 10 Minute interval. 
​The numbers below refers to the respective markings on the chart:

(1) I first assess which one of ES and NQ was stronger at Close on the day before. That is, at Close (4 PM EST) of the day on 14th Aug. ES had Closed somewhat below Day's High whereas NQ had Closed almost at Day's High. So, at Close, using the Day's High and Day's Close as reference levels, NQ was stronger on 14th Aug.

​(2) Next day, on 15th August, both ES and NQ opened with Gap Up.

(3) Both ES and NQ went above Early Range High and became Overbought at that level; as indicated by Stretch signal (cyan and green dots on top of the Candle).

(4) Neither instrument could continue the rally from the Overbought Stretch condition. Instead, both became weak as seen by Stretch Release signal (down arrow on top of the Candle). Both symbols displayed three Stretch Release indicator three times before they fell.

Both symbols looked similar at this point on the chart. However, there were signs that ES was weaker than NQ. For example, ES had a Candle Flow color turning Bearish magenta before NQ. Also, on the third Stretch Release Candle, ES crossed below Early Range High. However, NQ remained above Early Range High pivot level.

Using the above analysis, I concluded that ES was weaker than NQ. Both at 14th Aug Close and also after 15th Aug Open.

And therefore decided that for a Short trade, ES would be a preferred candidate.

I will now explain the Short trade execution using the ES chart below using 10 Minute Interval and CUE Fine Tune template.
​The numbers below refers to the respective markings on the chart:

(1) I took the Short trade on the third Stretch Release sign. ES crossed below Early Range High at the same time. And Candle Flow color turned Bearish magenta. These three signs together made the Short entry a High Probability Trade.

(2) I placed Stop Order immediately upon entering the trade at just above Day's High. This was a small risk amount relative to ES's usual daily move range. This Stop Level was never violated.

(3) After my entry, ES fell. And the trade Profit soon surpassed the Risk taken. I closed half position at this point.

(4) Immediately after booking partial profit, I moved Stop to Breakeven level. That is, to the Entry Price Level. Breakeven Stop was never hit.

(5)  At day's Close (4 PM EST), I closed the remaining position.

Following are the salient points of this disciplined and profitable Day Trade using E-Mini Future.

A) I selected ES over NQ for a Short trade by observing the symbols' move within CUE Fine Tune pivot levels.

B) I patiently waited for both NQ and ES to turn Bearish. And executed the trade without hesitation when multiple signals were aligned.

C) I placed the Stop Order immediately upon trade entry to manage risk.

D) I booked partial profit as soon as Risk amount was covered; making it a Risk-Free Trade from then onward.

E) I closed the entire trade at the end of the day. I had planned it as a Day Trade. And closed it as a Day Trade.

​This Day Trade was taken on E-Mini Future. However, the same technique of choosing one particular instrument from multiple correlated instruemnts for Day Trading by usign reference pivot levels of CUE Fine Tune template can be applied to other trading instruments like Stocks in similar industry, to Forex pairs etc.

For learning more detail of the pivot levels, Stretch Release, Candle Flow, etc. - which are part of CUE Global System, you may refer to the training material at Superior Profit Education Center.

And also feel free to register for our Live Class held on a regular basis. Where you will meet other traders from around the world discussing Market and potential trade set-ups.

Sagar

Wednesday, August 17, 2016

VR Tutorial Looking at Northern Dynasty - NAK

In this three minute video, top market timer Mark Leibovit discusses his recent Northern Dynasty trade.



Happy Trading.

Tuesday, August 16, 2016

How to Day Trade Forex Profitability using CUE Trading System

From the desk of Sagar Nandi and Superior Profit

Superior Profit Investors join every week on Saturday for a Live Class where we discuss previous week's market and look for trading opportunities for next week.

We had our last class on 13th Aug, Saturday.

One of our traders from Australia was keen on Day Trading Forex using Real-Time Charts. We pulled out some Live Charts and discussed some ways of how to profitably trade Forex using CUE. Here is a summary of that for those who could not join us in Live Class.

Forex is one of the slowest moving instruments in the Market. The perceived high profit (or loss) in a short time comes from higher leverage. That tends to attract many traders to Forex with the hope of making a significant profit starting with a small capital. As our trader friend told in the class: "Profit is easy to come and easy to go in Forex."

