Enjoy This Extended Free Trading Video From Rob Tonight

Welcome back gang. As we take a look this evening let’s look at the Euro. Over the last several weeks in the archives we had a lot to say about the Euro in the last several weeks, both breakdown points and even as we were getting retracements in this area and these areas as well. So we’re not going to be focusing on those long-side trades until such time until we broke back above the channel, because something powerful like this channel in the Euro can have a great affect. For those who were getting excited even when we had the positive divergence over here, if you recall I’m like well that’s great but I’m still not going to take the long until we get above the channel. So the focus was on short side and short side only trading. Now where we are is we continue to see after all that discussion for the last couple of months where are we? We’re at new relative lows over the last several months. Pretty great stuff. As we go into the next couple of days watch out, I think we have some ECV announcements tomorrow morning, but basically what I’m looking for outside of that actual news release, where I don’t want to be trading in the middle of, I’m looking for fresh shorts down below the 12280 level. If it happens right during the discussion level there is too much risk of a snapback and retracement, but as we go into the overnight session and the announcements in tomorrow’s session if we can stay below that 12280 level we will be looking for short side trades there.

Let’s take a look at gold. Gold right now had this rapid sharp movement, it was in this consolidation I presented to you last week. We had a nice move to the downside, which was quite large. In this holiday trading we had this push back up. After a move like this I would like to see spike to the downside and move right back up. I would actually like to see follow through right back up. We still have some major resistance a few hundred ticks away from us. So we were actually following along with that this morning as we traded in the live trading room, but it didn’t materialize, we ended up focusing on stock index futures long side trades. The goal was very close on the radar, so we’ll be watching for further opportunities. If it dipped back down into the channel I’m not going to be interested so if it falls right back into this channel here I’m not going to be interested in taking a trade there. It’s just not going to be a trade there. It’s just too much of a 50/50 trade there. It could spike anytime and the risk reward isn’t that great. Long side trades are a bust on gold is what I’ll be looking for.

Taking a look at crude oil here. What can I say I’ve been talking about this for several months in these videos you’ve heard me say the same thing is bearish on crude oil? Over and over again we’ve been holding the channels to the downside here. For the first time in quite a while have gone sell side back in July on a core trigger, not just my fast trigger, which had a razor burn sell signal over here. The first time you had double sell signals and just basically we are setting out milestones that I want to break. If you go back to the archive videos and see the proof is in the pudding. What I say generally happens, and as we take a look over and over again this continues to break down sharply. Beyond my original expectations I went ahead and put out revised expectations on that. We kept meeting/exceeding each one of those which was great. Now we’ve had a big move on Friday of last week. What we’re looking for now is in this downside between 66 and 64 shorts in there, if you take straight trades in there you have to watch for whip saws back in there. What I want to see is if the speed lines are going to open up down near the price tomorrow. I’d actually like to see a speed line down to 20 back over here. So in other words what will happen in the speed lines move down and try to get above there and look for long side trades? Especially if we can push above those speed lines and start to rally back up again. That would definitely be a trade I would like to take in the short term.

Now to take a look at Japanese Yen is another one I’ve been talking to you about this for months and months. We’ve actually looked for 20 speed line trades on that, but it doesn’t get through, but doesn’t hold above the speed line at all. As you recall I mentioned something extraordinary to you about the Japanese Yen which has become a part of history at this point. We mentioned that this is the weekly chart and my indicators were flat for months. When this breaks out or breaks down its going to be a huge move so it started to break from the downside and from that point on it was all about fresh short side entries. That continues to go ahead and be the case as we’re sitting here near these lows. Nothing has changed with that at this time, I’m not going to really fully disband the short side thinking on this until we can start getting back above that channel there. So in the short term retracement rallies are going to be met with short side activity from my perspective.

The British Pound we’re kind of holding that key level I’ve been showing you for the past month basically this was a key level and we got a break and are continuing to sit at that level a year later, and will continue to work time and time again. Until we get down below this 15580 level I’m not really interested in doing anything. If we hit that 15580 level I’m not really interested in doing anything but if we get down below that level we will see some differences in price on the British Pound as well.

Finally with the stock index futures they were of course the focus of today in the Live Trading Room. The trading I did was long side trading. Right now this is the story. I expect a lot of volatility all the way into the New Year, which if you recall I said that this summer as well and then look what happened. We had massive amounts of volatility the last couple of months and so we’ve got a lot of great stuff going on and that’s going to continue for us as we go into the New Year. It’s a great time to be a trader as I have mentioned. Here is what I’m really looking at is we have kind of a split decision and this is important for you to understand. On the fast triggers we have this magenta blue magenta which normally foretells lower prices. At the same time we’re still holding on for dear life on the core triggers as blue here. Even the RUSSELL went back to blue on the core trigger today and we’re staying blue on the others. This is important because I want you to see what needs to happen here. Either the RUSSELL needs to break out to these downtrends here, these magenta blue magenta negative moves need to resolve themselves by breaking back out here and going back blue. Then you have the underlying structure and the short term structure going blue and that could lead to much higher prices. Or what could happen is this core trigger could start to roll over now. As you see over you get these negative divergences like we have right now in the fast trigger versus the core trigger notice what happens here when the core trigger ended up losing the battle to the fast trigger we ended up having much lower prices and huge retracements down in the market. Down from a capital preservation/market timing perspective you’d much rather be getting out up here than down here as the market is falling a thousand points. That’s why it is so important to understand that we really want to see what’s going to happen. Will the fast trigger start to actually push back up in prices and push back up into the core trigger or is the core trigger finally caving which could lead to much lower prices. So that’s where we’re at and that’s what we’re watching right now on the RUSSELL but I’m all for the stock index futures together. That’s going to be the key theme for the next several days because those will be affecting our swing trades as well. If we can get those fast triggers going out with the core triggers then we have a whole new opportunity to the upside if the core trigger however succumbs to the fast trigger then this market could be due for its next rollover. That’s the best part about being a trader is you make great decisions in the short immediate term and you can use this work. Nonetheless, great stuff going on with the market and what’s going on with the great year. In the summer I said it was going to be a great back half of the year and its proving to be the case. Please keep your comments, suggestions, and ideas coming into us. We look forward to seeing you either tomorrow morning in the live trading room or tomorrow night in the nightly newsletter videos.

Leave a comment!
Read previous post:
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...