Many years ago I spent a lot of time at Disneyworld Florida. I went every two weeks when I lived there. It was quite awesome. Between there and Busch Gardens I got a real taste for roller coasters. I was really glad of that today as the markets delivered a seriously wild ride.
Interest rate warnings were issued in the USA. In this case, we’ll show the eMini chart. Before the announcement, the eMinis were gently rising. Then the announcement came and we saw a 13 point rise in 15 minutes.followed by 3o minutes of not a lot (marked in purple). We were stuck in the swarms and trying to break out of them.
When we couldn’t make the break, then what we see 80% of the time happened.
We left them violently.
45 minute after the announcement we were out of the swarms and we had impulse targets predicting a drop to between 2719 and 2714 (highlighted in orange). That’s a full 14 points.
We were there in 15 minutes and then we were predicting an impulse of 2698 – 2689 (marked in blue). That was another 21-31 points away.
Now, as our regular traders will know the lower target there would have taken us deep into the third swarm. Unlikely.
So … taking profits at the conservative level of 2698 made sense. And by jingo we made it!!!!
35 points on the S&P. With a single contract that’s $1750. Or put in another way, you just paid for 1/3rd of the entire Master Traders Course and Software. IN ONE TRADE. Oh, and don’t worry. We get these trades all the time. It’s not a one off.