Rob’s Key Markets To Watch Over The Holiday Trading Sessions

Welcome back. I know a lot of you are on trading vacation right now and rightfully so for the average trader. But for those of you that are die-hards and are looking for trades in this timeframe, I want to let you know what I’m focusing on going in to Monday and my thoughts here with the markets as they are.

First things first, as we look at the Euro we see in the euro, no doubt about it, I am looking at the 1.2180. That is my 80/20 rule and that is also where the Euro has been sitting for about 3 days, with Friday’s trading session closing there. If we get down below the 12180 area, it would be nice to see if we get a push down to 12100 or beyond. Just remember if that happens in overnight trading, especially during the holidays, just keep the trailing stops tight from my perspective.

The next thing I am looking at is Crude Oil. How could I not look at Crude Oil. It has been a key instrument I have been focusing on, even as I was wrapping up trading before Christmas it was a major focus. So, as we’re looking at Crude Oil, right now I want to get above these recent highs in the 5900 area. These distribution bars. Or I want to get below the accumulation bar in the 5380 area. I’m looking to break down here for much lower lows or break out up above here for some short-term retracement buy side highs.

As we’re taking a look at the Stock Index futures, here’s the deal, 3 out of 4 of the Stock Index futures have these negative divergences taking place on key tools that I use that have accurately highlighted reversals many times over the course of this year. So here we are we’re coming up on this “with air” type move during the holiday with holiday lightened trade. We’re making these big fat negative divergences here. We’re making higher highs on price but much lower lows on the indications. Typically that is responsible for roll-overs. As you can imagine, I am staying very close to the vest at this point on any long side trades and we saw, even Friday afternoon, how quickly some of the stock index futures came off with some air in the last half hour or so. Very quick to fall at this point when they want to. Going to be keeping stops tight on the long side and on the short side looking for us to break down below the daily speed lines because there is a lot of room for air even back to the rising 20 period moving average, so there is a lot of air down below us. Right now, I’ll look for long side trades but the moments we start crossing over the fast speedlines, I am going to be backing off of that and then looking to see if we can get down below the slow speedlines for short side trades.

Two other things I want to make sure I remind you of. For all of you who recently got my Two Favorite Setups Course, we always like to under commit and over-deliver and this is no different,. What we did was made a special unannounced bonus and on Monday December 29th at 8:00PM ET, I am going to be answering any and all follow up questions you may have because I threw a lot of important information at you so I want give you a chance to ask any follow up questions. I’m going to be showing you more tips and tricks for using these setups with indicators you already have and I’m going to be show you more real world examples of these setups and how I use them to make a great and profitable year. I’m really looking forward to doing that. That is for all of you who got the Two Setup Course during the recent promotion we did so we want t take good care of you.

Also, don’t forget, many of you also made a donation so you get 25% off most BBT products and services. We want to make sure you take advantage of that between now and December 31, this Wednesday at noon CT, 1:00 ET. So, call us or email us to take advantage of that for all of you who donated money. If you haven’t donated, you can still do that right now. It’s a great way to get huge savings on some of my products and services and take care of St. Jude as well. We are already at about 50% goal for 2015 we wanted to raise $20,000 and we are right at about $10,000 so we will help you if you help us help St. Jude. So, make your donation and send your receipt to support@becomeabettertrader.com to collect 25%off of the goodies we have. So, do that and do it now and thanks for your generous donations to St. Jude’s. So, those 2 things, we’ll see you Monday night or we’l be working to get you great products and services to kick off 2015 right. And we want to wish you a safe and happy holiday season. Take care everyone.

Key Markets That Worked Last Week, And Those About To Move

Okay gang welcome back. Let’s go ahead and take a look at several markets from Friday afternoon. First things first as we look at the Euro. The Euro continues to prove that 12280 level looking for a breakdown through that level for further downside. That’s the only kind of trade I’m willing to take on that. I’m not one to take these long side trades, which I keep saying to you, because you can see what happens every time we hit that down trending channel we get killed off again so short side is the only side for me at this point.

As we take a look at Gold, it did not get above our 1215 buy point today so no trade there. We will follow into next week seeing if it breaks down below the channel for some short side trades here or gets back above the 1215.

Crude oil was going to be a tough sell literally during this 66 to 64 area, and that continues to be the case. It kind of played in that area back and forth, and continues to be the case. Very powerful with my inventory retracement bar strategy.

