A1 Trading Company

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July 23, 2021

Up 1500 Pips! How We Caught A Big Mover

Frank Cabibi

7/23/2021

This week, me and Nick caught a crazy move on the SPX500 that we are currently still in at the time of writing this. This one move has netted us around 1,500 pips in equity. We haven't closed, so this number will not be the same when the trade is over, but this article will go over what we saw, where we thought SPX was going to go, and what we did.

What we saw

Over the past month or so, the jobs market population started showing a much larger growth than previous months as businesses started opening back up and were desperate to hire. People flooded into the labor force looking for jobs. With more people trying to get jobs, the more temporary unemployment there was. So, unemployment claims and unemployment rates went up. But companies were still hiring, just not to the pace of the growing numbers of the job market.
What might have been considered an economic slowdown on the surface actually seemed like a sign of growth to us. Our analysis can be referenced here and here.

Where we thought SPX would go

From July 15th to the 19th, SPX continued to sink and eventually crossed under a recent bottom that was supposed to be support. On July 19th, the market had corrected nearly 4% from the highs which seemed like an overreaction to us. And on that same day, price had touched a big indicator for support at the 50 Day moving average. This level was going to determine whether price will fall lower to a bottom in June or come back to test highs.

What we did

We then went to smaller timeframes to look for decent entries. After price had hit its 50 DMA, it bounced, but that didn't necessarily guarantee a full recovery from the lows. Finally, on the 1H chart, we saw a consolidation zone where priced topped out. We were looking for a breakout above this level which did end up working out. When price showed us that it was breaking above, we bought in.

Now we're trailing our play so we don't have to close out at a fixed TP level which is so we can try to maximize our gains. We will either close out in around 1000 pips profit if price comes down from here, or we will continue to trail our stops.

Bottom Line

The great thing about this strategy is that when we catch big winners, they really move in our favor. If we're wrong, we get stopped out in the red or at break even. A lot of the time, these big movers are rare and don't usually happen. But when they do, they really pay off.

So, fortunately we were able to catch a good swing on this trade and were aware of the risks involved. Thanks for reading up on this quick rundown of the S&P trade breakdown. Hope you all enjoyed!

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DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
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