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  1. #1
    Legendry Member Michael Hodges's Avatar

    One Perfect Set Up - A Once A Year Opportunity !!!

    Today's market set up is providing a once a year opportunity. Futures trading is indicating a 5% or better decline in the US market at the open. It is likely that the market, the indices, will decline to those levels after the opening bell. But it won't go straight down, it will take a few minutes up to 15 for the indices to sink all the way to the bottom. This means that quick traders can get into short term positions as soon as the bell sounds with a high expectations for the market to keep moving lower for the next few minutes. I use this strategy a lot when futures indicate a lower open, it works well in general and should be really great today. The key is to get in just as soon as possible, just as soon as trading is available... but if you aren't quick enough this could back fire on you...

  2. #2
    Legendry Member Michael Hodges's Avatar
    this is what I mean....

    Click image for larger version. 

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  3. #3
    Veteran Member Optionguy's Avatar
    Hi, Michael. How do you know when the futures indicate a lower opening? I mean, do you have some points 1, 2, 3 (if that happens) then you have this perfect set up?

  4. #4
    Legendry Member Michael Hodges's Avatar
    I always look at CNBC.com, or CNBC channel on tv, but there are other sources. Generally, SPX futures trade different but tied to the SPX index, before the market for the index opens at 9:30 you can look and see where futures are trading. IF they are trading up you can expect to see the market move up at the open, if futures are down you can expect the market to move lower at the open. If they are either real stong like today you can expect a big move, and then clear signals of a daily low/bottom that you can also trade of off.

  5. #5
    Legendry Member Michael Hodges's Avatar
    An end of day expiry would have also worked with this one today. Any entry within the first minute would have closed in the money at the end of the day.

  6. #6
    Veteran Member Optionguy's Avatar
    I see. Cool set up. Does it really happen only once per year?

  7. #7
    Legendry Member Michael Hodges's Avatar
    NO, that is just a catchy title. YOu can do this anymorning, but the sharper the indicated move the better your chances. I do something like this at least once a month, it just depends on how futures are reacting. It's also a good tool for day to day trading, you can get an early insight into what might happen after the open using futures action in the pre-market session.

  8. #8
    Legendry Member Michael Hodges's Avatar
    it's really just a momentum play, when you see momentum wound up in the form of futures trading you can be assured of some movement in the broader market.

  9. #9
    Legendry Member Michael Hodges's Avatar
    PS, you can probably do it again today, but to the upside, SPX futures are indicated up by like 70 points or more, its exactly the same in reverse.

  10. #10
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Michael Hodges View Post
    PS, you can probably do it again today, but to the upside, SPX futures are indicated up by like 70 points or more, its exactly the same in reverse.
    Here is my trade for the day, I used ten minute expiry, hit the buy button just as soon as the asset started trading on CT. Got into the SPX at 1914 and got 10 points of movement in the first 2 minutes. I'll check back in a minute to see if closes in the money but based on futures there is at least another 15 points or so before intraday resistance.

    http://forums.binaryoptionsthatsuck....2027#post52027

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