The Bankers are taking massive profits on their positions held in the stock markets. How do I know this to be true? There are many reasons why I know this but one of them is simply looking at the COT data. Let’s have a look at the Dow Jones.
When we look at the data we can see that the long positions held have dropped from highs of 20k and are now in cooled off territory of 12k. This tells us that the institutions are closing longs positions because they are taking profits on those positions after accumulating them at lower prices. As the bankers close off their positions we can see how quickly price drops. This is usually the case, price takes its time to rally but the drops come hard and fast which makes for great opportunities to short the markets.
This past week we discussed many trading opportunities that are already in play and in the green. You can check out those sessions here. Many trading accounts are in the red right now as traders/investors are not able to determine when they should not be exposed to these markets to the upside. On the other hand we spotted this dynamic shift that was beginning to form on the Nasdaq and that allowed us to prepare for a potential drop in price. Now we are ready to strike and I have already opened up positions to take advantage of the momentum to the downside.
On Friday during our Level 3 session one of our students Lance – who has been with us since we started the school – mentioned $PYPL and how the chart was providing us evidence of a much larger drop that is coming. He opened a Put Option and as of the end of Fridays trading he was already in the MONEY! As for a put option position I opened on $JPM it was already up 50% in just one day. You got to love option trading!
We have big plans for this year when it comes to Option trading. There have been requested for more education material regarding options so that will be made available to you.
In the meantime, watch for more market update videos to be posted as I will be sharing with you the incredible trading opportunities I have found and will be taking advantage of.
Kevin Araujo