Well, in reality, for most (if not all !) beginning Forex traders with small capital and lack of system and discipline, profit is more "easy to go" and "difficult to come".

I encourage new traders first to prove to themselves that they can make a profit in less leveraged instruments. Like, using Stock. Or may be using defined risk Options. Once a beginning trader can get consistent profit in less leveraged instruments, she may move on to high leveraged instruments. Be it Forex. Or Future.

The reason for this advice is to establish the technical aspect of trading firmly in trader's brain. So much so that in front of the live market the trader does not think. Traders' response to market moves become automatic. Like walking on the street. Once that happens, the trader is ready to take on higher leveraged instruments. It is like learning to drive slowly first. Without making an accident. Or at least one that is not fatal. And then only - if one wishes so - to move to higher speed cars.

Besides, the greater leverage of Forex (and Future) and the fact that these Markets are open 24 hours, make lifestyle and psychological aspect of handling them more difficult.

With that note, let us look at some ways a Superior Profit Trader takes Day Trade on Forex. This illustration is right from our last Live Class.

Below is a CUE At A Glance view of AUDUSD (the pair selected by our Australia trader in the Live Class).
The Memory Resistance lines in Weekly and Daily were already there long before the Candles came and hit them from below. And we knew beforehand that the Memory Resistance was around the level 0.77300 approximately. They were already there before the price comes to them. And we could plan our trade at that price level.

The Memory liens have zero lag. This zero lag nature is a significant advantage of the Memory line in Day Trading. Compare this to most other traditional indicators that have lag and hence tend to be ineffective in Day Trading.

In Superior Profit Way, we use several Zero Lag indicators for Day Trading. Memory Line is one. Others include Watermark on Daily Chart, and Daily Range, Early Range, Power Range on Intraday Real Time Chart.

Also, we use Stretch Release on Real Time Chart for Day Trading. This CUE indicator is very responsive; has tiny lag. Making it suitable for Day Trading.

​In the At A Glance chart, we saw that the Memory Resistance Levels in Weekly and Daily charts were same. And that gave us additional confidence to look for Low-Risk Short Trade on AUDUSD at the Memory line price level.

To execute our trade, we drew a horizontal line at the Resistance price level of 0.77300 on Real Time Chart using 10 Minute intervals (we could use 5 minute or other Real Time interval as well)  and waited patiently for the price to come up to this level and then tilt down; showing that Memory Resistance was working. And then take our Low-Risk Short Trade.

Below is the 10 Minute chart on AUDUSD with the Resistance level drawn on it. Following the marked comments numbered 1 to 7, we can see how we confidently Shorted AUDUSD as a Day Trade at the pre-planned price level and booked profit. 
In the above Real Time chart, we did not use powerful CUE Stretch Release indicator. Neither did we use our Candle painters; Traffic Light or Flow coloring.

Let us look at another Day Trade opportunity the same AUDUSD presented a shortly after we booked profit in the last illustrated Short trade.

Below is AUDUSD chart on next day using CUE Fine Tune Template. Now we have Flow Candle coloring on the chart. And we also have Stretch and Stretch Release indicators drawn on the Candles.

Following the notes numbered 1 to 6 we can see how; again; we entered and exited a Short Day Trade on AUDUSD profitably. 
​Let us make some noteworthy comments based on the way the two Superior Profit Date Trades were executed. They apply to all Superior Profit Trades we take. And need to be emphasized even more strongly for higher leverage instruments like Forex and Future etc.

1) Having a prior idea of Trade Direction is necessary. In both the examples, we used Memory Resistance to decide our Short Trade Direction.

2) We wait patiently for Price to give us the signal that Resistance is holding before triggering the trade. In the first example, we waited for Price to come back below Resistance Price Level. In the second case, we waited for Stretch Release arrows to appear.

3) We pre-define the Stop Level. And put a Hard Stop Order as soon as our Short Entry fills. In both our Short Day Trades, AUDUSD did not trigger the Stops.

4) We pre-define our Initial Profit Target and put Profit Taking Limit Order at that level. We book profit without being greedy. At least on half position size. And move our Stop on remaining position to make sure it is a Risk-Free trade from then onwards.

5) We don't overtrade. Once we complete our planned Day Trade, we stop. 

