[Market update] Rob’s fresh review and take on the market here

Welcome back! Let’s take a look at the market from two different perspectives. Number one is going to be intraday and then we’ll go to swing trading and what you need to know going into next week.

From an intraday perspective, the best trades of the day were from the 9:15-10:15 a.m. CT. They were hitting target 2. We saw that solidly from the TRP and ITP. The ITP was screaming reentry opportunity after reentry opportunity. That section was really the best section of the day. The rest of the market was kind of a ho hum type day with slow signals back and forth. It’s fine for scalping but if that’s not your cup of tea, it’s not so great.

Let’s take a look from a bigger picture perspective for stocks and the markets as a whole. Part of what was happening today was a retracement back to the speed lines. Where we’re at going into next week on a daily basis is we’re at the top end of the daily speed lines on all the U.S. stock indices. Even the Dax is right there as well. We have some key areas where this market has an opportunity. My perfect world would be the market opens up and pulls back and takes back off. The surprise moves are always the favorite moves. Right now, we’re underwater and the risk is it comes to the down side. I’m going to show you more about that risk in a moment. What this is leading to is very individual stock picking opportunities. Let’s step back one more moment and look at the bigger picture. This is the weekly chart on the S&P. I talk with you often on the divergences. You remember back last year when I kept pointing out the big divergences last fall before the big sell off. Then I told you I was no longer looking for shorts at the beginning of the year. Now we have these negative divergences happening again and we have nice corrections.

Basically, we have two accumulation bars back to back. This is going to be really powerful coming out of this. We have two accumulation weeks back to back. If the market were to fail through those, that could lead to some really powerful selling. At the same time, we break back above the top end of the speed lines around the 2444 area. That could open up a resurgence opportunity. It’s a really important area as you can see. How often do you see those accumulation bars so long and powerful back to back like that? Very seldom do you see it. We hit the bottom end of the channel the last two weeks in a row. We keep hitting the bottom end of the channel more frequently. So far we locked into two accumulation bars. What we’re looking for is a breakout above this and it’s getting ready for another big rally. That’s what happens when you can’t give stock away, it’s one of the best times to buy. If it does fail through these accumulation bars, that’s a massive sell signal for all of you who are familiar with my work. We already had sells with a negative divergence. The weekly chart is really important and I want you to start paying attention to that from a daily perspective where we’re now trapped between falling resistance and rising support. Again, breakdown from there and break up from there and that leads to some great day trader markets. Another thing you can do is look at some individual stocks as well. I’ve talked to you about CINTAS on the Wealth Strength Index. Nice moves down and nice moves up with this. You can find some longs or shorts and you can find some of the weakest or strongest stocks at Wealth365.com, which will give you the best shorts or longs based on the key support and resistance levels. There’s great articles and commentary then click on the middle section and you can go ahead and get a basic list of key stocks and go from there.

The other thing to keep in mind in addition to that great information, this is your last chance to get signed up for tomorrow’s big class Monday, Tuesday and Wednesday. We have the 3 Day Intensive. I don’t want you to miss this. We do them once a quarter where I do the live trading and training. So, you can either purchase that outright for $497 or you can become a BBT Insider member and get a ton of different benefits and you can get access to the 3 Day Intensive for $197. Go to www.becomeabetthertrader.com/insider. If you become a BBT Insider member, you get access to all the past 3 day intensives, which is a treasure trove of information that you won’t see anywhere else. If you were following along with me, it was a phenomenal week for me. I’m looking forward to teaching you when to trade, when not to trade and other great strategies. We’ll also have an options session in this intensive. I will look forward to seeing you Monday morning. Go to www.becomeabettertrader.com/insider right now and pick what’s right for you.

Have a great weekend! I’ll look forward to seeing you the next three days for the intensive!

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Welcome back! I told you that below the speedlines we wanted to focus on shorting aggressively and until we get...