THE MAGIC TRADING PORTFOLIO: ***Friday July 11th*** $SPY $QQQ $IWM $DIA + Made $$$ on Nasdaq Futures bounce & $USDCAD trade, Stop hit on $FEYE $JPM because of gap down & $AUDUSD ***WATCH*** $CYTR $CLDX $LNKD

Thursday July 10th Review:

Massive drop this am in the futures market. Taking most by surprise. So I'm looking for some good demand zones that this market will bounce from. Going to be some good long opportunities soon. Had my order in on $CHFUSD but didn't get filled, took off without me. But made some of my loses back scalping Nasdaq futures on the bounce. Watched 5 min RSI till dip was about 40 and bought. Seems like I'm on a bit of a losing streak, so going to take a few days off to let things settle and work on my trading plan to help me avoid these losses again in the future. Come back even stronger next week. Cheers!

The Magic Trading Portfolio's Position Sizing:
Futures --> 1 contract (at most)
Options --> $1500 estimated (per position)
Currencies --> $100,000 (depending on size of the zone)

Click here for the Week Ahead -> July 7 - 11, 2014 Market Movers

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!

Been posting a lot of killer winners on the @Magicalerts twitter feed. Congrats followers on some of your wins.

***NEW SETUPS ADDED TO PORTFOLIO BELOW***

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!

Comment from a loyal follower and new friend

How to keep updated with the blog? I tweet updates to The Magic Trading Portfolio all day live, my advice is if you have an iphone etc, turn notifications on for my account @magikev to get the updates to the portfolio. If you missed an update, just come to the blog and check on the right side where the twitter feed is located and go through the feed to see what updates you may have missed. Otherwise, subscribe to the email updates and receive them in your inbox.

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 supply and dropped into demand.
S&P -> hit demand and should be heading upwards.
DOW JONES -> hit demand and should head upwards.
RUSSEL -> hit demand and should be heading upwards.

Markets Overview (30 Min Chart):--> Supply & Demand outlined below. (July 9)

Currencies:

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.

$USDCAD --> The Canadian Dollar just hit weekly Demand so it should now be heading UP. The ideal trade is to wait for retraces into demand zones to join the trend upwards until we reach the daily/weekly supply zones.

THE SETUP: Wait for retraces into 240 demand and take long.

July 9 -> Trade Activated, Target is 1.07165 (Daily Supply)

July 10 -> Trade closed for small profit.

$AUDUSD --> The Australian Dollar hit some daily supply and is heading down. The ideal trade is to wait for retrace into demand to catch the uptrend.

THE SETUP: Waiting for the rally into 240 supply for me to short.

July 9 -> Trade Activated, short at .094278
July 9 -> Stop hit after news blew through my zone, should have placed stop higher.

$CHFUSD --> The Swiss Franc is just coming off of weekly demand which leads me to believe we may be heading up. Taking a look at the daily chart you can see price bounced twice from the weekly zone with the RSI getting stronger. Therefore, price rallied. The ideal trade is to wait for retraces into demand to ride the trend upwards.

THE SETUP: Will wait for a retrace into 240 demand and then go long to catch the trend upwards.

$EURUSD --> The Euro just hit daily supply and seems to be heading down. The ideal trade is to go long from demand zones and ride the trend up.

THE SETUP: Will wait for a rally up to the daily supply zone and then short it.

$GBPUSD --> The British Pound just hit weekly supply and looks to be drop down into demand. I deal

trade is to short from supply zones.

THE SETUP: Right now the British pound is within a 240 supply zone, but price action makes me think twice about shorting this one here. I like the 240 supply one above it though.

$NZDUSD --> The New Zealand Dollar just hit weekly demand and looks to be starting to trend up. The

ideal trade is to wait for retraces into demand zones to join the trend upwards.

THE SETUP: Wait for retrace into 240 demand and then ride it back up.

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 (30) June 23 --> If gold retraces, this 30 min zone will be a great place to jump on board.

July 3 -> passed on the trade, seemed to weak.

