to View/Download

The Ichimoku Trader
www.ichimokutrade.com
© EII Capital
August 30th, 2015
Volume 1, No. 5
Doom and Boom
IN THIS ISSUE
Doom and Boom......................................1
Global Market Update.............................2
US Stock Market, VIX
Volatility Index, Crude Oil,
Gold, Germany, Japan, China
Standing Strong in a Storm....................5
Seasonal Trades........................................6
August Recap
September Pick
Dispatches from the Crash.....................7
Panic at the Disco
Post-Crash Multi-Timeframe
ETF Anomaly
Options Trading........................................8
Email for Information:
info@eiicapital.com
Follow Us On Twitter!
@ichimokutrading
T
he great market technician R. N. Elliott almost 70
years ago mused “news is the tardy recognition of
forces that have already been at work for some time
and is startling only to those unaware of the trend.”
Even in 1946 he had realized that the financial journalism press whom were primarily naysayers of technical analysis rushed to find explanations of market
movements ex post facto. The reality that Elliot observed was that natural disasters, wars, assassinations, droughts, and innumerable catastrophes had
already occurred in the recorded market history available to him with wildly different reactions in bull and
bear markets. Regardless of the event in the world at
the time the prevailing technically defined trend remained. Focusing on any one event as an explanation
is not only erroneous but patently unprofitable. How
is one to objectively know the outcome in terms of asset prices based on singular world events after they
have happened?
This recent historic and volatile move to the
downside in the US Stock Market has the consensus
of talking heads pointing to China. We have known
about China for two months. Why now? Perhaps it
is pricing in the Fed rate hike? Few can agree on that
either. Maybe it just… happened; and now we see
where price moves on our charts to determine our actions for the rest of the year and beyond.
I genuinely feel sympathy for hard working and
saving people that are busy with their careers, family,
and hobbies that do not have the time or passion to
learn reading charts. They need to make decisions regarding their present and future financial well being
and that of their families. They turn to people in the
media for explanations seeking actionable truth to
help them preserve and grow their wealth. Too often
they are met by charlatans.
Page 1
The greatest of those ilk are the goldbugs that
decry The Federal Reserve on a justification of libertarian morality. They reject the role of the Fed in
terms of practicality and go on to tell their listeners
the world financial markets are going to collapse with
no recovery. Oh, and don’t forget; they have a special
going on right now to buy gold and silver off their
website.
Yet as the world financial markets have had
major pullbacks and volatility spikes to the downside,
rather than see people rush to buy Bitcoin it has likewise gone down in relative fiat price and experienced
yet another flash crash. On a technical level Bitcoin
MUST hold $200-$205 to remain alive. That level
marks the start of the 2013 bubble. To break below
it means every bit of value attributed to Bitcoin since
that time has been wiped out. I remain confident in
it as a revolutionary protocol but there has yet to be
found the “killer app” to realize it’s full potential. It
took well into the following decade for the promise
of the Internet figure out what value it could create.
We may have to wait that long for Bitcoin.
Be humble my friends. Listen but verify. Learn
the charts and their patterns and make your own decisions. Do not take as gospel the beautifully written
words of anyone when it comes to your own trading;
even those of this editor.
-Wes Bennett
It is inexcusable to sell people the same narrative since 2012 about buying silver to have customers
lose HALF the wealth they put into shiny rocks. Now,
Those who regard news as the cause of market trends
in true “broken clock being right twice per day fashwould probably have better luck
gambling at race tracks
ion” the same people are doubling down on their nar-R. N. Elliott
rative at the moment technical analysts are shorting
gold (and making profits).
As I am also active in the Bitcoin space the
permabulls (or Mooninites, as they are colloquially
known) pointed to every Greek, Cyprus and Chinese
crisis as the reason a coincidental bullish run on Bitcoin occurred. Questioning these true-believers as to
their risk management and trading decisions over the bet everyone is looking forward to the Global market
last two years has been met with derision and censor- update this time! Greece was nothing compared to
ship. Thou shalt not question the certain and immi- what China did to all the Global markets. Remember,
we cannot cover all Global markets so we will cover
nent rise in price of Bitcoin, “it’s different.”
the key markets.
Global Market Update
I
US Stock Market
For the US Stock Market, we will analyze various instruments to give us a “complete” picture. The first
instrument we will analyze is the E-Mini SP500 Futures. Figure 1 shows the monthly Ichimoku chart for
E-mini SP500 futures. Since October 2011, price has
not touched the monthly 26 bar support. This month
we went straight to this value and bounced right off
it very hard. The monthly bullish trend is still strong.
