Uncovering Market Trends: Insights from a Veteran Trader
Editor’s Note: On Tuesday, Jonathan Rose shared strategies used by his followers to achieve remarkable gains of 49%, 84%, and even 197% through trading amidst current stock market momentum.
With over 25 years of experience, including time as a CME floor trader and a partner at a trading firm, Jonathan Rose is a seasoned expert.
He not only helped usher in computer-based trading but has also trained more than 100 professional traders and earned millions by employing effective trading strategies typically reserved for Wall Street insiders.
For the first time, he’s unveiling a new 5-step strategy designed to:
- Generate triple-digit gains in 72 hours or less
- Utilize only two ticker symbols to start
- And he will demonstrate it LIVE!
Participants will see results from his multi-month beta test, real-life case studies, and more…
This event takes place on Tuesday, November 26th at 11 a.m. Eastern.
Register now to secure your spot.
Now, let’s hear more from Jonathan about himself and the trading patterns he’s identified…
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Understanding market fundamentals is key for any trader, especially when it involves leveraging options trading.
Having spent over 16 years as a professional trader in major exchanges like the Chicago Mercantile Exchange and the Chicago Board Options Exchange, I’ve seen the power of a strong market outlook.
Success in trading stems from combining these insights into a cohesive system, much like Louis’s Stock Grader system. This can greatly enhance one’s trading capability.
In our trading program, we consistently monitor the Invesco QQQ Trust (QQQ), an ETF reflecting the performance of the Nasdaq-100 Index. This index incorporates the 100 largest non-financial companies listed on the exchange.
Reviewing historical data helps us recognize patterns that can be strategically leveraged.
Why is tracking the QQQ important? The market is heavily influenced by the “Magnificent Seven” stocks: Microsoft Corp. (MSFT), Apple Inc. (AAPL), Alphabet Inc. (GOOG), Meta Platforms (META), Nvidia Corp. (NVDA), Tesla Inc. (TSLA), and Amazon.com Inc. (AMZN).
Since these companies trade on the Nasdaq, the QQQ provides valuable insights into market trends.
To gauge market performance, I look for the current critical level, which I refer to as my “Line in the Sand.” This level can indicate either support or resistance, depending on the market’s direction.
This concept simplifies market assessment — trading above the line indicates a bullish trend, while trading below suggests a bearish trend.
In our daily Masters in Trading: Live sessions, I focus on the QQQ near the $500 mark, which I view as the current “line in the sand.”
The daily chart shows that after hitting a peak just above $515, the QQQ has consistently found support around the $500 level. This area represents where buyers and sellers are actively competing, marking it as an essential trend indicator.
This observation is significant because levels like this often lead to substantial market moves. If QQQ maintains support above $500, we may witness a rally. Conversely, falling below this level could signal a downturn. These situations represent key trading opportunities, which is why we focus on short-term options like 3DTE, 2DTE, and even 0DTE to swiftly capitalize on market fluctuations.
A recent example highlights this strategy. Earlier this year, in a similar scenario, I pointed out a critical level during a live class. Members acted by purchasing short-term puts ahead of a market dip, resulting in gains as high as 179.9% overnight when QQQ dropped 2.4%. Timing and discipline proved essential in this scenario.
Adaptability and Objectivity are Key
Fundamental market knowledge, strategic options trading, and disciplined risk management form the backbone of successful trading.
Mastering the Markets: Strategies for Success Amid Volatility
My extensive experience on trading floors has shown me that systematic trading principles can yield significant benefits, even in unpredictable environments.
Building Success with a Systematic Approach
These successful trades materialized due to the time and effort we invested in our systematic strategy. Recognizing the bullish trend in the markets enabled us to effectively balance our portfolio, thus safeguarding against potential volatility triggered by key market events.
As we tackle the challenges of the financial landscape, it’s vital to remain adaptable. Utilizing objective market indicators, such as our ‘Line in the Sand’, is essential for informed decision-making.
Join the Free One-Day Winners Live Summit
I invite you to participate in my One-Day Winners Live Summit on Tuesday, Nov. 26, at 11 a.m. Eastern. During this event, I will discuss strategies for profiting in volatile markets through short-term trades.
Attendance is free, and you can sign up here to reserve your spot.
The Importance of Continuous Learning
Every trader must prioritize ongoing education and stay open to evolving strategies. This mindset fosters creativity and positions you to seize market opportunities as they emerge.
As I often remind my peers, the creative trader always wins.
Jonathan Rose
Founder, Masters in trading