Like an old school Rocky movie, stocks get knocked down and then climb back up. That’s what happens when we’re in a news-driven market. For example, tweets like this one helped push the Dow down by 700 points yesterday.
However, President Trump said that a deal with China could “absolutely happen” and that its current dispute is nothing more than a “little squabble” when he addressed reporters today.
Furthermore, he believes that the trade deal will work out very well… so there you have it.
But honestly, you can drive yourself crazy trying to trade off political headlines…
Instead, it’s better to put your focus on what you can control, and that is the trades you decide to take and the amount you’re willing to risk on them.
Of course, some traders have been struggling during this stretch… but not all of them
One man who has been thriving in this environment is one of my star pupil’s, and a mentor in Millionaire Roadmap, Nathan Bear. He joined my service in 2015, after losing $40K in the markets. However, he has since gone on to turn a $37K trading account into nearly $2M…
(Nathan Bear lost $40k the year before he joined MRM, this year he is up $400k, together we’re helping others win the market, become a client today)
What’s cool about Nathan is he trades differently than me. For example, he primarily sticks to options, whereas I’m usually trading stocks. However, we sometimes trade the same patterns, as you will see later…
His option calls of late have been on fire lately… and Millionaire roadmap clients have been feasting too:
dwight k. : great call on twlo
phillip b. : nice call on TWLO Nate, out 1/2 +60%
kirk p. : @ nate – TWLO calls were AWESOME !!!
paul s. : Out all of my TWLO. 700+ thanks Nate.
michel m. : @Nate THX!!! +20.2% Paper Trading on TWLO. I’m learning so much from you!! Thank you!!
kirk p. : @nate….+$340 on TWLO with only 4 contracts
kim h. : Thanks for TWLO, Nate. I needed a win today!
ryan s. : +450 TWLO. Thanks Nate!
rob a. : +650 TWLO..Also thanks Nate
priyanka m. : +30% on TWLO..thanks Nate ..I had just 1 contract
david g. : +$700 TWLO – thanks Nate
jim k. : Thanks, Nate. I needed TWLO
ken c. : $300+ on TWLO – thanks Nate. great call
rodney b. : +830 on TWLO thanks Nate!
thomas d. : made 850.00 on TWLO. Thanks Nate.
steve m. : thanks Nate +_450 on TWLO
(There is only one place where you can see me and Nathan Bear trade real money together and that’s Millionaire Roadmap, click here to get started).
Now, despite it being a news-driven market… some strategies are still working. For example, in this post I mentioned how Nathan is using the Fibonacci retracement tool to successfully trade options.
That said, I’d like to expand on the topic, as well as, share two active trades that Nathan has on (using the setup).
How to Beat the Market With Fib Levels
If you saw my post the other day about Fibonacci retracement patterns… you saw how powerful it could be when applied to options trading.
Now, in this market environment, we have to stick with what’s working… and Fibonacci levels have been working out really well for Millionaire Roadmap (MR) clients. For example, Nathan Bear (who was my student and now teaches traders his money-making trading style to MR clients) has been using the Fibonacci retracement tool to spot levels to buy options… as well as areas to take profits.
With these two new trade alerts… he’s combined the Fibonacci retracement with the TTM squeeze, as well as Jeff Bishop’s money pattern.
That said, let’s take a look at what he was watching in these two stocks, and how he used the Fib levels to signal an entry.
Yeti Holdings (YETI) Fibonacci Play
If you don’t know already, you can find the symmetry level by looking at the measured move of a prior swing high and low… then comparing that move to a previous pullback. Now, if that’s unclear to you… that’s okay, I’m going to show you how Nathan Bear uses these tools.
Check out the daily chart in YETI.
(Nathan teaches as well as shares his portfolio and alerts in the Millionaire Roadmap chat room, if you’re not a client yet, click here to sign up)
If you look at the chart that Nathan Bear sent out to clients, he found the measured move… then used the Fibonacci retracement tool to find levels to buy.
Now, if you look at the annotation… there was a pullback in YETI and it overlaps with the Fib level at 61.8%. That let Nathan know it was time to start buying because the stock tested that level and help.
Not only was there a Fibonacci symmetry level, when you look at the hourly chart, but there was also another bullish indicator.
Check out the chart after Nathan zoomed in to look at the hourly chart.
(Nathan Bear locked in a 40% winner overnight last week using the Fibonacci tool, and you can learn directly from him in Millionaire Roadmap, as well as, get his real-time alerts and portfolio feed, click here to subscribe)
As you can see, the stock is right around the Fib level and starting to catch a bounce… and it held up pretty well as support. The stock is now consolidating… and there were several squeezes in the TTM squeeze indicator (indicating bullish momentum) on the 30 min, hourly, and 78 min charts.
Not only that, Jeff’s money pattern is indicating a reversal in the stock.
Now, the Fibonacci symmetry level let Nathan know it was time to start looking to buy call options… and the money pattern and TTM squeeze confirmed the stock could bounce off the Fib level and run higher. In other words, he’s betting that the stock won’t fall below that Fibonacci level… and will actually run up from there.
Note: Nathan Bear is long call options in YETI.
Now, this wasn’t the only trade in which Nathan used the Fibonacci retracement in today.
Five Below (FIVE) Fibonacci Play
Does this chart look a bit similar to you?
If you look at the chart above, Nathan found two pullbacks in FIVE… and they were nearly identical. Now, that is the daily symmetry level. Thereafter, he found the 61.8% Fib level… and the symmetry level overlaps near the 61.8% Fib level.
Now, FIVE is holding that daily symmetry perfectly… and he figured it was a good level to add to longs, take a long bet or sell a put credit spread (something he alerted Millionaire Roadmap clients about).
In other words, he’s betting the stock won’t break below that 61.8% Fib level.
Keep in mind, since the market has been volatile… Nathan is scaling into these positions and not getting into his full size all at once.
Note: Nathan Bear is long FIVE call options.
If you’d like to learn more about Nathan and what he’s learned during his journey to becoming a successful trader then make sure to download a free copy of the eBook, Millionaire Maker. It’s full of practical advice geared to put you in the right mindset for trading.
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