Until we break the monthly green support….we will
Page 2
not engage in a major pull back long term.
marked on the chart: 20.73, 15.90, and 11.90. When
we reached 11.90 this month, we went bearish for
the stock market and long the VIX. The goal was to
stay bearish until we got to 15.90 and/or 20.73. At
that point, we would go long in the stock market and
short the VIX. In one week, we broke both resistance
and the VIX exploded to retest the resistance from
Feb 2009.
Figure 1: eSignal Ichimoku Monthly Chart of E-Mini
SP500 Futures
Figure 2 shows the Weekly chart of the E-Mini SP500
futures. January 2012 was the last time price was in
the cloud.
Since that time, we have been above
the cloud having a bullish sentiment. Last week, we
closed in the cloud changing the sentiment from bullish to neutral. This week, we went below the cloud
to change the weekly sentiment to bearish temporarily because we closed back in the cloud at the end
of the week. Therefore, the sentiment is now neutral.
For the sentiment to change to bearish, we have to
close below the cloud at the end of a week. For the
sentiment to go bullish again, we have to close above
the cloud at the end of a week. As long as we don’t
close below the cloud, the big move down is still a
major pull back.
Figure 2: eSignal Ichimoku Weekly Chart of E-Mini
SP500 Futures
Figure 3 shows the CBOE Market Volatility Index. It
has an inverse relationship with the US Stock market.
If the market goes up, the $VIX goes down and vice
versa. We have been using the $VIX in conjunction
with the E-mini SP500 to give us early indication on
market direction. Since the beginning of this year,
we have been posting the $VIX chart on twitter and
determining the market direction on a weekly basis
for day-trading/swing trading. 3 levels have been
Figure 3: eSignal Ichimoku Weekly Chart of
$VIX Futures
Since our range got broken, we are looking at the daily time frame now to see what the support/resistances are short term. Figure 4 shows the daily chart for
the $VIX. The resistance to retest the high that has to
be broken is 32.22. The major support is going to be
20.73 which was the top of the consolidation pattern
that we broke. Please note, there are a lot of minor
support to get to 20.73.
Figure 4: eSignal Ichimoku Daily Chart of
$VIX Futures
Crude Oil
Figure 5 shows the Weekly Ichimoku Chart for Crude
Oil Futures. We have been posting this chart for weeks
now on Twitter. When crude oil broke the support at
52.41, it has a high probability of retesting the pivot
low at 42.30. Last week, we broke this support so the
probabilities were high to get to the next major support of 36.87. However, there were a lot of minor supPage 3
port along the way so any of them could influence
price. Instead of getting to the next major support,
crude oil is now trying to pull back. The pull back is
now occurring because we moved down so fast. We
will examine the daily time frame to determine the
pullback levels.
Figure 7: eSignal Ichimoku Weekly Chart of
Gold Futures
Germany
Figure 5: eSignal Ichimoku Weekly Chart of
Crude Oil Futures
Figure 6: eSignal Ichimoku Daily Chart of
Crude Oil Futures
Figure 8 shows the weekly Ichimoku chart for the German Stock Market Index. It has been a “scary” month
for the German stock market. The weekly sentiment
is still bullish because price is still above the cloud.
This week, price went below the cloud and then ended up closing above the cloud. In order for the Germany stock market to go up, it has to break the major resistance of 10358 in the next couple of weeks.
If we close below the cloud by the end of any week
in September, the sentiment will change to bearish.
The last time the sentiment was bearish was January
2012. Since price is close to the bottom of the cloud,
anything can happen. The resistance is going to be
key in controlling the sentiment.
Gold
A lot of people analyze Gold in order to determine
what is going on with the fundamental side of the
markets. Figure 7 shows the Weekly Ichimoku Chart
for Gold Futures. In July, Gold broke the support of
1163.30 which was the bottom of the consolidation
pattern. It went all the way to 1072 before it decided to go through a pull back. Now, Gold is back to
the bottom of the consolidation pattern retesting the
resistance at 1163.00.
In order for Gold to remain
in a bearish trend, this resistance has to hold and it
has to start to break the support of 1120.90. If the
resistance breaks, Gold will have a high probability of
entering an “ugly” consolidation pattern. If the support at 1120 breaks then the next minor support is
1088.70 before it retests the last pivot low.
