Now That Was Another Great Trading Day! So What About Tomorrow?

Welcome back gang, Rob here with you.  Listen, as we look at tonight, what a fantastic day!  Let’s go ahead and recap it and talk about some important things.  First of all the Euro failed to get back above the dollar 38 20 level we were looking for at the same time it held the 1.38 so no trade there, couldn’t get the long out of there, couldn’t get the short down below as we went ahead we moved down.  We had a private client group with us, all of you that  joined me for some events last week were invited to join me in my live trading room today.  We had a nice private group there along with our regular group.  They got to see us in action that was a lot of fun.

As we look at Gold, it is not breaking down below the support down below so there is no trade there.  As far as Crude Oil, it had a good move to the upside it was all within that congestion band that we’re basically avoiding right now.  So we elected to go ahead and stay away from Crude Oil as well.

It really was about the stock index futures once again today since other things like the bonds just weren’t performing either.  The way this shook out this morning, the S&P were the strongest at the time and the Russell and the NASDAQ were the weakest but the Russell was clearly weaker than even the NASDAQ.  What we saw was a deterioration this morning were the Russell started to go red so it was below its open and that was my first sign that the Russell was the leader here again and sure enough the NASDAQ quickly followed it and then ultimately the DOW and the S&P followed as well.

This morning was a good reminder of some good key trading strategies that we want to remember here.  So what happened here this morning as we were looking at the live trades together, of course doing our regular thing together in the live trading room but having guests, I was about to fire off a trade over here.  Let’s talk about why we were going to do that.  Here is a variation of that set up right here with one of my students going ahead and taking that retracement trade and then you’ll see the actual trade which I was showing you a moment ago what that set up looks like.  This is the other version, that’s one variation of it and then here is the one you’ll see here we actually have the one with the two little bars here back into the speed lines and it’s hard for you to see but the indicators were all firing off sell-sides.  This was the type of trade that I was looking to go ahead and take during the live trading room this morning.  Well, with that being said that’s this right over here.  What ended up happening with this, I had just finished up answering an options related question about our options program, which has been wildly successful, in fact we just closed LULU Lemon yesterday another great masterfully handled options trade there.  So we were answering a question about that and I was about to take this trade and  I realized I hadn’t really given a disclaimer to anybody yet so I took the time to give a disclaimer and while I was doing that  this market started driving down here.  I missed the initial entry.  Typically I consider using a market order on that but what I chose to do here was put a limit order in, I missed it by about two ticks and it just kept going and going and going so It dropped about forty ticks which is great.  I just showed you a video here about how we try to catch those were some great runs.  What did we do though?  Instead of getting all upset and freaked out that we missed that trade, rather we just got right back on the horse there and started finding plenty of other trading opportunities.  We actually did four trades in the room this morning all the way up to the very last one right here before we ended the session even with the private client group this morning.  What it was was that while one trade was missed there were four other trades that we took right in here, all winners, for people to go ahead and watch.  But the moral of this story is don’t be that trader that gets into a trade and this could be a swing trade or an investment as well, you miss an initial entry, you miss your signal and then you start watching it go your way and you get really upset you think, that’s not right! That’s not fair! I missed it here, I missed it here and now it’s made all this money that I could have made!  So then we jump into the trade and it comes back, that’s not what we want to do gang.  What we want to do is wait for the next set up, we had multiple set ups happen here four more trades fired off and then the market became the gift that kept on giving.

We said that we were going to look to resume trade after one o’clock and the market started rolling over again with everything from momentum shift trades to momentum shift breakout trades.  Lots of great stuff here going into the afternoon offering up even more trading opportunities.  The moral of the story is you’re going to miss trades whether it’s a personal distraction in your life, something is going to happen occasionally whether you have to go to a doctor’s appointment or a family situation, whatever it may be you just need to go ahead and reset.  Some days you might miss a trade, in this case I was able to get four more great trades off with the room, that’s wonderful.  This one would have been a nice profit but the other ones kind of made up for it.  In the end the moral of the story I want to share with everybody is keep that in mind but overall this market continues to be the gift that keeps on giving.

We’re going to watch that strategy going into tomorrow morning with the daily charts here again right now as we just closed up here.  We’ve got the NASDAQ right at the speed lines, the DOW just above them and the Russell in the speed lines and the S&P just above again.  We’ve got the two that are still holding out stronger than the other two so what we’re going to see going into tomorrow morning’s trade, can we start to break through?  Of course we’ve got important economic data coming out tomorrow morning, will that be the impetus to drive us through these speed lines and cause further selling or will the two that are stronger do what they did earlier in the week and pull the other two back up here.

Great trading, really nice way to go into our Friday! Now we’re set and can be very calm, cool and collected going into tomorrow morning looking for the other trades whether capital preservation or driving for more profits going into tomorrow morning given today’s great trading as well.  You guys have a great night, we look forward to seeing you in the live trading room tomorrow morning or in this weekend’s videos.  Take care everyone, have a great evening.

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