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SPY Update – 3 Hours Of Free Videos

12.22

I always talk about hidden levels in the markets. They are hidden because no one sees them. They are not normal levels and that is why the move off of them can be so powerful.

Looking at the DOW daily chart the question right now is which high are we are that was in the past. If we look back at the past we can gain odds on the future. Looking at HIGH A and HIGH B I could make an agreement that the current price as of today looks like both of them. So looking back .275% has value on each pull back.

Now if you look at the high of this week to the low that was put in place after hours last night you will see that the move down stopped right at .275%.

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Did you get short squeezed from the 11.16 low? Watch this video again and see how you can gain odds on the market –

http://360optiontrading.com/important-video-update

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Scenario #1

This means the low that was put in last night could be the low and the market short squeezes from the close of today. If we look back the wave extended up to 1.270%. If we do that on the current wave the target on this wave is 13,601.

If the DOW does go to 13,601 it could then pullback down to 13k and then from there the monthly chart actually kicks in to the upside OR the downside. The key thing is if it went to 12,600 then down to 13k it would NOT change the bullish structure of the monthly chart.

Scenario #2

If the monthly candle closes above DOW 13,300 then on the monthly chart we would be closing above the high of last month. We talked about the 13,300 in the webinar. The key thing will be if the DOW closes the month above 13,300 not just trading above 13,300. If we do get a monthly close above 13,300 then there could be a short squeeze and the market bypasses to correction back to 13k in scenario #1

Scenario #3

The DOW holds the high of this week and pulls back to 12,800 and makes support. From there it either breaks support and the market is in big trouble or it is just a higher low on the daily and the market still goes higher.

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Bonus Two Hour Monthly DOW Chart Video

http://360optiontrading.com/monthly-dow

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QQQ

On QQQ we talked about how the current action could be back and forth like it was in June to July of this year. If you look at the chart you will see that the action looks very similar in the fact there is triple tops and bottoms. Even though the current action is in a tighter range it is still duplicating almost perfectly. You can look and see what happened off the triple bottom in July.

This is not typical technical analysis. This is breaking the market down wave to wave looking for it to duplicate. Does it always duplicate? No, but if you look back and see what it “Should” look like you will get odds of when it 1) does duplicate or 2) it fails to duplicate therefore giving you odds that the market will go the other way. A true trend change is when true support breaks in a uptrend , or true resistance breaks in a downtrend.

This is so much more important than any MACD with special settings or a RSI being over 80. Those things have value on certain waves on specific time frames. They will not help you know that .275% had value in the past and that the low of today was exactly at the same level.

It is almost like the market gives everyone the standard indicators to stack the odds against the trader. Think about it. How many people you know make money using them for an entry and exit? Maybe for the longer term trend a MACD has value, but it will not tell you where to get in or out, and that is what everyone is looking for. Really think about it and you will see the indicators hurt traders. Think about how everyone is looking at the same thing but they all say “if I would just do the opposite I would make money”. Really sit there and think about it and it will start to make sense.

Ok back to the point-

The point is there is a reason for the low today. Over the last year holidays have been the starting point for rallies. Today had timing low that I knew weeks ago. Timing lows usually have spikes into a low with hard action which we got last night into Friday. The monthly chart is bullish.

Ok so everything listed above is odds. Odds are odds they are not 100% but we do not want to trade against the odds. If we do trade against the odds then it is aggressive. I am not saying I wont go short but we would need a good signal.

The real value over the last 2-3 weeks is that we did not go short over and over again like so many did, hoping the market would break down. Anyone can draw in the rising wedge and dream of catching the BIG SHORT but in reality few do, why? Because they short it 100 times before the big short happens and by the time the big short happens they are not convinced it is going up and they are long from the top of the wave.

We all know that anytime they could come on TV and mess with our hard work and analysis, but we have to do the work and I want to share the work so you can see for yourself what is going on. I am not here to convince you of structure, symmetry and patterns. I did not make the patterns I am just pointing out what the chart is showing me as it goes.

Have a great Christmas!

www.360OptionTrading.com

 

 

 

Long Or Short?

12.17

 

From the 11.16 low the market has went straight up. There was timing and price support on the 11.16 low. You can go back on the blog and see the videos we did as the market was coming into that low.