 
These were just two examples of how Superior Profit Traders take profitable Day Trade on Forex every day.

Once you study the CUE System using the detail training material at Superior Profit Education Center, you will learn several additional ways to pre-plan and execute Day Trades confidently.

And you can take the Day Trades on Forex, Future, Stock or any other instrument that fits your risk tolerance and lifestyle.

​Sagar

Monday, August 15, 2016

How to Profit by Shorting "Most Bullish Stock"

From the desk of Sagar Nandi and Superior Profit.

While Day Trading, Shorting the Stock that is strongest in the day and coming out with profit confidently and easy may sound to many like trying to read computer up side down. And it is indeed like that for most traders.

What many of them lack is a robust tool  set to identify the exact point where to "reverse" or "fade" the Stock and take a reverse trade. Short trade in the case of Strongest Stock.

Superior Profit Day Traders have the tool they need for such situations. A tool set that is easy to use and unambiguous. And they used it beautifully today by Shorting Disney (DIS) as a Day Trade.
As you can see above, Media was the strongest Industry Group in DOW today (10th Aug 2016). And that was mostly due to Disney. Disney was clearly the Strongest Stock in DOW from beginning of day. Later it pulled back a bit. Still ending the day second most strong in Dow Jones Industrial Average.

In between that up move and pull back, our Superior Profit Traders easily took the Short Day Trade and profited from it.

Here is how.

Disney was in news from morning as its earnings came out and the Stock started going up strongly. Superior Profit traders looked up the Stock using easy to use ready made templates.

Below is Disney Daily chart using Clean Template. That clearly shows the potential resistance points in terms of Watermark Level (horizontal pivot levels) as well as Memory Trend Lines - very smart and automatically drawn trend lines that may come from few days back or few years back.
Traders noted that the Memory Resistance was around 99 as marked in the chart above.

​They also looked up the Weekly chart - below the Backdrop Template view of Disney using Weekly chart.  Backdrop is the usual template used to analyze Weekly charts in CUE System.
Here also, the traders noted that the Resistance Memory was at same level of around 99.

That 99 level was thus established the potential Short point for the Stock.

Now what was left was to use Intraday (5 or 10 Minute) chart using CUE Fine Tune Template to take a Short Day Trade when the opportunity came. As explained below.
Superior Profit Day Traders waited patiently for price to reach the pre-decided resistance level of 99 AND then tilt down - just enough so CUE System could draw the down arrow Stretch Release Bearish signals for him. A signal to take the Short.

With Stop just above Day's High - that Stop was never hit. Exact level of Stop was decided using CUE Protection Signal (not shown here).

The Stock fell from the Short Entry Stretch Release point and never looked back.

Some traders booked profit as the Stock went down and covered much more than the Risk amount.

Some closed the trade as Fine Tune chart showed the Bullish Stretch Release signal (up arrow) signal as marked in the chart.

If partial position was held, that was closed at End of Day. As the trade was initiated as Day Trade our traders don't usually carry it over to next day.

This was an easy Day Trade - Shorting the strongest Stock of the day. All that was needed was to find the Memory Resistance in Daily and Weekly. Patiently wait for price to come there. And let CUE System draw the down arrow Stretch Release signal to tell one to Short Disney with very narrow Stop Loss and much bigger potential profit.

A robust CUE  system essential to the trade. As was a good understanding of how to use these simple CUE Charts.

To ensure our traders are always fresh with CUE Charts, Superior Profit conducts regular Weekly Live Class explaining the system to traders all over the world.  You are most welcome to join the classes by registering here. That is if you would like to take such confident Short trades (or Long trades) - even if that is against what media is telling us at that time.

Confidently. And profiting from what we see on CUE Charts rather than following media discussions.

That is the Superior Profit Way. Be it for Day Trade. Or Swing Trade. Or Long Term Investment. Many other such trades/investments are shared in Superior Profit Traders Community. You might have a look !

Sagar

Wednesday, August 10, 2016

Catching Valeant's Violent Move and 2 Stocks Yet To Move

From the desk of Superior Profit and Sagar Nandi.


To begin with , Superior Profit Investors using CUE Trading System and broad market awareness don't use inside information for their investment decisions. They have no knowledge beforehand of what is going to happen tomorrow. What they have instead is a robust Trading System which gives uncanny signals based on price moves in the chart. And they have faith in themselves. To make a trading decision themselves. In a systematic and disciplined way.

