AAPL 340 weekly Calls

May 30th, 2011

We are also watching AAPL for the 340 weekly calls. Friday these calls closed at $1.45 and if AAPL breaks above the $338.00 we see AAPL going to $348.00 this week. You can play it tight with a stop at $334.00 on the stock or give it more room down to $330.00.

The way we look at weekly options is we are risking 100% of the premium to get our profits. We are most always going for more than 100% so even risking all the premium our risk to reward is still favorable. Risking the whole option might sound risky or crazy to you but if you trade the correct amount of contracts it makes sense.

Let me explain: If you bought AAPL stock right now at $337.40 and had a stop at $334.00 you would be risking $3.40 per share. If you bought 1000 shares that would be a risk of $3,400. If you bought 10 call options at $1.45 your max risk is only $1,450. Which has less money risk $3,400 or $1,450?

So going into the trade knowing that weekly options are higher risk and we could lose 100% of the premium it is important to trade the same amount of options as you would shares of the stock. Just because options might seem cheap they are not. Options like futures are leveraged and if done properly the leverage can be your friend not your enemy.

Losing 100% of your option premium is like taking 100% of your stop loss but in this example even if you lost 100% of the option premium it is only like taking 40% of your stop loss using the option.

AAPL has yellow bars on the 60 minute chart and that means that a bigger than normal move is about to happen. The bigger pattern is still up and if AAPL breaks above the $338.0 the odds favor a move to the upside.

Of course offering the picks before the market is open has its downside because the market could gap down but nevertheless AAPL is one to watch this week!

Happy Trading,

www.eMiniSchool.com

BIDU Weekly 140 Calls

May 30th, 2011

Our last weekly call was on NFLX and it went from $2.50 to $19.00. We have found another weekly call candidate which is BIDU.

We are going to watch BIDU tomorrow and if we get a long signal we will enter the 140 calls for around .50 cents. The calls closed Friday at .40 cents.

We are looking for a move to the $142.0 level to take profits. These calls expire this week so look to see as BIDU goes into the targets.

Happy Trading,

www.eMiniSchool.com

Market Symmetry

May 30th, 2011

We use market symmetry on all symbols and on time frame to gain odds on turning points before the price is actually at the levels. This is a great tool for knowing when to stop trading in the trend or counter trend direction.

Happy Trading,

www.eMiniSchool.com

Sell NFLX Calls 630%

May 26, 2011

We are selling the rest of NFLX at $18.35. Our entry was $2.50 good for a 630% gain.

These were the 245 weekly calls.

Happy Trading,

www.eMiniSchool.com

NFLX Calls 500%

May 25, 2011

For those of you who played the NFLX calls you are up around 500%. The calls were as low as $1.50 but our entry was $2.50 and the calls are trading right now at $15.00 good for 500% gain.

Our target on NFLX is $270 which is 10 points higher from current prices. These are May calls so we would look to exit this trade tomorrow. Sell half now and hold the rest to see if we can get some follow through tomorrow.

Happy Trading,

www.eMiniSchool.com

AAPL Update

May 22, 2011

Over the last two weeks we have been playing AAPL with great success. Weekly calls and puts have increased over 300% in one - two day trades.

Of $330 is taken out to the downside we are looking for a move to the $310 area. Weekly puts would be a good way to play this move.

If the level where AAPL holds on Mondays open AAPL can build strength to break the last high at $342.50. This scenario does have less odds right now as our daily Kill Zone bars are red.

There will most likely be two waves down to the $310 level.

Happy Trading,

www.eMiniSchool.com

Core thoughts compared to variable thoughts

May 21st, 2011

Core thoughts compared to variable thoughts:

Your core thought process in trading is the most important part of your trading. These are the thoughts that you do not even need to think about. Just like when you see a red traffic light your foot automatically lifts off the gas pedal and goes over to the brake pedal. This is one of your core thoughts of driving.

Your core thoughts should be visual on your charts as well as being embedded in your mind.

Core thoughts:

*The clear direction you should be trading.

*Where your stop is located

*Exit strategy based on which type of signal

Variable thoughts:

Just because you know the direction of the market does not guarantee you will make money. This is why we teach how to read the condition of the market and how to know if the market is in minor or major waves. Most traders get stopped on the minor wave before the trade even had a chance.

Variable thoughts are what need to be fined tune over time. Our course digs deep into the variables of the markets. You think just because you know what an ABC pattern looks like you will make money every time the ABC happens? The question is not “Is this an ABC?” the question is what happens after the ABC?. Where is pattern completion? Where are the odds on the bigger time frame?

What is the odds of the ABC completing or failing? Did you know that there are just as many patterns that fail that complete?

Is this wave #2 high or B high short? The only way to answer this is to know what to look for off an A low and without understanding the core thoughts the variable thoughts will always seem random. Why did the ABC work this time? Why did it fail?

