After a one-on-one Mentorship lesson, John Paul catches up with a recap of the E-Mini S&P. Based on emails we’ve been receiving, many traders followed John Paul’s strategy to go long (buy the market). His strategy is to buy the market whenever the E-mini S&P retraces back to the previous highest high.
Take a look at how January of 2013 ended higher than the price at which it began. According to the January Effect, the overall year of 2013 should trend bullishly. If you do a search here on the blog for “January Effect”, you can see John Paul’s previous predictions.
After a high has been reached, there is often a pullback to the short side. When price climbs back up, and hits the price of the previous high, consider buying the market. Many other trading firms keep saying “go short”, but every time a high was reached, the market went long again. Fast forward to 3:30 to see the recap of this behavior so far in 2013. There were many possible, profitable buying opportunities.
Why is this relevant now? Because on April 11, 2013, the E-Mini S&P was at it’s highest high of the entire year, tagging 1593.00. Wait for the retracement and see what happens!
You can take a look for yourself. Check out our Get Started Trading Guide and install NinjaTrader. Use the free, included Kinetick end of day data and open a “Day” chart. You’ll see the same price bars as John Paul demonstrates.