[Market Update] One Stock Rob Is Watching

Welcome back, everybody. I hope you’re having a great weekend. Let’s go ahead and take a look at several things that you need to know. Let’s start with the top down here. First things first. I know a lot of people are anxious for me to say, “Ding dong, the witch is dead: resistance is now support”, but unfortunately that is not the case as of yet. You’ll notice here, we actually locked in a very clear signal of distribution here. So that bar is well off its highs and so it is in fact distribution. So that area in there right now, you basically have sell-side activity taking place at an area where we wanted it to break out through pullback to this 27,000 area and then take off. Well instead of taking off that attempted take off was actually an opportunity for more selling to take place.

So in fact, we have not made this resistance into support as of yet. We’re going to be watching the highs of that distribution very closely looking to see if we can actually break through that, which would give us a little bit more information. Speaking of more information on, let’s drill down a little bit more. That was the weekly view of this long-term resistance. And those of you that are new, since we have new people join us every day, that’s based on weekly resistance at the Dow 27,000 level, going back all the way to January of 2018 so well over a year and a half. Now, this has been a massive resistance level. In fact, you’ll see that distribution air over there that let us, it does struggle here and then let us a struggle here for a while. We’ll only have this one bar breakout walls.

We know one bar breakouts can easily be reversed and that’s what we’re struggling with. So just to kind of get you up to speed now as we take a look here from a daily perspective. So, daily perspective. You see, we’re a somewhat hopeful because we had the Russel, powering ahead a little bit, but unfortunately it turned right around and lost much previous gain. Now it did turn around and gain that back, but you’d see this volatility here. So all this volatility has taken place near this distribution, combined with the distribution that I just showed you on a weekly basis of the Dow here. And you can see we’ve got a lot of issues. You know, you have a negative divergence here. We have higher highs and price, but lower highs in the indications. We see that over here, even despite the last week’s highs, we went ahead and making even lower highs on the indication.

So that’s a little bit concerning to say the least. So this is going to be a big week for us, as we’re watching these markets that we’re either going to get some really powerful breakouts or you’re gonna get some nasty reversal fake outs. So for those of you looking to put on those, swing positions, yet, you’re in the clear one direction or the other, a lead into more of a short term market, Opportunity, at this point. So we’re going to see that on the day trading ins as a space in particular. So, um, those were a couple of key things. Notice the distribution on the decks there. you know the resistance, same thing up here. You’re making sure trying to meet new highs in this area, but making lower highs in indication. So you’re seeing that a lot of different spaces here.

So I wanna make sure you guys are all aware of that. One other thing to go ahead and take a look at then let’s look at an individual stock play that might be able to benefit from, some of this wild action in the weeks to come that has been depressed. And we’ll start off the divergence verse. This is Activision Blizzard. So Activision Blizzard here again you can see was making higher highs in price much of last year. But notice that from an indicator perspective, we were not, we were actually making lower highs and price. While guess what statistically happens? 85 plus percent of the time is that the market turns around and then dies a horrible death, or at least has a pretty healthy pullback of which it did. And so now what’s happening is the rally that we saw in the beginning of at the end of December, beginning of January, that we saw in most docs was not realized by Activision.

Okay. So why am I looking at the stock now? The reason why I’m looking at this stuff now is you’ll see some clear areas of distribution in the backdrop here. So you’ll take a look, see this area right here, some pretty clear areas of distribution. And those have been holding us in very well. As you can see now, all of 2019 well, so if we can start to break through that longterm area, and seasonally we should be coming up on the area where we would look to do that. So I’m looking to get back above the zero line here, like on the trade rescue package because we’re below the zero line. Bad things can happen and stay happen and bad. Then we got a nice bounce because of the overextension of the downside over here, but we’re still haven’t quite recovered above the zero line.

So I’d like to do is recover back above the zero line there. But just, you know, regardless, either way, I want to get back up above this distribution and then make that support and then we could potentially take off on this. So be watching to see if that happens because seasonally, what usually will happen is, into the wall. In fact, even last year as we were, you know, right here in this area from the August to October timeframe, you know, you’ll get some really good runs. And the reason why we’ll get those good runs is because people are thinking about Activision as big gaming company. And so people are basically buying the rumor that gaming sales are going to be strong, that they’re going to do really well. You know, all the kids want the hottest video games of which Activision has been known to make many of the award winning games out there.

So they’re gonna have a good Christmas. And so let me get into the stock before we hear the good news about strong retail sales. And that’s gonna benefit me. Okay. So goes the theory there. See, you’ll often see Activision to do well into coming out of this, the summertime. So with that being said, let’s see if we can use that to break out of that one term resistance, but basing for quite some time, which in itself could, you know, lead it to an opportunity there. Then, as far as I’m concerned, then all bets are off for a long side trait until that happens above this distribution bar over here. So it’s a pre alert warning to go ahead and keep an eye on that and we’ll certainly be doing that here as well.

If you’re trying to buy it in advance, that’s somewhat gambling to be quite honest, because there was no technical reason to do that. But if you were to buy it early, hoping, wishing that it’s gonna go and break out from my perspective, you know, you’re dead wrong, below $45, but again, wouldn’t buy it here at this point. So anyways, kind of a longer video to go ahead and kind of go through one potential play if we can get out of back about that distribution here in the backdrop. Okay. So couple of updates there. Free from a weekly basis on the long-term, a long-term breakout on the Dow, a daily breakout of the overall market, where we’re at and what we’re watching and the concerns about the negative divergence incidents such and then the individual, a stock play on a TVI. And then of course, we’ll be looking at videos in the coming days on the intraday basis as well as the swing trading basis. So have a wonderful rest of your weekend and we’ll look forward to seeing you in upcoming videos.

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