Part 1: Making Profit from the Jobless Claims Report
The jobless economic report on August 25, 2011 caused a huge green candle around 9:15 a.m. The candle was the result of traders covering their short positions. Any Bloomberg red star news events are best avoided as the market can unpredictably move strongly. There’s really no correlation between “positive” news events driving price higher or “negative” news events drive price to new lows. To prove this, the jobless report said there were fewer jobs and then E-mini price went up. In the Mentorship Program, John has a couple strategies he teaches his students to create profit out of news event volatility. You can see how he makes the jobless report work in his favor by producing a 3.5 point winner. A twist of irony, eh?
Part 2: Missed Atlas Line Trade – Paying Attention is Key
We post a lot of futures trading videos showing John Paul’s perfect trades. While he’s successful to a very high degree, you can see how trades can slip away from even the best traders who are late to arrive at the party. Paying attention, placing your orders in advance / on-time is key. The Atlas Line produced the right signal on the E-Mini, but because John wasn’t paying attention, it resulted in a missed opportunity of around four points. See how this Short signal shows up at 1175. The trade then starts to run away and John’s limit order does not follow. His only option is to look for Atlas Line Strength Trades and Pullbacks. When trades don’t work in your favor, it’s best to just let them go. Another opportunity is on its way – learn from your mistakes and move on!
Part 3: Atlas Line Strength Trade
Soon after John missed the first Atlas Line trade, he noticed an Strength setup. Using the fact that price was below the Atlas Line, he went short according the the Strength Trade rules. You can see how it would be disadvantageous to chase after price. Hold those limit orders! He sets up a two point profit target with three stops in place. Target filled. That’s five points using the Atlas Line – not to count the other E-mini trading techniques that could have been used.
Finally, we’d like to congratulate William C. from Indian Head, MD for winning the free Mentorship drawing. He will be attending the eight weeks of training with included courses and software along with other enrolled students. If you’d like to enroll, complete the form on the Private Mentorship page and we’ll be in touch with the details. Coaching starts this Monday, August 29.