We have a really special treat for you. Lately I’ve been seeing inflection points in the market. So what I do is, go in and use a futures trade to leverage the opportunity of what I think is happening in the general market. The last few days, we’ve been seeing huge pullbacks in the QQQ’s, where it came all the way down to support. The technology sector pierced the lower Bollinger Band. Thefore, if the market opened up weak, we would likely see a nice rebound.
When the market dipped down and broke below yesterdays low, you see a lot of people trying to short it. But these bearish traders often forget the bigger picture on the daily chart. We’re on support! This current market does not like to fall more than 2 days max. So I’m looking for a long.
Trading the NQ contract
You can long QQQ 500 shares, or you can trade futures contracts of the Nasdaq market. Using the fake break down on the QQQ and the remount above its moving averages, I knew this market would likely run. I added 1 contract of the NQ future, which cost about $500. Some of these epic rips you see in the futures market can return some amazing gains.
Let’s say you added at the breakout point of $5700. You get $20 for every point, so even with 1 contract ripping up $20 is potentially $400. Now as this is happening, I would sell into the spike and re-add my position as it pulls back into support. On the epic flag break at $5725 I added 2 contracts. 2 contracts gives you $40 per point.
These great market developments allows you to hone in on how you can use other instruments but still use the same tactics that we use for stocks. Whether its futures or cryptocurrencies, I just use the exact same strategy for both. I use the same principles of momentum to leverage my gains. We’re momentum trend traders. So we search and hunt for where the trend is. The vehicle doesn’t matter. Where there’s momentum, my strategy will work. When there’s an absence of trend, the strategies are muddled. There’s a lot of leverage, a lot of action, and we at Bulls on Wall Street are excited to bring this on to our overall regiment.
If you’re not sure of the setups and price patterns that we’re talking about you can learn them all here at our Bulls Bootcamp. It’s an intensive 60 day course to teach you exactly how I trade and why. To learn more or signup, email me at kunal@bullsonwallstreet.com today!
