Negative divergences, trend breaks leaves the market indecisive to start the week

Last week was great. Here’s what we’re looking for next week after the holiday

The Trade That Continues To Work Right Now

Great Kick-off To The Week With The Negative Divergence Trades

Well, hello gang, and welcome back! I hope everyone had a great trading day today. In the Active Trader Room we had another great day with positive traits long out of the gates and short as the market hit the top of the day and for those of you that were in the Active Trader Room you got to see some great trading. I’m filling in for Rob as he’s a little under the weather this week but starting to turn the corner so things are things are looking up again. In the Active Trader Room today we were looking for the market to start off the day rising and we had prognosticated a rise into the 3374 area we in fact talked about that the night before and that’s precisely what came to fruition today. We had the NFIB small business optimism survey come out – small caps were doing well on that -earnings aren’t really the play that’s making the market move up it was the injection from the PBOC that People’s Bank of China put out about 130 billion dollars worth of stimulus on Sunday night and we saw that create a risk on reversal off of Sunday night’s lows and when you look at the market and you look at yesterday, Monday, and today it’s very similar set up to last Wednesday and Thursday. It’s almost as if we’re getting a similar playbook to last week but it’s a little bit more advanced or mature would be a better way to put it. If you take a look at the regression channels on the bottom of your screen here one of the things we were mentioning to all of the members in the Active Trader Room is if we see the market today close above precisely 3364, which happens to be an important regression line, we’ve got a better chance to go sideways to up overnight and try to retag the highs. However, now if we end up closing below 3353 or generally below 3364 I’ve got a better chance to overnight come down and test about 3340 to 43. We don’t really get worried about this market that’s still a strong bullish market as we can see straight up over here I don’t really get concerned until we come down we take out 3323. For those that don’t look at market indices as a signaling mechanism and our focus just on stocks, market risk sector or stocks specific sector risk or space risk and then stocks specific risk breaks out in about 50 30 20 in terms of percentage of importance when you’re looking at the market short term. So, in today’s trade in to the end of the day when we were looking at what to do overnight the idea of the market having a little more jitters overnight going sideways to down – looking inverse on equities – looking long on volatility. Looking at more defensive options was where we were headed. Now, I’m gonna bring up Rob’s toolkit here in front of you and we’re gonna take a look at the market. You were looking at it on a day over day basis we’re looking at it now on a 60-minute basis.

So, we can go all the way back to the heart of the markets negativity with the Coronavirus which was all the way back over here on January the 31st and we saw all of that mess on the Sunday night February the 2nd into the 3rd and what we got over here was the People’s Bank of China injecting stimulus and when they did that you can clearly see the throttling on the tool over here on the fast trigger versus the core trigger which typically means we’re gonna get another bounce and sure enough we did. We got a higher high made and the penultimate high was made on this candle for last week. But as you can see that negative divergences were building, what does that mean? Well the fast trigger was not making higher highs versus the first high. So, it implied that we were likely to flatten out and surely we did. You saw Thursday’s daily candle at Friday’s candle last week just moments ago. So, we were not a tailspin we were in a slightly negative move into the end of last week and that carried forward into future trade on Sunday night until what happened People’s Bank of China injected stimulus again about 130 billion worth of US dollars and it picked the market up off of its lows and up up away we went, but what’s important to note here is the strength with which price has risen this week is a lot less than the strength with which price rose last week and embedded in the lower presentation or the lower amplitude of the fast and the core trigger versus last week is a bit of a towel. But this mark gets having a little bit of exhaustion at these highs. Now don’t get me wrong as the market starts off the day if it’s an up move we’re looking for longs but we do still see this market as top-heavy so intraday today what we uniquely found was a moment in time where we could look for a drop back down and play for an inverse trade and that’s what we did in the Active Trader Room once we had seen the peak out happen here and we broke below some core levels. Our super oscillator on the bottom of the screen gave us a core sell signal at around 11:15 -11:20 a.m. Eastern Time and we’re still operating on the basis that that super oscillator takes us down into the bottom quadrant on this regression channel which to us means that more likely downside risk overnight but no break down risk. We see the market below 33:23 then we get a little bit more concerned.

For all of you that are enjoying the free videos I hope that they’re adding to you for all those new students that have joined us we’ve had such an overwhelming positive response of new students joining us from last Tuesday’s presentation on February the 4th. You’ve been enjoying us live in the room paying for the membership fee as you can tell and again we’ve had a couple of profitable days this week between yesterday and today again. For those of you that are looking at joining up we will we’re no longer offering that special deal but perhaps in the near future we will be doing that and we look forward to having you join our group and benefit from the insights and the community overall. I hope you enjoyed this video and we’ll see you in the next one. Bye for now! English

Great Close To The Week With The Negative Divergence Trade

More great live trades and trading opportunities again today

Okay, welcome back everybody! Well, exciting times here in these markets and for all of you that joined us the other day in our special Active Trader Room event you have seen a lot of trading, a lot of action, a lot going on. So, we went ahead and today the focus here was to go ahead and actually primarily focus on the short side and the reason being is because as we came into the U.S. session here we fired off a ton of sell signals with my ITP indicators. So that led to a really nice sell-off right at the US open and that was basically the story for much of the morning session actually was focused on the short side and as all of you that were watching live on the screen in front of you this morning you went ahead and saw you know a profit being earned from those endeavors and so really great stuff and really glad you guys were with us.

