Free Daily Videos

Hubert Senters here. Let’s take a look at the 30-year bond. This is interest rate futures contract. It’s a future just like anything else. When I talk to you about bonds I’m not talking about like a CD or something that you grandma or grandpa would invest in. This is an interest rate futures. So what that means is overtime it’s got an inverse relationship to the interest rate yield. Sounds really complicated. Sounds like I am really smart over here. I’m really not. This is how this works in layman’s terms. As interest rates go down overtime the bond market will go up. Now, that’s been working for a very long time. Unfortunately, that’s going to seize the work in my opinion because it has an inverse relationship so what’s going to happen now as we begin to raise interest rates in the up direction like this. This market will go down like this. And you can already see it already happening right here. That’s really the fundamentla core of thing that you have to understand on the 30-year bond. And you know doing well they’re not going to keep interest rates down here this low forever. They make even here for another year or two. But they’re already creeping lower as far as the bond futures. So let’s go over here to the daily chart now. And as you can see they are starting to drop like stones and that’s a good thing. Every time this thing drops a point which is 32 ticks. That’s a potential thousand dollars that you can either make or lose depending on which side you’re on. So let’s go through some basics of these things. Number one the symbol is called ZB. I use the a US on Trade Station. But for almost every other platform out there it is forward slash ZB or you got to know the actual contract month. But it’s just ZB. It’s the 30-year bond. Now, let’s talk a little bit about margins. One of the reasons I love trading futures in general is because you can open up a very small account and you can control a very large amount of notional value which is the cash equivalent. So the exchange set the minimums and these numbers will fluctuate based upon volatility. But a 30-year bond you only need $3,375 to hold it overnight. if you want to trade an intraday you can get as low as $300-$1000 per contract intraday margin. Now, here’s the sexy thing about this and the cool thing about it. A lot of you that trade stocks get hit by the pattern day trader rule like you can only do so many trades a week or they shut your account down and won’t let you do anything else. In futures they don’t really care. You can trade a billon times a day as long as you have the money in your account to back it. They don’t care. So you could trade a one lot in and out a hundred times a day and as long as you’re profitable in it and just blow your account out they’re not going to say anything to. And even if you’re not profitable as long as you don’t go upside down in your account. Let’s say you started out with $3,000 you could potentially trade with this equation, three contracts. Just because you can does not mean you should but don’t let you do it. So it’s better for small accounts and they already have built in leverage so you do have to be a little careful because you are controlling quite a bit of a money when these things start floating around. In the 30-year bond right now they have about a point and a half range on them which that means you have the ability to either make or lose about $1,500 a day on the 30-year bond. Mark Helweg is going to be doing a live on core on ”Why This Hedge Fund Manager is Telling Friends and Family to Exit Stocks” right now. Webinar is going to be Saturday, February 27th at 11AM. I will HYPERLINK you to this registration page. Good luck. Hope it helps. See you on the next video. Hubert.

