JPM Reviewed Against The Dow And Russell Markets

Welcome back everyone!  Let’s keep this brief tonight.  I have multiple classes this afternoon!

Here are my thoughts right now.  We have a few markets at the speed lines.  We also have markets above and below the speed lines.  The RUSSELL really bugs me right now.  For multiple years the RUSSELL was the leader in the market.  Right now it is taking on a leadership role in the back drop.  You will notice that when certain markets pull back significantly, the RUSSELL would keep on trucking.  That led the other markets to play catch up.

Right now the RUSSELL is pushing down.  That led to me shorting today.  That was very incredible for people to see today in the Live Trading Room.  Right now I am very suspect.  If anything bad comes out from a news perspective, it may make it much easier to drive these down.  I am watching that very closely. I will want to see if the RUSSELL continues to deteriorate and drive the other markets down.  I just want to see if it will continue to be the leader.  Until this resolves itself, or the RUSSELL decides to get back in gear above the distribution bars, I will be suspect.

I was asked about JP Morgan.  JP Morgan does have a little room to go potentially.  The problem is that the 100 dollar level is going to be a key round number resistance level.  The market kind of acts like gravity towards that level.  A lot of times it could get rejected there and go towards 90 or lower.  Being that this is a banking stock, it is very subject to these moves in the market.  If the market does, we already saw today was a little bit of a pullback day.  If the market starts to pull back aggressively with the RUSSELL, that will push us further away from the goal of 100 dollars plus.  Because there are only a couple dollars left to get to that 100 dollar level, pull back, make it support, then start to take back off again to see if we can shoot towards 110 and higher.

I would prefer to hold back and see if the 100 level will become a key support.  If the market deteriorate sharply, then you can see JP Morgan falling back to the 90 area.  We are going to be watching very closely to see if the DOW retreats back down to the RUSSELL, or does the RUSSELL start to creep back up to the resistance levels.  That is why it is so important to watch the RUSSELL against the other markets.  It is truly a tug of war between the two different markets.  You have the forces of good and evil!  I will let you all decide who is who.  You have people pulling over here and there.  It is just wiggling and jiggling back and forth.  It is a real fight to the death.  I want to see who is going to win that.  Something is eventually going to snap.  It is just going to go one direction, or the other out of this.  Right now with the RUSSELL pushing down like this, I am going to be very confused about shorts.

I look forward to seeing you guys in the Live Trading Room tomorrow morning and in tomorrow night’s videos.

To learn more about Rob Hoffman Trader visit!

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