Not a Penny Stock to be moved easily by 26.9% in a day!

If you were watching, Valeant (VRX) went up today by 26.9% today. And though it declined a lot in last one year (almost 90% even after the massive move today!), it is not a penny stock either. Closing the day on 9th August 2016 at 28.16 USD in US Market. Valeant is actually based in Canada. And its Toronto, Canada listed share (VRX.TO) closed 9th August with a Market Cap of 12.58 Billion Canadian $. A large company indeed. And it would have taken a solid force to move such a large company by that huge percentage in a single day.

All that is good.
​Now. Did you profit from the Move?

We did. Many Superior Profit Investors did. And they did it calmly. They did not try to predict the outcome of the Valeant earnings result that came out on  9th August BMO (Before Market Open). In fact, Valeant under performed both on earnings and revenue if you were watching. The Stock still moved up.

On hindsight we are sure - at least some if not many - experts would attribute the up move to Valeant's intended sales in asset in spite of poor performance of the earnings. We are also sure if the Stock declined, under the same announcements, the experts would have attributed the decline to poor earnings in spite of the intended asset sales.

That is the advantage of being in a position where one watches the price move to happen. And then attributes reason to the move. Sounding wise in the process. There are plenty of them. In fact you or I could be one of them too. If we wanted to ...

The sad thing is that being so called experts like that does not make profit. As there is no brokerage which accepts an order on a back date.

Superior Profit Traders are more interested in booking some profit than sounding wise.

And they used their own analysis to take a Long position in VRX - based on CUE Charts - on 6th July 2016 itself. The trade idea was not hidden too. It was shared with public on that day in Superior Profit Traders Community - you might follow this link to that posting here. Superior Profit Investors using CUE Sonar would have found entered the Long on 6th July just before Market Close if they were using Real Time Data/Charts. Or they would have found the opportunity using CUE Sonar at End of Day and entered Long around Next Days' Open.

This is how the VRX trade was selected as of 6th July and how it played out since then - explained using CUE At A Glance charts. Weekly Template on the left providing Backdrop information. And Hop On Daily Template on the right to easily decide a Long Position on the trade as of 6th July 2016.

So, it all went well for Investors using CUE Charts.
What they do now with VRX?

The decision may vary from trader to trader. Some might book partial profit. Some might put Stop to protect profit. It is almost certain though - using Superior Profit Way (as explained in the Education Center) all of them would continue to hold at least partial position on VRX. Letting profit run. After all, VRX Closed at 28.16 with Day's High of 28.19 - that is, it closed at the very high of the day. After trading more than 100 million shares in the day. There is probably some more move left in the Stock. We let profit run ...

Two more stocks with similar base formation :)

We don't have inside information. So we did not know that VRX would move. Neither do we know for certain that the two stock charts shared below would move as VRX did (or better, may be !). All we know is that they present Very Low Risk Opportunity of making an investment. That would reap much larger profit if they work out. And they are giving some sign of probably trying to go up.

First stock - shown below - again with CUE At A Glance view; is of a pharmaceutical company (VRX was pharmaceutical company too). It also - like VRX had a sharp drop. And now forming as narrow a range as one could probably imagine. Probably waiting for some expected event to take place; some news to come out; for the Stock to rally. And it - like VRX was - is also at Pendulum Low. A sweet Low Risk point to enter a Long Term Investment. This Stocks' earnings result is out. And thereby risk of earnings disappointment to drive it lower is not there in this quarter.
The second stock that we share is in financials industry. It also dropped significantly and now showing some sign that it might move up. Like the pharma company mentioned above, this Stocks' earnings result is also out. And thereby risk of earnings disappointment to drive it lower is not there in this quarter.

Amazing similarity in the three charts - isn't it?
Valeant already gave us profit.
​Will we benefit from the others?

You probably could not help being amazed at the similarity of the three charts. One of VRX which has already moved out of the narrow range. Giving us already - trading Stocks using CUE Charts a 22% profit and going strong.

Other two have not moved yet. But are in our radar. And some Superior Profit investors might have already taken a position in one or both of them ...

