Really Monday Made Today Using Last Night’s Strategy Video

Welcome back everyone! Let’s take a look at a couple important things.

We had wonderful sells on my Institutional Package of Indicators. We had nice waves here. There was a second wave right after that. The third wave actually made a positive divergence. That was a serious warning sign to back off the short side. I mostly focused on the short side during the first few areas. We actually made one more lower low. Normally it only will push three cycles. Today it pushed down four cycles. However, it was very shallow just to catch retail traders. I told everyone that it was a retail trader trap. We actually made a double positive divergence. That is a surefire sign of a reversal from my perspective. You will see my indicators turn blue. That was the first time that they did that back there. The focus was on shorts here. The focus then became long side trades. That is how we focused on this on an intraday basis.

I told everyone yesterday that I was going to be watching these key levels. I first wanted to see if we could break through the highs for continuation longs. I would otherwise take reluctant shorts here. I would be watching my one or two minute charts to look for my institutional sell signals. The first target would have been back to the support levels. We actually hit on the NASDAQ and RUSSELL. We also came very close on the DOW and S&P as well. The DOW held up remarkably strong though. We have double accumulation on the DOW, RUSSELL, and the S&P. The NASDAQ took a harder hit though.

I have been telling you all that Amazon was going up and up, higher and higher. I said that it was due for a pull back because of the incredible runs that we just had. We now have the accumulation bars. That really helps us set the bar for the key supports that have to be broken through. From a short side perspective, I would be reluctant to short. I am not just going to blindly short because my charts are pointing down. I really want to see everything that I have been telling you about. I like my red and yellow dots to be firing off. I like my single and double red bars firing off too. Once I start seeing those that is when I can get really aggressive. I really want my indicators to back up my intuition. That will be very important with the accumulation bars in the back drop. You will notice that the snap backs can be very violent. You will be licking wounds if you get behind those. I didn’t have that happen to me today. I stayed on the right side of the short and long. People got to watch me do it live in the trading room.

These are accumulation bars. They are 45% off their lows in an uptrend. One or more institutions has not only stopped that from going down, they forced it back up. The big fight is between the NASDAQ and the DOW. The NASDAQ has a lot of froth in it right now. The tech stocks are all under the microscope now. If they come out unscathed, the market can go up and take off. We have really easy points to break above on the DOW. Someone asked me about a bear market today. I said that there is absolutely no reason at all to call it a bear market. I am calling BS on the bear market because it isn’t here. We can’t even begin to talk about that until the stock indices get below he channels. I prefer fresh long opportunities until that happens. We hit key daily support on these stock indices, like on the NASDAQ. Once we hit that support and get those positive divergences, I will look at long side trades.

That is what I am currently looking at going into tomorrow. You guys have a great night!

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