Page 4
Figure 8: eSignal Ichimoku Weekly Chart of
Germany DAX Stock Market
Figure 9: eSignal Ichimoku Monthly Chart of
Germany DAX Stock Index
Japan
Figure 10 shows the Weekly Ichimoku chart for the
Japan Nikkei Stock Index. The Japan stock market is
going through its first major pull back since the bullish trend started in Oct 2014. Since April, the market
has been consolidating between 20,044 and 20,710.
Last week, it broke the support and went very fast to
Figure 12: eSignal Ichimoku Monthly Chart of
the major support at 17,734. The daily timeframe is
China Stock Market
in a bearish trend and will remain bearish as long as
the resistance of 19343.58 holds. Figure 11 shows the
Figure 13 shows the weekly chart for the China Stock
daily Ichimoku chart.
market. The sentiment is still bullish on this time
frame too since the price is still above the cloud. Even
with the huge move down, the market is still maintaining a bullish sentiment on both the weekly and
monthly timeframe for now. It is not bullish trending but it is an “ugly” pull back. The market has held
one support at 3046 but still has a possibility of going
lower to the next support at 2815. The next major resistance is 3675 which it has to break in order to stop
this major pull back.
Figure 10: eSignal Ichimoku Weekly Chart of
Japan Nikkei Stock Index
Figure 13: eSignal Ichimoku Weekly Chart of
China Stock Market
Figure 11: eSignal Ichimoku Daily Chart of
Japan Nikkei Stock Index
I’m not better than the next trader,
just quicker at admitting my mistakes
and moving on to the next opportunity.
-George Soros
China
Figure 12 shows the Monthly Ichimoku chart for the
Chinese Stock Index. In June 2014, the Chinese stock
market went on a major bullish trend from 2084 to
5397. That is a huge percentage increase in a very
short time. When it decided to correct for the first
time, it went down drastically due to the huge speed
on how it went up. Based on the monthly time frame,
this is still a major pull back. Price is still above the
cloud so the sentiment is bullish.
Standing Strong in a
Storm
I
n our inaugural newsletter, we highlighted the underlying theory of sector rotation and how the business cycle may be indicative of sectors to watch for
outperformance. Working under the assumption we
Page 5
are either in the Mid to Late phases of the business
cycle, our analysis led us to a case study on the Utilities sector. The XLU ETF can provide a cumulative look
at the entire sector. As at May 15, 2015, the sector was
down 2% YTD as shown on the chart below.
Figure 2: TDAmeritrade Weekly Chart of NEE
Figure 1: TDAmeritrade Weekly Chart of XLU
Although the Utilities sector play would have experienced some draw down it still held the next support
of 41.88 and began a 10% up move. The defensive nature of this sector allowed it hold up well during the
most recent correction in the markets. The specific
plays of DTE and DUK that were highlighted may not
have been outperformers however with the overall
sector performing well, these individual plays would
be at breakeven if not better. The true benefit of investing in a sector that will perform well is providing
more room for error. Should you not pick the best
names, you still have the opportunity to exit at for a
minimal loss if not at break even with good risk management practices. Other names that we were able to
take advantage of included CMS Energy Corp (CMS)
and Nextera Energy (NEE) which setup closer into July
based on the Ichimoku indicator offering a minimum
of 3 delta move using options. This lined up well with
when the XLU tested the next support level.
The Utilities as a whole sector have done well in the
past month listing among the leaders of the market.
All this, while many popular names such as, Starbucks
(SBUX), Yum Brands (YUM) , JP Morgan (JPM) have taken breathers since making highs in the month of July.
With the market breaking out of its narrow range and
an increase in volatility, we will be watching how the
sectors begin to setup once things settle down. This
will be the key in determining where our money can
rotate into for the last quarter of 2015.
-Pranav Khattar
Knowing others is intelligence;
knowing yourself is true wisdom.
Mastering others is strength;
mastering yourself is true power.
-Lau Tzu
Seasonal Trades
August Recap
O
ur pick (MAC), never triggered as around the seasonal start date of August 19th, it was in a setup
to retest the previous pivot low around $75. This is
why we will continue to emphasize that there must
be a setup that matches the seasonal in order for us
to execute a trade.
September Pick
Figure 2: TDAmeritrade Weekly Chart of CMS
Page 6
Chubb (CB) has a seasonal bullish run from September 2nd - September 20th. Over the last 10 years, (CB)
has on average moved 6% upto a maximum of 44%.