As we take a look at the stock index futures here, we walked in the door this morning with a mixed bag of nuts at 8:45 a.m. CST I said look, we have two of these markets the NASDAQ and the S&P that are down. The RUSSELL and the DOW were up. We basically said that was going to lead us to a really tough market today. Sure enough as we continued into this session here, that continued to happen over and over and you can see this was this morning’s snapshot here where the S&P was at that time, and now we look where the S&P is going into the afternoon here. You can see its right back there as well. So no change basically on the S&P more or less for the day. We saw that right from the get-go this morning. It’s really great to tell as a trader as whether you should be there or not be there. It gives us great flexibility with our analysis. So as we go ahead and take a look at a few other markets of choice.

Let’s take a look at the Japanese Yen, I’ve commented on this repeatedly the last several months so we won’t’ spend too much time on it besides that it’s a swing sell from my perspective. We’re well below the channels until we get above the speed lines for a speed line 20 trade. For intraday traders it’s a little harder if you are in the U.S. Trading Session. It’s a harder instrument to sell typically from a swing trade perspective though it’s a better, more fantastic instrument to swing trade if you are patient because it can be like watching paint dry intraday. The swing trades have been fantastic ever since we started talking about this back over here, and even us touching on it in the more recent videos as well.

The British Pound I want to see if we can break down below these relative lows for further downside. The 15580 level is that key level I’m looking to basically break down below. We’re sitting right now at that level so we’ll have to see if that offers up opportunities into next week.

The bonds if you recall we were looking for a breakout above the green channel here and we went ahead to grab that and had a couple of days with some nice upswing to it. Then after the holiday the market started to give some of that back. That’s why I always encourage you guys to trail trades as you know and of course lock in profits before holidays because these kinds of things happen. So very consistent in that message and that analysis.

If we take a look at the DAX we had a nice retracement back up, but the whole thing stayed within my inventory retracement bar here from yesterday and it’s a big fat inside bar so there’s nothing to do with the DAX here yet, and we want to see if we’re going to break out above the highs or break down below the lows here, before doing anything with the DAX.

One other things. I sent you all an email on Friday and you probably will be seeing other emails. We have a lot of great speakers coming up for an event next Saturday December 13th. You have Manesh from Ichimoku Cloud, myself, Dr. Adrian Manz, you have Hubert Senters who’s going to give you a great presentation there, and of course Jeff Gibby at MetaStock who’s sponsoring this event as well. They’re going to show you some really great stuff. We’re going to have a really great event and if you want to learn from Ichimoku Cloud and use some of these forecaster tools at MetaStock, learn from Dr. Adrian Manz who is a great guy and will show you some neat opening range stuff, and of course Hubert who is always entertaining and educational going to give you great information. There is also myself which I’m going to share information from the Las Vegas Traders Expo that I went ahead and was fortunate enough to win again here in Las Vegas a few weeks ago and how I used some of the strategies I presented to you before to you in a different light so it will be a very interesting presentation. If you go to the link on the web page in the email and go ahead to sign up for that. It’s going to be a lot of fun. We look forward to seeing you at the event. You have a wonderful weekend. We will see you Monday morning in the Live Trading Room or later that evening in the nightly videos. Thank you everyone. Take care.

 

Key Markets Rob Is Looking At Now

Ok gang, welcome back. Let’s take a look at some updates from last night and how they’re progressing into today.

First thing’s first, the Euro and you’ll recall last night I said, listen, I’d like to see short side opportunities if we get down below the 1.2280 level but not if it breaks through that level during the news release this morning. Sure enough, the only time it attempted to break the 1.2280, where it fell to the 1.2277 level was right in the middle of the 8:30 AM ET news announcement. Consequently, it just touched that level and then spiked right back up there all the way into the approximately 1.2450 at one point. So you can see how important it is to understand why, when, and how to trade breakouts and breakdowns and usually it is not during the initial news releases.

As we take a look at Gold, we are still looking for a breakout. I’d like to get above the 1215 level and see if I can get some long side activity there. We’ve been consolidating for the last 3 days, inside bar activity in relation to the big bar back here. It’s kind of coiling up and we are looking to see if it can get above that 1215 area for a long side trade.

