Market Correction January 2022 and how the Momentum Options Trading System Traded It

Towards the end of January 2022 markets pulled back hard! As you can see from the chart above, after price closed below our support and entry level at 451.14 SPY (S&P500 ETF) made a quick move down that our traders found to be VERY profitable!

After a strong close down on Friday just shy of our 2nd target, markets opened lower the following Monday and swiftly dropped to our 3rd target before reversing and signaling to our traders that a “Bounce” was incoming. 

The “Bounce” signal first came that Monday morning and in the afternoon when price retraced into the “Buy Zone” we got the signal from SwingTrader that it was time to enter. 

Tuesday morning we got one more chance to add to those positions before price started making its way up the rest of the week. On Wednesday, SPY gapped up to our 1st target and immediately pulled back into the Buy Zone two more times allowing us to lock in great profits and reload before finishing the week strong above Price Target 1.

The following Monday markets opened higher, and rallied to our second target and beyond before pulling back below our trailing stop on Thursday signaling to close long positions and to get ready for whatever comes next.

The market wasn’t the only ticker on our watchlist that had fallen dramatically and was ready to head back up. AAPL also signaled that price was “Pulling Back” to long term support levels and gave an excellent move down. 

Just like SPY, on that Monday morning, price opened lower and swiftly fell to our next target before reversing and instead of a “Bounce” signal, AAPL signaled to “Buy” indicating to our users that this stock was remaining very strong and likely to make a big move back up.

As you can see from this chart, AAPL spent the next day holding above the Buy Zone before gapping up to our first target twice and like the market the following Monday opened higher and immediately started running to targets. 

Unlike SPY however, AAPL remained very strong throughout the week, holding above our trailing stop and potentially is getting ready for another move higher. Only time will tell.

During these pullbacks and great moves back up the stocks on our watchlist offered a lot of excellent trading opportunities. After all, volatility is an options traders friend. Bigger moves = bigger profits!

When markets were pulling back, market internals were signaling sell off, our Bearish Tickers were populating with opportunity, and we were beginning to lock in profit at targets, I decided to put that capital back to work and entered this position on QQQ for a day trade which returned an amazing 93.5% return on my last contracts by the close of the day.

Another great trade I took that week was the intra-day breakdown on AMD. With AMD on our scanners and price pulling back to targets on SwingTrader when this one signaled entry it was clear we wanted to be in for that move down!

Whenever we get massive profits from great trades like this, it’s important to be ready to put that profit back to work so you can keep your money growing when the next A+ opportunity presents itself.

As you know from the charts above, SPY / AAPL gave a couple really strong bounces back up on Monday and offered trader’s using our system who locked in gains an excellent opportunity to do just that!

On Monday after taking profit the week before at our first target on the bounce back up when SPY signaled a breakout we knew it was time to put those profits back to work! I entered this position for the day trade that returned 54% on my final contracts by the close of the day. 

Using the Momentum Options Trading System our traders are easily able to find profitable opportunities and capitalize on the price action. By following trends across time frames our traders know with an 85% chance of success all they have to do is practice healthy risk management strategies to consistently come out ahead!

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