The max drawdown has been 3.7%. Despite the recent turmoil in the markets, (CB) has managed to stay
Dispatches from the
Crash
bullish and did not even pullback to the multi-time
level of $111.92.
On the daily chart shown in Figure 1, we can see
that price failed to get to the multi-time frame level
ur traders focused on several aspects of the marof $111.92, which was the daily skb, weekly KS and
ket during the events of last week. This section
monthly TS when the market took a nose dive on
8/24/15. So now we expect it to hold around $120 as highlights some of these observations.
that level will line up with the weekly, daily and lowPanic at the Disco
ers.
O
W
Figure 1: TDAmeritrade Weekly Chart of CB
September Statistics
September is shaping up to be a volatile month. We
have the much anticipated Fed meeting in the same
week of option expiry along with the end of quarter
3. Institutions will restructure their portfolios, the
crowd that went away in May will be back and we still
have to deal with China and Greece. So this month
will not be for the faint of heart. As we saw in the
last week of August, it didn’t matter what the stock
was, everything dropped. The key for any seasonal to
workout this month, is for the E-Mini S&P 500 Futures
to hold support on the daily and weekly charts. Over
the last 10 years the E-Mini S&P 500 Futures have
gone up an average of 2.5% from September 4th September 20th. Seasonally, after the 20th there is a
bearish pullback until October 10th. The pullback has
occurred in 6 out of the last 10 years including the last
4 years straight. This is the same time period in which
the E-Mini dropped by over 30% in 2008.
-Hiren Patel
ow, I was really excited about last week. One
should have had no emotion towards the chaos that happened last week but experience means
so much in the trading world. We are only as good
as our research. I began paying close attention to the
market back in 2008 when the market crashed. I was
reluctant to invest but I kept my eye on it closely. I saw
how it affected everyone. It was amazing to watch
how last week brought up some of those old fears.
Some of my family members lost a lot in the
2008 crash. One in particular was close to retirement.
This person out of fear closed out almost all of their
position when the market fell 10% last week. Now
what’s even more interesting is at night I work at a
music venue and no one there even knew the market
took a dip. Everyone was still having fun. So was this
dip worth closing out all your position? That’s why I’m
so attracted to technical analysis and the research behind it. With this outlook that fear can be reduced or
even eliminated altogether. And the truth is money
can be made in a down market as much as a up market. Matter of fact, some of the best trade were made
off a bearish market. But is the market bearish yet? Is
it worth getting all scared and getting on the hype
train of fear as certain news media outlets did? Lets
take a look at the chart and see.
Figure 1: TDAmeritrade Weekly Chart of
E-Mini S&P500 Fugures
Page 7
As you can see, the week closed above the SKB on the
ETF Anomaly This Week
weekly. As long as we hold these levels, we will retest
the highs and maybe even break them and continue
his was a crazy week in trading. One of the things
this bullish market. So dont panic just yet.
we want to look at is supply and demand and how
-Michael Colquitt things get out of balance in an illogical way in the
marketplace. Our example will be the SPDR S&P Dividend ETF symbol SDY.
Post-Crash
T
Multi-Timeframe Level Scan
During the selloff on Monday the 24th this S&P 500
tracker fell almost 50% at the open. When at most the
n Tuesday after the crash of Monday we fired up S&P 500 that it tracks was only down 7% or 8%. This
our Ichimokutrade.com scanner for all stocks was quite a disparity. It fell from 74 to 46 and anyone
within our standard trading criteria ($30+) for Long lucky enough to notice and buy it made a quick forTerm, Swing Trade, and Day Trade matching levels. tune as within an hour it was back above 70.
With our scanner we were able to filter every one of
the large moves down to find where price had settled How does this happen you ask? Well this is what hapin relation to these levels. Though nearly every stock pens when there is no liquidity and someone puts in
in the S&P 500 was in the red there were clear differ- a big market order. The ETF was unable to accurately
ences in how each had rebounded. We produced a track the instrument it is supposed to because they
list, set alerts, and waited for trading opportunties.
were not enough bids in the marketplace at the time,
Not every alert yeilded an opportunity but we therefore creating a disparity from what it is tracking.
were able to immediately see which stocks were the It also illustrates the lack of wisdom from the seller.
strongest and which were the weakest when it came The seller should have known where the tracking
to weathering the storm. Here is our list from last price should be and should have waited for the ETF to
week with the sentiment as of August 25th, 2015. I’m balance itself out.
going to leave this here for future analysis:
O
This is what happens when there is panic in the markets and emotions take over. The poorly trained get
nervous and lose a lot more than they should have.
