Monday Will Be An Important Day For The Stock Market

Welcome back! It’s been roughly three weeks from today where I originally fell ill where I’ve gone from complete loss of voice to having it back. I know a lot of you reported going through similar things. Let’s take a look at a couple of key things. Going into next week it’s going to be pretty important.

If you were in the trading room this morning, you know what exactly ended up happening with the sell-off. I shared a lot of the reasons why. A lot of the reasons are coming to fruition here. We still have this political uncertainty with the investigation into the administration. We have the situation with the tax plan. We have the public news that we’ve seen where the mainstream media turned very bullish. I warned you about that. Since that time, we’ve actually seen this selling come out of this. This is what I’ve been talking about. It seemed very strange that we had these negative divergences out of the blue. These are perfectly normal and healthy pullbacks. There’s nothing wrong with these pull backs. People have to be prepared for them. If they’re buying now, the news media is starting to be really bullish on it. We were caught by surprise that the market has gone up for 4,000 points. It could be a big risk buying at these levels. With that being said, the better thing would be for these pull backs to flush out. The DAX, NASDAQ, Dow and Russell and the S&P all have big fat accumulation bars on the bottom end. That’s after several of them had distribution bars the other day. We’re starting to see some unwinding positions from certain institutional firms. The good times are rolling now and people are starting to move 401K money around. Now it makes perfect sense to get in. This is why some people are so into that fresh money coming in. Since there is fresh money coming in there is still some big buying especially since we’re coming into the first of the new month. Monday is going to be very important. Can we break through the highs of today? That’s one of the first things I’ll be looking for on the stock indices. We’ve got the last couple of days distribution days on the Russell. The high is always better to break above the previous high. On the NASDAQ this is a short-term resistance level plus we’re below the speed lines. You want to be above the speed lines. If we’re below the speed lines, we’re looking for shorts. Everything going on today, we were focusing on looking for reversals to the short-side. I initially was looking for a pop-up and a reversal.

In addition to what I’m looking at for the overall market, I have a lot of people focused on Bonds. We’ve been spending the last few months sitting on dead money. We’re still waiting for a breakout/breakdown. Gold and bonds are the same story. It looked like earlier in the summer gold might start break out but it came right back down in the channel today kind of sideways. I was very bullish on crude oil. I’ve been pointing out these patterns. It covered a very specific pattern and led to shifts in price. It was very interesting stuff. We are now coming up to long-term weekly resistance that stalled us out this week. I want to get above this resistance. If we can get above 60 then we can see much higher prices. Right now if we can make $60 support level, we could get to $70. It’s creeping up and nobody’s talking about it. We had that nice move from the 50 to the 60 as it was happening. Take that information and of course we had AMZN. It had a real nice inventory retracement bar breakouts that led to some nice movements on these. We hit that target of 1200 and what happened was we locked distribution at the 1200 level. The 1200 mark is the new level and it’s pretty healthy at this point. I think at this point there might be an opportunity if we get back above 1180. Otherwise, I really want to get through that 1200 resistance level before looking for any other major plays.

Don’t forget I made you a fantastic offer earlier this week to join the live trading room. Go to www.becomeabettertrader.com/live. You get the room for $797 plus all the bonuses including the starter package plus and four months for the price of two. Take advantage of it now while it’s still available.

Have a great night and a great weekend.

To learn more about Rob Hoffman Trader visit www.becomeabettertrader.com

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