Sometimes things just work perfectly…
The inverse head-and-shoulders pattern I was expecting today played out to a “T” and traders had a chance to book a 106% profit in the first 30 minutes the market was open!
When you’ve found a system as reliable as my Trade of the Day, you stick with it.
The Trade of the Day has been correct for 40 days in a row. But something happened today on the charts that I believe will make for even easier and more straightforward trade setups, which is especially great for newer traders.
For days and days, I’ve been speaking about $290 as thick overhead resistance on SPY, the ETF that tracks the S&P 500.
We finally busted through that level in the premarket this morning, with SPY opening at $291.39. It then proceeded to crack four other resistance levels that I detailed in the Trade of the Day email, which I send to traders 30 minutes prior to the opening bell each day.
On green mornings like we saw today, the inverse head and shoulders is my go-to trading pattern.
This pattern is primarily applied using a 5-minute chart on green markets. I look for a possible pullback at or near the open, followed by basing and then a run-up. The run-up is where we look to capitalize on the momentum by buying call options.
The inverse head and shoulders played out perfectly today — a dip near the open, basing and a pop up.
With the market open less than half an hour and SPY up around 1.2%, I alerted traders they could cash out. And thanks to the leverage we gain from trading options, they could have booked a profit of up to 106% today.
These kinds of quick gains are my specialty. One faithful Trade of the Day reader told me he’s been able to grow a $1,200 account to over $9,000 by trading less than 30 minutes each day.
And that is the goal: One simple trade a day that you can enter and exit quickly for consistent profits. No complicated indicators, advanced option strategies or huge trading account required. And no need to spend hours a day in front of the computer screen slaving over stock charts and option chains.
In fact, just today I warned traders of the dangers of over-trading, which can turn wins into losses by the end of the day.
Tomorrow, all eyes will be on the Federal Reserve as they wrap up the FOMC meeting. While the Fed is expected to leave rates unchanged, traders will be looking for clues about future monetary policy decisions.
Fed meeting announcements can cause volatility in the markets, and I suspect many investors will play it safe and simply sit on the sidelines until after the statement is released at 2 p.m. Eastern.
But not us! I’m looking to get in and out with a fast profit long before then. If you’re interested in joining me, you can sign up to get my Trade of the Day delivered to your inbox before 9 a.m. ET tomorrow.
As I mentioned earlier, SPY blew through an important resistance level today, and I am excited about what this means for our trading (and profits) in the week ahead.
Besides not missing tomorrow’s trade, another bonus of signing up today is that this is your last chance to get in for a discounted rate of $999 before the annual price jumps up to the regular $1,599.
America’s #1 Premarket Trader,