While it seems like the move has been straight up there was a pullback on 11.28. The issue with the pullback is it was very small. To be exact it was .35%. Why does that matter? Because if you look at the Monthly charts you will see that .35% has been symmetry support all the way up. We have noted this multiple times on this blog over the last couple of years.

Why is it valuable? Because .35% is a very small correction and most traders wait for a deeper correction to get long. The end result is the market does not make a deep higher low and continues to go higher. This is exactly why traders have missed the move up from the March 09 lows and why they will miss the next wave.

Not only is it hard to get long without a deep correction it feels right to go short looking for the market to pullback. The thinking that most traders have is that the market is extended in the wave up from March 09 lows. It is not extended it just has high support which makes it seem extended.

Friday we were watching the SPY 142 level close at the close. SPY closed above 142 and today short squeezed the shorts that entered Thursday and Friday of last week. Today the market opened went up then pulled back to .35% intraday, then short squeezed again to close at the high of the day.

Today could be a very important sign that the market is going to make a move up. A close above the high of last week could trigger another round shorts that are forced to cover.

From the 11.16 low it has not been easy trading even though we caught the reversal low day, days in advance. This means even if traders are nailing the levels the traders are not easy. The end result of this is most traders just go short because they miss the long entries. The problem is the shorts are 100% counter trend at this point even though the market is in resistance. Over the last two weeks we have been looking to go short, but we have not had the actual sell signal, so we did not go short. Sometimes the best trade is no trade.

We broke down the Monthly charts in our member webinar which is recorded for all new members, along with our video folder with multiple market update videos.

While it makes sense to think short at this level because of all the news the short trade has not triggered and it is not confirmed at this point. It is easier to not do the work and just short resistance but that has been a losing scenario up to this point. The current wave looks so good short traders will try it multiple times and end up missing the long trade. This is what could take the markets to a new high.

Symmetry support is more important than normal support. When symmetry is higher than normal support the move up can be explosive. I might be one of the only ones saying this but if you look at the charts you will see how .35% has served as true support all the way up.

It is not 100% confirmed we are going higher but the intraday reversal at .35% could be a big sign if there is follow through tomorrow. Right now could be just the starting point of a much larger wave to the upside.

www.360OptionTrading.com

Trade with us here – http://360optiontrading.com/bonus-pack

 

 

Webinar + Market Update

11.25

Free Webinar Wednesday Nov 28th: Better Trader Workshop

Join this Better Trader Workshop with four of the best instructors in the business. This is one webinar you won’t want to miss!

 

 

11.25 Market update

As the market came into the SPY $135 level we did multiple updates on how the move down was still coming into support. Right when it feels so obvious to be short, the market will short squeeze from a calculated level of support, and wipe out the profits on the shorts. Using standard indicators will tell you to go short when it is actually best to be buying. This is why so many traders struggle to find (1) the right time frame (2) which indicators to use on each time frame.

I have said it before and I will say it again. Standard indicators do not work on every wave on every time frame. The pattern of the market is the only way to fully know if you should be a buyer or a seller.

As of the close of Friday there are now two gaps from the $135 low. Will these gaps be filled? Who knows for sure, but we are anticipating a higher low from the $135 support to confirm the low is in. Right now the current wave is coming up into resistance and on Friday the market hit 50% so as this wave goes up it is best to sell some of your position as the market gets to resistance.

Seeing how the move up was straight up from the lows the market will most likely get very emotional over the next two weeks into the next two months. Knowing that most traders are going to buy the top of this current wave it makes sense for the market to have a short-term move back to support meaning; the move down will stop out the traders that go long to late in this current up wave.

Right now is the best time to have a clear trading plan. There is no better timing for the Wednesday webinar. In the webinar you will gain access to four presenters and see how we are playing the next pattern.

 

Direct Registration Link- http://tradersexclusive.com/educational_webinars_for_traders/

 

www.360OptionTrading.com

 

SPY Support Update

 

11.16

As a follow-up from the last post the markets are bouncing from the anticipated support level on the SPY. The market this morning taking out the lows of yesterday by .40 cents is a good sign for the low to be put in. Most of the time there is one final spike low into the support to suck everyone in short one more time. For the market to short squeeze they need to suck everyone in short.

Our rules have slowed us down over the last two weeks because the market did not set up the way we wanted to enter on the wave down. From 11/7 high to the low of today the structure has been minor. We do not like to short minor waves counter trend. Most of the time it is a losing situation. This time the markets did bypass a few waves to resistance because AAPL got hammered so hard but all of that can change quickly.

