THE MAGIC TRADING PORTFOLIO: ***Wednesday July 16th Review*** $SPY $QQQ $IWM $DIA + Closed $PDS for profits, added to $BBY & $ACAD, $NE working ***PORTFOLIO --> $ACAD $BBY $NZDUSD ***WATCH --> $YELP $CZR $KERX $ISIS $NE $QUIK $SSYS $CYTR $LNKD

Wednesday July 16th Review:

Yellen Vellen Foo Bellen, Banana, Ramma..... you get the point. Whatever she said it moved the markets which is what we wanted. $SPY futures dropped into 30 min demand and I took it long. Added to my $BBY position when it dipped and created RSI at 40 and added $VNDA position to the portfolio.

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 14 - 18, 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

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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 -> 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 14)

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.

$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.

$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.

July 16 -> Trade Activated, in at .86885, target at .87535

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.

$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?

Slingshot Strategy Entry

A trade is activated like so, if the Demand or Supply zone is a larger zone such as a daily zone then the following Slingshot Strategy setup example, is how I activate a trade. Price drops into a daily supply zone, now demand, if RSI on daily is around 40 I wait for 5 min RSI confirmation otherwise I wait for 30 min chart RSI to be around 40 or above on a dip and get into position on that dip on a 5 minute chart for a low risk entry. Take a look at the chart for more details.

$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.

$CZR (Trinity Play) July 16 --> Price just hit weekly demand and daily demand but daily RSI is weak. Will watch for price to play out and look for entry. I think this one will bounce soon.

$KERX (Trinity Play) July 16 --> Price retracing toward daily demand, so will watch for RSI when price enters and decide on whether to enter or not based on price action and market.

$ISIS (Trinity Play) July 16 --> Waiting for price to enter the daily demand zone and then I will watch price action for entry. Price is already within a weekly demand zone as well.

$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.

$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.

$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.

$SSYS (Trinity Play) July 13 --> This one could pay very well, looking at the option for this one, Just touched monthly demand and daily demand, also just took out some daily supply so now had big upside to $116 area. Watching 30 min RSI to be around 40 on the next dip and would like it to drop into the 5 min demand zone outlined below. Trinity Play

$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

July 11 -> Trade not taken but working perfectly. Perfect call on the 5 min demand zone, should have Set & Forget this trade, with .06 cents of risk, this one will be a nice one. Will watch for entry.

$NE (Trinity Play) July 14 --> This one will make a good option play. Price just hit weekly and daily demand and now is on the move up. 30 Min RSI on last dip was weak at 27 but the next dip into 30 min demand between 32.10 - 31.94 or 5 min demand, looks like will be higher than 40 RSI for a nice entry into this trade.

July 16 -> Missed my entry as I was with my baby girl! :) Setup is working nicely though, 30 min dip yesterday RSI was at 40. Take a look.

$BBY (Trinity Play) July 13 --> This setup has to be my favorite at this point. Slowly dropping toward daily and weekly demand. Will wait for price to drop into these demand zones and then watch 30 min RSI confirmation and 5 min chart for low risk entry. Trinity Play

July 15 -> Trade Activated, in some Aug 16 $29 call options.

$ACAD (Trinity Play) July 16 --> Opened a position on this one based on price hitting a daily and weekly demand zone, RSI on the daily around 40, positive divergence on the 30 min chart and low risk entry.

July 16 -> Trade Activated, in at 20.18

$PDS (Trinity Play) July 15 --> Got in this one early as I am liking the risk/reward. Was going to put this one on watch for tonight but $SPY dipping, stock dipping, looked like a good time to get in.

July 15 -> Trade Activated, in at 13.33
July 16 -> 9:13am - took partial profits on big spike pm, then closed position.

$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, in at 13.96. Perfect call on the 5 min demand zone, with just .13 cents of risk the reward will be huge. Will manage trade on the 30 min -> Trinity Play

July 15 -> Stop hit, profitable trade. (took partial profits on the spike)

$VNDA (Trinity Play) July 16 --> Had my eye on this one, price touched daily demand with fairly strong RSI around 35 so I am taking entry with a small risk based on the 120 min demand zone. Plus, $Spy was about to turn upwards. Good article out on $VNDA ARTICLE LINK