Avoiding Costly Mistakes In The Interest Of Saving A Buck

Welcome back! Let’s take a look at a couple of things. Right now, the Russell is about 50% off the high of the day and we’re roughly a quarter to a third off the high on the NASDAQ. To get really excited about the afternoon, I’d like to see the NASDAQ to continue to power ahead. More importantly, I’d like to see the Russell back off this 50% off the high and start moving up as well. Right now, I’m watching the 1692 level and start pushing to the upside. The S&P and the Dow are making higher highs but they’re making negative divergences forming and that bugs me when we don’t have support from the Russell and the Nasdaq. I’m going to be watching these two weaker instruments going into the afternoon to see if they can pick up some steam and offer up some afternoon trading. Otherwise, I’ll be focusing on some intraday stock-type trades, which we will talk more about in a moment.

This does bring to light a question about a stock that was being reviewed. The question was about ULH. I asked the student how he came across ULH and basically it was through a free stock scanner. Whenever we have new students, I’d like to make sure they understand what they need to know about these things. This free stock scanner picked this stock now. Where was that stock scanner before? One thing I just want to remind people is using free tools can be extraordinarily expensive. Be careful with that. I won’t go into a deep-dive of my professional indicators. I have my ITP indicators and what we look for is either a breakout buy indication, at which point we go long. If you look at this stock that’s presented today that’s a buy, just shy of $18 it was triggering a buy on my ITP indicators and that market rallied up to just over $25. That is quite a run there. Then we went and fired off more signals. We got the yellow dot and a green dot but we wait until we get the double green dots. This right here is the actual official buy bar. This takes my entire Six Day 21 Setup Course and Professional Trader Development course and identifies the best buy opportunities from my perspective. It’s “Rob in a Box”. Take a look at what happened. That was just shy of the $24 mark. Here we are in this stock and we’ve gone up $11, which was a $24 stock. It was a massive move. Both of these were forecasted by my indicators. Now we’re not hearing about them on free tools until now. It can be very costly to have free tools. You don’t want to have a situation where you have a high-visibility purchase. Next thing you know, you’re sitting on dead money for six months for all the market risks, stress and emotional anxiety that is caused from this all because of a late purchase. We really want to time those entries. Another thing to look for when you’re looking for indicators like that is to be able to do your swing trading. You also want to do something on an intraday basis. This is actually AMZN right now. It’s not cherry picked. It was firing off a yellow dot, green dot, then what you’re looking for is the two double dots. Right here on this bar, at approximately 1857.50 it fired off the buy signal. Then, here we are now around 1862. Above $4.50 up that it fired off the signal. The point is you want something that’s fractal and that will help you identify trades both on an intraday basis but also on a swing trade basis. Those are going to be the most powerful tools. You never know when you will be able to do back and forth. Things can get real expensive, real fast using tools to help you identify great trades for free after big moves.

Have a great night! Looking forward to seeing you in the Live Trading Room tomorrow morning and in the nightly videos.

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