Q2 Begins With the Bulls in Charge

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Our View

Friday extended the three-week rally right into new highs on the close. The question today is, will the ES continue higher?

My general rule — when the shit isn’t hitting the fan — is that the ES tends to rally on the last 3 days of the month and the first 3 days of the new month/quarter (with the end of the quarter and new quarter taking up more emphasis on the buying).

I am always honest about this kind of stuff and I want to tell you a story.

Joel is an excellent trader and a very good friend of mine. He broke off his trading partnership 2.5 years ago and put $500,000 in his account. Now? It’s almost $6 million today.

He traded for years on the CBOE in the SPX and OEX and now trades grain options. He graduated from Northwestern and got his MBA at Kellogg. My point? He’s way smarter than me.

Then there’s the PitBull. You guys know the PitBull — aka Marty Schwartz. He’s one of the most successful traders of all time. He was a customer of mine back when I was on the floor and now he’s a very good friend of mine as well. My point? He’s had more success than anyone I know.

And guess what? Both of these guys come to me for market feel. After all, I worked the orders on the floor for decades.

Joel had something bothering him and he just could not figure it out. I gave him some simple street-wise suggestions and right away he told me it helped. Why does the PitBull ask me what I think of the markets 10x a day? Because he values my street-wise opinion.

The point being, I’m not here to tell you to buy at this price or sell at that price — just like I don’t tell those guys when to buy or sell.

I could, but you know what? I don't want to help anyone lose money. What I’m here for is to help give you a feel of the direction. If I am right, you can do it on your own and apply that “market feel” to your edge and win big — you really can!

Now some of you may be thinking, “that’s dumb, I can get that anywhere.” But can you? Look, I have seen people trade other trader’s systems and it just doesn’t work. They don’t execute it very well and that’s what I think we’d have here. Instead, I tell you how I’m seeing the market and where the big levels show up to me and that allows you to incorporate it into your strategy.

You’re pulling the trigger, so you’re building confidence in yourself. I’m just your straight-from-the-floor market feel guy.

One other thing.

Over the years I have seen too many bad things happen to people that trade other people’s accounts. I know a guy on Twitter that was from the floor that totally BS’d this guy into putting $150,000 into an account and the money was gone within a few months. Then the guy talked him into putting up more money and then that money was blown out. To top it off, he never paid attention to the fees and the guy was charging him a really high commission rake and booked like $60,000 in commish.

I have a rule everyone should follow: If you’re in a trading room and the guy that runs the room is making money every day, run if he wants to trade your account. I’m sure there are folks that are reading this have fallen prey to this and I'm sorry you did, but we don't want this happening to anyone going forward.

Our Lean

Today is the first trading day of the new quarter and it’s a short trading week with the Jewish Holiday and Good Friday in play, along with the March jobs report. Unless something major happens, 'thin to win' should still be in effect.

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