HOW JUST ONE 'ODD' MARKET

PHENOMENON MADE ME

$47,692.27
In A Single Day

by David Vallieres

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The Winning Trade System

(c) 2012 by David Vallieres. All rights reserved. Reproduction in any form is prohibited.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by
any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission. Excerpts may be used
with proper credit and contact information (address, telephone number or website URL of the publisher)
No responsibility is assumed by the Publisher for any injury and/or damage and/or financial loss sustained to persons or property
as a matter of the use of this report. While every effort has been made to ensure reliability of the information within, the liability,
negligence or otherwise, or from any use, misuse or abuse of the operation of any methods, strategies, instructions or ideas
contained in the material herein is the sole responsibility of the reader.

DISCLAIMER: The following should not be regarded as personal investment advice. Trading of financial instruments is risky and
you should consider all possible outcomes of your decisions. Comments, updates and reviews on this page and on this website
are my personal observations and are made for educational and entertainment value only. Please discuss your personal
investment strategies with a personal investment advisor of your choice before making any decisions.

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The Winning Trade System

THE PHENOMENON
A Discovery That Changed The Way I Trade Stocks
Forever
This is not normal. People just don't make this kind of money in the market every day and that's true. They don't, I don't!
As you've seen in my Winning Trade System I make pretty good profits in the market. But nothing like this day. Days like this are
unusual to say the least, but they come along often enough that if you wanted to you could trade nothing else and make a pretty
good living at it.
And it's darn simple. It the most simple market setup I've ever seen.
I did make $47,692.27 in ONE DAY the FIRST TIME I took advantage of this phenomenon and this is a report on exactly how I
did it.
Most people will think it's impossible at least for the average trader.
And the average trader is naturally skeptical because they don't make this kind of money and believe it to be impossible.
But I CERTIFY that what you are about to read really did happen. I did it with a REAL MONEY account this is not paper trading.
Not one of the screenshots in this report are retouched, altered or modified as to the outcome in anyway.
Here's exactly what happened on the day of this case study:
A few years ago I noticed something 'odd' in the market. This 'oddity' occurs about 3 to 4 times each year in a normal market,
more frequently when the market starts to get volatile like it did from September 2008 to March of 2009.
I studied this phenomenon for about 2 years before I got the nerve to actually start trading it.
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I recommend you do the same- study it carefully before you trade it and do not use much money to start. Don't worry it happens
frequently enough that you'll have plenty of opportunities so don't rush it.
Here's what I saw:
I started noticing this in the fall of 2008 during the market decline. Volatility was high back then. One day the market was up 500
points the next it was down 700 points.
Man! If I had known about this during that time period you would not be reading this report right now. I would not have written it
because right now I'd be on a beach someplace sipping a nice cool beverage watching the tides roll in enjoying my profits.
Ok, it's nice to dream anyway but while I'm enjoying that beverage you can also bet I'm watching the first 30 minutes of trading
to see if the 'phenomenon' is happening that day!
So my study of that period from 2008-2009 opened my eyes to something that is truly phenomenal. A market aberration... a
strange occurrence that, for whatever reason works.
And works reliably well.
So when I saw this phenomenon happen again on April 9th of 2009 I dove into the trade head first and kept swimming until I
reached the end of the pool the end of trading for that day.
It started out just as I expected. The market was up that day, the DOW up significantly, the S&P500 gapped higher along with the
NASDAQ and within the first 30 minutes of trading I could tell it was happening again!
There's a single phenomenon that occurs and when it does the money that can be made is, well, phenomenal.

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The first time I took advantage of this trade on April 9, 2009 I took this screenshot of my P&L about 30 minutes into the trading
session:

A close up of the P&L:

I was just 'testing' the waters to see if things were going to work out.
You'll notice that I traded two different ETF's. The one on top (symbol: URE) was acting better than the second one (symbol:
UYG) so I decided to trade the top ETF, URE.
As you can tell I've already had a pretty good session. I was up $883.94.
For most traders that's a pretty decent day and I should have been happy with that. And I was.
But this day was different. It was what I call a True Trend day or Double T day...
Here's what the end of the day looked like:
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A close up of the P&L:

I traded UYG a bit more and ended up in positive territory for the day- up $1,109.71 - but URE was acting better and I spent my
time focusing and trading URE for the majority of the day ending up with a profit of $46,582.56 for the day.

