Emini Podcast | Episode #1578



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I should have added Classic Rock to the headline. It's all the above and more, yet just 2 lines in the sand. When the next tide comes in, it will be washed away, leaving a clean slate for the next trade. I write often about Candelsticks and Chart Patterns, but if you scan the archives you'll see that my relationship with the Doji runs long and deep. When the woman accused of adultery was brought before Jesus to be judged, he knelt and wrote in the sand. Scripture does not reveal what he wrote, but many theories exist. Don't get too serious on me.
I've said it before and it still holds true, you could build a trading career on 2 lines in the sand. This Doji tonight fell into a special category where multiple roads intersect, but that's often the case. Isn't it?
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We gapped higher on the Globex open Sunday night and so far that has been the high of the week. Our first Tweet of the week was to Sell 1458.25.
Stocks began the year with a bullish push. There's an old adage that so called "calendar money" or "new money" comes into the market over a 3 day period. That explains the big gap open we saw on Wednesday January 2, the first trading day of 2013. It also explains what we saw on both Thursday and Friday. The question today as the markets opened was "What happens when the new money dries up?"
The chart below is a Globex 24 hour chart of the S&P500 Emini Futures.
Corporate - We've covered a lot of ground in 2012. Partners are flourishing, our mission is more vivid than ever before and we just finished our best month yet in the Live Emini Training Room. Tip o' the hat to Michael for a job well done. As you already know, the business of trading can be a challenge on even the best of days. Michael's ability to remain focused on multiple markets while answering questions and training, is no small task. It's a rare day at the office when I don't receive at least one email, phone call, or live chat from a Partner expressing their gratitude for his diligence and hard work.
We are on the verge of completing our best month ever in the Live Emini Trading Room. November posted a gain of $3,800.00 per contract. If you're a 10 contract trader, you can do the math. These results do not include any of our other trading exploits. This represents just the 2 hours each day when we trade in front of a live audience which consists of CFRN Partners and those taking our 1 Week Free Trial. If it's not done in public, we do not add it to this tally.
We discuss each trade we take. We talk about if before, during and after. We point out the setup, we establish the exact price for entry and we use aggressive risk management. No matter which market we are trading in the Live Trading Room, we never risk more than 8 ticks. This includes:
Today's topic is 2 Points. Specifically, 2 Points in the S&P500 Emini Futures. Each market has its own equivalent so don't leave the room just yet. If you like trading Dow Futures, the corollary is 20 points. Prefer the Russell? Just 1 point will do it. Soybeans? This is where you put your 2 cents in. In other words, our discussion can be applied to any market that has sufficient daily range and liquidity.
Let's look at an average day in the S&P -