For Monday, August 7th

"Today a man knocked on my door and asked for a small donation towards the local swimming pool, so I gave him a glass of water."

* * * Anonymous

You can now follow The Vertical Fund's trading action on Twitter @theverticalfund - - not all trades are posted since the primary focus of the trading team is on the markets

THE VERTICAL FUND: The Vertical Fund is now live and ongoing... this fund trades the same main model VP signals presented in each evening briefing... the difference is that The Vertical Fund is professionally managed by our own professional expert Trading Team, members with a Seat on the Chicago Mercantile Exchange and with more than 30 years experience located right on the floor of the Chicago Mercantile Exchange...

THE VERTICAL FUND is in real time since its inception on 9/30/16, however due to the ongoing confusion between the weekly and monthly performance updates, if you're interested in knowing the current performance history, then go to our Website at at https://www.theverticalfund .com/ and also ask me for a password for you to enter through the member's page on that Website... the BTIT optimized trading method is now included in the fund's trading strategy as of 1/4/17...

The performance status of The Vertical Fund as of last Friday's close:

From inception on 9/30/16: +2.15%

For the year 2017: +3.69%

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A TUTORIAL ON THE PROPER USE OF THE NEWLY INTRODUCED OPTIMIZED PORTFOLIO IS FOUND AT THE BOTTOM OF THIS EVENING BRIEFING... PROPER APPLICATION OF THE OPTIMIZED SIGNALS WILL ENSURE LONG TERM MARKET GAINS...

ALL SP PRICES ARE NOW THE ES SP CONTRACT, WE HAVE NOW DISCONTINUED THE USE OF THE LARGE CONTRACT...

THERE IS NO LONGER ANY EXCUSE FOR ANYONE NOT TO MAKE MONEY IN THESE MARKETS, JUST FOLLOW THE SIMPLE INSTRUCTIONS FOR THE OPTIMIZED PORTFOLIO AND BE ON YOUR PATH TO FINANCIAL GROWTH...

YOU DON'T HAVE TO BE A PROFESSIONAL TO TRADE LIKE ONE!!!

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HOW TO USE THE OPTIMIZED PORTFOLIO

The entire listing as presented is a widely diversified portfolio of varied market interests, and we know that wide diversification is the key to reducing market risk in any portfolio... therefore, the key to legitimate long term profit with this portfolio is to have positions widely and even distributed among as many of the different market groups as possible... in other words, do not focus on only one market or favor one market over another, do not attempt to pick winners and losers with a heavy position in one market and a light position in another, one should invest the same dollar amount into each position...

Commit between 2% and 2.5% of your entire account to any one position and no more or less than that, this way your dollar risk will be evenly distributed among all markets...

Participate in as many markets as possible, treat them all the same, this will further reduce your risk and increase your likelihood for profit...

Upon entry of any new position, the initial exit stop is a 2% risk for that position, plus or minus a few ticks... if you get stopped out, then that's the end of that trade, do not attempt to chase that market, just wait for the next signal opportunity, it will come soon enough... if you are not stopped out, then the trailing exit stop will rise as the market also rises... this will allow you maximum gains for any active position for as long as that market rallies...

About 1 in 6 or 1 in 7 new positions are stopped out at the initial exit stop, the other positions quickly recoup that 2% loss and generates further gains...

Several of the 3X leveraged ETF instruments are listed in the optimized portfolio upon request, but be very cautious if you trade any of the 3X leveraged ETF instruments, the price decays rapidly and is not a true investment market, it's only a near term hedge instrument...

ALL EXIT STOPS LISTED BELOW SHOULD BE ENTERED ONLY AFTER THE INITIAL BUY STOP HAS BEEN TRIGGERED AND THE POSITION IS ACTIVE...

ALL OPEN POSITIONS HAVE THEIR EXIT STOPS LISTED FOR THE FOLLOWING DAY, THEY MAY NOT CHANGE EVERY DAY...

THERE IS NO LONGER ANY EXCUSE FOR ANYONE NOT TO MAKE MONEY IN THESE MARKETS, JUST FOLLOW THE SIMPLE INSTRUCTIONS FOR THE OPTIMIZED PORTFOLIO AND BE ON YOUR PATH TO FINANCIAL GROWTH...

If you're having difficulty trading the near term VP model, then take a serious look at the optimized portfolio, you will definitely make money, it is easy to follow, tried and proven, and with no stress, I use it myself primarily... if you have any questions on how to use it, then email me and we can arrange a time to review your personal trading strategy...

NEW BUY SIGNALS TO WATCH FOR TOMORROW

I think we have more than plenty now in a wide variety of groups, there's a limit to how many I could handle, many thanks for your great suggestions...