Hubert Senters here. Let’s take a look at the 10-year Treasury Notes.This is a futures contract. If that confuses you don’t let it scare you. They’re just futures. The way you look at this is you really just need to know one basic fundamental and then you can kind of start trading these things. Now, the reason I like futures is because they’re leveraged. You can trade it with smaller amount of money. You control a large amount of money so you have leverage. Now, heads up, leverage cuts both ways. Both on the winning side and the losing side. But let’s go through some basics here. Number one this the 10-year Treasury Note. I’m going to change the chart here a little bit on the timeframe. I’m going to make it like weekly and then I’m going to change it to monthly so. As you can these things are quite the trending machine for the most part. As you can see here these things basically go up a lot overtime. Now, the reason that’s happening is because we’re at historic interest rate low so think about when you go a platform alone or a mortgage the rate flcutuates up and down a little bit. That’s what these things are trading. So it’s an inverse relationship to the percentage that you can go get alone at it’s called the yield. All you have to do is think about it and reverse. If interest rates go down on like this then this product shouldgo up like that so interest rates are at historic lows. They’re not going to stay there forever. They can’t keep them at zero for very long. What’s going to happen. This is a monthly chart. And I’m going to zoom in here on the weekly chart and you can see the weekly chart is starting to flop over. The last time we had a buy signal they went from $120 all the way up to $138. That didn’t sound like a big move but these things are worth a lot of money. So the multiplier will add up very quick. And we’ve already been actively shorting these things from several weeks when it breaks here it will probably drop like a stone down to $126 and then down to $118. So now let’s look at the daily chart so the daily chart right here this thing is already down $17.5 that’s worth almost a thousand dollars. Now, when I say it’s almost a thousand dollars that’s worth a thousand dollars per day basically on the 10-year note right now. So a lot of you are going to ask me what are the margins? How do you setup an account and stuff like that? Let’s grab some data for you. Now, the exchange set to minimums but your broker can charge higher than the minimums so you’re going to have to check with your broker. So the 10-year note the symbol is going to be ZN, Zebra, Nancy. And as you can see here on the website which these guys own this contract. And you can see that the maintenance is set to $1,250 so that’s just the set. You just got to have that amount of money in your account before you can place one trade for one contract to potentially make a thousand dollars a day. Now, heads up, they’re leverage so you’re going to with that $1,250 you’re going to be basically managing on the 10-year note. It’s a hundred thousand dollars so. For a $1,250 downpayment you can manage a hundred thousand dollars in the 10-year Treasury Note. Now, in some cases it can be slightly better or slightly worst than that. I know on Trade Station. I just look up their margin rates because I clear through them a lot. And then on their 10-year Treasury Note they have it set for $1,250 is the initial. But really if you want to do a day trade they only take a half of that. So $1,250 divided by two. So for $625 if it’s a day trade because it’s how they get it setup. Every broker is a little bit different but the minimums are the minimums so I would say you’re going to have to have at least $1,250 if you want to trade one contract of a 10-year note. And futures broker are all over the place. Just go find you one and say you want to trade these things. And then I’ll take you through with some lessons here with the two to three videos on how some of these stuff works. Mark Helweg is going to be doing a live on core webinar presentation on ”Why This Hedge Fund Manager is Telling Friends and Family to Exit Stocks.” Webinar is going to be Saturday, February 27th at 11AM EST. Good luck. Hope it helps. I will HYPERLINK you over to the registration page. Hubert.    

Hubert Senters here. Got a question from Robert. Hi, Hubert, can you comment on the attached May 21 Wheat daily chart and a failed head and shoulders pattern? We’re taught to set a stop loss above the head. I didn’t teach you that but I do understand what you’re talking about. You’re talking about just good old-fashioned head and shoulders pattern. That’s usually how most people trade. Got you. We’re taught to set a stop-loss above the head but if it enters at about the neck line that’s about 60 cents which is about $3,000 of risk. Can that be minimized? Oh, definitely. It can be minimized. Are there other indicators which might have pointed to passing on this trade? So when you say a failed head and shoulders I am assuming we were talking about this. I just want to make sure. Let’s use red. And this is the head. This is the shoulder. This is the shoulder. This would be the neck line. That’s I’m assuming is you’re talking about. So, yes, sure there is. So what you can do is use a smaller timeframe. Or let’s take a look at it on Ichiomku. If you’re just trading patterns I probably recommend that you put Ichimoku on it. Because what it will do is it will take a lot of your pre-conceived notions on patterns away from yourself so let’s take a look at that. So here’s Ichimoku. So what I’m going to do here is there’s the head. There’s the left shoulder. Here’s the right shoulder. And there’s the failed neck line. So is this above or below the cloud? For me, it’s always been above the cloud since mid December so I wouldn’t short the thing. And then also I would say you might want to potentially stay away from it because you see down here on the ADX this will also keep you out of trouble. Ideally, what you want to do is only trade something when it’s in a trending environment. And as you can see when Wheat. When you see this read this means it’s not in a trending environment. It has been in a trending environment from here to there according to the yellow. And now, it’s also back to non-trending. Now, this thing is little laggy because it’s going on the daily chart and it’s a slower timeframe. I kind of like it being a little laggy because that makes a better decision. But for me I personally wouldn’t short that thing if you’re thinking about shorting the neck line down here if I’m reading you correctly. And heads up, Robert, I’m not the easiest guy in the world to reading this because I’m dyslexic but hopefully I understand what you’re talking about. What you can do here on the daily chart then you can change this bad boy to a 60-minute chart. And you can decrease your risk there by getting long on this and using a tight stop or even a 10-minute. And the same is going to go in effect for the short side too. If it was to the down side I would use Ichimoku on a daily an hourly or a 10-minute. Hope that helps you out Robert. Hope I didn’t confuse you. Good luck. Hope it helps. See you on the next video.