The well trained remain calm and capitalize on opportunity.
-Manesh Patel
I’m not better than the next trader,
just quicker at admitting my mistakes
and moving on to the next opportunity.
-George Soros
Options Trading
T
he last two weeks of trading has been challenging
for all traders around the world. It doesn’t matter
if you are a retail trader or an institutional trader, it has
-Wes Bennett
been “crazy”. Today, information is received in a matter of milliseconds from around the world. As a result,
Page 8
all Global market are now tied together. Negativity in
China influenced the entire Globe this week. Markets
reacted in a way that they NEVER have done before.
Every global trading instrument got affected.
As the markets went through a major correction, a lot of Global stocks went on “sale” for the first
time in years. The trader’s that weren’t scared, started
to look for opportunities. Many traders started to
use Options in order to trade these instruments. In
my trading career, I have taken a lot of options courses. I have spent over $50,000+ in just options courses! Unfortunately, the money spent in a courses did
not relate to the knowledge I gained in them. I had
to learn through trial and error why my options were
negative even though I was correct in picking the
direction. None of the courses covered the Option
“Greeks” in detail. I was always told that Volatility is
high, you have to use the following options strategies:
Vertical, Iron Condors, Butterflies, etc. When Volatility was average or low, you look to buy calls and puts.
Volatility is a friend to traders that sell options and an
enemy to the traders that buy options.
When the markets went through the correction this week, volatility went skyrocketing high. It
broke resistances that we have been illustrating since
the beginning of the year. Since October 2014, the
$VIX has been ranging between 11.90 and 20.70.
During this month, the $VIX went as high as $53.05.
The last time we got to this value was Feb 2009.
Let’s look at the stock CVS and examine all the option strategies for August 21, 2015 at 10:58:04 am
EST. This is roughly the stock was at its low. Figure
2 shows the monthly chart for CVS stock.
Figure 2: TDAmeritrade Monthly Chart of
CVS, CVS Caremark
The Average IV during that date was around 18%.
Therefore, if the stock option IV is higher than this value, the IV for that stock option is high. Figure 3 shows
the option chain with Volatility at the end of the day
for both the September and the January options.
During the day, Volatility was higher so the bid/ask
prices were higher.
Figure 3: TDAmeritrade Option Chain for
CVS, CVS Caremark on August 21, 2015
Figure 4 shows the bid/ask prices for the options for
the exact date/time for the option strategies we are
going to look at.
Figure 1: TDAmeritrade Weekly Chart of
the $VIX, CBOE Market Volatility Index
With Volatility at extremely high values, option traders
started to look at options strategies friendly to High
Volatility. Any strategy that had a “sell” leg would be
good since high volatility is friendly to selling options.
Figure 4: TDAmeritrade Option Chain for
Remember, the traders were looking for instruments
CVS, CVS Caremark illustrating bid/ask
to bottom and reverse and start to go higher. Therefore, the options strategies had to be directionally
The first strategy we will look at is to sell a vertical
bullish.
spread i.e. credit spread. The current price of the
stock is at 103. The highest price CVS was before it
Page 9
turned downward was around 113. As a result, we
are going to sell a vertical spread for January 2016
where CVS will get to 113 or higher. Figure 5 shows
the risk graph for the credit vertical spread. It is risking $153/contract to make $347.00/contract. This is
not a good reward/risk ratio. We are looking for a 3:1
reward/risk ratio so we are going to move to the next
strategy.
strategy. Figure 6 shows the risk graph for the strategy. The risk was $68/contract to possible make $431.
This is definitely a 3:1+ reward/risk but for maximum
profit, you have to have the stock close at 110/share
the third week in January 2016. The chances are rare
but it can happen. The trader does have the option
to exit the option strategy for a less reward earlier
if the stock starts to move into the region of profit.
This is a trader’s strategy…not an investment strategy. Would you allocate a lot of money behind a strategy like this? I wouldn’t!