Several of the gold miners markets were stopped out today, some for a gain and some for a loss... CF in the commodities group was bought today, this was a surprise since that market had been drifting lower quietly for some time... my GTC buy stop was in place for CF so it was filled and the portfolio is now also long CF on a nice breakout... many of the markets in the portfolio that were near their buy stops never got hit and these markets backed away today... so, maybe next week... I take every signal...

Also, numerous stops were revised upwards today, check on your markets...

I hope no one is allergic to making money!!!

DIVERSIFY AND REDUCE YOUR RISK...

If you see an error in today's listing, just let me know, I went over each market very carefully after the close, but I could miss something, thanks...

MARKET POSITION BUY STOP EXIT STOP BOUGHT AT SHORT STOP EXIT STOP YTD ON CLOSED POSITIONS
STOCK INDICES BUY STOP EXIT STOP BOUGHT AT SHORT STOP EXIT STOP
Sept ES long 2455.75 2475.75 2458.75 2478.75
DIA long 214.58 215.17 5.68
UDOW long 61.24 62.09 9.80
SPY long 245.58 244.97 7.30
SPXL long 35.58 35.55 11.20
UPRO long 108.49 108.00 12.30
QQQ long 142.2 142.39 14.30
TQQQ long 107.56 108.77 30.30
TNA flat 60.38 59.07 4.70
SOXL flat 102.41 100.26 21.87
IWM flat 145.35 142.34 0.37
MDY flat 326.98 320.34 5.38
IYT flat 175.85 172.23 2.98
VXX flat 11.9 10.87 -1.40
XIV flat 97.02 94.97 26.32
TOTAL 151.10
BEAR STOCKS BUY STOP EXIT STOP BOUGHT AT
SDOW flat 29.59 28.88 0.10
SPXU flat 15.04 14.43 0.08
SPXS flat 39.48 38.2 -1.83
SQQQ flat 29.1 26.82 -1.91
TZA long 15.71 16.01 -0.70
SOXS long 26.45 27.55 0.70
TOTAL -3.56
PRECIOUS METALS BUY STOP EXIT STOP BOUGHT AT SHORT STOP EXIT STOP
Dec Gold long 1248.40 1259.10 1214.90 1239.30
GLD long 118.45 119.68 1.60
UGL long 37.71 38.76 1.40
SLV flat 16.02 16.06 1.70
GLL flat 78.26 76.59 0.52
ZSL flat 37.03 36.18 3.44
PPLT long 88.86 89.35 -0.50
FNV flat 75.29 73.68 -0.01
RGLD long 83.6 78.99 8.20
GDX flat 23.19 22.62 1.73
GDXJ flat 34.08 33.29 1.83
ABX long 16.24 16.68 2.30
AEM flat 49.81 48.71 31.60
HUI flat 198.79 194.71 13.51
NUGT flat 33.84 33.06 9.40
JNUG flat 19.20 18.57 10.31
DUST flat 31.24 29.03 12.93
JDST flat 69.58 68.08 50.43
TOTAL 150.39
INTEREST RATES BUY STOP EXIT STOP BOUGHT AT
TLT flat 126.13 123.5 4.80
TMF flat 21.59 21.05 1.20
TBT flat 37.31 36.46 -0.23
TMV flat 20.71 20.19 0.09
VCLT flat 94.67 92.67 2.95
TOTAL 8.81
UTILITIES BUY STOP EXIT STOP BOUGHT AT
XLU long 52.25 53.42 2.40
TOTAL 2.40
AEROSPACE AND DEFENSE BUY STOP EXIT STOP BOUGHT AT
ITA long 162.70 160.01 7.07
TOTAL 7.07
FINANCE AND BANKING BUY STOP EXIT STOP BOUGHT AT
FAS long 50.4 49.6 2.80
FAZ flat 16.41 15.61 0.40
XLF long 24.63 24.69 0.31
TOTAL 3.51
ENERGY BUY STOP EXIT STOP BOUGHT AT
XLE flat 67.13 65.68 -1.53
OIH flat 26.48 25.85 -0.62
UGAZ flat 14.70 14.3 -0.20
SCO flat 47.72 46.67 6.79
TOTAL 4.44
CONSUMER DISCRETIONARY BUY STOP EXIT STOP BOUGHT AT
XLY long 90.54 90.99 -0.40
WMT long 78.38 76.97 5.78
KMB flat 127.3 124.65 15.95
UN long 57.29 56.85 9.10
TOTAL 30.43
GLOBAL INFRASTRUCTURE
IGF long 44.77 44.86 3.90
TOTAL 3.90
HEALTHCARE BUY STOP EXIT STOP BOUGHT AT
IBB flat 330.01 323.3 20.88
CURE flat 44.79 43.79 4.90
XLV long 79.13 76.3 3.11
BIOS flat 3.12 2.66 1.46
TOTAL 30.35
CURRENCIES BUY STOP EXIT STOP BOUGHT AT
EUO flat 23.37 22.8 -0.49
ULE long 16.59 15.93 1.16
FXY long 85.63 86.71 2.71
YCS flat 76.85 74.87 1.34
TOTAL 4.72
FOREIGN MARKETS BUY STOP EXIT STOP BOUGHT AT
FXI long 41.98 40.88 1.75
EURL long 32.16 32.32 7.22
EEM long 43.36 42.44 2.85
EZU long 40.94 41.61 2.82
TOTAL 14.64
TECHNOLOGY BUY STOP EXIT STOP BOUGHT AT
MU flat 33.06 32.29 0.78
SSYS flat 25.45 24.84 5.36
DDD flat 19.16 18.67 7.04
TOTAL 13.18
AGRICULTURE AND COMMODI BUY STOP EXIT STOP BOUGHT AT
DBA flat 20.40 19.89 -0.5
DBC long 14.32 14.74 -0.44
CF long 30.69 31.42 0.86
GCC long .. 18.64 18.84 -0.42
TOTAL -0.5
YTD 420.88
IF YOU SEE AN ERROR IN TODAY'S LISTING, JUST LET ME KNOW, THANKS…

