Tuesday July 8th Update:
In one word -> BRUTAL! lol, I posted this pic of the bear peeking his head through the door because I had a feeling bears were about to come in and BAAM look what happened. Demand zones didn't hold and the $SPY just kept falling. I tried numerous times to get in positions but kept getting stopped out. So I've decided to sit out the rest of the day and just watch and learn from this experience. FOMC minutes out tomorrow so this may be the reason for this craziness. Also, today inspired me to write some new rules into my strategy. Rules that will allow me to get into a trade at the right moment. So I'm actually glad today happened! ;)
So now all markets are in large time frame demand, we should see some upside moves now, hopefully tomorrow's FOMC minutes will help with that. I'll wait till after the announcement to open any long positions. Because of today's losses, I will be lowering my position sizes until I regain some of it back.
So now all markets are in large time frame demand, we should see some upside moves now, hopefully tomorrow's FOMC minutes will help with that. I'll wait till after the announcement to open any long positions. Because of today's losses, I will be lowering my position sizes until I regain some of it back.
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)
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!
This Portfolio is on fire!!!
***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!
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| Comment from a loyal follower and new 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 the top of supply and dropped into demand.
S&P -> retraced and hit daily demand and should be heading upwards.
DOW JONES -> has just about hit demand and should head upwards.
RUSSEL -> hit demand and should be heading upwards.
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.
$USDCAD --> The Canadian Dollar just hit weekly Demand so it should now be heading UP. The ideal demand zones to join the trend upwards until we reach the daily/weekly supply zones.
trade is to wait for retraces into |
| Weekly |
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| Daily |
THE SETUP: Would like to go long from this 240 min demand zone thats within both a weekly and daily demand zone. I believe the trend is going to change here just like the AUDUSD when it hit weekly demand and we all know what happened next.
June 26 -> Trade Activated.
June 30 -> Moved my stop a little lower, breached my zone but there was another zone right below it.
June 30 -> 240 min chart RSI gaining strength. Need RSI to get around 40 on a dip before we rip! So added to position on this dip.
July 1 -> Good news came out this am on the ADP non farm payroll causing the US Dollar to rally, waiting patiently paid off here, but I took a gamble moving my stops.
July 3 -> Positive Employment change and employment rate data came out at 8:30am today and caused price to spike, right into some supply and then a majoyr drop. 240 min chart RSI showing me positive divergence, so I believe we still head up.
July 4 -> $USDCAD continuing to rally after 240 RSI has been getting stronger on every dip. Usually a dip RSI above 40 means a big rally is next. We are just about there. All thanks to this --> LINK
$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 a drop into daily demand to ride upwards
$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.
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
$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.
$CL_F (30) July 3 --> Here's the new demand I plan to take a long position on OIL.
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.
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 |
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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| 5 Minute RSI > 40 Entry |
the market is heading
$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.
July 8 -> Trade Activated, opened a position in Sept 20 $35 Call Options long.
$CLDX (30) July 7 --> I want to wait for price to enter this demand zone and then show signs of strength for me to buy some call options and ride this one up. Trinity Play
$FB (30) July 7 --> Facebook hit some daily supply and is now retracing toward daily demand between 64.81 - 63.35. I believe that price will head back up once it falls into this zone. The 30 min demand area I am looking to take entry of this is within that daily demand zone, Will be watching closely in case price decides to leave without hitting the 30 min area.
$SPY (30) July 7 --> Price hit a 30 min demand zone, in some Aug 16 $197 call options. 89 Bounce Strategy
July 7 -> Trade Activated. 
$MU (30) July 7 --> Price hit a nice 30 min demand zone. In some Aug $32 call options. 89 Bounce Strategy
July 7 -> Trade Activated. 
July 7 -> Setup Cancelled, looked too weak.
$BIDU (30) July 5 --> Based on good forcast and the fact that price is breaking to new highs. On the chart, price broke through supply and has now retraced back into supply now demand, the perfect Slingshot Strategy setup. (Deutsche Bank believes Baidu will report another strong quarter of revenue growth, expecting its revenue to rise 59.3% from a year ago to 12 billion yuan. In the first quarter, Baidu’s revenue rose 59.1%.) Article Link.
July 7 -> Trade Activated, in some Aug 16 $190 call options
July 7 -> Trade Activated again, in some Aug 16 $190 calls.
July 7 -> Stopped Out again! (traded it so badly)
$JPM (30) July 2 --> Would like to see a retrace into the 30 min demand zone to take entry into some call options long. (Trinity Strategy)
July 7 -> Trade Activated, in some July 19 57.50 calls.
June 30 -> Trade activated, 89 Bounce Strategy in play.
June 30 -> Trade activated, Slingshot 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 7 -> Trade Activated, in some July 19 57.50 calls.
$DDD (30) July 3 --> Want price to drop a little further down to the 30 min demand zone to take this one long. (89 Bounce Strategy)
July 3 -> Trade Activated, in some AUG 16 $60 Call Options
$FEYE (30) July 2 --> Waiting for a retrace into 30/daily demand to take some call options long. (89 Bounce strategy)
July 1 -> Trade Activated, in early because of 5 min RSI positive divergence very close to the demand zone, plus I noticed it hit previous supply now demand. Click to learn about positive divergence!
July 3-> Stop Hit, 30 min demand breached.
July 3 -> Trade Activated, in some AUG 16 $60 Call Options$FEYE (30) July 2 --> Waiting for a retrace into 30/daily demand to take some call options long. (89 Bounce strategy)
July 1 -> Trade Activated, in early because of 5 min RSI positive divergence very close to the demand zone, plus I noticed it hit previous supply now demand. Click to learn about positive divergence!July 3-> Stop Hit, 30 min demand breached.
Lessons:
Made a few mistakes on this trade. 1) Didn't allow the full range on the daily demand to play out. 2) Bought too high on the curve. 3) Didn't take entry in lowest demand zone in sideways market.
$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.
$NFLX (30) June 25 --> I like this demand zone on Netflix, just need to wait to see if price will get down there. If market continues weak, we may just see that.
June 25 -> supply hit but trade not taken because of bullish price action.
July 1 -> demand zone trade setup will be put on the back burner for now.
$SCTY (30) June 20 --> Would like to see a retrace into demand to ride some call options long.
July 1 -> trade setup will be put on the back burner for now.
July 3 -> shorting at supply worked but never took the trade.
MUST WATCH VIDEO - HOW TRADING REALLY WORKS
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