It’s Great To Be A Trader: The Massive Kill Zone Rob Warned You About Broke Down

Welcome back everyone! What an exciting day today! In the Wealth365 event we were focused on the tools and indicators that you would need. We don’t even need to wait till the elections and earnings seasons. I said that between those times there would be huge moves. You can identify things that might happen in the market. I do it often in these nightly videos. I don’t say that to brag. I say that to teach you so that you can potentially have bigger successes in your trading.

I was getting 23 trades in the Live Trading Room. It was madness in the markets. I cranked out several trades this morning in the Live Trading Room as well. There are so many great opportunities in the mornings and afternoons. What a beautiful time to be a trader. I told you that before. Here is the proof!

Let’s talk about some of the things that got us here and where we are at. I told you for a couple months about Goldman Sachs. So goes Goldman Sachs, so goes the markets. I told you all about the 240 level. Once we pushed through that level with one bar, we need to get through the 245 level. You possibly used up all the energy to get to that resistance. We ended up locking in one of my distribution bars. Right back down the pipe it went! I talked to you about how bad that was for the market.

You basically ended up having a head and shoulders type pattern. We then talked about the neckline. I said that if we break through that, it could be very bad for the market. We ended up breaking through the neck line and it ended up being very bad for the market. We are at a very important level. That is not just with Goldman Sachs, but the market as a whole.

Goldman Sachs is now at its long term weekly support. That is also a round number support level of 210 as well. It has had quite a failure here. It really needs to start firming up around the 200 level and above the 220 level fast. You do not want to see this break below the weekly support and make this resistance. That could bode very poorly for the market.

I talked to you about the massive video in the last video I did for you guys. Sure enough we knew there was going to be a big explosion out of the kill zone. The kill zone is the rising massive support levels against the falling resistance levels. We saw that on multiple instruments here. We also had the big accumulation bars as well.

We initially looked to see if we could get some good long side trades. I didn’t take any of those because we didn’t get them. We were looking to see if it would bounce off the key support levels. The buys didn’t buy at that point. What should’ve gone right back up the ladder. That is if the market wanted to be bullish. It kept breaking down instead.

My ITP was saying sell, sell, sell, sell. We had this positive divergence. We were making a higher high in price, but a lower low in indicators. The market should have went up there. Rule number 1 is that if the buys don’t buy it is time to sell. We rolled back down below one of the important ITP indicators. It just went down the hatch hard and fast. There was massive selling here. This may or may not look like much depending on how much you know about the markets. That was around 60 points in around 10 minutes. That is around 240 ticks or 1200 U.S. Dollars. This is a 5 dollar per tick item.

It ended up doing it again going into the afternoon. We were making lower lows in price and higher lows in the indicators. That is a positive divergence. It rolled back down below that and you know the rest. It sold off into the rest of the session. This is very important stuff. There were so many sell signals on the ITP. If you were doing anything but being short, you weren’t being a professional trader. You actually weren’t being any type of trader. Everything lined up with the indicators.

I have explained this in the nightly videos. I said that we were in the massive kill zone with the key rising support and falling resistance. I explained where it needed to start pushing to the upside or we would sell off. You are now seeing the selloff.

You will usually get a small reversal after days like today. Nothing will really surprise me heading into tomorrow. I am going to be looking for negative divergences. I am going to watch my indicators to give me a sign. I would love to see the market continue fail over and over from the perspective of a trader. That has ramifications in other parts of the markets obviously. That is one of the reasons why I am a trader.

I am going to look to see if the buys don’t buy and we roll into more sells. We could have a retracement back up. Unless we have some great charts to the upside, I would rather see it pop back up and roll over. The market tends to walk the stairs up and ride the elevator down. That is what makes the market so great.

We forecasted this and warned you all about this. There were so many negative divergences on these key markets. I talked about Goldman Sachs failing the important levels above. That dragged the market down as well. All of that came to fruition. I would love nothing more than a ride to the downside. Anything where this market only goes up to the long term support levels and rolls, that just adds more fuel to the fire to the downside. A lot of people are placing bets on blue waves or red waves. Everything has been made very clear politically. The Democrats have stated exactly what they will do to President Trump and his policy. The Republicans have said what they will do if they hold office. It’s all out there gang. As these results start to come in, people will start to make their decisions as well. We are very close to that as well.

These are very exciting times to be a trader. Keep in mind that bounces won’t impress me that much unless I can get 2 or 5 minute charts cooking to the upside. I also want some positive divergences where the buys are actually buying. Those are not nearly as fun as riding the elevator down as people have seen.

I want to see if we hold the resistance levels in the big picture. If that happens we could be in for a lot more fun. I hope to see you in the upcoming videos!

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