Here’s A Special Market Update From Rob Hoffman

Welcome back everyone! There were a lot of great trading opportunities the last several days. That was because we broke through the kill zone that I told you all about.

We are back to the same situation that we were in around a week and a half ago. I warned you about it then. I am going to warn you about it again now.  We pushed up and hit falling resistance. We had the rout, and did the same exact thing. The NASDAQ smacked into falling resistance and just rolled back over.

Both times we had accumulation bars. That led the way for all of this. If you have been following me for any amount of time you know what those bars are. Those are very powerful tools. I pointed out that we had those accumulation bars at that time. We had accumulation bars once again. We are having some nice positive activity.

This morning we had three major opportunities. We had beautiful institutional longs this morning. That was from around 8:30 AM CT to 9:30 AM CT. There was another great long opportunity through the lunch hour today. The last one went through the final hour. That worked out real nicely today. There were three big opportunities for today. They ITP was going nuts firing off signals. I try to avoid the sideways stuff when we are chopping back and forth. I really don’t want to be in that. That is where a lot of traders participate. They usually end up just getting hurt.

The long side was the primary focus today. That was until we had the late day selling. What’s next? We started smacking into falling resistance again today. We aren’t that far away on the NASDAQ and S&P. We have a lot of resistance falling on us. A lot of people like to catch falling knives. That can get you cut pretty bad. I don’t like to catch falling knives. I would prefer to short that knife. Once we get below the speed lines, I would then look for long side trades. That is why the long side trades were my favored trades today.

We are going to have distribution bars that have locked in tomorrow on all the U.S. Stock Indices. I am going to be asking myself, are we going to start pushing down? If I get some great sell signals I am going to be looking for short side trades. If we start to overcome the selling, then I will look for long side trades. This is a disastrous area from a swing trading perspective. If you took the swing trade there, you have been under water for a week and half. You then would be wondering if the pain ever ends. I told you that until we get above the channels fresh swing trades will be risky. It is a great time to be a trader right now.

I talked with you a lot about the Bonds months ago. Things just haven’t changed. We keep smacking into falling resistance on the daily chart. There just isn’t a fresh long side trade until we overcome the resistance. We have been hitting the falling resistance all year long. That is just making lower lows. If you were long on the Bonds this year you did what I encouraged you not to do. There is no light on the Bonds as of yet. We have a lot of work to get above the channel.

People still have a lot of interest in Gold. More than half the year we have been down below the channel. Sure, it had a rally as the market went up. It ended up smacking into falling resistance on the weekly and daily charts. There is nothing that is getting me excited with Gold just yet. The levels to beat will be above the distribution bars. That could clear us to the 1275 area from my perspective. Don’t get too giddy about Gold just yet.

I did a presentation piece on this in one of my videos recently. We talked a lot at length on the news articles that came out. There were some key financial publications that said that we are looking at 400 dollar Gold. I told everyone when you start seeing that in the public news it could be the kiss of death. That is exactly what is has been since that time. We have a lot of work to do right now. You are holding on for dear life at the edge of the abyss. The point is there is a lot of pressure. The 400 dollar Gold isn’t happening at this time.

There has been some great long term uptrends on Amazon. We are at the edge of the abyss here as well. It also had some great sell signals if you have been following along with some of my work. There are always people who get trapped above in these situations. If you ignored the sell signals, and are underwater, you are right at the edge here. We pushed down below the 200 day moving average. The weekly chart is starting to put up an accumulation bar. If we can get back above the 1600 level you could possibly see a breath of fresh air. Any further digression to the down side would make me want to get out. I wouldn’t want to see this year and a half trend and this support becomes resistance. That could be a prolonged ouch factor taking place.

IU have been telling you all about Goldman Sachs. It too is at the edge of the abyss. You see the falling resistance and rising support on the weekly chart. It hit the support, and bounced off it. That is why I call this the kill zone. It is a ricochet market. We are right back up to the bottom end of the channel. I need to see who will win this battle. Is it going to break down below the 200 day? That will be very telling for the markets as a whole.

That is a major update on some of the top markets. I hope you have a great night!

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