The financial company information / name was posted in Superior Profit Traders Community today on 9th Aug. You might find it following this link.

The pharma company waiting for move is one that we plan to share in our next Live Class on Saturday 13th Aug 2016 10:30 PM Eastern Standard Time (GMT+5). If you are interested, you might join us by registering here. We will cover much more than only sharing this stock insight of course.  Those who already attended our class knows that we don't use power point slides. We use only live charts to decide to trade or not. Next session, we will also review the result of our past trades that we had shared in the Traders Community earlier.

And those of you already using CUE Charts - you might know the stock(s) already - identifying it using CUE Sonar.  Are you already in the trade(s)?

Sagar

Monday, July 25, 2016

Volume Reversal Tutorial-Gold-July 25, 2106

From the desk of top market timer Mark Leibovit.

Leibovit Negative Volume Reversals in IAU, GDX, GDXJ - both on the daily and weekly charts triggered our long exit several days ago and now we're waiting for clear signs of a bottom, so stay tuned. It could be days or even weeks away, so we have to wait for the signals.


Happy Trading.  

Monday, July 18, 2016

Sharpen Investing Skill through Quiz: Gold Miners have a message

From the desk of Sagar Nandi and Superior Profit:

One of the best ways of learning to invest profitably is to identify a robust system and then practice it till the signals for Entry and Exit become second nature.

Our investors and traders alike use CUE Trading System. There are plenty of learning material on the system in Superior Profit Education Center. Videos. Books with chart illustrations. Blogs etc.

Once one goes through such learning, what next?
There are several possibilities.

One might start trading with a paper money account. Practicing the learning to see if one is able to make money in such simulation account. If one is able to make money, it might be time to move on to a real money account. Probably starting slowly with small quantities and gradually increasing size as one becomes more experienced.

Whether one is novice or experienced, it is still necessary to remain alert. And keep the investing blueprint fresh in mind. For Superior Profit Investors, that blueprint would be the CUE Chart Signals and the CUE Guidelines for Trend Following Go With Flow, Trend Reversal Headwind and Bounce trades among others.

We, at Superior Profit, have started a novel and publicly accessible way to keep that blueprint fresh in a traders mind.

Using Quiz Playground.  Where we present regular stock market quizzes - in different markets / time frames / instruments / sectors / industries etc. And invite you - serious traders and investors to respond to them. Challenging a traders ability to make a decision on the "right edge of the chart" - not looking at past chart and make easy decisions where one "could have bought and made a lot of money". Right edge of the chart is always more challenging. And the quizzes will make us get used to that. And to investing profitably as a result of that.

You reap multiple benefits by taking the quizzes.

One benefit is to test oneself. To see for oneself how confident one is while answering the quiz. Whether one is able to follow the disciplined way or succumbing to temptation to hop on a trade prematurely Is one able to stand aside when the chart is not clear? Is one able to commit to a trade without second guessing when the signals are aligned?

Second benefit - once multiple traders start responding to the same quizzes - is to see how different traders approach the same situation on the chart. Invaluable learning may be grasped from that. And one might even fine tune one's own approach from that learning.

Thirdly, you might have another golden opportunity. To gather appreciative Thumbs Up from fellow traders worldwide who are also looking at the same quiz. Once sufficient Thumbs Up is collected by you, you might be even invited to join Superior Profit Graduates Club - where all traders share their investment ideas using CUE Trading System. This is an opportunity to join smart and disciplined traders from all over the world.

Needless to say, we encourage you to give Thumbs Up to a response that you like - that is if you find the response disciplined and detailed and accurate as per (say,) Superior Profit Investment Guidelines.

Note that it does not matter if the quiz is on a stock / market that you trade or not. The aim here is to sharpen trading skills that are applicable across stocks / markets. And you would learn something through the quizzes irrespective of what stock / market the quizzes are based on.


Finally, it is of course fun to take the quizzes. Sometimes to make mistake and laugh about it and make sure next time in quiz and in real investment we are more disciplined and more careful.

Gold Mining Industry Rank worsened - What would you do?

This quiz was posted over the weekend on 17th July at Superior Profit Quiz Playground - aimed at sharpening skill on Sector/Industry as well as Stock Analysis.