THE VP PRICE MAP FOR TOMORROW

The VP map tells you everything you need to know, consult the map daily... knowing the map and the two key trading rules will make you a much more savvy trader, so it is extremely important to be familiar with the VP map...

Secondary Vertical Prices (SVP) are for the aggressive trader who is looking for an additional edge on additional exhaustion points... you will notice that the market responds as well to the SVP as to the standard VP points and are traded the same, but for now the main model will use only the standard VP points for official main model signals...

SP SEPTEMBER mini VP PRICES

The main model is now long the September SP at 2470.00 as of 8/1/17 on a VP buy signal...

The Two Main Model Trade Rules For All VP Trades:

1) Any time the market trades above any overhead VP price and then closes below it, this would confirm a new main model sell signal...
2) Any time the market trades below any lower VP price and then closes above it, this would confirm a new main model buy signal...

MAJOR - - 2492.33 and must close below that price on Wednesday, August 16th to confirm a new main model sell signal...

MAJOR - - 2483.71 and must close below that price on Friday, August 11th to confirm a new main model sell signal...

minor - - 2482.37

minor - - 2478.37

TODAY'S LAST TRADED PRICE - - 2472.50

minor - - 2458.75 THIS IS ALSO THE OPTIMIZED PORTFOLIO PRICE TO SELL SHORT FOR THE PORTFOLIO

minor - - 2445.79

minor - - 2405.68

MAJOR - - 2431.22 and must close below that price on Monday, August 14th to confirm a new main model sell signal...

minor - - 2397.15

MAJOR - - 2374.88 and must close below that price on Tuesday, September 5th to confirm a new main model buy signal...

MAJOR - - 2360.62 and must close above that price on Monday, September 4th to confirm a new main model buy signal...

The above price map is listed in descending order of all currently active vertical prices above and below the market... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

PLEASE NOTE: It is vitally important to know where the market is on this map at all times, the main model buy and sell signals are generated only from this VP map... the trade rules, which you probably already know by now, are very simple and are explained below...

THE LT PRICE AND MOMENTUM GRAPH FOR THE SP:

This momentum line continues bending downward...

DECEMBER GOLD VP PRICES

The main model is now short the December gold at 1272.90 as of 8/4/17 on a VP sell signal...

The Two Main Model Trade Rules For All VP Trades:

1) Any time the market trades above any overhead VP price and then closes below it, this would confirm a new main model sell signal...
2) Any time the market trades below any lower VP price and then closes above it, this would confirm a new main model buy signal...

MAJOR - - 1295.66 and must close below that price on Wednesday, August 9th to confirm a new main model sell signal...

MAJOR - - 1272.86 and must close below that price on Friday, August 4th to confirm a new main model sell signal... SHORT AS OF TODAY'S SCHEDULED DUE DATE

minor - - 1272.16

minor - - 1266.22

TODAY'S LAST TRADED PRICE - - 1264.40

There are currently no VP points below this market...

SVP - - none

The above is a price map in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

THE LT PRICE AND MOMENTUM GRAPH FOR GOLD:

The momentum line is beginning to bend more sideways as of today...

The Main Model Formula

The main model formula is specifically designed to determine precisely and to the exact market price where the market is most likely to reach complete buying and/or selling exhaustion, there is no guessing about it. This is why the market almost always backs away from those VP points after reaching them, at least for 10 to 12 points before resuming the trend... also, at those VP points, the market is the most vulnerable to a legitimate trend change.

