Nice Way To Close The Week In The Market. So What’s Next?

Welcome back everyone! Rather than talking about individual stocks tonight, let’s talk about this market as a whole. That is very important too.

I have been talking to you about accumulation bars. These are very interesting. What are they? They are bars that open up, travel down, and close up. From the high to the low, the open and close are in the top 45% or more of the bar. This is all tail. The opposite is true for a distribution bar. The bottom 45% are where the open are close are. The top 45% or more will be tail.

I have been telling you that it was interesting how much accumulation was taking place down here. We have talked about this because yesterday was an accumulation bar. I have been pointing this out a lot. When you see all of those together, someone is really propping up the market. There are still distribution bars as well. We were certainly signed up for a market poised to take off to the upside. We held the rising 200 day moving averages with a accumulation bar. A take off to the upside is statistically what should be happen.

The NASDAQ is primed for more upside opportunities, the DOW is at the midpoint of the channel, the RUSSELL is holding on for dear life, the S&P is at the midpoint of the channel. The S&P, and DOW have room to grow to the top end of the channel. The RUSSELL and NASDAQ have lot’s of room to grow very quickly. I am going to be watching the resistance levels on Monday to see if we can get the DOW and S&P to come along for the party and start to push up. I wouldn’t even mind a little pull back first, then a take off. That is especially because of all the accumulation in the backdrop. We aren’t out of the woods yet for those of you who are thinking this is a raging bull. We have held very nicely structured off the rising support. WE really have a kill zone. There is rising support and falling resistance. We are also sideways and technically damaged here on the NASDAQ and RUSSELL. We just aren’t out of the woods on a short side perspective. My first inclination is long side trading going into Monday. That is if these four stock indices agree. Today we were in a news driven market. That led to all of my indicators firing off. It was just an incredible amount of green. If you like green and trading, long was the way to go this morning. I fired off multiple long side trades this morning.

Buying the highs in a news driven market can actually work. Under normal circumstances, you can really get your head handed to you. When you get a big whoosh bar to the upside, it will probably roll back over. I was waiting for big pull back today’s. The average retail stop loss is 12-20 ticks. This one went back around 40 ticks. We still have all of the wonderful buy signals in the back drop. I am going to take a trade like that with my students.

If you want to see how I trade these things, go to www.becomeabettertrader.com/live to join the live trading room right now. We had a very special offer! Remember it’s the summer and a lot of my current students are already going on vacation. It comes with several thousands of dollars worth of training and strategies. There are also a bunch of nightly videos and the live trading room. You get the first four months for the price of two!  Make sure that you get signed up right now! Go to www.becomeabettertrader.com/live right away! Take care!

 

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