Now, as we go ahead and take a look at what’s happening here with this market – so we’re at some really key points with the despite so big things and watching right now. We’re making a higher high on the in price on the SPY but you’ll notice that we’re making a lower low in the indicators. So, I’m a little bit out of shape about that. We’re pretty high here in some of the overbought, oversold type indicators, the oscillators are, the triggers are, as you can see negative divergences right now. So, I’m gonna be watching this a lot. There’s been a lot of wins for President Trump here the last few days, Coronavirus is still lingering but, what we have here is a market that effectively this time came down – the last time it came down hit the midpoint of the channel- bounce. This time it hit the bottom end of the channel but it’s still held. So, skipping rock theory is still holding here we’re hitting the major levels bouncing and we’re still bouncing and still bouncing at this point. Now at this point, again, we’re kind of making almost like a negative divergence here because you see the indicator is making the lower low while the price is making higher high. Statistically, it means were due for another pullback. In general, unless there are isolated cases like this morning where we open up high and then sells come in for some short-term profit-taking we’re gonna go ahead and be focusing on long side trades. Again, the beauty is there are these individual pockets of short-term sell-side trades generally keeping the size smaller keeping your wrist tighter and stuff like that and you see how if you’re in the live trading room today, you saw walking away with a profit on the day with that happening with that strategy. So, going into tomorrow morning session here to close out the week strong, the focus is going to initially be long. As long as we stay above the fast trigger we’re gonna be looking for primarily long side trades. If we start to break down below that trigger, that speed line, and start pulling back down towards the slow speed line then we’ll see if we find some more of these types of trades where we fire off a lot of indications to the sell-side but in the big picture which you’ve heard me say time and time again in the last several days is really as long as we stayed above these key levels, if you remember, there’s a 322 level on the spy that I talked to you about previously and we stayed above 322 and did not break through down there and then make that resistance if we did that then I would be extremely bearish and really be looking at options plays from a short side perspective but at this point, it’s long side or bus still at this time from a swing trade basis as long as we hold the channels. I know I sound like a broken record but that broken record keeps playing the same song over and over with the same result and you guys followed me here for years you’ve seen how we use these different tools in conjunction with each other time and time again and so what I’m also looking for here I want to start seeing before I get too awful excited about like aggressive longs, I’d like to see us start firing back off into acceleration alerts and RTI alerts. (Rapid trade identifier) alerts.

So, we don’t really have a lot of that firing off right now as you can see. So, gonna be looking for that to also be taking place so I’d say I’m cautiously optimistic and focusing on long side initially walking in the door tomorrow morning if we break down below the speed lines when the speed lines open up tomorrow then I’ll be looking to see if there’s an opportunity for a sell-side trade like this that takes us down to at least the slow speed line so that’ll be a short turn opportunity guys if you watched this morning the live trading room you saw how profitable that could be and then from there I’m gonna go ahead and just be in general focusing long. So, it’s a pretty straightforward strategy here – long until such time as you no longer cautiously long until we get down below 322 then be looking aggressively short but we’re holding those levels that I’ve been giving you in these special updates so that’s basically where we’re at if you guys have more questions, more markets you want me look at, let us know and we’ll bring those up in the videos to come. If you guys are not part of the live trader room already if you made a mistake, you forgot, you missed it the other day, then what I would encourage you to do is go to becomeabettertrader.com/atr so you guys can go ahead and be part of the action. It’s not just a day trading room as people have found out the last several days, we also have the swing trading focus, we have swing trading alerts that get posted and there’s whole segments on swing trading – we also have the options focus and an advanced technical analysis focus as well. So, we have all these different sections focus and just a lot of trading going on these days. So, go to becomeabettertrader.com/atr you just read about some of the things that are there – it’s an all-day room now you know huge reports that come out on the weekends the swing alert idea, it’s just a lot of stuff, alright? So, I’ll let you guys read about that and it’s a hugely discounted price over the normal 997 dollars quarter it’s only 197 a month right now with all those benefits. So, a lot of value. Alright, you guys have a wonderful night, see you in the morning the live train room if you go to becomeabettertrader.com/atr and we’ll be practicing more of what we’ve been talking about here in these videos. We want you to come see it for yourself! Take care, everyone. Have a great night. Bye-bye! English