Light Positions:

It's always wise to hold only a light position in order to tolerate the wild price action of this market... also, if you're not nimble with these markets, then you may want to wait until the market closes for the day to be sure that any new signal is confirmed, this will eliminate all possible mid day whips... to be safer overnight, consider using an exit stop for capital preservation...

Trailing Stops:

Also, trailing stops are completely individual, it is presume that subscribers would have their own personal strategy on how and when to enter and exit the trade, these market can often be vicious... the VP points tell you where and if the market is about to move in one or another direction... for myself, I like to take profits at any time I get the sense I'm satisfied, I don't need to ride out every signal all the way to the last stop, it's really not necessary...

Trading Strategy:

Also, if you're having difficulty with these markets, I strongly urge that you consider a combination of the Hoban Rule and the 1/3 Rule to enter the trade positions, or just wait until the next morning to find a comfortable place to enter the trade, there's never a hurry... this will eliminate all whips...

HOW TO USE THE OPTIMIZED PORTFOLIO

The entire listing as presented is a widely diversified portfolio of varied market interests, and we know that wide diversification is the key to reducing market risk in any portfolio... therefore, the key to legitimate long term profit with this portfolio is to have positions widely and even distributed among as many of the different market groups as possible... in other words, do not focus on only one market or favor one market over another, do not attempt to pick winners and losers with a heavy position in one market and a light position in another, one should invest the same dollar amount into each position...

Commit between 2% and 2.5% of your entire account to any one position and no more or less than that, this way your dollar risk will be evenly distributed among all markets...

Participate in as many markets as possible, treat them all the same, this will further reduce your risk and increase your likelihood for profit...

Upon entry of any new position, the initial exit stop is a 2% risk for that position, plus or minus a few ticks... if you get stopped out, then that's the end of that trade, do not attempt to chase that market, just wait for the next signal opportunity, it will come soon enough... if you are not stopped out, then the trailing exit stop will rise as the market also rises... this will allow you maximum gains for any active position for as long as that market rallies...

About 1 in 6 or 1 in 7 new positions are stopped out at the initial exit stop, the other positions quickly recoup that 2% loss and generates further gains...

Several of the 3X leveraged ETF instruments are listed in the optimized portfolio upon request, but be very cautious if you trade any of the 3X leveraged ETF instruments, the price decays rapidly and is not a true investment market, it's only a near term hedge instrument...

BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:

The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price... also, use only the large contract for all official main model signals, the mini contract will give you false signals...

The Confirmation Price

The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal... the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick... but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability... as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun... very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky... the same can be said for taking a new short position at a sell confirmation price... but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending... this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...

The VP Price

The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price... however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely... VP prices behave like magnets, they attract the market price, and when the price touches the VP point, then the polarity reverses and repels price... all this market ever does is ping pong between VP prices...

The main model formula is specifically designed to determine precisely and to the exact market price where the market is most likely to reach complete buying and/or selling exhaustion, there is no guessing about it. This is why the market almost always backs away from those VP points after reaching them, at least for 10 to 12 points before resuming the trend... also, at those VP points, the market is the most vulnerable to a legitimate trend change. Therefore, when the market trades through those VP points and then backs away and closes on the other side of it again, there is a very high likelihood of a trend reversal at that time... these VP point are like magnets, they pull and attract the price until the VP is reached, and then upon reaching the VP it then reverses polarity and repels price... at that point, the market can back away and confirm a new trend signal or return to the VP and resume the original trend... this is where the main model determines the buy and sell confirmation prices...

The Floor/Ceiling Price

The floor price is always there in a down trend, the ceiling price is always there in an up trend... these specific prices are rarely mentioned because the market rarely reaches them... these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not... a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...

How To Read The VP Price

If the market touches and then moves away from the VP very quickly and doesn't return, then this typically indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over...

A Suggestion On How To Enter A Position On A New Main Model Signal

One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points... after that initial position is taken, let the market do what it does all day... then, late in the day, if the market is still confirming the signal, then add the second 1/3 position... and then, on the close take the final 1/3 position... your average entry price will be above/below the confirmation price but the whips will be significantly reduced... this is a method I use for myself very often...

Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...

Rejected Buy/Sell Signals

Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule... a rejected sell signal is typically followed the next day by a sharp rally... as well, a rejected buy signal is typically followed the next day by a sharp decline... however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...

THE LT PRICE AND MOMENTUM GRAPH

The momentum line very closely correlates with the market price...

THE VERTICAL PRICE EQUILIBRIUM SPREAD (EQ) IS AVAILABLE ON REQUEST...

The email SUGGESTION BOX is always open and invites your ideas for improving and enhancing your email service, I enjoy hearing from you, many thanks...

NOTICE: I SEND OUT AN EMAIL EVERY WEEKDAY EVENING, IF YOU DO NOT RECEIVE ONE, PLEASE LET ME KNOW, THANKS...

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