Crude Oil continues to be one that I am looking for further movement from. We have been very bearish on the downward trend on this whole thing. Looking at fresh breakout levels and breakdown levels for new moves, we keep getting those. Currently, what I am looking for, because of this big wide range bar, I’d actually like to see us slow down and back off and actually push back up and start to look for a long side trade, back above the 6800 level for a move back to the downtrend so it’s up to around the 7200. I’d like to do that trade next, if possible. Now, trades are available to the short side between 6600 and 6400. The problem is that with the Inventory retracement bar over here, we really have too much evidence that people are trying to buy there and that can make it a really hard earned amount of money on the down side. So, what happens is, as you are pushing down you get these big retracements back that stop you out of your trades before they continue on and with the average retail trader stop on an intraday basis being 12-20 ticks, that is a lot of risk. Otherwise, if you are not willing to keep stops tight and wait for pull0-backs on an intraday basis before taking a trade, the next best move will be looking for a breakdown of the 60 dollar area down, breaks the inventory retracement bar and the momentum shift bar. So, that’s the next thing I would be looking for there.

Great stuff with eh Stock Index futures coming out. Our trading this morning focused on the Stock Index futures, which was great. As we look to the stock index futures next, remember what I said to you. We’ve got this split decision between the fast triggers on the daily charts and the core triggers. Now, we’ve said, what the real key is do we start breaking back above on the fast triggers or do we start selling down on the core triggers? Today the Russell actually went magenta. Not the other three yet. They were close, but not yet magenta. We are going to watching that really close tomorrow, if I see any real signs of selling tomorrow morning, I am going to be an active participant. We’re already, more or less right into the speed lines, just above them. The way we open tomorrow may be right into them. We are looking for a pull down right below that area for short side opportunities. At the same time, if we do strengthen these speed lines and develop intraday long side trends, I will be looking for intraday longs at that point.

One other thing to note on the Stock Index Futures as well as we look at the DAX. With the DAX, we’re struggling to get some long term resistance that I want to make sure people are aware of because I have been asked about the DAX a lot. We do have lot of resistance in the backdrop. Another thing I want you to note, on the weekly basis on the DAX, take a look at this. What we have is, equal to or higher prices in the DAX over the course of the year, but yet we’re seeing our indications making lower and lower lows. This kind of negative divergence we see over and over again. In fact, you’ll recall it was earlier this year that I alerted all of you in these very same videos that we’re getting this negative divergence for the first time in 18 months. I pointed it out to you not just on the fast trigger but on the core trigger. And of course that let to us not seeing those highs again and led to some pretty healthy sell offs as we went through this year. It is some pretty good stuff if you really look at it. So, I wanted to alert people to keep an eye on the DAX as well.

I’m looking forward to seeing you tomorrow morning in the Live Trading Room and looking forward to seeing you in this weekend videos as well. Stay tuned, we have some really great events for you coming up in the coming weeks. So stay tuned each night for the update here so you can be a part of these big events. Take care everyone.

Did You Hear? Rob Hoffman Won ANOTHER Trading Competition!

Welcome back everyone. Hey listen, I want to thank all of you who came all the way out to Las Vegas from all over the world. We had people coming from as far as Denmark, Belgium, Brussels, China, and several people came to speak with me from Beijing and asked me to come speak with them and I appreciate them coming all the way out to speak with me. Everywhere around the world we had people coming to this wonderful international expo in Las Vegas. It was just a fantastic event. We were excited and were able to go ahead and win the trading challenge again. I want to go ahead and thank my competitor who traveled from all the way from overseas to trade against me. Great competitor who traded several shares of stocks, he owns prop firms in London, Israel, and even right here in Florida. He has quite a vast experience and is an author of a book and so forth. I appreciate him coming to the United States to trade fiercely against me. I want to thank all of you who came out so early in the morning to be a part of that special event. A lot of people were sitting there in this very large room. People were piling in from all over the place to watch this big competition between us. Great stuff to see so thank you. Thank you all who came out to our special events and paid events that were sponsored by Money Show and our free events. Of course I want to thank my awesome staff including these two young guys who are two of the newest members of my team, Bobby and Mikey. Of course they took really good care of you including my lovely wife Sarah so thank you. Really great time and great event to see so many of you.

If we take a look at the markets here. A couple of things that relate to the Euro, same story different week. We are still in this downtrend on the Euro channel so I’m not interested in the long side trades. I don’t look to trade these long side trades up, I actually look for shorts back to the downside. Until we get back to the top of the channel that is going to remain the case.

