How to hunt for a contrarian trade using CUE systems?


There are several workflows you may think of. Here is one.

First of all, there is to be some basis for looking for a contrarian trade. It may not be just that "I am a contrarian trader".

Today, I noticed that though the market gapped up at the open (and QQQ made another new all-time high), all the market ETFs failed to move above Early Range High. Instead, they went below Early Low in CUE Fine Tune chart (not attached here).

I also noticed that ES (S&P 500 E Mini futures) came to a Memory trendline resistance and failed to break above it.

That was enough reason for me to look for some contrarian trade - i.e. weak stocks on an otherwise very strong day.

As ES came down from Memory resistance, I used CUE Finder to look for stocks that touched Memory resistance and came down. GLUU was one of them. The stock was down more than 2%. It was easy to locate it using CUE Finder.

GLUU's fundamentals as per CUE Vital is in the middle. Neither super strong nor super weak.

The industry is relatively weak today.

That is one of the easy workflows in CUE systems to look for contrarian trades. And if you practice the technique a bit, you may be able to trade stocks a little ahead of others.

Whether you finally trade the contrarian stock may be decided by the trade setup (CUE built-in setups, for example) that you want to use.

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You probably could not better the precision with which I entered and exited this trade using CUE systems.

I made a 37% profit from a bearish trade on a stock that was over-extended, as I shared on my forum on 2nd July.


If I remember correctly, I saw a piece of news appearing yesterday (13th July) that some traders bought a lot of call options on GLUU at 11 strike price at the asking price. That was a way to tell the retail traders (us) that after earnings GLUU is going to rocket past 11.

I don't trade on the news. I have high confidence in the CUE systems and techniques and that is what I rely on for trading decisions.

I already analyzed GLUU to be over-extended technically and with poor fundamentals, in a weak industry. I shared that in my forum post earlier.

1) On 13th July, the price was at weekly Memory and Watermark resistance.

2) Daily was at Watermark resistance.

3) In the CUE Fine Tune 10-min chart, the price went after the open - the hype of the news was effective in sucking news-relying traders in probably. At the very top, CUE displayed a Bearish Headwind reversal signal. At the same time, Traffic Light candle color turned neutral (yellow) from bullish (green).

4) Next candle price tried to go up but after that it declined again, giving a Bear Release reveal signal. It was on this candle that I shorted GLUU using Aug expiry Put Options.

5) After that price fell sharply. Traffic Light color remained read for many bars.

6) At the bottom, it hit the CUE Memory Support trendline.

7) Next candle, Traffic Light color turned yellow from red. I exited my Put Options with 37.5% profit.

Could you better this precision using the system you are using (if not CUE)?

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