What A Day In The Market! Did You Trade Like This?

Welcome back gang. What an exciting day, told you some big moves were coming and off the charts we went, some really great stuff. Walking in the door today we would have preferred some long side trades, in fact early this morning we did take some long side trades in the trading room, however what happened was we noted at the time two major things. One is the NASDQ never could get back above the speed lines, that is a huge deal and that was part of the deal for continuation today as you could recall, because we were above the speed lines in the other markets. I would have liked to see continuations longs, however the NASDQ could not get back above the speed lines, really important to the process there. The other major thing was earlier this morning as we walked in the door, Crude Oil and the stock indices were tagging really well with each other, they pushed up and pulled back, pushed up and pulled back, but then what happened was the started to decouple around the 9:30 10 o’clock central time this morning where the Russel continued to push up but crude oil couldn’t keep going. They started to kind of diverge where there was relative strength issue there between the two of them, since they were so correlated early in the morning I had pointed that as a big fat warning sign to the process. Sure enough what ended up happening here was and also we put together an intraday video once again highlighting how I really wanted to get below here for a short, we got down below there that set the stage for a great move to the down side. So I wanted to get down below yesterday’s lows, we did and that offered up a fantastic opportunity for people that were focused on that, already moving in a nice direction even if it is a short term intraday trade that they went ahead and did phenomenal going ahead pushing down below that low which we were looking for the short which was a very quick profit opportunity right down below there. So if you watch my intraday video here you’ll go back and recap that if you didn’t go ahead and watch that earlier in the day.

Then as we go ahead and look to the actual stock indices, the stock indices gave phenomenal signals when we had that failure for the NASDQ to break through the sell side there, let’s just take it off, take this one step at a time. First of all I took a long side trade in the morning because we went ahead and had a champion setup trade here in the perspective of green dot green bar, so the market went up so of course I was focused on the long side early on. Then as we got up here, as I mentioned, while the stock indices were rallying to the upside here, crude oil started to flatten out which was a divergence from the morning. In the morning they went down and up together so they were coupled. But then crude oil stopped going up as the stock indices were going up. That was a huge red flag, so then we don’t do anything with those at that point where we have red dot green bar, don’t do anything there. Blue dot green bar then we are looking for two green bars afterwards if you want to go long, didn’t get that, then we went red dot blue bar so we want to see two red bars back to back. Got the two red bars back to back down the pipe she went for the afternoon. So we saw that divergence early on in the session with the NASDQ would not go ahead and cooperate with breaking out, so we took the long side trades when the getting was good in the morning.

We took the longside trades when the getting was good in the morning. But then, we stopped the longside trades and put the brakes on it there in the live trading room this morning for that last hour or so that we were together. We rolled into sell signals this afternoon. Boom! There she rolled. Everything is tying together really nice whether its an intraday basis using my core work, Champion Setups or using the stuff we talked about like in AAPL. Go back and watch my swing trading video tonight. If you haven’t seen it for some reason, shame on you. You want to check those out. That all led to a beautiful move to the downside. AAPL had the first miss in 13 years. Certainly, there are plenty of reasons to be concerned. By the way, the VIX is above the 15 level as well. Once we got through that 15 level earlier today, that made it that much more tasty to the downside.

As we go into tomorrow, we continue to be down below those speedlines. As long as we’re down below those speedlines, I’m going to be focused primarily on shortside trades. Once all four are above I’m going to be focused on longside trades. Now we’re at that magic 15 level on the VIX. I’m more bearish when we’re above 15 and more bullish when we’re below 15. We’re going to be using those fantastic tools both from an equity side perspective and of course the live trading I was doing in the trading room this morning in the stock indices. What a great time to be a trader. I keep telling you guys that. If you’re already in my trading room, you know that to be true. Enjoy the ride. Let’s close out the week strong.

I’ll look forward to seeing you in the live trading room tomorrow and in this weekend’s videos to cap off a really great week. Have a great evening!

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