59 Ticks LIVE Today. Day Trading Wacky Wednesday OPEX

Market Gave us clues today…

830am EST

– Dollar index futures are still trading sideways in the long term charts

o We saw some movement on the fast timeframe, but it’s pretty choppy, sideways

o Speed of the tape is slow

o Average true range is low

o Nothing really exciting, but at the same time there really isn’t anything telling us to be overly cautious.

– Euro futures have worked their way off their major lows from last week

o Euro futures now trading inside a very choppy, sideways range from 2300-2200

o Trading at its daily LOD, we will look for a bounce to the upside off these lows.

900am est

– Gold futures trading sideways in their wide trading range at the highs from last week

– Very slow speed of the tape

– Average true is rising fast

– This is divergence: rising ATR and falling speed

– GOLD Futures also trading at their open of the day, which really confirms our concerns over the market condition

Why don’t we trade the YM and NQ?

– Not smart long term trading

– Cost of doing business is too high

– $5/tick way to low!

– $5/round turn, it costs too much to trade it in the long run.

The best markets combine decent volume with decent volatility

– ES: high volume, low volatility

– Crude Oil – decent volume, high volatility (PERFECT)

– Euro: High Volume, decent volatility

– Pound: $6.25/tick, very low cost/tick = same concern as the YM and NQ

OPEX / Quadruple Witching:

– Options expire on the 3rd Saturday of the month

– Last trading day is Friday, so we call it OPEX Friday

– Wacky Wednesday (today) is the wed prior to OPEX Friday

o Shows lots of unexpected volume entering the market at random times.

o This is challenging b/c we need to read the tape to take our trades, and this will be confusing sometimes if we see BIG MONEY come out of nowhere for no reason at all.

– Even worse….this is Quadruple witching

o On months March, June, September, December we have 4 different asset classes expiring

2 best times to trade the FDAX:

– 3am European open -630am EST

o Make sure you have GREEN Pace of Tape, that will tell you when you have enough volume

– 8am – 1115am EST (US OPEN)

– My rule = 100,000 contracts of volume @ 8am est

Dollar Correlation:

– World’s reserve currency

– Everything is settled in dollars

– Buy Crude Oil, sell it for a profit…..i profit in USD

– Expiration on Euro….settled in DOLLARS

– What is the Gold denominated in? Dollar

– Very low volume market, so we don’t trade the DX

– We use the dollar for its simple negative correlation

– Crude Rising…dollar falls.

– FDAX falling….dollar rises

– Dollar is flat….everything is flat

– Dollar @ its open….everything else at their opens

– Dollar is trending….everything else trends…opposite way.

How much do I need to have in my account to trade with you?

– 4 contracts = $4,000usd

– 1 contract = $1,000usd

o $500 E-mini

o $1,000 Gold & Crude Oil

o $2500 FDAX

1,2300 (wrong)European settings on new computers

1.2300 (correct)

This is the easiest way to learn:

– See it live in action

– You learn more with our video materials

– 1-on-1 calls with our members

– Reinforce these materials live, real-time in our trade room

– Lifetime membership, so you can learn and earn at your own pace

7 trades today, 6 winners, 1 loss

+59 ticks, $600usd

Only 4 contracts needed to achieve this today!

See you tomorrow @ 745am EST for the live trade room session!