Most traders will benefit more learning the variables because once you understand the variables the core is automatic. We tell all of our members too look deeper into each thought and go with the thoughts into stage 3 and 4 and not get hung up on the 1^st more obvious questions.

The variable thoughts and methods are how you make money. The obvious core thoughts are just that obvious. Think back on your trading and ask yourself. “When I went long a breakout at an obvious high was it a easy trade to hold? Did I make money on it? Did I hold the trade long enough to make the true risk of the trade worth it?

Variable odds give you a way to flow with the market so you are not fighting it.

Variables are:

*Patterns

*Multiple Time Frame Patterns

*Failure of patterns

*What pattern has the highest odds of occurring after the current pattern completes

*What the chart should look like the night before

On average most traders still say that even when they make money it still feels random to them. Think about that for a minute .How crazy does that sound?

Happy Trading,

www.eMiniSchool.com

AAPL & NFLX

May 18th, 2011

We alerted you to the AAPL counter trend short and we said we would look for $330 to be support on that trade if you were going to trade it short. The low in AAPL was $330.73 so the move was a little over 9 points.

From the $330.73 low AAPL has had a 9 point move to the upside. This is why it is important to know where support is before you take the short and look for a reason at support to cover the trade.

Today NFLX turned into a minor buy signal on the daily chart. It is minor because the signal is coming from a minor wave. Minor wave trades do have higher odds of getting stopped and we only want to trade minor waves in the bigger trend direction. We never trade counter trend on minor waves. $239.50 would be the best entry tomorrow but NFLX does not have to come down to that level.

We are looking for $270-$280 as our target for this trade.

If you tried to short intra day today in the futures you were trying to short minor counter trend waves. These type of trades have the absolute worst odds of making you profits. It is best to avoid these trades altogether.

If you miss the trend trade you missed it there is no getting in back. The thinking " the market has went up so far it has to come back down" is the wrong thought to have.

Just like AAPL $330 as support we had TF 815 as our support on the move down and we have had a 19 point move up off that level. Having the bigger levels can give you confidence you are day trading in the right direction.

Happy Trading,

www.eMiniSchool.com

AAPL, ISRG, CMG, AGQ-Silver-

May 15th, 2011

If you play silver we would watch AGQ. We are also watching ISRG, CMG and AAPL.

In our member alerts we have 5 stocks we are watching with the symbols listed above. We offer stock and option picks to our members as well as a nightly video on the TF and NQ futures.

Happy Trading,

www.eMiniSchool.com

AAPL Daily Chart

May 14th , 2011

Thursday AAPL rolled over to a sell signal on our Kill Zone daily chart. We consider this a counter trend trade even though there has been waves to the downside from the $365 high. It is important to have rules to tell you if it is with the trend or against the trend.

The question "which direction is the trend?" is a misleading question because there are many time frames someone could be thinking of or looking at when they ask the question. On the monthly and weekly charts AAPL is still in a bullish waves and since we are entering on a daily chart we always look at two higher time frame charts to get the answer to the question "which direction is the trend?"

This rule is also true when we are day trading on a three minute chart. We use a 60,10 and 3 to get the answers we need to make the best trading decisions.

Everyone always says to "confirm your entries" but if you are still wondering how to confirm your trades the process is pointless. Simply saying something does not mean you know how to do it especially with trading.

On AAPL there is still a bullish pattern that can hold it around the $333. Even if it does go to the lower target at $305 there will be a wave within a wave because nothing goes up or down in a straight line. It is the bounce off of $333 that will tell us if AAPL will hold or go down to the target. This is also called the second entry zone.

Happy Trading,

www.eMiniSchool.com

Blue bar highs and lows.

May 13th, 2011

The last week the market has been great for day trading. We hope you have caught some nice waves this week.

This is our NQ 3 minute chart. The blue bars did a great job of giving us high odd reversal areas. Once we get a blue bar we trail the stop to that bar and let the market take us out of the trade.

On the left side of the chart where the first set of blue bars came in we did not get enough of a correction off the blue bars to re-enter short. This means that we are not interested in shorting the next wave. You can see that rule served us well as the breakdown was a fake out and the NQ rallied 34 points.

Visual colors on the chart are almost standard now and they are very important.

Would you go short when our bars are green?

Would you go long when our bars are red?

Would you hold the trade when the blue bars print?

Sometimes the most simple rules are the ones with the most value...

Happy Trading,

www.eMiniSchool.com

TF Scalper +8 points

May 11th, 2011

Quick look at the Turbo Scalper from today. The three minute tells us when to stop trading with the blue bars.

Happy Trading,

www.eMiniSchool.com

ISRG and CMG

May 10th, 2011

Our last stock pick on the blog was PCLN which went up 40 points from our entry.

We have two new picks for you to take a look at.

