Thursday, March 23, 2017

Volume Tutorial Video on SCO


From the desk of top market timer, Mark Leibovit: 
SCO - The Proshares Ultra-Short (triple) ETF for Crude Oil was one of the trading recommendations recently posted at VRtrader.com and the accompanying video demonstrates how you have profited using my Volume Reversal (tm) indicator. 

In the video I show both daily and weekly charts. In the daily chart, a Leibovit Positive Volume Reversal was formed on February 28 signaling a potential top in Crude Oil (index is inverse). 


Another one was formed on March 8.  We jumped in on March 3 as a rising 5/3/3/ stochastic confirmed upside momentum and we were able to purchase on a slight pullback. 


Lucky for us, the March 8 rally unfolded and dramatically confirmed we were on the side of the trade.  Followers of my trades at VRtrader.com know I tend to 'ring the register' as often as I can and rally into March 10 afforded us that opportunity.  


Generally, a Volume Reversal (positive or negative) translates into momentum in the direction of the Volume Reversal for a couple of trading days - the reason we created the 2-Day version as part of the Volume Reversal package. Recall, there are three versions offered: the Sequential (shows all VRs), the Directional (filters out repetitive VRs and provides a stop) and the 2-Day which exits you two days following the VR (a stop is also provided). 




DISCLOSURE
These products are not a recommendation to buy or sell, but rather a guideline to interpreting the specified analysis methods. Only investors who are aware of the risks inherent in securities trading should use this information. MetaStock in no way endorses the products and services advertised and accept no liability whatsoever for any loss arising from any use of these products or their contents.

Thursday, February 23, 2017

Superior Profit Analysis of Tesla after Feb 2017 Earnings

From the desk of Sagar Nandi and Superior Profit

Superior Profit Analysis of Tesla after Feb 2017 Earnings

​Tesla had a stellar performance in last one year. Going up by 53% while SP 500 (SPX) went up by 21% in same period.

Out of that solid TSLA up move, last 3 months has seen a growth of 43%. SPX increased by only 7% in that period.

This lead to the quarterly earnings announced on 22nd Feb 2017.

What about so called experts' views after earnings data came out? Several of them came out with positive comments on Tesla like Baird's comment (seen from Thomson Reuters News): "Tesla Energy's potential is still undervalued", "Tesla suits the Made in America Theme ..." etc. And even went on to raise the price target of Tesla to 368. Tesla Close don 22nd Feb 2017, after earnings result was announced, at a price of 273. Huge potential upside - isn't it?

​All these may lead a Superior Profit Investor to buy Tesla now. Not so for Superior Profit Investors. Why?

To start with, Superior Profit Investors are not lured by news events to buy at the top. Following Superior Profit Way, they would have taken a Long position in Tesla many months ago. And they would book profit or protect profit at current levels. Tesla is currently at CUE Pendulum High level now - too high a price to enter Long. Superior Profit's optimal place to enter Long Term Investment is at Pendulum Low Level. ​​

Secondly (and secondarily; as Superior Profit Investors prefer to do their analysis rather than relying on others' estimates), though some analysts upgraded Tesla, the current target price of Tesla based on aggregate analyst estimates is about 245, which is about 10% lower than the current price. Current aggregate analyst recommendation is Hold and not Buy or Strong Buy. Also, though Tesla Q4 Revenue was somewhat above expectation, Q4 EPS came quite below expectation, and turned negative from positive.

Thirdly, as seen from the CUE Line Chart of Tesla using Weekly interval, it is at a resistance price zone and not at a support price area. This multi-peak resistance area is not a time to take a Long position in a Stock.

Finally, when we look at Tesla using CUE At  A Glance view, which combines Weekly Backdrop chart with Daily Hop On Template, we see several indications of not going Long. And probably even signs to take a Low-Risk Short position in Tesla right now. Why so?

In Superior Profit Way of Trading Profitably, Fake Breakouts at CUE Memory or Watermark levels accompanied by Heavy Activity often gives us a Low-Risk Entry Point. Weekly Backdrop chart of Tesla is showing such Fake Upside Breakout. What's more, the Fake Breakout is happening at the same level where CUE Bearish Headwind foretold a sharp drop in Tesla around July 2015. 

In summary, what is our view of Tesla for those holding a Long position? We suggest you book some profit. Or, at a minimum, tighten Stop.

In Superior Profit Way, we only take Low-Risk Trades that also have High Probability of success.

​If you decide to Short Tesla at the current price, you might book or protect profit using CUE Protection price level once the Risk Distance ( the difference between Short Entry Price and Stop Price) is reached or if Tesla hits a Support Price Level after your Short Entry.

