Major Stock Market Crossroads Are Being Hit Right Now. What You Need To Know Now

Welcome back everyone! Let’s take a look at a whole bunch of things today.

First, I go to www.wealth365.com in the morning. You will see an indicator up top. My code is a part of that indicator. There was a whole bunch of code that went into that indicator. That gives me a mental picture of the markets. I can click into it and take a deeper look into it. I can compare ones that are extremely up, or flat, or down. A lot of the stuff is either flat or down. The list goes a long way. This helps me realize what to focus on in the morning.

I focused on that exactly this morning. Small lot traders chased it this morning. I was focusing more on letting it pull back first, then creating fresh signals next.  All the indicators were blood red. It was just phenomenal! I did several 1 lot trades today. Yesterday it was the exact same thing. The market had all of the great sell signals too.

Right now we are at a major cross roads. We are holding on to the 200 day moving average by a thread. That is important to understand! In 2016 we couldn’t even stay down for more than a day below the 200 day moving average. I want to see if we come up, hit that level, and start to roll back over. That could be the death of the market! People might watch their 401ks start to shrink. We held the line in late 2016 as well. We dipped below and came right back above it.

Everybody is watching these levels. All the institutionals are watching these levels too. We did bounce above the 200 level again. However, we are not thudding. Are we going to have a skipping rock theory type issue? We had big bounces early on, followed by smaller bounces. I don’t really care which way it goes. Crude Oil goes up all the time! People just pay at the pump and it hurts. If they could trade, they could trade it long and possibly make some money. There are ways to hedge what is happening with the economy.

We are holding on for dear life at the 200 day moving average right now. This isn’t just about the S&P. We have rising support and falling resistance on the S&P, RUSSELL, DOW, and NASDAQ. All the U.S. markets have that rising support and falling resistance. I am watching two things clearly right now. Do we break back above the speed lines? We could revert back to the mean if that happens. It could also lead to long side trading in the short term. Do we break down below the 200 day moving averages? That would finally make them resistance for real. We would see much darker days ahead. That would be not so great for 1 trick ponies that only can go long.

We are going to be watching that very closely. We are at a key cross roads between the falling resistance and the 200 day moving average!

Despite all that we have seen, Gold is still not a great buy from my perspective. We are still looking at months of sideways activities. When it gets over sold, it pops up. It is just chewing back and forth through the channel. That is just a bad place to be. We are seeing that on a daily and weekly basis. Until we can start to break through the 1360 level, this market it not really poised to go anywhere. A lot of times you can be sitting on dead money in Gold. That is not really what I want to do right now. I want to keep that money working. Gold is not a buy despite the pressure we are under now. That I just my own opinion.

I understand that the President is getting credit for putting Amazon under pressure. I have talked about this with you guys previously. We had the 1600 dollar mark here. We locked in a distribution bar followed by another distribution bar the week after. There is some double Dutch distribution up there. That was before President Trump started laying into Amazon. Was it President Trump? Was is that the market was due for this anyway? I think it has more to do with the fact that this market was due for a pull back. We are in the same situation as the market as a whole. We have these rising support levels underneath us. This 1350 area is going to be a key area. I am looking to see if we can break down below that. We could easily see 1300 or lower with that. If it, and the overall markets hold, we could be right back up into the 1500 quickly. This is why I use the overall markets as a guide. If the markets start to take back off on the NASDAQ, Amazon would likely have the retracement of 1500 plus that we talked about.

There are a bunch of privacy issues with Facebook. I sometimes feel that I am the only who isn’t shocked by this. Facebook has been mining our data for years. The extent of the data mining might be surprising to some. They pretty much track your whole life! Virtually all of Facebook’s revenue comes from advertising dollars. Facebook won’t be as exciting and useful if some of the tools they use are taking away. That could be a major problem. Facebook was due for a retracement. I was talking about accumulation bars for a while here. Do we break down below, rally to, and fail? Nobody should be surprised by the last $15 worth of drop on this. The 200 day moving average is now a resistance level as well. The 150 mark is the real question right now. That is the level to watch. You have accumulation coming in over here and there. Those are key levels. If we break down below that, then Facebook is likely to have some more heartburn on its hands.

 

Make sure you all check out the WSI tool at www.wealth365.com. You can sign up for my event by going to www.wealth365.com/bbt! I have never done this before! There are over $120,000 worth of prizes. You can click the prizes tab at the top of summit.wealth365.com. You will see all the prizes that will be given out throughout the week. There will be prizes every hour. I am giving away 6 Pro Trader Development Courses and 6 Professional Package of Indicators. There are also so many other things being given away. There are over a several thousand dollars’ worth of prizes in all things wealth. Go to www.wealth365.com/bbt to sign up through my link! Have fun at that and I will see you in tomorrow night’s videos or in the Live Trading Room.

To learn more about Rob Hoffman Trader visit www.becomeabettertrader.com

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