IPM Trade Matrix - Trade 11 (Part 4)

Stop level has been increased. Market is showing a breakout pattern. We might be in for a sharp rally till next IPM turn window. This rally would be the 3rd wave in terms of Elliott Wave analysis and should generate significant returns. We are still fully long, and will hold longs till either profit objectives are hit or stops are triggered. 

Overall, it seems like a lot of people started shorting the market in the last week. This will provide added fuel for a sharper rally. IPM turn date details have already been emailed to subscribers. We will based our trades on these turn dates. 

Upcoming market rally might not provide chances to get long. Therefore, if people missed the long trade, they would have to chase this market higher, which is always a dangerous proposition. In the June 14 update for subscribers, we wrote:

"In conclusion, we are in an uptrend but need a decline to alleviate optimistic extremes. We have also entered the IPM turn window. This turn window should result in a market bottom. All the indicators and supporting tools are suggesting higher prices into XXXX of 2014."

It seems like this prediction is coming true now...

IPM Trade Matrix 2014 Trades

TRADE - 1: (Long) = +2.6%

TRADE - 2: (Short) = +9.3%

TRADE - 3: (Long) - Non IPM Trade Matrix trade = -0.2%
TRADE - 4: (Short - 1/31/14 to 2/5/14) = +7.25% 
TRADE - 5: (Long - 2/11/14 to 2/22/14) = +9.8%

TRADE - 6: (Long - 2/22/14 to 3/07/14) = +11.7%

TRADE - 7: (Long - 3/18/14 to 4/11/14) = -18.1%

TRADE - 8: (Short - 4/23/14 to 4/28/14) = +11%

TRADE - 9: (Short - 4/30/14 to 5/12/14) = +0.3%

TRADE - 10: (Long - 5/16/14 to 5/31/14) = +7.4%

TRADE - 11: 

Bought TNA at 79.5 on 6/19, 6/23 & 6/25 based on IPM Trade Matrix long trigger. Cost Basis = 79.55 

TRADE CONDITIONS
When: IPM Model Bottom window - Date info e-mailed to subscribers

Next IPM Turn Window: Top/Bottom
Trigger: SP500 = 1947, GDOW = 2599
Supporting Indicators: Uptrend   

PROFIT TARGETS
Profit Target 1: 2000
Profit Target 2: 2050

RISK 
Stop: SP500 = - , DJIA = -, GDOW = -, Comp = -
Trailing Stops: Will be defined next week. SP500 = 1952, GDOW = 2600
Typical IPM Trade Matrix Risk: -
Actual IPM Trade Matrix Risk: -% (Entry = 1947 , Exit = - , Risk = -% )
Risk Reason: Too much optimism

Applicable Rule: 

1. Sell (1/2) at profit objective 1 to minimize draw-down
2. No Trade in opposite direction
3. Do not go long or short without trigger to prevent losses by market moving against you.  
4. Observe stop-losses to minimize draw-downs
5. If stops are hit ==> Wait on the sidelines for new opportunity near IPM Turn window

Note: IPM Trade Matrix Trades will be posted in the first half of 2014. This is an experiment to understand and enhance the capabilities of this Matrix.

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