The thing to think about now is (1) how the next two waves up look (2) is this the move up that only goes to the .382 then the market gets hammered again. Go back a few posts and watch the video if you do not know what we are talking about.

Today is a good start off the low but it is not confirmed yet. The odds say it holds but today is a lower low on the short-term charts. Next week if the structure of a higher low holds then there will actually be the short squeeze from this level. Todays move up is a squeeze but it is nothing compared to what could be next if this level holds with a higher low.

AAPL went below obvious support the last two days. Most of the time the market will do the opposite of logic at obvious levels. AAPL is closing a pretty nice hammer candle today. AAPL did have damage on this wave down so in the short-term AAPL can go back to resistance as anticipated but it could get very wild once it hits resistance.

The market will make the late shorts on AAPL pay next week, but at this point that is obvious, so who knows how it will actually play out next week.

The market should bounce from this level but so many were waiting for it that it will most likely not make it an easy trade. The market could get wild even before it hits resistance at SPY $142.

Have a nice weekend,

www.360OptionTrading.com

 

 

 

SPY Follow UP $135.16

 

11.15

In the last video there was two senarios we were looking at. (1) A quick move up to the .382 then a move down to $135.16 or (2) the market just goes down into $135.16. Today the SPY hit the $135.18 on the low of the day then closed above the low of yesterday. Remember that there was timing on 11/14 and 11/18. On a closing basis the low of 11/14 has held.

Right now could be the low in this wave and the markets move back to resistance. If the markets close above the high of today that could be the sign the low is in. A tight way to play it is to go long the high of today with a tight stop .10 cents below the low of today. The risk to reward favors the long side right now even though the short term trend is down.

11.18 is the next timing day which lands on Sunday. Could the market grind tomorrow , not take out todays low then be up big Sunday Night? We will have to see how tomorrow plays out but if the low of today holds that senario could play out and the shorts will be stuck.

www.360OptionTrading.com

SPY Update

11.13

In the las video we looked at multiple situations that could play out. It is important to flow with price and as the bars develop you flow with each outlook meaning; we want to get odds as the bars print to see which situations plays out.

We noted the 11/14 as a potential turn date. Today I received an important email from someone who used to only give his info to major funds while running his own succesful fund. He is a master at timing and this is his email to me today:

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Time Stamped 3:54Pm EST

I find it interesting you have the low on the 14th and 18th.    Why?   I ask because the 15th is very important, there is a 22 week cycle in there plus a whole host of other weekly cycles.  I can see the low coming in this week or next Thursday (22nd BIG timing at that point).   Lots of GANN angles and other tricks of the trade coming in from today till the 22nd so it could get real interesting in the next few hours.

Also, according to my work, there is a serious amount of cycles coming in on a multitude of markets at the same time (Crude CL, 6E, Bonds – ZB and a multitude of other markets).  The start is NOW!  These are massive cycles (60 year types) and a whole bunch of markets are coming in together.    Get ready!”

[hr_shadow]

Tomorrow is the 1st day meaning it is 11/14 which is the start of the time window. The window goes out into next week but now it is getting odds with price to confirm the timing windows.

We laid out a few areas in the last video but looking at the action today the SPY closed above the .618%. It is important to know that if this level does hold it is a count that says the highs can still be taken out. Sound impossible? It always does in major support and we have talked about this on this blog at other major supports that did go to a new high. We are not saying we are entering here with a trade that would only be profitable if the highs were taken out that would be crazy, but what we are saying is we are close to the low and a move back to resistance.

Unless the markets down in this time window and price support is taken out, we have to still think up to resistance to make the “Lower High” on the daily and weekly chart.

We could be off a few days down in this zone but the odds to go long or short with a new entry here are saying the long has less risk than the short. If we shorted here we would be shorting support and the only way we make money is if both the time and price support breaks. Could the price break down from this support and just drop to the major support at SPY 135? Yes, and like we have been saying to our members this low is probably not going to be an easy trade served to you with multiple good entires. It will most likely be wild and feel totally wrong to go long (Like Today)

The issue with levels are that because there are multiple waves behind us (that go to a higher high) there are different degrees of support. There can be two levels of major support for even just one wave then throw in multiple waves behind us and that adds to the confusion. Confusion is not a bad thing it is a condition like support and resistance. If you know that the market is confusing then you can almost bet on a hard entry with multiple fake outs before it actually goes.