Here's what the day looked like on the chart of URE I was trading that day:
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Based on my analysis of the market which I just finished for Daily Market Advantage, I told subscribers that the market was about
to go into a strong rally phase. This was April, 2009, just a few weeks after market bottomed from the 2008-2009 decline. The
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DOW was around 6,500 when it bottomed and was just starting to rally a bit, but I was sure based on my analysis that we'd get a
rally at least to the 10,000 level.
Ok, so back to this day so what's a True Trend day or Double T day ? It's a day that is so perfectly aligned with a strong trend that it's almost IMPOSSIBLE not to make money. All you have to
do is jump on board and ride it like a surfer rides a massive wave...
Whenever I see this phenomenon take place within the first 30 minutes of trading I sit up and take notice. I cancel all my
appointments for the day, text my wife that it's a Double T day then turn off my cell phone, unplug my fax machine, lock my
office door, have food and coffee ready at my side and don't move for the next 6 hours or so until the close.
It's that important.
Ok... here's the setup for a DOUBLE T day:

SETUP #1: Advance-Decline Signal

If the market is rallying:
Within the first 30 minutes (ideally within the first 15 minutes) of trading the number of stocks ADVANCING minus the number of
stocks DECLINING on the NYSE must be +2000 or more and hold above that level.

If the market is declining

Within the first 30 minutes (ideally within the first 15 minutes) of trading the number of stocks DECLINING minus the number of
stocks ADVANCING on the NYSE must be -2000 or more and hold below that level.
In other words, when you see the market open strong in one direction or the other the number of stocks ADVANCING
DECLINING must be +2,000 and DECLINING-ADVANCING is -2000 and it must be STAY above or below that level. IF IT
DROPS BELOW THAT LEVEL ON AN UP DAY OR RISE ABOVE THAT LEVEL ON A DOWN DAY AT ANY POINT DURING
THE DAY AFTER THE TREND IS BROKEN AND IT IS NOT A DOUBLE T DAY!
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I use the ThinkorSwim platform and in one of my windows I simply add this formula for a symbol:
$ADVN-$DECN (That's a - minus sign in between the symbols.)
And I use a 5 minute chart with this. The settings on your platform it may be different. But pick a short time frame.
Then I watch the market open especially if it opens really strong or really weak.
Here's what the Advance-Decline window looks like on my platform:

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Using the drawing tools I place a horizontal line at 0 (visible on the chart) and two more: One at -2000 and one at +2000 (not
visible on this chart).
With a single glance I can tell if it's going to be a Double T day if it's above +2000 or below -2000.
AND this is important: It has to get there within 30 minutes of the opening of the trading session!
If we are 30 minutes into the trading session and the Advance-decline is right around +1967 and never goes +2000 then it is NOT
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a Double T day! WARNING: Take NO action!

Even if it gets to +1999 on a up day or -1999 on a down day and it does not go to +2000 or -2000 within 30 minutes of the
opening bell DO NOT TRADE IT as a Double T day!!! ALSO we do NOT want to see the ADV-DEC line decline below +2000 on
an UP day and rise above -2000 on a down day ever during the entire day! If it does cross those lines the day is broken and
we get out!
Ok?
Let's go to Setup #2. (There's only 2 setups for this trade! Simple!)

SETUP #2: Up Vs Down Volume Signal

This is as important as Setup #1. You cannot trade on one of these signals alone. You need both for this to work.
Ok, so you have a day in which the Advance-Declines (PLUS or MINUS 2000) are in the right territory after the first 30 minutes of
trading... next you look for a low-volatility, trending up vs down volume pattern.
The day I took this screenshot did not have any trending days in the window. In the ThinkorSwim platform I can only go back 5
days using this special symbol.
In the ThinkorSwim platform I use this formula for a symbol to measure the up/down volume on the NYSE:
$UVOL-$DVOL (That's a - minus sign in between the symbols.)
Here's what it looks like in my window:

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Using the drawing tools I place a horizontal line at 0 (visible on the chart) just like I did with the ADV-DEC chart. That's the only
line I place on this chart.
Now this part is important: You want the UVOL-DVOL chart to trend. I use a 5 minute chart for this. I want to see a slow, steady
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rising trend of the UVOL-DVOL. It should look something like this on a 5 minutes chart:

I don't want to see anything like this on the UVOL-DVOL 5 minute chart:

You'll notice on this chart the day furthest to the left started out pretty good and was starting in the correct pattern but then a
couple of red or down bars started showing up breaking the pattern. That's not what you want to see. You want to see the entire
day follow the beginning of that pattern:
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This is actually a great day! In addition the ADV-DEC are at -2000+ and holding:

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HERE'S THE TRADE:

Take a LONG position when Setup #1 is +2000 and holding and the Setup #2 is trending UP.
Take a SHORT position when Setup #1 is -2000 and Setup #2 is trending DOWN.
Hold until the close and exit position!
This works best with INDEX ETF's and can even work with 2X ETF's and even 3X ETF for DAY TRADE ONLY.
So there you have it. The proof is in the profits!

If you find day that meets both of these criteria:

Advance-declines and up-down volume pattern
then you have a DOUBLE T day.
Does this still work today?? Do I still trade it?

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Yes, it does work, and of course I trade it! Why does it work? I have no idea, it just does...
Follow days like this, study them and you'll find yourself amazed at how well you can trade on a True Trend day!
For more Winning Trades get my Winning Trade System.
Click here for more information:
David Vallieres' Winning Trade System

David Vallieres

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