SP500 Market Correction Trading Videos

SP500 Trade Setup Pre-Market Drop:

Below is a chart of the SP500 which we all went short or bought the SDS bear etf trading fund last week as we looked to profit from a falling stock market. As you can see from the chart we saw the es mini contract drift into key pivot point on light volume. What this means is that a large group of sellers will be waiting at that price, and because volume is light we know there are not many buyers at these higher prices. Simple supply/demand some into play with more sellers causing the price to stop rising and eventually force the price lower.

The green arrows show key support levels on the 60 minute chart where 1/3 of a position should be taken of the table to lock in gains which also reduces overall risk to the trade. Once we cash in 1/3 of the position we move our protective stop the breakeven which is the entry point for the remaining portion of our position. This turns the trading into a winner no matter what happens.

SP500 Trade Setup Post Market Drop:

Here is the same chart 24 hours later showing both of out profit targets triggered pocketing 2/3rds of our position for a very nice gain. Depending on the type of trading vehicle you traded there was potential to make up to 150% return.

We currently hold 1/3 of the position left with a loose stop allowing the trade to mature incase the down trend continues for several days or weeks.