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Millionaire Reveals Top Trade Idea Each Week

RagingBull.com CEO, Jeff Bishop, shares his top pick for the week each Monday, straight to your inbox.

“My strategy aims to help you pull one winner out of the market each week, regardless of market conditions!” – Jeff Bishop


It’s hard to say what’s coming in the next few weeks.

But one thing is for certain – my ultimate momentum trading strategy has not let me down one bit.

While many were struggling to find their footing in the last few weeks I was staying on the right side of almost every trade I took.

And how did I do that?

By having confidence in my system. You too can gain confidence by journaling, tracking your trades, and even backtesting ideas. 

Daily Deposits utilizes a five-step process that works under any market condition. 

I want to show you how it works for me. Study it, take what you want, and discard the rest.

 

Daily Deposits

 

With all this market uncertainty that is going around, it’s hard to figure out which direction to trade.

Long, short, or even sit in cash, they are all possible trades with market volatility this elevated.  

But the only thing is 2 out of 3 of those will actually generate any type of income for you, and sitting on your hands in cash is probably not the right decision.

And in order to get an edge on the markets and the direction they are going to go you need a system that can get the job done regardless of the noise around you.

So let’s talk more about the benefit of using pre-market analysis tools to streamline your analysis and get on the right side of the markets before the opening bell.  

The first thing I do is to start the day off reviewing the global markets and figuring out what the big picture is for the day ahead.

Next…

 

The Big Picture

 

The news coming out across the world about COVID-19 has been pointing towards a nasty few weeks… if not months…still ahead of us.  

By looking at the monthly chart dating back to 2009’s it forecasts a grim picture of the markets coming up.

 

 

 

 

 

 

 

 

 

 

 

Source: www.tradingview.com

 

I rarely look at these higher timeframes, but these are unprecedented times.

Then as I was looking at a monthly chart I noticed we are at a key level for these markets.  

The SPY’s are at a 38.2% Fib retracement level, the largest draw in the value of the markets since 2009 lows.  

So what does this mean for what’s next?

Well… the markets are now going to either start to find a place to reverse and trade higher or start their descent to the critical 50% Fibonacci Retracement level.  

And it’s not looking to be getting any better anytime soon.

But the Fed has come to the rescue!

The Fed announced a proposal of limitless asset buying that is expected to significantly prop up the markets.

 

Pre-market analysis

 

Daily Deposits is based around a set of indicators that are designed to give the best odds for identifying momentum for the upcoming trading day.

And before looking at any indicators I always look at what the global markets are thinking in the pre-market session. This will allow me to have a clear understanding of markets 

 

 

Now that the world markets and us pre markets are analyzed, now it’s time to look for signals from the pre-market momentum indicators that will confirm the market direction we are looking for.

 

Pre Market Indicators

 

The first steps to finding trades to make these types of profits all start around momentum indicators on a 5, 10 and 15-minute chart.

The 3 key momentum indicators are:

  1. Price action and volume
  2. Moving averages confirm trend
  3. TTM Squeeze

On top of these indicators, it’s also important to get market information from the VIX or known as, the “Markets Fear Gauge.”

Let’s take a look at two of the pre markets and VXX, the ETF on the VIX.

Here is the breakdown of the pre-market analysis on the SPY.

 

Source: Thinkorswim

 

In the pre-market chart of the SPY, we can get a clear picture of the market heading into the opening bell.

Momentum Indicators highlight:

  1. Major Trend Flat
  2. Minor Trend Upward
  3. 10 MA > 20 MA
  4. Increasing Volume On Large Move Higher

And here is the VXX with the premarket momentum indicators…

 

Source: Thinkorswim

 

And looking at the pre-market chart of the VXX we can get a clear picture of the market heading into the opening bell.

Momentum Indicators highlight:

  1. Major Trend Downward (bearish)
  2. Minor Trend Downward (bearish)
  3. 10 MA < 20 MA
  4. Increasing Volume On Large Move Higher

And looking at the SPY on the 10 min shows a similar pattern.

 

Source: Thinkorswim

 

Momentum Indicators highlight:

  1. Major Trend Flat
  2. Minor Trend Upward
  3. 10 MA > 20 MA
  4. Increasing Volume On Large Move Higher

SPY on the 15 min 

 

Source: Thinkorswim

 

Momentum Indicators highlight:

  1. Major Trend Flat
  2. Minor Trend Upward
  3. 10 MA > 20 MA
  4. Increasing Volume On Large Move Higher

Now that the time frames are all lined up it’s time to place the Trade of the Day

 

The Trade

 

After analyzing all of the timeframes and the pre-market global data, it seems the markets are looking to try and head higher when the markets open for trading.

Like always, when buying options it’s best to choose contracts that are far enough out to not be impacted by time decay but also close enough to get enough bang in the price movements.

Typically weekly options are the best options to choose to make sure the prices explode when the stock moves in the direction you’re looking for.

 

Source: Thinkorswim

 

And if you are a Daily Deposit member then you will get actionable trade information!

 

And when that report went out to members, the options shot up to $2.00 per contract giving us a huge 30% ROI!

Plus, if you were patient and kept monitoring the markets, you could have had a huge 100% Return on Investments on the options!

Here’s a chart of the SPY options showing how the price erupted shortly after the signal was sent out to everyone at Daily Deposits!

 

Source: Thinkorswim

 

Wrapping up

 

So either way, these markets go in this time of uncertainty there is one thing I can count on and that’s the accuracy of my momentum trading strategy!

And why even bother having those complex strategies where you are selling call spreads or put spreads when simply buying a put or call can generate 100% or more returns in under 2 hours each day!

So if you’re looking for a simple and consistent way to crush the markets without the complex spread trading…

Click here to join Daily Deposits and get started today!

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