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84 STRATEGIES TO WIN
enough to catch this play is able to ride the trend to the close and get some
fast cash.
I also do a Nasdaq trade that I call “Off to the Races.” I use the NYSE
issues and the Nasdaq issues to make this trade. It is made around 9:00AM,
and it is made only if both of the noted issues are greater than 500 plus
or minus. The trade is made as prices break out from the 9:00AMprice in
agreement with the sentiment of the market.
A third breakout trade that I make is the “Fast Dance.” This is an after-
noon trade and is executed after the lunch break. When traders return to
the markets after enjoying a short hiatus, they often reaffirm their morning
positions by adding to them or they shift gears and change positions. For
that reason, this trade can be a winner. It is a Dow futures trade based on
the price range between 12:30 and 1:00PM. With indicator and market sup-
port, if prices break above or below that 30-minute range, I join the move
and buy or sell as indicated. This is a quick trade, and I generally liquidate
my positions by 1:30PM. I do not want to be in a risky position when the
“Grim Reaper” is looking for victims.
In addition to equity index futures, I also use the breakout move to
trade commodities. Every Wednesday I anticipate an oil crude futures trade
based on the weekly oil status reports. These reports are made public at
9:30AMand with crude under stress, prices respond to the news. I identify
the sentiment of traders and get on the winning team. One of my favorite
vehicles for trading oil news is OIH, an oil-based exchange-traded fund.
Always remember to respect risk and be an informed and knowledge-
able trader. The strategies detailed in this chapter involve trading futures
contracts. That means that a futures account is required and risk of loss is
great—especially for those who are uneducated and inexperienced. Learn
about these risks and understand them before trading futures contracts.