You may find the latest quizzes from home page
. And you would find all past quizzes at Quiz Playground in Superior Profit Community.
The quiz on Gold Miners went like this (the actual quiz is accessible through this link):

"Here is the Superior Profit Industry Group Ranking of 158 groups ... (full list at http://www.superiorprofit.co/) showing Gold Mining is deteriorating fast for last 2 weeks. While other Metals and Mining groups are holding strong."
"What would you do with Gold Mining stocks?".
 
What is the right answer?
I would not like to give the answer here and ruin your fun answering the quiz in your own way. I rather would have you try the quiz (and indeed the other quizzes) in the Superior Profit Quiz Playground (also accessible from home page: http://www.superiorprofit.co/).

You might answer through the poll answer mechanism as well as "reply" to the quiz with detail explanation/CUE Charts etc. if you would like. 

Hint ... a note on Industry Ranking.
While I would not answer the quiz directly, here is some useful note on how to use Sector or Industry Ranking.

Superior Profit Investors regularly look at Broad Market State through Market Internals. These are posted regularly in Superior Profit home page as well as in Broad Market forum. Superior Profit traders also look at Sector and Industry Analysis and Ranking which are posted at Superior Profit home page as well as in Sector & Industry Analysis forum.

The Industry Ranking mentioned in the quiz is part of that Market/Sector/Industry weekly review by our traders. By looking at the analysis/ranking at Superior Profit site.

Now - let us have a look at the Industry Ranking that was mentioned in the quiz.

It is clear that Nonferrous, Aluminium and Industrial Metals and Mining groups (marked by tag 1 in the snap) are performing very strongly since last 6 months and are continuing to do so. They mostly held to a rank of 10 or better in last 6 months period. Very good rank considering that the best possible rank is 1 and worst possible rank is 158. For last 2 weeks and for last 1 week, these three Industry Groups are holding on to the top 3 Ranks among all the 158 industry groups. Their strength is undeniable. And if one is holding Long position in a stock in those Industry groups, one might feel confident to let profit run (of course booking some profit when the time is right - using CUE Hop Off Template for example ...).

Now about Gold Mining group: Marked by tag 2 in the snapshot, Gold Mining started out strong. Ranking between 1 to 4 for most of last 6 months. But in last 2 weeks Gold Miners Rank fell to 55. That was a sharp decline relative to other industries. But it did not stop the decline there. In the week that just passed (ending on 15th July 2016), Gold Miners Rank fell to 136. That is continued sharp decline in ranking for 2 weeks in a row.

All that is clear from the Industry Group Ranking. And it only takes few moments to read that conclusion from the Ranking Table.

What is however not clear immediately is whether individual Gold Mining Stocks are falling? Or that they are still rising but rising slower than other Industry Groups' stocks.

To know that, one might look at some actual Gold Mining Stock charts through CUE At A Glance template.

Note: If you are trading in another country, you might look at some Gold mining stock traded in that country as well. Metals and Mining companies tend to follow a global trend.

Here is one such view on well known gold miner Goldcorp (GG) using CUE At A Glance template. Weekly chart using Backdrop template on the left and Daily chart using Hop On template on the right in the snapshot below.
Reading the chart above, a Superior Profit trader immediately recognizes that it is time to book profit in existing Long positions. As the chance of falling down outweighs that of going up through the Weekly Memory Resistance and breaking out of Daily Triangle pattern in short term.

That is, it might be wiser to book profit now - full or partial ... or at minimum to tighten Stop.

One might look at few other Gold Miners. Probably the conclusion would be similar or it might be different. We have to see from those individual charts.

As for Shorting, for Goldcorp at least, the time has not come yet. It need to fall below the Daily Memory Support and then give a Low Risk Entry opportunity. It would probably be a Go With Flow Trend Following Short opportunity that our traders could identify easily using Metastock CUE Explorers.

Seeing that the Gold Miners Rank fall down sharply will let our traders take the Short confidently when and if that signal  comes in coming days.

In this way, Superior Profit traders are alert about what is happening in Broad Market, Sector and Industry. And yet, wait patiently for an actual trade opportunity to come in a stock. They don't hurry into a trade just looking at the Broad Market/Sector/Industry performance.

One might say, Superior Profit traders are able to see the forest and also look at the trees at the same time.

