Wednesday July 30th Review:
Markets didn't care much for the FOMC at 2pm, just a small rally but the $USD dropped somewhat after touching a bit of daily supply. I think better supply is just up ahead (see $USD chart). Currencies reacted to the $USD moving downwards. Crude Oil figures came out (see Crude Oil). $AUDUSD comes out with bad Building Approval numbers. (see $AUDUSD)
Thursday July 31:
Some more $US & $CAD news out at 8:30am, then $AUD and $JPY later on in the day. Will be watching the currencies closely as a trend change may be in the works.
Markets didn't care much for the FOMC at 2pm, just a small rally but the $USD dropped somewhat after touching a bit of daily supply. I think better supply is just up ahead (see $USD chart). Currencies reacted to the $USD moving downwards. Crude Oil figures came out (see Crude Oil). $AUDUSD comes out with bad Building Approval numbers. (see $AUDUSD)
Thursday July 31:
Some more $US & $CAD news out at 8:30am, then $AUD and $JPY later on in the day. Will be watching the currencies closely as a trend change may be in the works.
Futures --> 1 contract (at most)
Options --> $1000 estimated (per position)
Currencies --> $100,000 (depending on size of the zone)
Options --> $1000 estimated (per position)
Currencies --> $100,000 (depending on size of the zone)
You can follow, learn & PROFIT from The Magic Portfolio by following the members only @MagicAlerts on Twitter. I'll be sharing my thoughts on the markets, providing video lessons on trading Supply & Demand and also be sharing with followers some very exclusive stuff. You'll have to follow to find out what. I am mapping out Institutional Demand & Supply. Do your own DD and use the info whatever way you see fit. Welcome to The Magic Trading Portfolio!
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| NASDAQ hits supply, are the bears back? |
WELCOME NEW SUBSCRIBERS! Learn from this blog and you will learn to think and trade like the big institutions, but thats just my opinion. See for yourself!
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| Comment from blog follower/ friend |
Magic Ingredient:
If there is any one thing that has added more to my success than anything else, it is understanding how important it is to time the market with your trades. The key to my strategy is to time the markets GREEN and RED zones with the GREEN and RED zones from the setups. If they are both entering their same colored zones at around the same time then the probability of the setup working out is highest. Otherwise, market needs to be trending upwards to take entry of setups in the GREEN zones or market needs to be trending downwards to take entry of setups in the RED zones.
SHADED GREEN ZONES = Strong Buy Zones
SHADED RED ZONES = Strong Sell Zones
Markets Overview (The Big Picture):
Take note of the GREEN demand zones and RED supply zones mapped out below. These are the areas of interest for me because this is where there is a great deal of demand to fill buy orders and supply to fill sell orders from the institutions. NASDAQ -> hit daily supply and RSI getting weak = BEARISH
S&P -> daily demand did not hold = BEARISH
DOW JONES -> daily demand did not hold = BEARISH
RUSSEL -> daily demand holding so far = BULLISH
$USD Overview (Daily Chart)--> Supply @ 81.72 - 81.99 & Demand @ 81.06 - 80.98 outlined below.
Currencies:
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The Million Dollar Strategy:
Chart Setup --> Chart has an 89 period EMA and an 8 period EMA, RSI indicator of 60 overbought and 40 oversold.
Buying or Selling when price enters a 240 minute area of demand/supply outlined by the green zone/red zone. First target will be opposing 240 min supply zone/demand zone and or once price crosses the 89 EMA then a close below/above the 8 EMA will be the
sign to take profit or close the trade.
sign to take profit or close the trade.
$USDCAD --> The Canadian Dollar just hit weekly demand and should be heading upwards. The ideal trade is to wait for retraces into demand and then take long.
THE SETUP: Will wait for a retrace into 30/240 demand @ 1.07680 and then go long to catch the trend upwards.
$AUDUSD --> The Australian Dollar hit some weekly supply and is heading down.
THE SETUP: Watching for a rally into the 240 supply zone to short the pair down.
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| $AUDUSD updated July 30 |
July 30 -> Bad Building Approval numbers came out. Price Rallies.
$USDCHF --> The Swiss Franc is just hit daily demand and is heading up.
THE SETUP: Will wait for a retrace into daily demand @ 0.89831 and then go long to catch the trend upwards.
$EURUSD --> The Euro just hit daily supply and seems to be heading down.
THE SETUP: Will wait for a rally up into a supply zone and then short it.
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| $EURUSD updated July 30 |
$GBPUSD --> The Pound has just hit weekly supply and should be heading down now.
THE SETUP: Will short at a rally into a supply zone.
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| $GBPUSD update July 30 |
$NZDUSD --> The New Zealand Dollar just hit weekly supply and looks to be starting to trend down.
THE SETUP: Wait for retrace into 240 demand and then long it. Reason for counter trend trade being ok is that the 240 demand zone is in the lower 33% of the curve.
Futures:
The 30 Minute Chart Strategy:
Chart Setup --> Chart has an 89 period EMA and an 8 period EMA, RSI indicator of 60 overbought and 40 oversold.
Buying or Selling when price enters a 30 minute area of demand/supply outlined by the green zone/red zone. First target will be opposing 30 min supply zone/demand zone.
The 240 Minute Chart Strategy: Buying or Selling when price enters a 240 minute area of demand/supply outlined by the green zone/red zone. First target will be opposing 240 min supply zone/demand zone.
$GC_F Gold --> 30 min demand zone worked perfectly. Supply & Demand outlined on the chart.
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| Gold updated July 30 |
$CL_F Oil --> Supply & Demand outlined on the chart.