Hubert Senters here. Got a question from a viewer. Question is from Jim. Hi Hubert, I was just wondering what is a spac and how it works? I’ve invested in SPVs before. And spacs are basically like the retail version of that so. SPV is a Special Purpose Vehicle where you raise money for a specific purpose. And you let someone buy a group of angel investment products for you. A SPAC is basically the same thing. A SPAC definition is a Special Purpose Acquisition Company so basically it’s funds that has been raised on the market and they’re not even in business at first. So let’s say I wanted to raise couple hundred dollars for a spac. I would do that. I could do that on the open market. If I want to do it in the private market it can be called SPV, Special Purpose Vehicle. SPAC basically is the same thing. It’s the retail version on the stock market. So this is a good case like CCIV, I think they just acquired losing motors. For the most part usually when the company is acquiring a product. So let’s say the SPAC raised a hundred million dollars or $500 million their sole purposes to raise money first. And once they find a company that is currently private they can then buy it and it takes that company public so that’s basically what a SPAC is. Now, there are some really good SPACS out there and there are some really bad SPACS out there. A lot of people that just got famous name brands for just being famous are starting SPACS so you got to be careful on that stuff. So make sure that they’re actually investing in something that you may want to be a part of. But if they’re not you’re just doing it for a speculative move and you think the guy got’s a decent brand. And he’s running a SPAC and you think it’s going to go higher you can also play that side of things. Good luck. Hope it helps. See you on the next video. Hubert.    

Hubert Senters here. Let’s take a look at MGM. I like the pattern. I like it when it goes like this low, high, higher low then low, high, higher low. So let’s pretend we’re not long this thing. Let’s pretend we’re wanting to get long with that and we would do a risk risk reward ratio and say from this low to this high to this low. Now, if you look at the turning line it’s at $37.01. It’s not bad. You could either go to the low of the bar around. We got a low of $37.27. Or you could use the turning line at $37.01. If that’s your risk the way I look at it is if you went long right here at $39.64 whichever stop you’re going to use that’s your risk, that’s your block of risk. Then you always want to go for at least six a multiple of your risk. Let’s say we’re going to risk one to make three. The way I look at that is it goes right here. That’s your entry. And then your target would have to be a multiple of that so that would be about one. This would be about two. I’m just eyeballing this but you get the same and then this would be three. So you want to risk one to potentially make three trade would be as follows. Entry at $39.59. Stop around $37.27 or $37. Your target would be in the area of about $46. Mark Helweg is doing a special webinar in about 3 hours from the recording of this video. If you can do reverse math that means I’m doing this video at 4:50 PM on East Coast. He’s going to be discussing ”Why This Hedge Fund Manager is Telling Friends and Family to Exit Stocks.” If you want to learn why register for the webinar and then show up tonight at 8PM EST. Good luck. Hope it helps. See you on the next video. Hubert.