The Market Failed At The Resistance Levels Rob Warned You About. So Now What?

Welcome back everyone! I want to make sure you catch up on the last several videos to see how we got to where we are at now. The market has been phenomenal.

I talked to you all about the negative divergence situation that we had in the stock indices. We also had distribution bars that were firing off on several markets. We were making higher highs in several of them, but lower highs in indicators. Between distribution bars in some markets and the others that were making distribution bars and negative divergences, there was a lot to be concerned about. I have warned you about this is my most recent videos. That is why I have done those videos on what you needed to be watching.

I want to break through the resistance, hold that, then take back off. I have taken some long side trades off of the reversals. I have been mostly shorting however, like today!

We talked about Goldman Sachs. Goldman and the rest of the markets launched some great buy signals at the end of December. I was done with the shorting at that time. I was then only focusing on long side trades. We pushed up, pulled back, pushed up again, then came a sell signal. I knew there was a buy signal that came back in. I didn’t like it though. I wanted to see Goldman Sachs get above the key area before I would like it.

The buys were buying, and the sells were selling. However, I needed to see it get above the sell side int eh uptrend before I was interested. This has been dead from my perspective. It failed to get above the resistance levels. The market is flailing as well.

I am currently looking for the moves on an intraday basis. Here the market got really wild. That is why I’m mostly done trading by 2:45 CT to avoid the risk arbitrage stuff. The market broke down below the zero line on the Trader Rescue Package. It had sell signals below the channel as well! It fired off buy signals after that and it led to a nice rally.

I had one of the psychological moments today. For about a minute I was looking for a trade to get me over $4,000. That was just me being a jerk. I don’t know what I was thinking because there wasn’t a trade there. I needed to ask why I should bother. You need to watch for those psychological demons to come in. The little piggy complex exists. That is where you try get every tick on every trade. I had to slapped myself today because of those things. I needed to say who cares.

It was a higher high in price and a lower low in indicators. There were some other nice buy signals. It ended up pushing up nicely from there. There were some buy side opportunities. There were also short side opportunities as well throughout the day. We were more in a bearish stance because we failed the resistance. I was more aggressive to the sell side. That led to some of the great profits here.

When we are failing the key resistance areas. I won’t look at things from a swing trading perspective. That is especially true for naked stock positions right now. Taking long side trades into that area when we are failing to get through resistance is a bad place to be from my perspective.

We have some rising support coming in. Will we hold the support? Will it start to recover from this with a small pullback? That could be great! The negative divergences, distribution bars, and the resistance make taking fresh longs dangerous to me. The best thing to do would be to ride the wave of opportunities on an intraday basis. That is where the real money is coming from in my trading.

You guys have a great night!

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