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| Crude Oil updated July 30 |
July 30 -> Crude Oil Inventory numbers came out and price dropped.
$HG_F Copper --> Supply & Demand outlined on the chart.
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| Copper updated July 30 |
$NG_F Natural Gas --> Supply & Demand outlined on the chart.
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| Natural Gas updated July 30 |
Stocks & Options:
The Trinity Trading Strategy:
The Trinity Trading Strategy is the strategy all the others are based on.
Chart Setup --> 30 Minute chart has an 89 period EMA, a 45 period EMA and an 8 period EMA, RSI indicator of 60 overbought and 40 oversold.
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| The Trinity Trading Strategy |
Buying or Selling when price enters a 30 minute area of demand/supply outlined by the green zone/red zone. First target will be opposing 30 min supply zone/demand zone and or once the 8 EMA crosses the 89 EMA and after the 45 EMA crosses the 89 EMA, then a close below/above the 8 EMA will be the sign to take profit or close the trade. If price action is strong, then I will add to position when price touches the 45 EMA. Finally, the position will be closed when the 8 EMA crosses the 45 EMA.
The 89 Bounce Strategy:
Chart Setup --> 30 Minute chart has an 89 period EMA, a 45 period EMA and an 8 period EMA, RSI indicator of 60 overbought and 40 oversold.
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| The 89 Bounce Strategy |
Buying or Selling when price hits the 89 EMA and/or enters a 30 minute demand/supply outlined by the green zone/red zone. Then you must wait until the distance between the 8 EMA and 45 EMA is the same or larger than the 45 EMA and 89 EMA. Wait for close below the 8 EMA to take partial profits. The close trade when the 8 EMA crossed over the 45 EMA.
The Slingshot Strategy:
Chart Setup --> 30 Minute chart has an 89 period EMA, a 45 period EMA and an 8 period EMA, RSI indicator of 60 overbought and 40 oversold.
Buying or Selling when price hits a 30 minute supply/demand outlined by the red zone/green zone. Then you must wait until the distance between the 8 EMA and 45 EMA is the same or larger than the 45 EMA and 89 EMA. Wait for close below the 8 EMA to take partial profits. The close trade when the 8 EMA crossed over the 45 EMA.
In all strategies, exit for a loss if price breaks through the zone position is opened on.
How do I activate a trade?
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| Slingshot Strategy Entry |
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| 5 Min RSI confirmation |
$ATML (Trinity Play) July 28 --> Price retracing to a daily and weekly demand zone. Will watch for strength within the zone for possible Trinity play.
$AMAT (Trinity Play) July 28 --> Price just hit a daily supply/demand zone but if market pulls back some I would expect this zone to break and price to fall back into the daily demand zone below. Will watch for possible Trinity play.
$MIC (Trinity Play) July 28 --> Price retracing to a couple daily demand zones. Will watch for strength within the zone for possible Trinity play.
$WFM (Trinity Play) July 24 --> Earnings July 30 after close. Price hit daily/weekly demand, daily RSI is weak so watching RSI on 30 min chart on dips for possible entry long.
$SWKS July 21 --> Great earnings came out Thursday evening, so would like to see a retrace into 5 min demand to take some options long.
July 24 -> price is in the 5 min zone, watching for strength.
$YELP (Trinity Play) July 16 --> I like this one because price is about to hit weekly demand, within that weekly demand is a great 30 min demand zone I'd like to take entry on. See chart for details.
July 25 -> WINNER, Price hit weekly demand and is making it's move out.
$AMAT (Trinity Play) July 28 --> Price just hit a daily supply/demand zone but if market pulls back some I would expect this zone to break and price to fall back into the daily demand zone below. Will watch for possible Trinity play.
July 29 -> Price is setting up here nicely for a potential entry. Will wait for FOMC news to come out first.
$MIC (Trinity Play) July 28 --> Price retracing to a couple daily demand zones. Will watch for strength within the zone for possible Trinity play.
$WFM (Trinity Play) July 24 --> Earnings July 30 after close. Price hit daily/weekly demand, daily RSI is weak so watching RSI on 30 min chart on dips for possible entry long.
July 29 -> Got a very nice spike on this one today.
$SWKS July 21 --> Great earnings came out Thursday evening, so would like to see a retrace into 5 min demand to take some options long.
July 24 -> price is in the 5 min zone, watching for strength.
$YELP (Trinity Play) July 16 --> I like this one because price is about to hit weekly demand, within that weekly demand is a great 30 min demand zone I'd like to take entry on. See chart for details.
July 25 -> WINNER, Price hit weekly demand and is making it's move out.
$QUIK (Trinity Play) July 14 --> Price is retracing nicely toward daily demand but may drop even further as there is more demand below and weekly demand starts at $4.15. Will watch this one closely as I feel a big bounce is coming.
July 29 -> WINNER, price dropped into daily demand and is now heading out.
$KMX (Trinity Play) July 24 --> Price hit daily demand and RSI was strong so I opened this trade with some Oct $50 call options.
$SYK (Trinity Play) July 24 --> Price hit daily/weekly demand, daily RSI is weak so watching RSI on 30 min chart on dips for possible entry long.
July 25 -> Trade Activated, in some Sept $80 calls
$AAPL July 23 --> Price hit some daily supply so I activated a Put option, Sept $100 put. 1rst target -> 95.50 area.
$IDTI July 23 (Trinity Play) --> Price is retracing off of weekly supply toward daily demand, will be watching for confirmation of entry and then pull the trigger long.
July 23 -> Trade Activated, in Nov $14 call options.
July 25 -> Earnings on Monday after the Bell, so would like to see a ramp up leading towards then.
July 25 -> Trade Closed, looking too weak.