I encourage you to keep taking the quizzes at Superior Profit home page (for now, you might have a go at all past quizzes are accessible from Quiz Playground)and sharpen your skill and also to help others sharpen their skills.

And have fun while doing it.

​Sagar.

Friday, July 8, 2016

METASTOCK LEIBOVIT VR TUTORIAL LOOKING AT SLV - SILVER ETF - JULY 8, 2016

From the desk of top market time Mark Leibovit

In this video we take a brief look at the Silver ETF - SLV - which is rallying in part in my opinion to both the financial and political upheaval that lies before us.  Leibovit Positive Volume Reversals have recently guided the way as seen in both the Daily and Weekly charts.

Speak to you soon and don't forget to tune in to Wall Street Raw radio on iTunes or at gcnlive.com.

Thursday, July 7, 2016

Sector Analysis to Identify Stock Trading Opportunity

From the office of Superior Profit and Sagar Nandi.

Since more than one year, S&P 500 has hardly moved. However, individual Stocks may be moving up and down significantly within the same period.

Sometimes large players may come out of one Sector (book profit) and enter new position in a then poor performing Sector. Such Sector Rotation, if identified timely may lead one to anticipate a Stock move and enter a position at the right time (or book profit just as the Sector of a Stock is starting to go out of favor).

One way to anticipate movement of a Stock or a group of Stocks is to look at broad Sectors. And rank the Sector's performance on a regular basis to see how and when a sector is changing from an under performer to out performer.

Where to find such Sector Analysis and Ranking?

Superior Profit Investors rely on the simple and robust Sector Analysis presented regularly on Superior Profit Home Page. This is based on the most reliable data - Thomson Reuters data. Which is available through Metastock Real Time / Xenith.

As Sector is a Stepping Back view of the Market relative to looking at Stocks, it tend to me more useful to look at Sector Analysis on a Weekly basis instead of looking at it Daily. This is the same concept that Superior Profit investors use for Broad Market Internal Analysis. Such Broad Market Analysis is also posted in the Superior Profit Home Page on a Weekly basis.

What information may we gather from Sector Analysis today?  For that, let us look at the latest Sector Analysis and Ranking as presented in the Superior Profit Home Page as of 2nd July 2016. First, we will look at the Sector Charts.
We have plotted the ten major Thomson Reuters Sectors in the chart above as of 2nd July 2016 looking back one year.

We can readily see that Utility is the top performer (the top line in the line chart) - gaining by 20% in last one year. And Energy is the worst performer. Declining by 12% in last one year. ​However, since around Feb, 2016, all the Sectors have gained. Including Energy.

What actionable information may a Superior Profit Investor gather from this chart? Several.

For example, one conclusion is that Bottom Catching opportunity for Long Term Investment in Utility Sector has passed long time ago. All major Utility Stocks may be already at Pendulum High in CUE Charts. This is not the optimal bottom catching time for a stock.

For Energy, the Bottom Catching Opportunity had passed in February, 2016. And indeed Superior Profit Investors had traded Energy related instruments between Feb and now. Energy is still rising and there may be good opportunities there - to buy Stocks at relatively low price while they are starting to go up.

Also, if Utility reverses (it has not done so yet - more on this later in the Ranking table) - there may be an optimal point to book profit in any Open Position in Utility Stocks. And probably an Opportunity to Short those Stocks as well.

The chart above is useful to show the trend of the Sectors - however, it is not the easiest tool to choose a Sector for possible investment. Ranking table is an easier way.

Let us look at the Sector Ranking Table as of 2nd July (also from Superior Profit Home Page).
We have two tables here. One is the bottom table - Percentage Performance Table for last 1 Year, 6 Months, 3 Months, 1 Month and 5 Days (i.e. one Week).

How to use it? If a Sector is continuously out performing  for long time (like the Utility Sector - which is in last row in the table), we may look for when it is starting to under perform. And book profit at that time in existing Utility positions - or at least tighten Stop to protect profit (Superior Profit Investors use Protection signal in CUE Charts to do the same).

The Ranking Table on the top makes this task even easier. Rank 1 means best performer. Rank 10 means worst performer. Among the ten Sectors under consideration.

We can see from Ranking Table that for all the time periods, Utility is in Rank 1 or Rank 2. This shows that Utility had been strong and is still strong. If Utility was to fall back and its (say) Monthly Rank / Weekly Rank started to become worse, that is the time to close Utility Stocks (or to tighten Stop).