Holding Exactly At Thursday Nights Critical S&P Support Level

Key Levels On The S&P Ahead Of The Impeachment Vote

Okay, welcome back everybody! Thank you so very much for your patience and understanding as we were offline for a little bit given the incredible Wealth365 summit last week – that was the largest one ever. Over 90 speakers. Normally we won’t be doing those but it we’re going to kick-off 2020 really strong and we’ll be back in a few months but I’ll be in the normal size and of course we launched WealthCharts which has been undergoing all sorts of improvements and enhancements even just in the last several days. We got another big release coming out tomorrow afternoon and got a lot of big things planned for WealthCharts in the weeks to come so stay tuned on that. So, as we go ahead and we take a look here tonight the thing that I want to focus on for this evening is getting you back into the basics and that’s as we look at the S&P. So, with the S&P; here we were due for a pullback because if you look here you’ll notice that as we take a look at this we really went ahead and had a negative divergence taking place when you look at the fast trigger compared to prices. So, we were due for a pullback now you go ahead and you add in the Coronavirus and you add in the impeachment vote coming up here between Friday and Saturday there’s a lot of reason to go ahead and just take a pause for a day or two not the least of which is that we are in the Killzone here.

So, this is an excellent day traders market some huge opportunities on an intraday basis to be sure but on a swing trade basis right now taking a pause makes a lot of sense. You’ll notice the gap here in the SPY from the other day and that is acting as a resistance area here. But at the same time, we’re holding this really important channel. And gang, I could not emphasize this anymore – this is so important. First of all, we really need to get back above this 328.50 area just didn’t even go ahead and think about breathing a little easier and at the same time, you do not want to be breaking down below like this 322 area on the downside here. So, these are some very important areas, in fact, I’m going to clear off the work here and let’s go ahead and take a look at this again. So, right around that 328.50 and that 322 area these are the areas that are key breakout breakdown points that we want to be really focused on. You’re gonna breathe a lot easier if you get back up here above this high because that could lead to another potential opportunity now we’re gonna have to watch that if we do push out here to the upside do we get it even more of a negative divergence that’s what we’re gonna have to watch out for we’re making higher highs in price and then we’re still going ahead and making these you know equal or lower lows in the indicators then that might be you know due for even deeper pullback but right now as long if for now we’re gonna enjoy that ride back to the upside if we can get back up above this watch that 328.50 at the same time if we make take a look it’s been all the way back since the beginning of December where we hit that channel and then boom did we pop off there pretty solidly. Remember my concept of skipping rock Theory? You know, just like when we were kids you know we used to go ahead and have the water hopefully your water didn’t look like that but a little flatter than that but you know we’d hit there in the water with a rock and the first skip would be the best and then from there you start to watch out till eventually sinks, right? Well, the same kind of concept boy this it was so strong leading up to this hit that first hit “boom!” hits hard, right?

Well, now we’re hitting it again and now it’s kind of petering so if this all of the sudden becomes a resistance at 322 that could bode poorly for longs. So, that’s why it’s gonna be so important to watch these areas. The good news is we have a lot of exciting things coming up in the next several days and starting with the impeachment vote here we’ll get further updates on the Coronavirus hopefully you guys were all watching the websites that you can kind of keep an eye on how those numbers are progressing and the but also the is thank you for going to being so patient to go ahead and return to us we’re gonna do a special event here where we’re gonna be him you come to join us this coming Tuesday and for those of you that don’t know our room is an all-day room now and we’ve got stocks, options, forex, and ETFs we cover everything in the room. It starts at 8:45 Eastern Time so way earlier than I ever used to start and of course, it’s an all-day room that goes to approximately 4:00 p.m. Eastern Time so there’s intermittent broadcasting all throughout that day and in different segments we have some of our different staff that come and hit the options real hard – hardcore technical analysis live trading on the screen in front of you and which is what Ziad and I focus on and so it’s just a really great team of four of us that are in there taking care of you guys. So, I want you to come check it out on Tuesday morning 8:45 am this will give me a chance to go ahead and teach you some things that maybe you’ve fallen rusty on, answer some more questions on how to use like some of the things I taught you during the Wealth365 summit stochastic spikes, IRBs, different types of strategies and tools that we shared with you guys there a momentum shifts in that. So, take advantage that huge opportunity gets the macro perspective, the micro perspective, day trading, and swing trading – the whole nine yards. Come hang out with us just go to becomeabettertrader.com/go again that’s becomeabettertrader.com/go come join us here and that between that and the videos that I do in the days to come that’ll set you off for a much better pace for 2020 here. So we will look forward to seeing you there. So, one more time go to becomeabettertrader.com/go we’ll see you there and then we’ll take a look at these live markets on the screen in front of you, you can’t afford to miss, alright? Take care gang! Have a great night we’ll see you this weekend and then we’ll, of course, see you next week live. Take care, everyone! Bye-bye! English

A Rotational Market Before Another Big Move