The One Market To Watch And Trade Now

Welcome back, gang. In last night’s video, I told you how important these channels were going to be for a handful on instruments. The Euro continued to honor that channel and fail and pull away from it in today’s session. Gold fell right back towards it – it did not have the two bar break that we were looking for. We knew we were in trouble with gold anyway because we commented how we had the Hoffman Inventory Retracement Bar form yesterday – showing distribution. Sure enough, it did follow through right back in there.

Then, we also commented with the Stock Index Futures that we would like to see those push out and upward. Today we watched the 1260 area throughout the day on the Russell. We also watched the channels on the three other major US instruments. The NASDAQ could not break above the channel. The DOW could not break above the channel either. The best the S&P could do was peek its head above the channel for a few minutes but as you could see, it did not have the help of the Russell, DOW, or NASDAQ. It ultimately closed back into the channel.

So, there was only one clear winner as we focused on the day. This consumed all the trading for me in the Live Trading Room with my students this morning and that is Crude Oil. Crude Oil, today, did lock in a two bar break of the channel to the upside. So, in Rob Hoffman’s ideal world, I would like to see a pull back and have it push back towards the support and show that it is now officially support. Then, I would like for it to start to take off. There is an incredible amount of opportunity, initially, at the 62 dollar area, there is some long term resistance there. Then, at about the 72 dollar area we see some long term resistance. What is really nice, is that we still have about 800 ticks up to the next major level. Beyond that, we have another 1,000+ up above there. There are some really great opportunities for retracements back up. In the premium video, I outlined all the trading setups that we were looking at today and that we will be focusing on the next several days. As I said, multiple trades this morning in Crude Oil. I expect that if we can hold here, and show that this area is key support, this could be a huge opportunity to the upside. What we don’t want to see this do, is this kind of fizzle and fall back into the channel – that would be a real disappointment. This is the first time that we’ve had a two bar break since way back in May/June of 2014. Even here, we just had a one bar break back in July and it fizzled right back out. Then, we had no breaks until February where there were multiple attempted breaks and the best it could do was close right at or below that channel. So, right now, as you can see, if we pull this across, we have a Hoffman Inventory Retracement bar in the backdrop. I would have no problem if it just wants to pull back from that a little bit, and then I’ll want to the channel to come up and start to take off – that would be very healthy. But I will also want to be prepared if it just wants to shoot right through his tomorrow. Start looking for all of the trades that I outline in the premium videos tonight because those are the same ones that we focused on this morning and watched the market blast off to the upside. My trading this morning would be good for you guys to see the setups that I’m looking for.

Crude Oil is going to be key. If you don’t trade Crude Oil Futures on an intraday or swing trade basis, that’s okay. Don’t forget, you’ve got USO. USO did the same thing today, as you can see. We did get a two bar break on USO. We are a little bit further away from the key resistance on USO that I would like to get through over here.

We also have the three times ETF over here, the Proshares, that too also had a two bar break. A little shallow on day number one, but it did get above there. Both of these are potential opportunities for those of you that like to trade variations of these instruments.

Also, some options plays that are available for these here – traditional buying of calls and selling of puts. We discussed that in the trading room this morning.

We are really going to be watching Crude as a key player for a couple of days both on an intraday and swing basis. You guys have a great night. We look forward to seeing you in the trading room tomorrow morning or in tomorrow night’s videos. Take care everyone.

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