Where is the current Stop Price level for any Short position in Tesla? CUE System Traders use CUE Protection level for deciding that. In the last up move of Tesla that started in Dec 2016, this same CUE Protection let Superior Profit Traders hold on to Tesla Long position for the long haul and get a very significant profit while protecting it along the way with Stop orders. This same CUE Protection indicator may now be used for the Short position as indicated in the CUE Hop Off Template chart.

There you go. With Superior Profit analysis of Tesla, right after its earnings announcement on 22nd Feb 2017.

Our traders share such trade ideas regularly in our Traders Community (in forums including Trade-Ideas from Superior Profit, Graduates-Club, the invitation-only club for traders from around the world, etc.), and we discuss them frequently in our Live Classes. You may check those out. They are open to the public for free. As a Superior Profit's way of saluting the serious trades from all over the world.

Trade Profitably!

Sagar

Wednesday, February 22, 2017

Volume Reversal Tutorial on CNBX

From the desk of Top Market Timer Mark Leibovit:





The VR Cannabis/Vice Letter was the second major newsletter in the United States - launched over three years ago - During that time we (I) have successfully pointed out investment and trading opportunities that in some cases have appreciated up to 1000% increases.  You should pay attention, not only to these videos but to what I am reporting in the VR Cannabis Vice Letter.  Clients knowing of my interest in GW Pharmaceuticals (GWPH) watched the stock explode 53 points from 38 to 91 back on March 14, 2016 - out biggest point gain of the year. Canopy Growth (TWMJF) now called Weed, rallied from 2 to 14 and is still out our list.  Herein, we're looking at Cannabics Pharmaceuticals (CNBX) which we purchased for newsletter clients at $1.13 on February 1, 2017.  It traded as high as $4.41 this past Friday.  Why did we go long?  Look at the seven (7) Leibovit Positive Volume Reversals posted demonstrating strong investing buying. Notice the steadily rising 5/3/3 stochastic which confirmed the Positive Leibovit Volume Reversals shown in the accompanying chart in this video.  We have a new recommendation for Tuesday morning, February 21. I hope you're looking at the Leibovit VR chart and in particular subscribing to my Cannabis/Vice newsletter!

Happy Trading.  

Wednesday, January 11, 2017

ETF Day Trade: Weekly Options Trade using CUE Fine Tune

From the desk of Sagar Nandi and Superior Profit

​For Day Trading, Superior Profit Traders enter trade precisely at the right time using CUE Fine Tune Real Time chart. And they book profit with discipline. Sometimes, if the trade has not entirely played out, they may carry the trade forward to next day. All along, executing the trade following a pre-thought-out plan.

The two trades I took on DIA (ETF) in USA Market using Weekly Options on 3rd and 4th January 2017 are good examples of this Superior Profit Way of Trading Profitably. I will share the detail of these two trades below.

To begin with, I like to keep an eye on the Broad Market indices, futures or ETFs of the country I am trading. For USA Market, these are the three ETFs SPY, QQQ, and DIA.

​I had noticed earlier during off-Market hours that DIA was near Memory line in CUE Daily Hop On chart. I anticipated that the Memory might act as resistance and DIA might move sideways for a while or come down from the resistance; just long enough to make a Day Trade profitable.

​Here is the CUE Hop On chart of DIA at that time.

As you may also notice, DIA had displayed a Bearish Headwind signal on the Daily chart a few days ago. That further supported my short term Bearish view on DIA for a Day Trade.

Next, I looked at CUE Fine Tune 5 Minute charts of DIA, QQQ, and SPY.

​I noticed that DIA was the weakest. I observed this weakness by looking at the price movements of the three ETFs around the Fine Tune Pivot Levels.

CUE Fine Tune chart draws the Early Range Pivot Levels soon after Market Open. By looking at the Stock's move within or out of Early Range, we can see if it is Short Term Bullish or Bearish or Neutral.

If the Stock (or ETF) moves out of Early Range High, then the Stock is Bullish in the short term. And if it goes below Early Range Low, the Stock is Bearish in the short term. If the Stock moves within Early Range, then it is Neutral in the short term.

As seen from the Fine Tune charts below, DIA was not able to go above Early Range High. However, both QQQ and SPY went well above Early Range High in their respective charts. 

​​In Day Trading, if I am looking for Shorting a Stock or ETF, I tend to Short the weakest among related symbols. This principle (and the Memory Resistance in DIA Daily chart) lead me to take a Bearish Day Trade on DIA using Weekly Short Call Vertical. I used "Short" Vertical to have time decay in my favor. Below is the Risk Profile of this trade.

