My bedtime routine is simple.
After enjoying the evening teaching youth group, watching a show or two with my lovely and talented wife, or catching up on some reading, it’s time to hit the hay.
But, as a trader, no evening is complete without a last look at the markets. Right before I run upstairs and tuck in for the night, I stop by my computer screens and make a quick run-through of the day’s activity.
Nothing too sophisticated.
I check the S&P 500 overnight trading. Then I look at the markets in Japan and China to see what’s happening there.
I’ll run through a few commodities like gold, silver, and oil to see how they’re trading in the overnight markets.
But, as it happens, on the night of May 28, just before Memorial Day weekend, at the end of my scans, I saw that something fast-paced and extremely profitable (to the tune of 100% in just two trading days) was setting up in the market.
Something I’m always looking for to make us money.
That lead me to make a bold call on the market.
A call I want to share with you today, because it really drives home the tremendous profit potential – truly millionaire-making wealth – you can tap into by targeting extremes.
Let’s take a look…
Decoding the Market
In choppy, “sideways” times, with uncertainty creeping in around the edges, we have to pick and choose trades very carefully.
It’s part of the genius of our 10-Minute Millionaire system – we don’t overtrade when the market’s not giving us much to work with.
However, unlike what you might hear in the media, it’s not only possible to make big money in sideways markets, it happens regularly – if you’re patient and selective in targeting the right extremes that pop up in the market.
It’s a great way to keep from “overtrading” when the market’s not doing much.
But when the sideways motion stops and the market environment changes, the 10-Minute Millionaire system is designed to have us jump back in with both feet.
And when that that change started to unfold in the market, that’s exactly the tactic we took in my The 10-Mintue Millionaire Elite service Stealth Profits Trader.
You see, just before the Memorial Day weekend, the market pushed outside the “box” for the first time in just shy of four months.
Here’s what that action looks like on a chart…
Seeing a chart like this, with markets just outside of their tightly “boxed” trading range, always – always – prompts a “Really Big Question,” one that, thanks to the charts, technical traders like me usually have a ready answer for…
“So, what happens next?”
Again, thanks to the charts, that answer is easier to come up with than you might think.
In the markets, “past is prologue,” so we just had to look at the historical movement during the last three breakouts…
As you can see in the chart, after all three of the last “boxed” market movements going all the way back to 2014, the sideways congestion, such as we’ve been dealing with since mid-February, was followed by a small downside move.
And then stocks started grinding higher.
It’s important to keep in mind that, what happened here is a little different from historical examples. The breakout (that you can see on a tighter timeframe on the top chart) was a bit more pronounced.
Now, here’s were my bold call came into play…
As a seasoned trader, with over 30-years’ experience in the markets, I knew that this sideways market was going to follow in the historical footsteps…
But I also knew that the market would try and “catch its breath” before heading significantly higher.
Knowing that the market needed to “bend its knees”, before it could jump higher, we targeted an aggressive play with short-term exposure in one of the biggest laggards of 2017 – the small cap Russell 2000.
On June 2, my paid-up subscribers bought put options on the iShares Russell 2000 ETF (NYSE: IWM).
Following the 10-Minute Millionaire system, we saw that this was an opportune time to put on a bearish trade so we picked up shares in IWM June 16, 2017, $138.50 Strike Puts (IWM170616P00138500), knowing you can make some money on the way down, of course.
But what I was looking at was even better.
There was only one logical conclusion, in fact…
Extremely Rare and Immensely Profitable
Timing the right entry point to get into a trade that minimizes your risk and maximizes your profit potential is tough business.
That’s exactly why I developed our 10-Minute Millionaire system to be one of the clearest “Go” signals there is.
And for IWM June 16, 2017, $138.50 Strike Puts (IWM170616P00138500), our system pinpointed that the perfect Reversal Extreme – one of the three extremes we target here at The 10-Minute Millionaire – had started to develop.
Reversals are the type of extreme that most people are familiar with, despite being the rarest type of extremes you’ll see.
This is the type of market condition that only happens once in a great while – but the resulting move is huge.
Now, as 10-Minute Millionaires, we know that Reversals comes in two flavors – Oversold and Overbought.
For this trade, we were targeting an Extreme Overbought Reversal.
Here’s how the entry decision sequence looked on the trade we had on in Stealth Profits Trader.
Extremes of this flavor that are the easiest to identify and occur when the price of the stock or financial asset has gone straight up (up too far and too fast) – meaning it’s poised for a fast-paced pullback or snapback.
Knowing the short-term nature of this trade, I issued the alert to Stealth Profits Trader readers right away. This trade was in the green almost from the moment we entered.
The pullback that started on the day we entered the trade, followed through into the following week.
And by the time the market opened down on June 6, just two trading days after we entered our trade, our put options had hit their first profit target for a 100% gain…
But the trade didn’t stop there…
I saw that there was a possibility for an even bigger downside move (and bigger profits) ahead.
Because of that, we “Framed Our Trade” by moving our profit-protecting stop to a higher price to give the trade a little room to run, but to also insure that protected profits if the market moved against us.
And it’s a good thing we did.
By Thursday, June 8, the global markets had started to move higher.
Because of that on June 8, my 10-Mintue Millionaire system generated a definitive Sell signal so we “Booked our Profit.” and added another double-digit win on this trade to our account.
The truth is, what I’m showing you here, is just scraping the surface of the true millionaire-making wealth you can achieve by targeting extremes.
That’s why my prevailing mission here at The 10-Minute Millionaire is to personally guide you through the different facets of this system. Week after week, month after month, I’ll show you how to establish goals and stick to them. I’ll demonstrate how to adapt my strategy to your circumstances. I’ll guide you through the three moving parts of my system – so you’ll get to see, up close and personal, how simple it really is.
I’ll teach you how to Find the Extreme – identify when a particular opportunity is out of whack – has achieved an extreme – and the precise moment when the odds of initiating a profitable trade are overwhelmingly in your favor.
I’ll show you how to “Frame Trades” and “Book Profits.”
My system is so simple that you’ll learn how to execute these steps, and execute them quickly.
And there will be endless opportunities to capitalize on them.
D.R. Barton, Jr.
Editor’s Note: While it’s not the focus here, D.R. does have a newsletter that’s all about fast-paced options plays like you saw here today. It’s his 10-Minute Millionaire Elite service Stealth Profits Trader. Each week, D.R. peruses his “watch list” of potential trades, and singles out and shares the very best ones with his VIP subscribers. Just since Jan. 5, D.R.’s 10-Minute Millionaire Elite members have pocketed 26 wins of 100% – or more. If you want to check it out – to see what he’s doing – give us a call at 1.888-384-8339.