Four Things To Know Before Friday’s Session

Welcome back everyone! I am going to go over a couple things you need to know heading into tomorrow and beyond. Roll over for futures is often misunderstood. It isn’t necessarily in the best interest of the brokers for you to understand it. Most of you that trade futures saw that your brokers automatically rolled you over to the September contracts today. The volumes of the first day of the rollover aren’t usually advantageous to the traders.

Let’s look at the biggest volume spike that I see here towards the edge of the session. The September contract only had around 1200 contracts traded. That same bar on the June contract was 6700 contracts. That is around 3 times more volume in the June contract. The lighter the volume, the more risk you have a slippage. That is the same with a regular stock. You are more likely to get crummy fills when you have less volume. Brokers want you to move over into the September contract. I wait until the 5 minute volume in the September contract is larger than the 5 minute volume in the June contract. I won’t make the rollover until that happens. It should be around tomorrow morning to make the switch. I will continue to watch the 5 minute volume between June and September.

I have been telling you guys to watch out. These tools that I have been showing you how to use said it all. People are finally realizing all of the useful tools on this website. You can check out the tool bar at Yesterday Facebook was around 165, now it is at 150. I said that I really wanted to look for long side opportunities. We saw Facebook start to pull back and drop down. Now we have to watch out for deeper corrections. That is exactly what happened here today! We saw that coming with the WSI indicators. Make sure to check out for those kids of tools.

Yesterday we had a pull back. It then took back off after that. It had another pull back today and rallied off of those lows into the afternoon. Things were much more sluggish today than yesterday. It only fell back about half the distance at the time before it started to rally back off. The recovery was also just slower. I am going to be watching the bottom of these. If the RUSSELL and NASDAQ start to push down, that could lead to a deeper correction back. We already saw Facebook starting to climb on the WSI just to lead to even deeper correction.

If we start to break below the lows, I will look to get more aggressive because of all the room to grow to the downside. Before I take any longs in any of the stock indices, I am going to be looking for the 1670 level. I want to be above that level and rising on the RUSSELL. I would also like to be rising and above the 7180 level on the NASDAQ as well. Those are the key levels that I am going to be watching going into tomorrow!

Don’t forget the biggest event of the summer will be coming up in about 5 weeks. I want to be the first to invite you to this, as a member of my student family. You will probably be hearing about it from many reliable sources in the near future. This is all from the comfort of your home. You don’t have to pay a bunch of money to check it all out. There will be celebrities like Kevin Harrington, an original “shark” on Shark Tank. He will also be giving out a free gift to all who register for the event as well. New people are being added every day to this event. I am very excited! You can watch the video from Kevin as well. Get yourself setup for that right now. You will not want to miss that. Go to right away to sign up! I look forward to seeing you all in the Live trading room tomorrow morning or in tomorrow night’s videos.


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