Warrior Trading Blog

Green Trifecta Day +$1,931 | Steve’s Futures Pulse 156


Hey what’s up, fellow traders? Happy Wednesday. My trading is done, and we closed out the green trifecta. That means we went after three separate markets and opportunities and we got three green trades. The trades that we made today were in the corn, the Australian dollar, as well as the 30 year treasury bonds. In today’s Futures Pulse, I’m going to show you how we put these trades on, how we ended up fairing, and how we scored 1931 when it was all said and done. Look over my shoulder in today’s Futures Pulse. Come on…

Okay, let’s take a look at the three trades that were part of our green trifecta today. Three trades, three green outcomes, which is, of course, a beautiful thing. Let’s take a look here at the first one, which is the bond. You can see that symbol, ZBU9 up here. This is the one that we ended up grabbing $593 and some change out. I want to show you the charts that we triggered that off of. It was both a ten minute chart, as you see here, and the 30 minute on symbol ZBU9, which is September Contract 30 year treasury bonds.

What I saw this morning early on the charts when in the Futures Trading chatroom here is I saw the market was staying down below that key demand zone. That’s that green line that we see right here, 153 25. If you’re wondering what those lines are, that’s an indicator I use called Taz Boxes, part of the Taz market profile suite. It gives us very explicit areas when we want to kind of shift our perspective from being bullish to bearish. You can see even historically here, it’s done a nice job of pinpointing the downside, the upside, and then of course, the resume downside.

Long story short, we pushed the sell button and initiated short positions at 153 23, which is right about here where I drew that line. We ended up having an opportunity on these three units to cover two down at 17, which was right here. We covered the last one right here at 16. That’s what adds up to 593 and three quarters at $31.25 per tick on that three unit. We’re happy with that. It was fine. You could see the market has since now broken a little bit further, but again, we were done with the trade in the morning hours without having to sit in front of the trade the entire afternoon.

Next one that I want to bring up here is the corn. Now, corn was kind of an interesting trade for us today. This is the July contract. That’s symbol ZC, N as in Nancy. That also stands for July, 9. As you look at it here, you might be thinking it as a short sight trade, but this is what happened after we already made our money, as you’ll soon see on the long side.

The trade was actually a long side trade as we started to break above right about here. I’m just doing my best to kind of circle the area. Follow my cursor and my little white glove on the screen there. 420 and a half was our entry point on the long side, so that’s right there. Okay, market pulled back. Notice how the market pulled back into the value area. That’s that area between the red and the green lines there. We called it the fair auction, the value area, the balance area. Call it what you want. Market pulls down, and it does exactly what we expect it to do, or at least have a good shot at doing, which is gathered up some support on that demand zone while inside.

You can see that ended up being kind of a launch pad to then what ended up being a nice pop higher, and we were aggressive up here in taking profit. We ended up riding it up here. We took profits on this one here. This was a six unit trade. We grabbed some nice profits right there on five of the units at … was it 422 and a quarter. I’m going off my memory here. Then, we ended up scaling out. The very last unit gets stopped out at 420 and a half, which is right here. We basically trailed the stop behind this one, and mitigated risk along the way to give it a chance, as it was strong here. It looked like it could have even keep going for some more; and so we manage risk.

You can see now with the benefit of hindsight as I’m recording this video here, now you can see the market did ultimately start breaking down. We would given back all of our profits and some if we were aggressive here today on the corn. So again, this is the one that we added 437. We were willing to take what the market was willing to give, which was … at least for this trade, $437 and change.

Now let’s move over onto the trade of the day. It also was the biggest trade of the day. This was a 12 unit trade on the short side, really liked this thing. I want you to understand the why behind the trade. As I really emphasized in the room with my fellow Futures Warriors, what’s most important to me as an educator teaching you the art of trading is really not that you’re reliant on me to call out trades for you to kind of … need me exclusively to … when to do stuff. I’m trying to teach you the construct or the method, the blueprint, if you will, on how to see these trades on your own so you can do it. You can do it if you want to do it in other market. You can do it if you want to trade at different hours of trading. Remember Futures, nearly 24 hours a day, you can do this. Not just the time we spend together in the morning in the Futures Trading chatroom.

So anyways, here’s the trade here. Starting to see the market break down below here. This level, the green demand zone, in this case, was 69 85, and then if you look over here, 69 91 was the breakdown zone on the 30 minute as well. If you’re guessing were we on the short side, you are absolutely correct here. This one was a breakdown mode trade we took at 69 88. It was a nice kind of just below what I often refer to as an inflection point, a key decision point to make a trade where there’s kind of a good place to pick a battle with the market, if you will, if you want to view it like that.

So 69 88 was our short side entry if you draw your attention … Let me make this nice and big over here. Right there. Then we put our stop up here initially. We wanted to put it above these technical highs, so it was 70 12 at the time, so $240 initial risk, but we were real quick to bring that stop down after we started to see some penetration to the down side. This one was a 12 unit trade. We covered 11 really early on in the trade, which was fine because we did some huge risk mitigation by doing that while putting some green 7 70 initially on that first one at a price of 69 80.

Then we did get a further breakdown down below, and we ended up basically I call it a life stop. When I’m done trading for the day and my kids are ready to get out and have a little fun, and turn the hose on, and run around the yard, I call that a life stop. It’s time for me to go. Yeah, there may be some additional dollars and cents in the market. In fact, there was. Look where the market is now. It’s continuing to break lower. I don’t view that as a missed opportunity. What I view as a real missed opportunity is missing a chance to turn on the hose and watch the kids run around and have fun on a nice hot day today.

Ended up scaling out of that one. That was the biggest trade on the board here today, $900, when it was all said and done. You put it all together on a three green trade day, and knocking on the door of almost … We fell just a little bit short, almost $2,000 in realized profitability on those trades. We’re flat. We’re still keeping it perfectly green here in the month of June, that we got a nice little green streak under away again. I look forward to meeting you back in the markets tomorrow. Hopefully you’re tuning in, and if you want to come in and see what I do live, come on over to Warrior Trading and join the chatroom membership. You can join me each and every day, Monday through Friday, as we go looking for opportunities in the Futures markets. Have a great day everyone. Until I meet you back, trade well and be well. Bye bye.