Also right now gold is in a tight wound up position here. We have lots of falling resistance coming down and rising support underneath us where we call that a kill zone. We are just in a tight space whipping back and forth here. Until we break down or break down out of that area we will not be looking at any trades. We are looking above this inventory retracement bar right here or looking below these double tail areas right here to the downside. The more aggressive trade would be to break below the low of this and take a trade, but we would be better off with a short under here. You can see we are coiling up in that kill zone here looking for a break out.

As we take a look at crude oil, we talked about that this morning. There was too much resistance overhead. We had the down trending resistance coming down on top of us, and we were 50% or more off from the highs of the inventory retracement bars there aka the distribution bars above us so we aren’t looking much to the upside. So we are looking to the speed lines maybe break down below the 7480 level then maybe we’ll look for some shorts back down below otherwise we want to get above this inventory retracement bar here for any long side trading and that would be short lived with tighter stops to the upside.

As we look to the stock index futures this was quite a story today. We have a double distribution area in the Russell and the NASDAQ so we’ve got distribution heavily on two of those that held. We also have two more distribution bars walking in the door. The DOW was very weak and offered up a second distribution bar today as you can say, 45% off the high and today notice that we close right below our distribution in the NASDAQ. Meanwhile at the Russell ranch we had completely stayed below the S&P as well. You can imagine gang the story is we need to break all four of those to the upside to look for fresh long side trades to see if we start selling into tomorrow’s session. If we feel the break there’s that much inventory up above and we start bringing this down then I’ll be looking for some shorts in the rising speed lines. As we approach them though I will back off from any shorts at that point. You know because we prefer to be long above the speed lines, because that means we have to break above these key distribution areas.

As we take a look at a couple more markets the Japanese Yen we continue to be in a death spiral. I showed you before a pattern with my indicators that only comes along once every very distant blue moon and sure enough that created for some amazing moves to the downside since then. We either have a speed line continuation trade back to the 20 or we have a break down below this inventory retracement bar, and at that point I’d rather break down below the 8380 level for any fresh shorting. Get below this inventory retracement bar and this 80/20 rule for shorts. We’ve had 2 failed attempts to get above the speed lines, so if we can get above there we will see retracement back towards the 20.

The British pound continues to hold my key support level that I’ve identified in my past videos and unless we get down below this inventory retracement bar or above this other inventory retracement bar then I will be done with that.

The bond continues to hold above this major level that I’ve been telling you about for weeks. Once we broke this level before we had a major pop to the upside which had a nice news announcement with it. After that we rolled back into the speed lines and I said this is done as far as I’m concerned until we get above this bar again. Right now today’s high was right there again and you can see numerous touches along the way as this continues to hold this down so until we get back above this high side here we won’t see any further bond trades. A lot of great stuff working the way we wanted it to. Vegas was great and so was the trading challenge. I just used the same great strategies to win the trading challenge as well. Even though my competitor made a lot of trades with large shares I waited for minutes until I even took a trade. I was able to go ahead and win from that. Really fantastic stuff and I appreciate all of you that made the Las Vegas Traders Expo event from all over the world. You all have a fantastic night. I look forward to seeing you tomorrow morning in the Live Trading Room or tomorrow night in the videos.

More Great Trading Today! Will Friday Be An Encore?

Okay gang, welcome back! Well I told you there was going to be more activity today, and boy, was there ever! What a way to go into the afternoon, even for myself, firing off multiple trades as this Market came tumbling down. Starting off with the Euro, this morning, which was really nice, the Euro got down below that 13000 level. We’ve got to be a little bit careful since it was a one-day phenomenon, so it could have a retracement back up there, and I’m going to be watching that going into tomorrow. But, the fact that the Euro broke through that round-number support, in the middle of the trading session and got to my 80/20 rule, so it got down below the 12980 level. That was a big deal. We normally don’t do that during the U.S. Session. That is a phenomenon that happens mostly during the European Session. 99.5 times out of 10 that’s not going to happen, so that was a big deal. That caused us to really focus on the Euro in the Live Trading Room this morning, so going into tomorrow and beyond, I’m going to see if we can repeat some these great movements we had to the downside. Previously when we got through, here is the 130000 level, and in the past, that level has been a key resistance level going into the last several years, as you can see. But then, it was also a key support. And once that key support was broken we had some really nice nose-dives through that level, so this is something that I have focused on a lot over the past few years when those would happen. Well, so here we are, trying to get to that level again. And as you can imagine, cyclically speaking, we’re really due for that type of moves down, as you can see, the spacing of these different cycles, this has happened before. So, we’re kind of due, timing-wise, from a cyclical perspective. So, I’d love to see this drop down here, offering up lots of shorts. Back in 2010, the first 8 months of 2010, I did an incredible amount of Euro trading, there, and I’d love to do some more with that, and like I said, that was a focal point in the Live Trading Room this morning, as well, of course.