Most of the other Sectors are up - down. For example, Financials are down about 8% in last 1 Year and down about 3.6% in last 6 months. However, it is also up about 2.8% in last one week. Financials does not look strong as of this time. The Ranking Table makes the scenario clearer. Financials have been in Ranks 7 to 10 for all the periods under consideration. Clearly struggling to go up.

What about Energy? As we saw from the Sector chart earlier, it is the worst performer for last one year. However, Ranking table provides clearer and actionable information. It shows that for last 6 Months, 3 Months and 1 Month periods, Energy ranking had been top level - 1 or 2. That was the precise time to catch Bottom on Energy Stocks and Commodities.

What about now? Is there any stocks that we can try to drill down from the Sector Analysis?

Let us look at Healthcare Sector which includes Pharmaceuticals.
Healthcare is down about 5% in last 1 Year. And down only 0.5% in last 6 Months. However, since then, for last 3 Months,  1 Month and 1 Week, Healthcare has gained by 5.1%, 0.8% and 4% respectively. 

Ranking Table provides even easier to read information. For last 6 Moths Healthcare ranking was 8 out of 10. Pretty poor performance among the Sectors. However, since then, in last 3 Months, 1 Month and 1 Week, Healthcare ranking has been 3, 4 and 1 respectively.

Yes. In last 1 Week (as of 2nd July), Healthcare became Top Performer.

Superior Profit Investor would look for Bottom Fishing opportunities in Stocks at that time. Was there such opportunity? Yes. Indeed.

In the last four hours long marathon class on CUE Trading System that was conducted on 28th June, Amicus Therapeutics (FOLD.O) was identified to have a Headwind Long Swing Trade opportunity. This post in Superior Profit Traders Community explains that trade on FOLD.O. As can be seen, the Superior Profit Swing Traders would have already booked profit in that trade - at least partially. And put a Breakeven Stop on remaining position. To ensure it is almost a Risk Free Trade. In case you are interested, you may watch the video recording of the marathon session and other videos in the Superior Profit Education Center - Video page here. The marathon session videos are under the heading "Summary of All Key Aspects of Superior Profit Trading using CUE System".

Any other opportunity was there? Of course. And below chart (using Hop On Advanced Template of CUE Charts) of Celgene (CELG.O) explains the easy and quite profitable Long trade in Celgene.
Celgene is down about 12% in last one year (as of this post date that is after 6th July Close) whereas S&P500 Index was up about 1.5% in same period.

Celgene was under performing broad market. Healthcare Sector was starting to move up the rank.

And at same time using CUE Charts Superior Profit Investors could easily take a Long Trade as shown in the chart above - Long Trade using Exhaustion at Double Bottom and Fake Down Side Breakout plus Headwind Signal. The trade could be identified in minutes using CUE Sonar (Explorer in Metastock) on 28th June. The same day FOLD.O was identified in the marathon CUE Charts training session.
What about today - just before Market Open on 7th July as I am writing the post? You may look at Valeant (VRX). Below is the At A Glance view of Valeant.
VRX is down by a whopping 89% in last one year. That is the stock is at rock bottom.

VRX had its fair share of issues as the stock declined that much.  It may still a large player in the Pharma group of stocks.

There is inherent risk in such stocks. However, if one could catch such bottom and quickly book partial profit and leave the rest at Breakeven and then Trailing Stop, one might get a substantially profitable trade. The other positive is that if VRX drops from here, Stop would be narrow. Allowing one to exit the trade and cutting loss quickly.
The Valeant chart was also shared in Superior Profit Traders Community Forum for USA Market. And the latest posts are automatically reflected in Superior Profit Home Page.

Whatever is your decision on VRX, Long or Stand Aside (probably it is not at all advisable to Short the stock now as it is already so low - chance of Short was long long ago that could be easily captured using CUE Charts), the above analysis shows how Looking at Sector Performance Charts and Ranking helps a Superior Profit Investor to capture and even anticipate profitable Swing Trades and Long Term Investments.

You may like to bookmark the Superior Profit Home Page for such useful and actionable Sector Performance / Ranking as well as potential trade ideas as posted in Superior Profit Traders Community.

Sagar