I tend to place Good Till Cancelled (GTC) profit booking order on a partial position as soon as my Trade Entry is filled. In this case, I did the same. And within 1 hour; as highlighted in the chart above; half position was closed with 50% profit.

At the end of the day on 3rd Jan, just before Market Close,  I looked up DIA in CUE Spotlight - which combines the Daily Hop On view and Intraday 5 Min Real Time Fine Tune view of the instrument.

This snapshot is shown below. I noticed that the Daily Candle was ending the day with a Bullish shape; with Long Lower Tail. And in the Fine Tune, 5 Min chart on the right, DIA had recovered significantly from Day's Low. As I initiated the trade as a Day Trade, and the day was ending with Bullish tone, I decided to close the remaining position at 25% profit. This trade resulted in a net profit of 37% on the full position within one day.

​The trade was taken as Short Call Vertical using Weekly Options (DIA 6 Jan 2017, 199/200 Short Call Vertical). Below are the actual orders executed for this trade. 

I closed the 3rd Jan DIA trade with profit. After closing this trade, I noticed that DIA was still below the Daily Memory Resistance. So, next day, on 4th January, I kept an eye on DIA. Looking for another opportunity to take a Bearish trade - provided the CUE charts signaled one.

As it turned out, again, DIA was the only one among DIA, QQQ, SPY that failed to go above Early Range High in the morning session after Market Open. And I took the same Short Call Vertical spread that I used the day before; using Weekly Options.  

Here is the Risk Profile of this second trade.

As usual, I put my GTC profit booking order on half position at 50% profit level. However, this was not triggered. At the end of the day on 4th Jan, I looked up DIA in Fine Tune 5 Min chart. DIA did not go down. Neither could it go up. It Closed right inside Early Range. As the Daily Chart Memory Resistance was not violated, I decided to carry the trade overnight. Below is the CUE Fine Tune view of DIA at the end of the day on 4th Jan.

Carrying the trade forward turned out to be the right decision. Next day, DIA fell, and the GTC profit-taking order on half position was executed around 11 AM on 5th Jan.

I then put another quarter position profit-taking GTC order at 75% level. And before midday on 5th Jan, that was also triggered. I was then left with a quarter of the original position. And I decided to try to let it expire worthless. Knowing that from this point onward, the trade was a guaranteed Risk-Free-Trade. Even if DIA rallied, due to the loss-limiting feature of Vertical Spread, the overall trade was going to make a profit.

Here are the DIA Vertical Spread orders executed on this trade till this point.​

Next day; on 6th Jan; which was the expiry day of the Vertical Spread, DIA did not come down. Instead, it went up and Closed at 199.51. Right in the middle of the two legs of the Vertical. The DIA Long 200 Call expired worthless. And the DIA Short 199 Call was worth 0.51. I had opened the Vertical Spared for 0.41 credit. So there was a small loss in this remaining position.

Overall, still, the trade made 44% profit in 3 trading days. I was able to capture a profit as I booked profit in a disciplined manner at 50% and 75% levels without hoping for a much larger profit on the whole trade.

The CUE Fine Tune 5 Min chart below explains the full trade Entry and Exits.

As these two DIA Day Trades show, a disciplined trader can use the CUE Charts to make a significant profit using Weekly Options. Superior Profit Traders do that regularly. And sometimes they share their trades while they are taking it.

Both of these trades were posted in Superior Profit Traders Community while they were entered. Not as a Trade Alert to fellow traders. But as a way of demonstrating how the CUE Charts may be used to take disciplined and profitable trades. The trades are posted before knowing their outcome. And sometimes; if required; our traders accept a small loss and move on to next trade. That detail is also shared in the Community posts.

You may find the 3rd January 2017 trade in Traders Community following this link and the 4th January 2017 trade following this link.

There are many similar Day Trade ideas as well as Long-Term Investment, and Swing Trade ideas in the Superior ProfitTraders Community.

I hope as you go through these trades, it will give you some insight on how Superior Profit Traders are taking profitable trades every day in different countries around the world.

Sagar

Tuesday, January 3, 2017

Vertical Spread Option Trade with CUE Bounce Set Up

Monday, January 2, 2017

LEIBOVIT VOLUME REVERSAL TUTORIAL ON METASTOCK FOR QQQ, DIA, SPY

From the desk of Mark Leibovit:

Leibovit Negative VRs in DIA, SPY and QQQ in recent days and weeks confirmed a market peak. Now we have to watch the first days of January to see if this selling accelerates or finds support.  VRtrader was long inverse ETFs but took profits Friday with a view to reinstate positions after the New Year.