Beyond that, the other thing I’m going to be focusing on is the Stock Index Futures, and certainly, that was the flavor of the afternoon, right up until shortly after 2:30pm CST, so that final 30 minutes is when the portfolio re-balancing takes place, when you get moves like that today. Typically after that 2:30pm CST, you’ll start to see those retracements. But, what was nice was, initially it pushed up, we couldn’t really get through the resistance and the distribution levels I identified. Remember, we had my inventory retracement bars, and I realized I hadn’t even been telling everybody, but I’ll get you guys the information. I just published an article in the largest trading magazine in the world on that, the inventory retracement bars. I’ll get you guys the information so you can read that article. People have been loving it that read it and I forgot to tell everybody about it, but it’s a pretty big deal. We’re using that strategy daily in the Live Trading Room, and we used it again today. We got caught in those inventory retracement bars, here, from yesterday, rolled right over, died a horrible death, leading into some great shorting in the afternoon right up until the 2:30 CST time.

As we go into tomorrow, you can see, once again, we’re right back at it as we’re whipping back and forth here. More of these doji-star type patterns showing up on the Dow, inventory retracement bars. I told you yesterday that the issue was we were going to have the resistance up above, but we were also going to have the support down below on these inventory retracement bars. You can see, we got stuck in those different levels that I drew for you yesterday, right into today. Just really awesome stuff the way we navigated that this morning, and then went right into the afternoon, firing off multiple trades until the final 30 minutes, there, as this Markets was having a nice sell-down So, great day. Expect more of this great activity to come, just like I was telling you in last night’s video, and we will look forward to seeing each and every one of you in the Live Trading Room tomorrow morning, or we’ll see in tomorrow night’s videos. Take care everyone!

Much Bigger Trading Moves To Come, Here’s What We’re Looking At

Welcome back. I hope everybody had a safe and healthy holiday weekend. Let’s take a look at a few highlight reels from today:

CL was where I was really spending a lot of my time this morning outside of the stock index futures. The orders that I was entering were based on the CL here. If we just take a look here for a moment a couple of the key things we were watching. We had a triple sell signal from Friday going into today. We had what we call a Hoffman Fade. We also had a stochastic spike and we had a hockey stick sell. There was three different sell signals all buried within this information. The stochastic spike, the Hoffman Fade, and what we call the hockey stick sell here as well. Three different things all coming to a head right into our falling key moving average there. That was important for today’s session and of course it brought the market right down. That is why we spent a lot of time on the orders in CL this morning.

By the way, as we look to this now, what I want to do is get down below the low set here. This was on an inventory retracement bar and a momentum shift breakout opportunity. So, getting down below the 9250 would almost certainly lead us down to at least the 9000 level and potentially the 8500. There is a lot of room and opportunity to go to the downside here if we can get a little bit more action.

We are going to be continuing to watch for those short side trades in the coming days if we can get down below there.

As we look to the stock index futures. The stock index futures were the same story all day. We focused in the morning on the fact that the RUSSELL and the NASDAQ were strong and at the same time the DOW and the S&P were very weak. That was kind of the theme throughout the day here. We closed up the day with the inventory retracement bars off the highs on both of these instruments. Going into tomorrow we’ve got doji stars (periods of indecision) on both of these and really they are double-doji stars from Friday and today, as you can see here.

We’re looking for further information now. We are looking for a breakout. We are looking for this volume to return and we are looking for movement out of those areas that I just identified. In a perfect world we will either start to take off on the RUSSELL and the NASDAQ as well as the other two stock index futures OR these other two are going to start coming down like a ton of bricks here and we are going to break back down below the lows that we set here today in the S&P and the DOW. That is kind of what we are going to be watching. We are going to be looking for longs or shorts based on if we break to the upside or if we break to the downside. Very important there.

As we take a look at the Yen it is one that I am really interested in right now. Like I said, CL ended up kind of ruling the roost today, but the Yen was mentioned even here back a few weeks ago. If the Yen goes ahead and breaks down below this low then you can see there is a great deal of opportunity to the downside and my indicators were starting to fire off sells. That is why we are talking about this and being kind of pessimistic about this one. There are some great opportunities for a short side trade potentially if we can break down just a few ticks lower below that 9500. We will be watching that one going into the coming days as well.

