Markets Rob Is Looking At Prior To The Volume Rushing Back In

As we take a look at our holiday volume week here there are a couple of things to note. In fact, let’s take a look at the holiday volume as we’re kicking this off. As you’re looking at this it is important to understand that you shouldn’t give a lot of credibility to what we are seeing and having happen right this moment. We really need the volume to come back into the market. This is that period of time that we go through each year later in August when things get really quiet right before Labor Day. After Labor Day we typically find this thing ramping right back up again. That is what we are going for next week. I will be looking for what the real direction is after that volume comes back to play. So, when volume comes back, do we start taking off or do we continue to roll here?

That is going to be one factor to keep in mind. We’re almost through this. Next week it will start to get a little better and the week after Labor Day will be even more so as we have our first full week. With that being said, a couple of things to note:

Starting with the 6E we got right up to that 13220 area I was telling you about and then we got killed right back off. We really need to get back above that 13220 so I will be looking into Friday to see if we get a challenge of that level or do we get down below the 13150 level.

In my perspective on GC it is more or less the testimony to what we were saying about these reversions to the mean. I’ve been pointing this out to you here because of the weekly basis that we were in this very tight consolidation that was just getting tighter and tighter. We are looking for some huge explosions on GC here but in the meantime, as you can see, we’re just tightening up into a band. So I said that unless we broke down below this low watch out for retracements right back to the mean and, of course, that is exactly ended up happening here.

Now, CL was a fun one too. I watch a lot of people get their head ripped off today. It was really great for us to watch and walk through this blow by blow as we were focusing on CL ourselves in the Live Trading Room. One thing that I was looking at was to get above this channel as you’ll recall. What happened this morning was that we got right up to the channel and some intraday resistance and I was like, “Look gang, we are getting right up there and looking for the long but not until it breaks through, pulls back and starts to take back off again.” What did it do? It got right to that level initially and then it rolled right back over and died 80 ticks, came right back up there later and then sat there at the end of the day and just could not finish breaking through here. We are going to be watching this into tomorrow though to see if we can get it to actually push through here and pull back up. Unfortunately, some of the profit is going to be taken out of it though because this is going to continue down and that is going to be the initial profit target. Nonetheless, as people found out the hard way today, if you don’t wait for it to go ahead and do what we need it to do it can really come down and cut you in half. It was great to watch that in action.

As we look at the stock index futures they were another great example of our work in action. This morning we pushed down below the speed lines and, as you can imagine, people were excited about the short side opportunity and so was I as long as we went ahead and did it outside of the US open or outside of news. We don’t want to be taking any sort of wild move trades. What I mean by that is where the market is selling off hard or buying hard either in the first several minutes of the US open or right after news. Many of you have probably seen over the years, especially those of you that are day traders and it happens on earnings as well, the market will have a sharp move based on earnings and the next thing you know it reverses. This is the same concept in action. It is a knee jerk reaction. A lot of people get pushed into a certain direction and they think it is a short side day. They go short and it turns right around and hands their head to them. The other side of that is where it spikes up really hard off of news or the US open or earnings and then the next thing you know it comes right back off after everyone gets in there long. This is the same kind of thing this morning. The market was pushing down and it was doing it right at the US open so we have to see if it sustainable after the first several minutes. It wasn’t. It got right back up there to the speed lines and even as we went into the end of the day, as you can see, it held there. Really great examples of using my work and my rules and strategies to avoid those unnecessary losses as so many people get themselves caught up in.

As we are looking at this going into tomorrow we still have (like on the NASDAQ) the inventory retracement bar from the other day as well as an inventory retracement bar from today. We really want to break out to the upside here or break down below and you can pretty much do that. Take the highs from the other day (Tuesday) versus the lows from Wednesday. You can pick the most recent highs and most recent lows. That is not normally the way that I trade but because a lot of these are inventory retracement bars that is why we would be looking at this particularly I would love to see a sell of going into the pre-holiday. That would be perfectly fine with me. If we want to have a bullish pre-holiday and celebrate Labor Day I am more than willing to go out with a bang on a long side trade if we can break out above. That is going to be the key areas going into tomorrow and don’t forget a couple of these key things that I just mentioned to you.

Finally, of course, ZB. You know, throughout the year here, if you’ve been watching my Swing Trade Videos (obviously most of my swing trade work I keep in my Premium Swing Trading videos) I’ve given some incredible stuff and for the cost of those each month you could have really enjoyed this year based on my Swing Trading Videos. Every once in a while I try to share something publicly here with you guys and ZB was no different. I’ve been sharing that strategy with you throughout the year with ZB. We fired off our signal back over here as you recall and now we are already almost to our next target. Lots of great stuff throughout the year here.

Check out those Swing Trading Videos if you’re a swing trader and then, of course, you also get access to the Premium Day Trading Video. If you are a day or swing trader those Premium videos might actually be good for you. In the meantime, feel free to enjoy these videos here and take what you can from them but you’re missing a whole lot of stuff in those other ones. I just want to go ahead and say that I wish all of you a safe travel. I know a lot of you are going to be traveling tomorrow for the extended holiday weekend. I wish you all the best and we will look forward to seeing those of you that will be here tomorrow morning in the Live Trading Room or in this weekend’s videos. Take care everyone and have a safe holiday weekend!

 

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