Not much is happening.
That doesn't stop us from making money in the markets, of course, but we have to be a bit selective in picking and choosing our spots. Yesterday morning, for example, a pipeline explosion in Libya sent oil rocketing up to test $60 and, as it was climbing, I put out the following note to our Members at 11:09 am:
Oil exploding higher, $59.55 and /RB $1.796 - even though there's no logic to that following oil higher because a pipeline explode in Libya so I like /RB short under the $1.80 line with tight stops above.
That's all good Fundamental Trading is: Read the news, think about what it means and play for or against the market reaction. In this case, it was an over-reaction so we went against the market. When oil hit $60 (/CL) we shorted that too as $60 is a tough line to cross and we expected at least some rejection there and, this morning, we just cashed in at $59.50 for a $500 per contract gainj already.
As to Gasoline (/RB), that was good for a quick $1,411.20 on two contracts into the close – not bad for a day trade, right? Even if you have a $500,000 portfolio that you parked in CASH!!! and it's sitting on the sidelines, making $1,000 per trading day is $200,000 a year – that's a 40% annual return with some simple Futures trades while you wait for some good opportunities to re-deploy your cash!
Futures trading is a very valuable tool to have in your trading toolbox but, like anything worthwhile, it takes a lot of practice and that's why we do a lot of Futures work in our weekly webinars. There will not be a Live Trading Webinar this week, however, as I'm on semi-vacation in Las Vegas, where I'm applying our "Be the House – NOT the Gambler" method to the poker tables.
Aside from the bluffing and luck aspects of the game, winning consistently at poker is just like good portfolio-building, we try to take a consistent series of positive risk/reward positions and manage…