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Conclusion;

If the market turns up here (NQ are up 17 after hours) then it would actually be turning on the 1st major support on the 1st timing window which is actually the more bullish scenario. I know it sounds crazy but the chart is the chart. Like I said in the last couple of posts the area we are at is to tighten stops on shorts, and use the stop out level on the shorts to get back on the long side.

Who knows maybe the pattern fails there is always that chance but with the how the wave looks from the high to the low of today with a 1-2-3 down we would watch out for the short squeeze that could happen tomorrow.

A good way to play it would be IWM, SPY and AAPL. AAPL would obviously be more aggressive but AAPL could be up 50 points in one day, and still not be close to overbought condition. That means once AAPL triggers the stops on shorts there is a lot of room for it to run before calling it resistance. Would you be willing to trade weekly calls right here on AAPL for 2 weeks in a row and lose $2 each time to hit the one for $50? AAPL could be a better more emotional set up than a NFLX or CROX earnings play.

Maybe the 700 high is the head of a massive head and shoulders and AAPL goes lower in the longer term

www.360OptionTrading.com

PS. The bullish set up would have been better if the markets would have had more follow through to the downside early then reverseed back up. There was a move down but it was a spike low not a wave where traders entered new shorts. We want the new shorts to be taken below last weeks low to really have the best set up to go long. But like I said before they are not going to give us a easy long in this zone. It rarely does..

SPY Support Update + AAPL

11.1

From the last post we noted that the SPY was sitting at support. The odds said the market short squeezed to the upside which is happening today. Over the next two days the market could come down to make a higher low or just go straight up without making the higher low. At this point we would not be entering short trades.

Prior post here – http://360optiontrading.com/spy-market-update-watch-support

AAPL is sitting at a very important level of support. If you look at the above chart you will see the last time AAPL came back to re-test the  trend line AAPL went from 570 to 700 . We are not saying AAPL has that big of a move but a move back up into resistance around the 645 should occur.

AAPL has a monthly DOJI with a bear engulf so overall AAPL could go lower and we might short it once it gets back to resistance. Wave to wave trading says AAPL holds this low and goes back to resistance.

www.360OptionTrading.com

SPY Market Update – Watch Support

10.30

Last week 95% of the commentary on TV was negative. There was a lot of talk about the bullish trend line being broken and that the market has confirmed its down-trend. Every time the market starts to correct to the downside the bears come out and say we are going lower. If you have followed this blog over the last two years we have said that every correction was a buying opportunity and the markets went to new highs each time. We know this will not last forever and we are not long-term bullish or bearish we do not care since we trade wave to wave.

If you look at the chart above you will see the SPY daily chart is sitting at normal corrective support. All last week we noted to our members that SPY 140.35 was support and as of right now that level has held. There is also a trend line support that comes in at the same level. The wave down is the 1st corrective wave down from the highs so that means the move down is counter trend to the large wave that is still up.

With up trends it is the last bullish signal that fails to take out the highs is what turns the trend lower. This means to say the trend is down right now is too early. From the current support if the market goes back to resistance but fails to take out the high and we get a sell signal that is where we will be aggressive to the short side. The market as of right now is pulling back into support so going into this week there is odds that the market short squeezing to the upside.

With the hurricane and the market being closed it will add to the emotion of the market for the rest of the week. We hope that you were not effected from the hurricane.

With last weeks negative news flow and the hurricane the obvious thing for the market to do would be to go down. Most of the time the obvious thing to do is wrong.

Have a great trading week!

www.360OptionTrading.com

Market Update/Timing

10.28

This week is going to be very important for the markets. Looking at IWM on a weekly chart last week was bar 55 from the 10/3/11 low and it is also bar 21 low to low from the 6/4/12 low. So there are two degrees of timing support on the market as it stands right now. Not to mention the QQQ went to $64 after hours after AAPL reported and $64 was our lower support level.