Figure 4: ThinkorSwim $CVS January 2016
Credit Option Strategy
The second strategy we will look at is to sell an Iron
Condor option strategy. It is very commission intensive but with an extreme high IV, we may be able to
get a 3:1 reward/risk ratio. It just depends on the IV
for each individual option leg. Figure 5 shows the risk
graph for the Iron Condor option strategy. The risk
is $124/contract and a max profit of $376. This gives
us a 3:1 reward/risk without considering the commissions. If you look at the commissions to enter and exit,
the reward/risk is under 3:1. Notice, the price of the
stock has to be between 110 and 115 by third week of
January 2016 in order for us to get max profit which
is our 3:1 reward/risk. Anything outside these values,
we would get less than 3:1 reward/risk and also can
lose the entire value of the option. Believe it or not,
this was one of the few stocks that did give close to
3:1 reward/risk ratio. We looked at various stocks and
many didn’t even offer a 3:1 for the stocks to retest
their previous high.
Figure 6: ThinkorSwim $CVS January 2016
Butterfly Option Strategy
The last strategy, we will examine is a Calendar strategy. For a calendar strategy, the IV for the front month
i.e. September has to be higher than the back end
month i.e. Jan since we are looking to Sell a September option and buy a January option. Since we are
looking for the instrument to go up, we have a to look
at a call calendar.
Figure 3 shows the IV for the strike price of 105
and September and January. The IV for the September was 23.39 and the IV for the January was 21.63.
This gives a 1.73% differential which is NOT much at
all. This tells us that the IV is high for both the front
and back month so we will not get a good reward/
risk at all. If we sell the September 105, we will collect $155/contract and then we will have to pay $445
for the January 105 option. Our risk is $290/contract.
The delta for the January option is 45/contract. If
the goes up $10, then you can make the $450. The
net profit will around $650 (assuming all the option
“greeks” remain the same) which is calculated by adding the $450 profit plus the September premium of
$155. With all this happening, this gives a 2:1 reward/risk ratio.
That is not good especially if you have to have
the stock below 105 by third week of September and
Figure 5: ThinkorSwim $CVS January 2016
then after the September expiration, you have to
Iron Condor Option Strategy
have the stock go up $10 in total. This is a lot to ask
The third strategy we will look at is to buy a Butterly for a 2:1 reward/risk ratio.
Page 10
In summary, when the markets bottomed,
if the trader wanted a reward/risk of 3:1, there were
not many option opportunities at all! A trader had
to either buy the stock, sell “naked” options (unlimited risk) or take option strategies less than 3:1. The
market makers had altered the “Greeks” so it favored
them!
Patience is the key. Remember, money management is the key for consistent profits. It is better
not to trade sometimes than to take trades that give
you a big headache over the long run. A lot of option
traders today are seeing negative P&L with the bullish
option trades even though the market has gone up.
Why? This is why it is critical to understand the option
“Greeks”. You understand the Option “Greeks” then
you know what the market makers are doing!!!!!!!!!!!!!!!!
You can see option trades we have taken for over 3:1
under the Video-> Trade Review section at www.
ichimokutrade.com
If options are completely new for you, you can
email us at info@eiicapital.com for information on
how to learn the basics of options.
-Manesh Patel
Thank You for reading! Please look forward
to our next newsletter September 27th, 2015!
To subscribe email request to:
info@eiicapital.com
Disclaimer. The Ichimoku Trader newsletter contains or may contain references to other companies. E.I.I Capital Group makes no
representations, warranties or endorsements whatever about any other companies , or any products or services of those other
companies, even if the products or services of those other companies or their Web sites are described or integrated with E.I.I Capital
Group products or services. You use this newsletter and all E.I.I. Capital Group (and affiliated) products and services at your own
risk. In no event shall E.I.I. Capital Group be liable for any special, incidental, indirect or consequential damages of any kind, or any
financial losses or damages whatever, including, without limitation, those resulting from loss whether or not we have been advised
of the possibility of such damages, and regardless of the theory of liability. This newsletter could, and likely does, include some
technical and other inaccuracies and errors.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success.
There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you
trade (equities, options futures or forex); therefore, you should not invest or risk money that you cannot afford to lose.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Futures and options trading has large potential
rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures
and options markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell
futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH
AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED
WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT
OR LOSSES SIMILAR TO THOSE SHOWN. Testimonials appearing on this site are actually received via email submission. They are
individual experiences, reflecting real life experiences of those who have used our products and/or services in some way or other.
However, they are individual results and results do vary. We do not claim that they are typical results that consumers will generally
achieve. The testimonials are not necessarily representative of all of those who will use our products and/or services. The testimonials displayed are given verbatim except for correction of grammatical or typing errors. Some have been shortened, meaning;
not the whole message received by the testimony writer is displayed, when it seemed lengthy or the testimony in its entirety seemed
irrelevant for the general public.
Page 11