Futures Trader Up Over+100% YTD Discusses Current State Of The Market

Trader gives his opinion on the S&P 500

Hello Powerhouse Traders,

I want to discuss my current opinion on the current state of the market so you guys and gals can hear what I have to say.

I have been reading the markets from a intra-day perspective quite clearly as my Futures Account is up over 100% YTD in just a little over a month.

As we are in a dramatically different market than we have seen the last 2 years I want to give you my opinions.

I trade to make money and not to sound smart so I will try and keep things pretty simple for everyone.

There are a lot of people out there commenting on the market that sound very smart with their wording, job title and resume but, the truth is we are not analyst, we are not institutional investors celebrating a 10% YTD return in December, WE ARE POWERHOUSE TRADERS THAT WANT TO SEE TRIPLE DIGIT % RETURNS YTD IN DECEMEBER !

Overall from a multi-week perspective I am quite bearish on the markets. My views are based on the Boom Bust theory and I believe that the FED are now focusing on preventing the Boom phase from getting out of hand which could cause a Bust if it does get out of hand (inflation).

Markets tend to crash on unexpected events and a crash does not need to happen for the markets to trade lower.

So to put things clear and cut for everyone, my opinion is the market will be very volatile for the months to come and it will remain a shorter term trading environment.

In my opinion longer term swing traders will have a tougher time trying to achieve Powerhouse Returns due to volatility.

Remember, we are trying to achieve triple digit percentage returns and that requires constant position turnover.

With the current market state, position turnover has been more aggressive for me as I have solely focused on trading intra-day ranges on my Futures account.

Many people have messaged me on my scalping strategy. As I won’t go in detail, all I have to say is when you are hoping for the NASDAQ to breakout is when I am selling. As a scalper I am solely focused on reacting to support and resistance and not anticipating.

Is A Rally In The Cards?

For the purpose of this report I will be talking specifically about the S&P 500.

The S&P 500 has sold off 4 days in a row but, to me as a momentum trader, I like what I see as it has been holding over the 200 day moving average.

In my opinion the S&P 500 can have a short term rally if it does get over and hold above the 9 Exponential Moving Average (9EMA).

Here is my breakdown and opinion on a potential scenario to watch for:

• As the S&P 500 holds above the 200 day moving average shorts could become anxious as they anticipate a rally. The 9EMA is used as a short term momentum gage and if price can stabilize above the 9EMA then shorts could look to cover creating more demand.

• As traders start to buy in above the 9EMA and shorts start to cover it could spark interest for day traders to come in. The freshly used bias was ‘buying the dip works’ and even though I think we go lower in the markets, those FOMO buyers looking to dip buy could help give the market a short lived rally.

To dive further into the 9EMA ( I know, I am getting technical here) but, we want to see the 9EMA also trend to the upside. Currently it is flat.

The price I am watching for the S&P 500 futures to hold is around $4490. If it can get above this area and hold then this potential scenario could potentially be brought to life.

Quick Recap

If the S&P 500 Futures can hold above the 9EMA and around $4490 then shorts could start to cover and dip buyers and momentum buyers could come in for a short lived rally to potentially occur.

Now, I do think that we continue lower in the markets as the FED are very very hawkish but, in the mean time we can get small pops and rallies and we are watching for this.

I hope everyone had a green day today. Remember to cut your losses quick because another win can be right around the corner.

Have confidence in your ability to win, cut your losers quickly. If you have confidence in your ability to win then you will cut your losers quickly because you are confident the next one could be a winner.

-Lusso’s Powerhouse Report Team