Pick #1. ISRG

Today ISRG went back to green for our long signal at $358.00. We are looking for ISRG to make a new high around the $390 as our first target. The stock is right under the last red low which is $340.00.

Pick #2 CMG

CMG is not fired yet as far as the indicator but we should get that signal when CMG breaks the last minor structure high at #272.50. If triggered the stop would be $263.00. The stop is located under the last minor structure low on this trade. Technically it is a tight stop but we do not want to risk back to the last major low. We are looking for a new high at $300.00 to $320.00

Notice on both charts we have had odds with blue bars highs and yellow bar breakouts. These are the type of trades that even 100 shares can make 5-6k on the 1st target.

Looking at these charts would you go against our colors? would you stay long at blue bar highs?

Happy Trading,

www.eMiniSchool.com

TF Scalper

May 8th, 2011

This is a follow up to the TF Turbo Scalper.

Again, we had nice signals on the 400Tick chart. Both long trades were what we consider minor wave trades. Even though they are minor waves there were still 3 points or more of profit opportunity.

All time frames have minor and major waves so the word minor does not mean the wave is small it is just smaller than the major wave. Example; A minor wave on a 60 minute chart might be 35 points but it is still minor when you look at the chart.

We have found that most traders are trading counter trend in the minor wave condition. What that means is the opportunity is already limited because it is counter trend then you add in the fact it is a minor wave and there is a double negative to the trade. Keep this in mind when you feel the urge to try and trade a top or bottom.

You can see from our Turbo Scalper chart the direction is clear by the big average line and then you follow the arrows and the colors of the bars. To filter one step further we use a bigger time frame to add in even more confidence.

Happy Trading,

www.eMiniSchool.com

TF Scalper +23.4 points

May 5th, 2011

This is a quick review of the scalper from today on the TF. It is best to only scalp trade in the direction of the bigger pattern and bigger time frame. We teach to trade trade but by default if you understand how to trend trade you will understand when to trade counter trend as well.

Counter trend is not a bad thing if you know you are trading counter trend. It is very important to really understand the difference between the two. Why does it matter? Because counter trend trades have higher odds of 1) getting stopped 2) not being a home run type trade. We trade less contracts when we trade counter trend.

Out of four counter trend trades only one will be a bigger trade. The problem most traders run into is they try to enter on the first counter trend trade thinking it will be a home run. Most of the time it is the third or fourth counter trend trade that actually gives the opportunity for real profits. If you try a few times and they are losers what are the odds of you taking the third or fourth counter trend trade? Odds are very low.

So how do you overcome this? Either you take every trade that comes along and you eventually catch the bigger move or you only stick to the trend direction.

Today if you took every trade no matter if it was with the trend or against the trend you would have had 9 trades.

2 Break even

2 losers for 7 ticks

5Winners for 24.1 points

There was actually one more long earlier in the day that is not shown that was a break even. There was a long that was a break even that had three points of profit in the trade. In reality it is best to scale out of the trade but for this article we are showing arrow to arrow. No thinking you just go with the arrows. In fact, the order is placed on the breakout after the bar that shows the arrow so this would be worse fill.

If you were just trading with the trend you would have banked 7.8 points on one trade.

If you are a new trader or a low confidence trade it would be best to only stick to the trend trades. You will have higher odds of success to build your confidence and your account. The process of skipping trades and the discipline to actually follow the process is what can take a good trader and turn them into a great trader.

Happy Trading,

www.eMiniSchool.com

PS. You can see how the 3 minute chart blue bars caught the high and low of the day. When we see blue bars that is another confirmation we use when we are scalping.

PCLN Move Stop +25 up $41

May 2nd, 2011

If you are still in PCLN we are moving our stop to $545.00 to lock in +25.00.

PCLN is at $561.00 up +41 points from entry. At this point PCLN still looks like it wants to go to our $591 target.

The actual signal was down at $470 off the yellow bars which would be a +90 point trade to where it is now.

Happy Trading,

www.eMiniSchool.com

AAPL & PCLN

May 1st, 2011

PCLN closed Friday at $547.00 with the high of the day being $556.00. From the $520.00 entry we are sitting on +27.00 points of profit. At the minimum we would have the stop at even on PCLN. To lock in profits a $532.00 stop is a good place for a trail stop.

If APPL can take out the $355.00 level we are looking for a move up to the $390.00 level. You can see on the AAPL daily chart we had a trend line breakout and then a re-test of that trend line break. This is a bullish pattern overall but it still needs to get through the last structure high at $355.00 for a clear signal to enter.

The stop can be as tight as $345.00.

If APPL does not take out the $355.00 AAPL will most likely come down to the $332.00 level before making up its mind on the next big move. From the 2/16 high AAPL has had overlapping waves which are considered corrective which means pattern wise AAPL should see higher prices sooner than lower prices.

Happy Trading,

www.eMiniSchool.com