Right now it feels so right to be short and that is why there could be a nice short squeeze out of this zone back to resistance. We will know more after we see how Monday and Tuesday trades but for now we would say if you are heavy on the short side we would have tight stops on the shorts. Dont let emotions take over at this level. The structure of the market from the highs is corrective so far which means the odds say support does hold.

www.360OptionTrading.com

Watch out for the short squeeze

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10.2

QQQ came down to hit the daily support today at 64.69. There is a lower target of 64 but at this point the risk is higher to be short than long. Right now is where the market likes to suck everyone in short to then short squeeze them out. AAPL just held the 607 low. The short squeeze could start soon. If you are short we would trail the stops tight at this point. QQQ can squeeze back to $68 from this low.

 

www.360OptionTraidng.com

NFLX Earnings Today

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10.23

NFLX reports today after the close. There is two patterns on NFLX. One pattern says it goes to $100 and the other says it goes to $40 .  The only way I would play it would be to buy both the calls and puts. The Weekly 55 Puts are .70 and the Weekly 80 Calls are 1.10. We would buy 1/4 of a full position on the calls and a 1/4 on the puts. This means the whole trade is half size to a normal trade.

A trade like this is just looking for a big move. It does not matter which direction NFLX goes. Of course all earnings plays are aggressive but NFLX might be worth the risk

www.360OptionTrading.com

Did you get squeezed?

10.16

On 10.12 we did a free update saying that the market was coming into the 144% support. Yesterday was also bar 21 from high to low on the daily chart which marked the low of yesterday. Right when it feels so good to be short they short squeeze it off support. The key is knowing the level before they squeeze it up. We alerted our members to this all last week and yesterday holding QQQ and IWM calls into today.

Click Here to see the 10.10 post.

To trade options in this condition you must be willing to buy when the market is down and sell when the market is up. You cannot wait for lagging indicators to “Confirm” your entry. The pattern levels are the entry and exit points in this condition. Do not let lagging indicators take money from your trading account. Most indicators are actually your enemy not your friend. The only thing in the markets that is true is price. Price is what makes patterns NOT lagging indicators.

We have made over 130k in profits since 4/21/11 using not one standard indicator. Below is a download link with the newest result spreadsheet. Yes, we have losers and some weeks are better than others and sometimes we miss moves, but overall these results are real and all done in real-time.

360OptionResults_1

The range of the market is going to start expanding again very soon. If you want to make money you need to be a step ahead of the market, and be in a position where you are anticipating entry and exit levels so you can buy into weakness and sell into strength.

Join our premium service now and get in on the next big run.

 

www.360OptionTrading.com

 

Next Big Winner ANR

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10.15

ANR is currently trading at 8.50 and could make a move to $14 if not higher. We are in the NOV/DEC 9 Calls for an average of $1.45. If ANR gets above the 9.50 high ANR could have a big short squeeze. We went out to DEC so we can ride this trade longer because it could get to $20.00

The market today is at bar 21 high to low at 1.44% on IWM support. This is the same level in July that kicked off a big rally to the upside. Today there could be a short squeeze and the markets make a move back to resistance on a Daily chart. If you are short we would trail the stops tight at this level. The low is not confirmed yet but over the next two hours it could be.

 

www.360OptionTrading.com

 

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Our Data Is Fast, Is Yours? Click here to learn the kinetick advantage

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IWM Support $81.90 144%

[lightbox style=”modern” image_path=”http://360optiontrading.com/wp-content/uploads/10.12IWM.png” popup=”http://360optiontrading.com/wp-content/uploads/10.12IWM.png” link_to_page=”” target=”” description=”” size=”two_col_large”]

10.12

IWM is sitting at the same support it was on 7/24/12 that held IWM to a new high. IWM went from 76 to 87 on that wave. Maybe overall the market goes lower over the next month but for now IWM is sitting at support and since the high at 87 was a higher high it is best to anticipate support to hold. Right now is where it feels good to be short but that is usually the sign that a short squeeze is coming.

The low we are at now is not confirmed so it is best used as a level to move stops on shorts or buy as an aggessive entry.

 

www.360OptionTrading.com

AAPL Profits Booked

10.10

As a follow up from yesterdays post we booked AAPL profits at $5.00 on the option for a quick 85% winner. We are now looking for a new entry on AAPL when it pulls back into our buy zone.

Be aware that the QQQ is breaking lower but AAPL is not. As the QQQ falls into support 66.80 – 66.60 there could be a short squeeze setting up. AAPL would be the best way to play it because it is stronger than the market.

 

Click here to read about one of the most important rules for your trading.

 

www.360OptionTrading.com

Weekly & Front Month Option Trading