Traders must be able to make money even when their opinions are DEAD WRONG!
I’d like to show you how your trading can be profitable even when your opinions of the market are DEAD WRONG!
Wouldn’t that be nice?
It’s possible, and it doesn’t require a fancy options strategy, or any options trading at all!
Here’s what recently happen to me, and you can apply the same tactics to your own trading tomorrow.
And… if you’d like to learn how to do it even easier, make sure you attend our free live training here…
As you’ll see in the daily charts of the 4 major stock index ETFs below the QQQ (Nasdaq 100) got hit hard in the beginning of June. The other indexes also began a correction at the same time, but not as violently.
As a result of the QQQ’s violent top formation I concluded that the QQQ would not recover quickly.
I was WRONG. Dead wrong.
(but I’ve been banking big gains nonetheless!)
You’ll also see on the charts below that MarketGauge’s Price Performance indicator was bullish on the SPY (blue line over the red indicates the instrument’s trend is strong), but bearish on the QQQ during the markets’ respective pull backs to their 50-day moving averages.
Since the QQQ did suffer a decent decline that was much worse than the other indexes the indicator was correct. However, my opinion was for a longer term decline or consolidation in the QQQ.
Because of my assumptions about the QQQ’s having topped out, I bought the SPY’s retracement to its 50-day moving average. My thought was that if the markets had not all topped then according to our Price Performance indicator (shown on the chart above), the SPY would likely be the first one back to new highs.
That worked nicely.
But what about missing the move in the QQQ’s?
I was negative on the QQQ, but since I have the tools…
I looked at stocks that influence the QQQ’s index to hedge my thought that the QQQ was done going up for a while, and I found Facebook (FB).
