“Follow the Dream Team & Your Account Will Grow” - Michael
Welcome to Issue 042 of Masters in Trading Digest.
In the previous issue, we started by noting a MAJOR inflection point the S&P 500 was hovering around.
Instead of guessing which way the market trades, we encourage traders to follow the line-in-the-sand.
Let’s look at how the market respects our “line-in-the-sand” and what traders can expect next.
The Members Discord is “bumpin’” this week!
- $FXI: 56%
- $CORZ: 12%
- $RIOT: 25%
And finally, a special announcement for this week’s Friday’s Futures Breakdown…
Enjoy,
Jonathan
THIS WEEK'S SCHEDULE
Not a member of our Options, Futures or Web 3.0 yet? Learn more below.
Masters in Trading Digest - Issue 42
Get MIT Digest!
Want FREE actionable trading tips and strategies like the ones you see here 3 times per week?
We're now accepting sign-ups, FREE for a limited time. Register below to join the Digest.
Unsubscribe at any time! Your email address will be used to send you Masters in Trading DIGEST issues.
Major Inflection Point For the S&P 500
MONDAY (03/21)
The 200-day moving average is represented by the purple line and represents the average price over the past 200 days (or 40 weeks).
Traders should use /ES $4464 as the “line-in-the-sand” for the week.
- Any sustained trade over $4464 is BULLISH
- Any sustained trade under $4464 is BEARISH
For instance, if the “line” holds, and the /ES Futures fail to trade above the 200 period moving average, we know that volatility will trade higher because there’s more uncertainty when markets trade lower.
Trading the Line-in-the-Sand
WEDNESDAY (03/23)
How has our “line” traded for the week?
Notice how the market keeps getting “sucked” back to this inflection point?
From experience, the stock market does NOT like to hang around big numbers.
But, this is the time to not guess in direction, and wait for the market to confirm a bullish or bearish outlook.
This is a rule you can rely on:
- markets fall volatility rises
- markets rise volatility falls
We covered the concept of the “line-in-the-sand” in our MIT Digest Issue 24.
Learn more about Position Management.
[ANNOUNCEMENT]
WHAT TO EXPECT IN THE NEXT MIT DIGEST
This Friday at 1PM EST we will hold a special one-day event on Bond Futures. (If you are not a member, registration is now open.)
This session’s intent is to share an options on futures trade that we had been discussing…
To execute the trade we emailed the broker (I don’t trade Options on Futures much so having the Broker execute the trade was comforting for me).
One year later, on Feb 11, 2022, I asked them to cover the trade for me.
And we’re out!
Bought for 6 ticks 10x ($1500 Risk)
Profit (so far) selling puts at $102 = $26,000
Keep your feedback coming into support@mastersintrading.com. We’re excited to share your feedback along with fantastic suggestions for upcoming issues.
Until then, trade smart and always manage your tail-risk.
Thanks for reading,
Jonathan Rose
Get Masters in Trading Digest FREE!
Want FREE actionable trading tips and strategies like the ones you see here 3 times per week?
We're now accepting sign-ups, FREE for a limited time. Register below to join the Digest.
Unsubscribe at any time! Your email address will be used to send you Masters in Trading DIGEST issues.
