Forecast Right On the Money – Here’s How To Trade the Market Today

April 29, 2016
Author: Peter Stolcers, Founder of OneOption

WATCH MY TRADES IN THE CHAT ROOM - TAKE THE FREE TRIAL Posted 9:30 AM ET - For weeks I've been forecasting a rally and a high that culminates around the FOMC. We are getting the pullback I expected and resistance is building. In the chat room we traded the bounce yesterday and we shorted the market in the afternoon. I purchased VXX in the early afternoon and held it overnight. Bullish speculators are going to get flushed out. The first wave of selling off of a high tends to come quickly and it can be nasty. Asset Managers pull bids and sellers are trying to hit anything they can. This creates an air pocket and we might see one this morning. The big guns (Apple, Amazon, Bidu, Facebook, Google and Microsoft) have been fired and bears will be a little more aggressive. We will see one of two scenarios this morning and I think this first one is likely. The market will stage a swift decline (12 - 15 S&P points) and it will establish support. Stocks will bounce and the losses will be pared throughout the day. Europe's GDP was slightly better-than-expected and earnings were pretty decent overnight (AMZN, BIDU, LNKD). Official PMI's Monday morning should also restore the bid. China's activity will show slight improvement. I plan to trade this bounce aggressively. I will be lining up stocks with relative strength during the first 30 minutes of trading. As the market drifts lower, I want to see these stocks trying to push higher. There is a particular pattern that I look for and when all of the elements are in place my probability of success is extremely high. I will buy these stocks when the market looks like it is finding support. If I'm wrong, the market will continue to drift lower and these stocks will tread water. I will be able to exit the trades without taking a hit. If I'm right and the market bounces, these stocks will fly and I will make a lot of money. This is my edge. I've spent many years developing this system and if you are a day trader you should take the free trial and come watch us today. I have the tools to find these stocks. If my forecast is wrong and the market continues to drift lower after the first hour of trading, the second scenario will play out. Stocks will continue to decline and we will close on the low of the day. SPY has a decent horizontal support level at $207. If that fails, the next support level is $204. Don't construe my game plan today as being longer-term bullish. I am bearish and I believe the market will challenge $200 in the next month. This decline will happen in a series of moves. We are going to see two-sided trading and the bias will be negative. This is an incredible day trading environment and I'm looking forward to the day. . . image

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