Important Follow-up To Last Nights Video And The Infamous Bitcoin Trade Now

Welcome back everyone!  What an exciting day today! I told you in last night’s videos that we were watching some very key break out points.  Let’s bring you back to those.

These were the levels that I wanted to break out through.  I would just as much prefer to go long versus short.  That is because we had all of that support underneath us.  The support on the DAX was right at the long term rising moving average support.  The other ones were all the Hoffman IRBs.  Those are very powerful and proven institutional support.  That is why I said that I would be a little more reluctant to the short side.  Until that is broken that is just a big band of support.

What I told everyone in the room was that the best trade from my perspective was the S&P.  I watched to see if any of the other broke below the bands.  Those would be key action areas.  Primarily I would be looking for the S&P because that was the closest to a launch point at the time.  I wanted to see the RUSSELL go along with the party, even though I wasn’t going to trade it.  We did break above that area.  It was off to the races.  It was well timed with my Hoffman IRBs.  We also talked about when the sells don’t sell.  We had a nice uptrend in place with a short term sell.  I wanted to see that once we break through that short term sell in an uptrend, I would then look for a long.  We had the IRB distribution persuasion.  It ended up taking off like a rocket.  That is exactly what we were looking for.  This was a great tie in with last night’s videos.  Go back and watch last night’s video to see what I was saying.  I was just as comfortable looking for a long side trade than a short.   If you have been following along in the Live Trading Room you are well aware of those areas.  It is a really great reason why these videos are so powerful.  If you want to see how we handle these things live make sure you join us in the Live Trading Room.

Bitcoin is one of those instruments that concerns me.  In my Ask Rob section, as well as my member’s Q&A, people have been asking me about Bitcoin.  You can see in the immediate back drop there are huge Inventory Retracement Bars.  This is where one or more institutions has stopped the market from going up.  They are starting to heavily drive the price back down.

I look at this and ask everyone, why now?  Nobody was asking me about it when we had these Inventory Retracement Bar breakouts over here.  We had one of those before.  We stalled for a couple of days and took off after that.  That led to another one that followed through, pulled back, became a W pattern buy, and had a phenomenal run.  That was a lot of money to be made during those phases of it.  If we were to replicate that length below, that is several weeks’ worth of trading activity.  Now people are getting interested.

Now we are looking at is as we are re-facing this double Dutch distribution.  Statistically speaking this market is at a short term top.  After it has gone parabolic here, there is just no reason to stick my neck out on this.  Traders are coming to me wanting to go long.  This reminds me of the tech bubble in 1999, 2000, and 2001.  I couldn’t give away tech stocks then.  The PE evaluations are way overdone.  In 2001 people were saying bricks and mortar are dead.  Until we can push through that distribution area.  I am going to give up the range because the risk versus reward doesn’t make sense.  I am going to be watching the 20 period moving average, along with other long term support.  Until some heat comes off of this, I have no interest.  Remember an account can be blown out fast in two to three days.

All morning I was hunting key areas.  When the market finally hit those areas it took off.  This is just one of my many strategies that I am showing in the room.  I talked more about that in the Premium Video tonight.  I am not comfortable chasing.  I definitely don’t like chasing parabolic moves.  I am going to step aside from this one until we clear that massive distribution area.

If you are missing watching that all happen in action, come watch this live.  Go to to join us and be part of this special Live Trading Room.  You will see me executing live trades right in front of you.  There is no substitute for real and live.  Hopefully tomorrow morning you can see it!  Have a great evening everyone.




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