$HG_F (240) May 12 --> Going to watch as price enters the daily supply zone, wait for weakness and short.

July 3 -> passed on the trade, seemed to weak.

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.

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.

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?

5 Minute RSI > 40 Entry

A trade is activated a couple of ways: 1) If the Demand or Supply zone is a 30 minute zone or smaller or if upwards, I will activate the trade when Price touches the zone. 2) If the Demand or Supply zone is a larger zone such as a daily zone or if the market is moving sideways or down, then I will use my 5 Minute RSI confirmation entry, to activate the trade. Take a look at the chart to understand how this works. The reverse is used when dealing with a Supply zone.
the market is heading

$CYTR (5) July 10 --> I like the positioning of this one, in daily demand and weekly demand, 30 min chart RSI is above 40 but hasn't dipped yet, so looking for a dip into the 5 min zone between 3.47 - 3.41 to take entry long. Will manage trade on the 30 min. Trinity Play

$CLDX (5) July 10 --> Was early on this one and missed the entry into daily demand today. 30 min dip RSI is at 40, price is also in weekly demand. If market is strong on Friday, would like to by this dip into 5 min demand and ride it based on 30 min chart. Trinity Play

July 11 -> Trade Activated

$LNKD (30) July 10 --> Showing all time frames on this setup because it's important to note that price hit weekly and daily demand and the profit zone on this one is huge. Clear skies for this one to fly higher. Daily RSI is above 40 meaning it has the gas to move high. Trinity Play
July 10 -> still looking to take entry into this one. 30 min RSI on dip is now around 40, within daily demand and weekly demand, all we need is a strong $SPY and this one will fly.

$JPM (30) July 8 --> nice drop right into daily demand, would like to wait to see a dip with an RSI around 40 or higher to take entry into some call options. Trinity Play

July 9 -> Trade Activated, in some Sept $55 call options.
July 10 -> Sold position on the spike after drop.

$FEYE Weekly) July 8 --> Opened up an option position on this one since it hit weekly demand and should over the next couple weeks be heading upwards. Trinity Play

July 8 -> Trade Activated, opened a position in Sept 20 $35 Call Options long.
July 10 -> Sold position on the spike after drop.

$LVS (30) June 30 --> Opened a position on this one based on a retrace into 30 min demand from hitting higher up supply. (89 Bounce strategy in play) Target 1 - 78.65

June 30 -> Trade activated, 89 Bounce Strategy in play.

July 2 -> took partial profits on close below 8ema on the 30 min chart.

-> Would like to close position when 80.59 is reached.

July 7 -> Added to the position on 89 bounce and 5 min demand zone.

July 7 -> Position Closed for profit. 8ema crossed 45 ema for signal to close position.

$KLAC (30) June 30 --> Opened a position on this one based on a break of 30 min supply and then pullback into the zone, now demand. (Sling Shot strategy in play) Target 1 - 74.88

June 30 -> Trade activated, Slingshot Strategy in play.

July 1 -> took partial profits on a close below 8ema on 30 min chart.

July 7 -> Position Closed for profit, target hit.

$MS (30) June 30 --> Opened a position on this one based on hitting the 30 min demand zone. In some Aug 16 31 Call options. (Trinity Strategy in play)

June 30 -> Trade activated, Trinity Strategy in play. (notice what makes this a great Trinity play is the fact that the 8ema is below the 45ema and they are both below the 89ema. Also price hit a daily demand zone)

July 1 -> took partial profits on a close below 8ema on 30 min chart.

July 7 -> Position Closed for profit. 8ema crossed 45 ema for signal to close position.

$GPRO (30) June 28 --> Would like to get my piece of this hot IPO, when It comes down into 30 min demand.

July 3 -> Posted this setup to @MagicAlerts followers. Touched demand and left so far.

$ADSK (30) June 25 --> This one is retracing into a nice 30/weekly demand zone. Want to watch for 5 min RSI positive divergence within the zone for entry into some call options. Click to learn about positive divergence!

July 1 -> trade setup will be put on the back burner for now.