Markets Ready To Explode To The Downside If They Fail These Buy Setups

Hi everyone this is Jordon, another great day in the Live Trading Room, we followed it up today with a Member’s Q&A Session where we took members live trading videos and got a chance to critique them one at a time in front of the class, everybody asked questions and had a lot of breakthroughs and take-aways today. We encourage anyone with a membership at Become A Better Trader, we get a chance to tell traders what they did right, what they did wrong and what they could do better so I encourage all of you to sign up with us.

As for the key markets I want to take a look at oil, you notice oil is printing out a positive divergence. What we’ve really been noticing in these markets is these positive divergences when they get broken, they tend to just fall with very powerful moves and with oil being so low lately this may be one of those move that just pans out. So if you’re looking at taking a crude short, just make sure that this divergence gets broken first because like it did today it can print a new low, but end up closing towards the middle of its bar which was actually right in the middle of this previous low from about a week and a half ago. So if crude does get a chance to print lower lows in the indications as well as price, we’re going to be looking for more downside in this instrument, more powerful downside, and we were very active in the trading room today on crude.

Now as far as the Euro is concerned its kind of congested in this area with these two bars from two days ago. What I’d like to see is the Euro come above this $1.1420 area then we’ll be looking for further upside all the way to the 20, if it doesn’t break that area and comes to the downside we want to see it break through this bar from two days ago then we’d start looking for shorts. So for you swing traders if you’re looking to play the Euro, you would be looking for a long above the $1.1420 or the lower of this bar from two days prior.

Some caution I wanted to throw out there today was this British Pound Sterling also happens to be printing some positive divergence. What that tells us is this market could either get a very powerful move to the downside if this divergence doesn’t play out, but if we get in this instrument too soon, we’re going to get blown out of this position because it could also play out to the upside in a move that we would not have seen if it weren’t for this divergence in the first place. Right now it’s a wait and see if the market plays this divergence and this market to the upside and follow it up or watch it negate this divergence and follow it to the downside with shorts on the British Pound.

As for the Aussie we’re watching it make lower lows in price, but higher lows in indication so if this keeps up and we keep making lower lows, eventually this positive divergence we see is going to be negated and we could see a powerful move to the downside. The reason why I bring this up is because it could easily pop back up and if the divergence gets broken then we want to go ahead and go short, but if it doesn’t then we are looking to take longs above the speed lines, back to the 20.

Here we have the stock index futures which are in big congestion mode, we’re just taking index futures trade by trade and day by day, giving deference to the markets that are more poised for a large breakout, just like the crude market I just showed you, so with that being said I also wanted to remind you too that Rob is going to be in Florida at the Orlando Money Show next week. We have a lot of our student members and all of our viewers that live in Florida are going to make it to this event. Rob wants to see as many of you as he possibly can. The more Rob knows and gets a count of people who are going to be there the more of a chance he will have to see you so that he can do all of his interviews and see you guys too. We’re also trying to get a room for everyone. What you’ll see in your email is this CLICK HERE. Let us know if you’re going to be there, I look forward to seeing you there. I look forward to seeing you in the small lot trader room, and in our nightly videos. Thank you everyone. Take care.

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