Finally, the ZB. We were talking with you about how we had the buy signal right over here. Then our target was right up here and we mentioned how we had gotten a vast majority of the way up there (90+%). What we said was, ‘look, you have to be focused on trailing up these trades.” I know that some of my top bond traders were closing out their positions as of Friday. We can see that was very smart. You are going into a three day weekend and you’ve already got 90+% of the profitability on the trade. Why not go ahead and make sure that you’re keeping tight stops or closing out those positions all together to lock in a bunch of that profit. That goes back to the theme I shared with you guys last week.

We fired off four or five of these buy signals now since January. All of them have performed very well. Just keep in mind that is one of the reasons of why I am trailing stops so that you are going ahead and locking in part of that profit as you are going on. You are giving it a chance to run but if it is not going to you are locking in profits before you get caught in unnecessary down drafts, especially over a holiday weekend. Great stuff there.

All in all, really nice way to start the week. There’s already some activity coming back. The stock index futures are poised for further movement and other commodities are looking good here. We will look forward to seeing you guys tomorrow morning in the Live Trading Room or in tomorrow night’s videos here. As volume is coming in let’s keep kicking it off stronger and stronger and then we will talk more about some of our favorite stocks that have been doing well from our Swing Trading Videos tomorrow night. Take care everyone!

Watch These Inside Bar Trades And More

Let’s get right into tonight. For all of you that are part of my swing trading videos and have been following along on these, make sure that with GILD, APPL, and Bonds you’re going ahead and, in my opinion, moving up the trailing profit stop on these now at least 50% of the way. Gilead has had a really nice run here and could even go up here about 70-80% of the way to make sure that we’re not giving back anything there. A really nice run. You can even use the speed lines as a nice guide to make sure we’re just not going to give back up any profits. This one is up another 3.3%+ on that. Let’s keep going along with that. Great stuff there for all of you that are part of the swing trading video.

As we look into some of the other things we’ve been watching the 6E is one we are watching very closely. We are looking to see if we can break down below the 13180 level for short side opportunities.

GC and CL, it is very important that you understand that we have some great opportunities here. GC and CL we have an inside day in an inside day of an inside day. That is both on GC and CL daily charts. We are going to be watching those for wide range moves. We want to get back above the speed lines here on GC, reverting back into the mean, or we want to break down below last Thursday’s low. CL here, you recall, what I wanted to do is get back above the gap on CL. That is going to right over here (on my charts at 1:48). Get above this gap and look for a long speed line to 20MA type trade there or break down below this inventory retracement bar for further downside. Don’t forget that it is also an inside bar of an inside bar. For those of you that went ahead and already took trades in some of those other things like GILD, APPL, and the Bonds, make sure you’re trailing up your profit targets.

We have a host of new opportunities here as well. Don’t forget we have inventory retracement bars on all four stock index futures tomorrow. They’ve all closed 45% or more off those highs. Going into tomorrow one of the first things that we would typically expected after that is a retracement back down. I will be looking to see if we can fall below the speed lines for some short side opportunities. Otherwise, if we can actually break above those highs we will be looking for fresh longs. We obviously hit the 2000 level on the S&P Futures today so there was round number resistance factor there. Going into tomorrow, like I said, with the distribution at hand initially we will be looking to see if it starts pulling back down below the speed lines for a short. Otherwise, if the market deals out another surprise and push above that distribution we will be looking at further long side opportunities as more of the shorts panic out and more longs start to trample in.

We’ve got some really great stuff happening there as well as in GC, CL, and the 6E. Lots of great stuff happening there and in GILD, APPL, and the Bonds are all doing very well since we mentioned them in the Swing Trading Videos. Let’s go ahead and keep up the great work and have a great night. I’ll look forward to seeing you in the Live Trading Room tomorrow morning or in tomorrow night’s videos. Take care everyone!

