"Mentor" Mike Bridges
All posts from "Mentor" Mike Bridges
"Mentor" Mike Bridges in Mentor Mike's Live S&P Emini Trading Room,

Mentor Mike's Trades for Wednesday, 6/18/14

Fellow Traders:

I tried a risky experiment that paid off and earned me my 2nd fastest Grand-A-Day ever: 3 trades in 15 minutes and a net of $1,088.  Here is what I did.

Today was Day 2 of a two-day FOMC meeting.  The Federal Open Market Committee is the action arm of the Federal Reserve Board that makes and executes the Fed’s monetary policy.  There is a press conference that occurs after the second-day meeting at around 11 am my time.  I learned the hard way many years ago, that the intraday S&P tends to become wildly volatile for about an hour after the start of that press conference. 

For years I refrained from trading on “Fed” day, or at least made sure I was flat at the time of the press conference.  But, as I learned more about Elliott Wave Theory, I discovered that there was an apparent method to the madness of this high-energy price movement.  The post-meeting price spikes were not random, but rather a more volatile continuation of whatever EW pattern was already in progress.

So I waited and watched all morning, without trading, until the first bearish spike appeared about one minute after 11am PDT.  That bearish spike perfectly completed Wave 5 of a bearish impulse pattern that had been forming since 7 am PDT.  That meant the next move should be a bullish Wave 1 or Wave A.

Besides my reading of the EW pattern, I was aware that traditional wisdom has always dictated that a trader should “fade,” i.e., trade opposite to the first spike.  So, I went long and instantly hit two targets.  As soon as the rally stalled and started to reverse, I knew Wave 1 or Wave A was in.  So, I reversed also and quickly hit another target.  The pullback stopped right at the Pivot Point support zone, thus completing Wave 2 or Wave B.  I reversed again and went long on Wave 3 or Wave C and hit all three targets.  Total trades: 3; total elapsed time: 15 minutes; and, total net profit: $1,088.

After the 3-target long, the market pulled back and eventually another good long opportunity presented itself that I couldn’t resist. It earned another 3 targets for a final net of $1,721.50.

As for the EW count, my best guess is that the post-meeting volatility was Waves 1, 2 and 3.  Check out the attached EW chart and judge for yourself.  See you all in the TRADING ROOM tomorrow.

Michael K. Bridges,President


Futures and Forex Trading & Instruction