Friday was an interesting day in the market. Given it was the day after the Fourth of July and right before the weekend, I know many traders sat it out.
Unfortunately for them, they missed out on some serious gains. Friday’s Trade of the Day offered 86% profit potential in just over an hour.
We have the jobs report released Friday morning to thank for some movement in the market on what may have otherwise been a pretty boring day.
More importantly, one of my favorite bearish setups played out perfectly.
When I sent Daily Profit Machine members my Trade of the Day 30 minutes prior to the market open, I told them we were nearing what I believed to be a selling point at $300 on SPY, the ETF that tracks the S&P 500. Wednesday’s close at $298.80 was establishing itself as crystal clear overhead resistance that could be used to trade put options on a lighter-volume day following the release of the jobs numbers.
Another reason I expected a move to the downside was that SPY hit an all-time high Wednesday, and pattern recognition shows an all-time high one day is typically followed by a pullback the next day.
What I really wanted to see was a head and shoulders form at or near the open and use it as an opportunity to buy put options. This meant I was rooting for an initial pop, some sideways action or consolidation, and then a drop.
And, boy, do we love those drops! The pattern played out perfectly, as you can see in the chart below:
Those who followed my recommendation had the chance to book a double-digit percentage gain in a matter of minutes. And those who held on longer could have pocketed up to 86%. And that was on a move of less than 1% in SPY. That’s the beauty of options and the leverage they offer.
Oh, and did I mention Friday’s Trade of the Day was the 51st trade in a row that had the potential to be a winner!
My Twitter account blew up Friday with members making bank in an hour or less. Here are just a few of their tweets:
One trader was able to enter on the right shoulder and make 45%. Another cashed out with $800 after just 14 minutes. And another made $345 in 15 minutes, bringing his total return for the week to over $4,000.
I plan to keep this winning streak going and am excited about our prospects for next week.
SPY is in a perfect trading range with both selling point opportunities (for put options) and dip buying opportunities (for call options). Keep in mind my system trades both sides of the market, so there’s no need to sit on your hands in indecisive markets or red markets. In fact, members often make some of their biggest profits in those trading environments.
The levels I will be watching in the coming days and weeks are SPY $294 as support and $300 as potential resistance. The $294 level must hold for SPY $300 to come sooner rather than later. I’d love to see that level hold, some basing, followed by a dip and then a run.
While a $6 trading range might not sound like much, you can make double-digit and even triple-digit percentage returns with a range like this.
Trust me, you’ll be kicking yourself if you miss out on gains like this. You’ll also be kicking yourself if you don’t sign up before the price goes up.
I’m currently offering a year’s worth of my Trade of the Day for just $999, but this deal won’t be around forever.
If you want to ensure you get in at this discounted price, act now.
America’s #1 Premarket Trader,