Rob’s Favorite Markets To Kick Off Next Week’s Trading

Okay gang welcome back! As we look at Friday’s trading and going into next week, the bottom line is this; we have rising support coming up underneath us, and so I mentioned until we broke down below that rising support, I would not want to be looking for the short-side trades that’s be just way too aggressive here. We also had, here, we had a doji-star earlier this morning. This is a screenshot from first thing this morning as we’re breaking down the day for people, getting ready for the big trading session. As we start off here there’s a doji-star, doji-star, it was also an inside bar, inside bar. So, the S&P was an inside bar, the Russell was an inside bar, the Dow was a doji-star and an inside bar early on, and the NASDAQ was also a doji-star. What does all this mean? Well, what it means it boiling up consolidations. We had very specific things that we needed to see to take long-side trades, we had specific things we needed to get short side trades. And so, it was really great to have such an important action plan. As we go into next Monday here, the same plan is going to be in place. Right now, we close with in inside bar, I’m looking to break down below the slow speed-lines, here, or break out above the resistance. So, very similar activity and ideas that we are looking for going into Monday, especially after the consolidation today. Let’s keep our eyes open for Monday. We’re looking for bioth shorts and longs going into Monday, because we could just as easily break down from here, especially trading along these highs, here, for a while., we could be due for a roll over which would be fantastic because the $VIX has settled down into some lower numbers again, so it’s be great to see a nice, big sell-off coming in here into Monday. In the meantime, though, you have to be an equal opportunist because we still have room to grow if we can break out to the upside here, above some of these key levels. So, we are going to be watching some of these levels going into Monday for long-side trades, as well, and we have to do that because the speed-lines are still rising up underneath us for the time being.

That’s Monday’s plan, as it relates to the Stock Index Futures. As far as Gilead Sciences, is actually one of my stocks that we were looking at in my “Swing Trading Videos”. IF you guys are missing out on my “Swing Trading Videos” you really are missing out because I have given some incredible information whether you are a stock trader or an options trader, there is an incredible amount of information you could have learned from and grown from, and seen some really great ideas bloom out of those, and that continues, Gilead Sciences included, here. So, that is kind of a continuation of stuff that we already talked about over there, so we won’t talk about that here.

But, as far as the Bonds, the Bonds did trigger off a new buy signal. Now, here is the way I’d like approach this, because the next target is up above. But because we are overcooked in the short term on some of our indications, I would actually not want to go into Monday with the Bonds already up, and then look for a long-side trade. I’d actually prefer the Bonds pullback a little bit and then start to push back up through that open. So, ideally, open somewhere close to where we close, here. Trade back a little bit, take some of the edge off, and then start to push back through and then start looking for a long-side trade. Just look, historically when we get somewhere near these highs, a lot of time it is due for at least a short term pullback, if not something a little more meaningful. You just look back at history, you’ll see that over and over again. I’d like to take a little bit of the edge off of that first, so, if we open up high going into Monday morning, I’m not going to want to take that trade. If we open up, pullback first, take the edge off, then start to trade back through, then I’d seriously entertain that.

Those are a couple of the key things. I’m also looking at things like the British Pound. The British Pound is in a situation, here, where both on a daily and a weekly basis we have room to grow to the downside. I’d like to see us hold below the speed-lines and see if I can find fresh sell signals going into Monday, because we have roopm to grow down to about the 16400 level, and that’s not just on the daily chart, that’s also on the weekly chart. You can see here the weekly chart is right at key long-term support, as well. If we break down below that, then that same 16400 is available to us as well. So, be watching the British Pound amongst those Stock Index Futures and the Bonds going into Monday.

Lots of great stuff! I’m looking forward to a big week next wek, especially with the way the Stock Index Futures have set themselves up for additional movement. And, the $VIX, of course, has gone down into those lower levels again, here, where it’s settling down so, of course, we know that out of those levels is where we usually  get the nice spike back up, as we have seen time and time again. So, great stuff! You guys have a wonderful weekend and we’ll look forward to seeing Monday in the Live Trading Room or we’ll look forward to seeing Monday night in the videos. And again, thank you for all the wonderful cards, emails, presents, all the things you guys have done for us as part of our Student Family. You guys are awesome, which is why I want to continue to help you each and every day, any way we can, so let me know what you need. Email support@becomeabettertrader.com and we’ll take care of you!

Important Trading Concepts Rob Wants You To Know

Welcome back and thanks for being here. By the time you watch this video my little baby girl Mackenzie will have been born. I just want to thank all of you that have sent in the wonderful emails, the gifts, and everything that you guys have done to let us know that you’re thinking about us. That is really great. Sarah and I just both want to thank all of you for that.

As we kick off tonight, what I want to do is play a video for you which is a part of my Trade Like A Professional Series. I want you to watch that and enjoy it. As we go into the rest of the week Ryan will be here with you to give you great updates on things you need to know as we move forward. Have a great night and enjoy the video and we’ll see you soon.

