The Market’s Failing At Rob’s Levels. So Now What?

Welcome back! Let’s talk about a couple of key things. First of all, we are continuing to fail that key resistance level that I brought to your attention repeatedly. It’s important to understand it because it really affects our trading. We’re not going to be super aggressive on the long-side until we can get above this resistance, pull back, make it support and take off. Until then, it’s going to be a really intensive long-side trading opportunity. Until proven otherwise, this market is guilty as heck. We’re sitting at this key resistance and we don’t want to be in a situation where we’re sitting on dead money for several months or worse, a big loss for several months. The point is, this is a great active day trader and swing trader market as I’ve been highlighting. It could become more of an investment market again if we could push back above the resistance, make it support and take back off. That can prove to be very bullish for the longterm. Right now, the evidence is focused on what’s before us. We’ve talked about how this will lead to a lot of great trading opportunities and today was no exception. The way to trade this when you’re up here with the resistance and you have any sort of weakness and you start hearing trade war news, you have to watch out for reversals. In this case, this wasn’t a situation where we walked in Monday morning and we had all this chance to get the news out of its system, this is now going into selling into the U.S. open. Let’s take a look at that. This morning we were already past the U.S. open and firing off sell signals on the TRP indicators. We broke down below the zero line, which is the kiss of death. This market started rolling over and started giving sell opportunities. In a down-trend one of the things we’d like to see is covering areas. Think of it this way, when the buys don’t buy, maybe it’s time to sell. In a downtrend, we’re looking to break down below those types of buy signals. Take a look at your favorite buy signals that you use. I have some clear cut ones that I focus on. We reached the targets twice. We had target 2, bounced off and into falling resistance and rolled back over again. It then broke through target 2, rallied back off into that resistance, rolled back over and got down below that buy signal, which becomes a fresh buy signal. Which takes down to Target 2 again. You’ll notice we made a much lower low in price so what do we start looking for? We start looking for those short-term reversals to the upside. Those are ways you can take advantage on an intraday basis.

Now we take a look at the end of day basis. The strategy here is taking weak stocks and adding insult to injury. You can see my ITP indicators and this is the best of the best. We fired off numerous sell signals and these double red dots indicate that several of my strategies are coming together. We refer to it as “Rob in a box”. You can see this thing has been under significant pressure for roughly $80+. That being said, we walk in and you have all sorts of great things. We’re under this massive pressure, you have a stochastic spike sell signal and then you walk into a market under pressure and take a weak stock and look for further weakness. Those of you who are end of day players, this is one of the ways you can take advantage of short-term moves in the market that are already at a disadvantage. Same thing on the opposite side. If you start to move up to this resistance, then taking stronger stocks and looking for long-side trades there. In fact, we’ve written some articles on some of those even in the last few days.

Let’s take a look at Starbucks, you can see here that it was the opposite side. It fired off all sorts of indicators here. Remember what I said about double green dots. Basically, a whole bunch of my indicators and strategies are coming together. When you’re in a stronger market environment, then you can see some really nice push ups. Even today, Starbucks was so strong initially, but in the end it succumbed to the overall pressures to the downside. It came well-off its highs at the end. You can see the background and those days where you have strength in the market. Those are days where it can become short-term active swing trades or intraday trades.

We have some great events coming up later this week so stay tuned for additional strategy videos on those. This is how we’re looking at the markets based on the big levels that I told you about. We’re still continuing to fail that 15 month high and how we’re looking at it on an intraday basis and active swing trading basis.

Stay tuned for some big updates later in the week. I’m looking forward to seeing you in the videos to come!

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