Bonds Moved Nicely Off Of Rob’s Resistance Level

Welcome back! We’ll keep this nice and brief. I want to hit a couple of things. First of all, bonds. I’ve been warning you for days about how important this key resistance is that we’re at. Its at 153 and it’s strong. We had triple distribution in here. This was an area of support on the way down and now its resistance on the way back up. Look what happened today. It was brutal for the bonds. It came all the way down to key support on the daily charts. If we dropped much further we can see some heavy selling kick in. This resistance has re-intensified itself and re-proved itself again. If we can break that level and make it support, then we have a wonderful opportunity to the upside. Right now, mathematically speaking, that is not the case.

One other thing I want to point out tonight is AAPL. AAPL is probably the single most question I get from traders. I’ve talked to you about this one repeatedly. The big thing about AAPL again I’ve been telling is to watch out for that 120 level. You can see that even now, that 120 level continues to be resistance. We finally broke through it and led to some rallying. That breakdown was in the middle of 2015. Here we are a year-and-a-half later and 120 is still magic resistance. For the people who are putting on trades early, it’s a very dangerous place to be, especially in light of the fact that we have a negative divergence here. We have an M-Pattern sell going into tomorrow. We have the inauguration. Anything that goes wrong could bode very poorly for individual equities for this market as a whole. There’s a lot of protest getting caught on video doing some very bad things at the inauguration. If they’re able to be successful with those things, it could cause the market to push down.

There’s a lot going on between AAPL as well as the bonds at their key resistance. Until AAPL gets above that 120 level, just like the bonds, we’re in a very painful state off of this resistance. AAPL can do the same thing. Don’t forget about using things such as Goldman Sachs as well. You have AAPL as a proxy and Goldman Sachs. Goldman Sachs is still under pressure. Right now, I continue to focus on shorts faster than the longs and rightfully so. That’s a key strategy going into tomorrow and Friday’s sessions.

I’ll be looking forward to seeing you in the live trading room tomorrow or in the nightly videos. Have a great night!

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