In this installment, what I want to focus on is something very near and dear to my heart, very important, Multi-Time Frame Analysis and Trend Resumptions. This is a very real-world tool that I use, and I want to discuss an example of that.

I Want To Set The Stage For This…

First off, we are looking at a daily chart, in crude oil. What you can see here is we spent a lot of time over the course of several days at the $86 level. Now, while we had a lot of congestion there, we also had a lot of room to grow, a lot of air, couple hundred ticks to the upside. At the same time, we still had a couple of hundred ticks down, about 300  to 400 ticks to the downside, with more clear sailing over 200 ticks down below.

So great opportunity on either side of the fence here; we just need to go ahead and get out of this congestion zone. The stage is set and we know that we have room to grow to the upside. The overall trend in the backdrop is to the downside, so we know once we get up near that $88 level we’re going to want to be a little bit more careful.

Now walking in that particular morning, we could see the hourly trends overall are to the upside. You can also see the 15-minute trends are to the upside. This is important to understand. We have room to grow to the upside, and we have the hourly and the 15-minute charts looking really good as well. However, as we walked in the session that day – this is 8:30 central time over here, the U.S. Open – you can see we quickly lost our shine and fell right back into a sideways trend on the 5-minute charts. And on the 2-minute charts, you can actually see we were in a short-term downtrend.

Now, with that being said, what we have is room to grow on the daily, we have an uptrend on the hourly charts, we have an uptrend on the 15-minute charts, the 5-minute charts sideways and flat, and the 2-minute is slightly down. What I want to have happen in a situation like this, since the daily chart has room to grow, the 60-minute chart is to the upside, the 15-minute chart is to the upside, what I’m looking for from a multi-time frame analysis perspective and a trend resumption trade perspective, is for the 2- and the 5-minute charts to start getting back in line with the higher timeframes. This is so important. This is something that a lot of people miss.

What actually ends up happening for most traders is just the opposite. Most traders are focused on very small timeframes – tick charts, 1-minute charts, 2-minute, maybe 5-minute charts, for very short-term trading. What happens is they look at this and say “Wait a minute, I want to look for shorts,” because the 2-minute’s down, maybe the 5-minute’s down at that time. It’s been coming down for a little while. So they’ve got a very short-term focus in mind. Whereas actually, at this time, in a very real-world environment, I was looking for long side trades, if we could get the 2- and the 5-minute clicking back in.

So what I did was we saw that through a series of my indications here that the 2-minute charts were starting to come around, as were the 5-minute charts. I went ahead and told the Live Trading Room members at that time if we got back above the 8640 level, I was going to be looking for long side trades. And that’s exactly what happened. My first trade of the day here in this situation was at 8640.

So Let’s Review The Scenario Here…

You can see on a chart that some of our key tools were crossing back over to the upside here. We fired off multiple bars with buy-signals here. And so, what was happening, on a short-term basis, the 2-minute charts were starting to catch up, and break the spine of this short-term downtrend that kind of stymied this nice rally in the backdrop. So the overall trends were the upside. We needed to start getting back up here and start pushing through. So that 8640 area was my first indication that we had a real chance for trend resumption here.

Now, what’s important to understand is that what this did was this became a market where the 15-minute charts have now pushed back into up trends, along with the 15-minute and the 60-minute charts here. So as you look at this, what you’ll see is this ended up going ahead and pushing off, pushing off, and it just became a really good trade. In fact, the last trade of the session that I took in this ended up being at 8862.

I didn’t get the top tick on this; but remember what I said about resistance being up here in that $88 area. I didn’t want to push my luck. With all that being said, what started this whole process on the day, and that’s what is most important for you to understand, is that first move up as those very short-term time frames went ahead and kicked off back into the direction of the higher, more meaningful time frames.

What I’m encouraging you to do is consider, instead of having that more myopic short-term focus on just the tick trades, the 1-minute and the 2-minute charts, let’s see if you can line up some of those short terms that you like to trade in conjunction with the higher time frames. Use some multi-time frame analysis and get some room to grow on the daily charts, and then see if you can actually get a much bigger trade and worthwhile trade out of that.

I hope that you enjoyed that Trade Like A Professional Video and don’t forget that the rest of the week you’ll have Ryan to carry you through the week. We will be focusing on our little baby girl for the remainder of the week. We look forward to catching you on the flip side! Looking forward to the rest of 2014 with you. Have a great evening, great week, and take care.