Focus on long-only market trades, but be selective. Watch this video

Ok, gang, welcome back! Well, what an exciting week on Wall Street here. A lot of things we talked about is we firmed up on the S&P; we went in and held above that 3000 level that led us off to the races and so everything up to an inclusive of the Dow is either broken through its levels or it’s now at its key level. So, the only real holdout here you’re doing pretty well even on the Nasdaq here at this point and as far as the Russell, the Russell is somewhat of a hold out here admittedly. The 1,600 level is gonna be pretty important for the Russell. So, it’s pretty much at its resistance – it’s a shy of resistance but it’s right there – but the Dow. The Dow here as well, you recall, I mentioned the 27,300 – 27,400 27,400 level I’ve mentioned that now repeatedly since we went ahead and pulled away from those levels, so, for the last month and a half plus we’ve talked about that so here we are right back up there, kind of came just shy of that 27,300 here with about 20 minutes to go Friday afternoon on the market. By the time you see this video Sunday morning you know all this will come to pass but I don’t think we’re gonna have much of a surge here in the last 24 minutes it breaks through those levels, so, the reality is that this is still a key area. But, nonetheless, as I said as long as we stay above 27,000 on the Dow, 3000 on the S&P; that I have no choice but to go ahead and focus primarily on long side trades. Now, that being said, that doesn’t mean you can go ahead and be rampantly and aggressively and overly aggressively just buying anything with a pulse. There are a lot of great hidden gems out there and we’re gonna be showing those to you but, one thing I would like, for instance, let’s take a look here at Costco.

So, Costco and Dollar Tree were two that I had shown you all year long with the WSI indicators and you know WSI is about to go away for the general public out there – off that great wealth365 news site and because it’s become too popular in that and so it’s gonna go away from there be put into a special platform. But, the WSI has been out there and I talked to you about Dollar Tree and Costco throughout the year going ahead and having these really great runs with the WSI and sure enough that had great follow-through. Well, so what happened here was then Costco went ahead and push a pullback. So, it pushed up slightly here and then people were like “Okay, well can I go ahead and get back in?” and from my perspective, I was like “No, I don’t think that’s a good idea.” Part of the reason being is because what was starting to happen was we were losing our market edge on this with my really all-important ITP indicators and that’s bad. You’ll notice that we went to blue here we were no longer the green with the double dots. What I want is green and double dots, okay? And then I want to see double blue down below here and I want to see blue down below here. So, when you see that you got yourself a great opportunity, but when we go to blue here like this and then kind of a gray down over here then as far as I’m concerned any sort of push up at that point it’s just a false breakout. Sure enough, that’s what’s happening. So, those are the kind of things we got to watch out for, so, right now there’s a lot of resistance up here at this 300 level on the Costco, okay? So, keep your eye open on that we’ll be watching it ourselves and see if we do eventually break back up above there and then get everything we’re looking for with the ITP indicators firing back off but those are my lifeblood that’s Rob in a box, you know? That’s me in the automatic format if you will. So, with that being said let’s take a look at Dollar Tree, for instance, so, Dollar three tree very similar situation so rampant just by anything with a pulse is not necessarily the great choice. Now, earlier this year we talked about Dollar Tree. I pointed out to you repeatedly here because we had this wonderful run and the WSI indicators were going off like nuts, the ITP indicators were going off like nuts, gave a lot of really great opportunities with Dollar Tree here and so multiple times this year we had really great optional type moves in some of these different instruments and what ends up happening though was now like for instance this last time you’ll notice that we were making a higher high in price, okay? But then, we were hitting target one on my Trade Rescue Package indicators and we were making a higher high in price without making a higher high in indications that’s a bad thing let’s go ahead and take a look at that here with the ITP indicators. Look at that – not a higher highs in price, not a higher highs there so I’m seeing a big fat negative divergence as well as a hidden a key target here and along with an IRB inventory retracement bar of the distribution persuasion, alright? So, both on weekly charts and on daily charts we were a no-go, okay? So, the thing is, while the market has done a really great job of going up here the last several days, you’ll notice that some of these firms did not so the point that I’m trying to make with this is you still want to go ahead and use our important analysis. You still want to go ahead and focus on the core values. In other words, rising tide lifts a lot of the ships but it’s not going to lift all the ships, so, you still want to go ahead and put a little thought into your energy and your picks which is what we’re gonna be sharing with you here some of those picks that are hot and some of those that are not and the reasons why they are not as well, okay?

So conditions are ripe and have been favorable now since we broke those levels that’s why I’ve been doing more videos as you will note here and the but what’s happening is that it’s just it’s a stock pickers market of a different kind so it’s more forgiving than it was back a few months ago if you are wrong you could be really wrong but you still want to use the basics of what I’ve taught you here over the years in these videos. So, if you guys have questions keep them coming and we’ll try to address those in some of these videos here and just share some of what’s hot and what’s not as you go into this and, of course, we had this nice big spike up here to close the week strong here and about 15 minutes – 18 18 minutes or so and so then as we go into next week the real key for me and the bigger picture when I’m starting to think about Dow 30,000 is, do we break above this 27,300 – 27,400 27,300 – 27,400 and do we keep the Russell getting back above 1600, but in the meantime as I said, below or above three thousand on the S&P; and then 27,000 on the Dow it’s long side or bust and really in the big picture that’s the right choice. It’s not that there are not individual trades as in shorts but from which direction do you want to fight the trend to be a counter trend trader? Or would you rather trade with the trend. Trading with the trend is the easier but you still want to be somewhat selective you don’t have to be as selective as you would have been a few months ago but you still want to be selective so keep the values and keep the things that we’ve taught you over the years in mind here and we’ll share more with you in these upcoming videos as you can see I’m doing more of those because the markets breaking through those key levels and has broken through in many cases the key levels I was telling you about. So, we’re much more active on these areas. So, looking forward to you going ahead and see the upcoming videos here. Keep the questions coming and thanks for being the world’s greatest students have a great night everybody in great rest of your weekend – Bye-bye!

Leave a comment!
Read previous post:
Long Side Only Trades Above These Market Levels Now!

Okay, welcome back, gang! Well, let's go ahead and do a quick update for you. So, first of all, last...

Close