Nice start to the trading week! So what now?

Okay, welcome back, everybody! Well, let’s go ahead and take a look at what I’m focusing on. A little bit different day you might think that all I was doing is focusing on short side but actually that was incorrect because of the lock-up period and the market being locked up for hours overnight – basically what I did was – the initial pushdown but that pushed down was quickly rejected with an accumulation bar. Which effectively meant that, as you recall, is we went into the next several hours every time we were back down into that area the market had the opportunity then to have big moves to the upside and that’s exactly what it did. Even though shortly before the close here, in fact, let’s go ahead and take a look. So, what we’re having here was the opportunity to the short side – the problem with the shorts here were that you would have these nasty rejections and these rejections were very significant in nature. You’re talking 10 – 15 point moves (this is on the S&P in particular that we’re talking about) and the average retail trader stop-loss in the S&P is 3 points as a normal max. So, with that being said that’s why 12 ticks 3 points and we were doing that in a matter of 1 minute, 2 minutes, 3 minutes, 4 minutes, here even earlier on in the session. Then you get these big pops. So, what this did was this opened up the opportunity instead to start focusing actually on some long side trades in the midsection of the day. So, you were making lower lows in price not lower lows and indicators, right? Lower lows in price not lower lows in indicators. So, then that pushed up and this is something I’ve shown you guys in other videos where we look for this throttling and the indicators to start to fire off to the long side and we throttle then that means we’re expecting a higher high. Well then if we throttle during that higher than the throttling, of course, is where the fast trigger is equal to or greater than the core trigger like in this case down below so you had throttiling here throttle here, well, that means we’re expecting another higher high for pullbacks. We had to pull back and that did make the higher high and in that process made throttling again so then, of course, that means that we’re expecting after another pullback we’re expecting an even higher high so in this case thought look what happened.

Remember we got throttle in here, we had throttle in here, we had throttle in here, but then look what happened was it got the higher high this time but we did not get it on the indicators so it went down. So that meant we were basically due for an afternoon and sell-off into the end of the day instead of the buying that we’ve seen like last Friday for instance. But in the meantime, bringing us back to here, this opened up on these after the throttling this opened up great opportunities for resumption traits and these are huge moves. Huge moves where on even on small contract size you can go ahead and do really well for yourself. So, the reason why I want to point this out is because I want you to understand that there’s not just moves just on the short side especially when you’re into big areas of accumulation. Typically, what we’re looking to do with accumulation then we want to break down below these areas and if we’re looking for fresh shortings so what I want to do is today’s low I really want to see us get down below that low make that resistance, show its resistance, and then look for a continuous selling. But, at the moment what we’ve got is we’re making a lower low in price in general but a higher low in indications. So, I’m gonna be watching very carefully going into tomorrow session. Can we actually get below today’s low and can we get down below that and then you should do a little pop up and show that it fails that area in its resistance that could bode very well for a short side and focus more on short siding. However, if we get back about the daily speed lines here that’s a 2771 area currently on the Futures and again this is you know this still is very helpful for whether you’re trading stocks and everything else on intraday basis. On a swing trade basis, of course, for obvious reasons it’s short side or bust as you know even last week with the alerts we put out like on the SPY selling the options of putting the options alerts out there short which was the right call, of course. so, what we’re looking at now going into tomorrow is first I want to get back above this 2771. If it does that then that makes this more of a kind of confirmed positive divergence. Well then, if we roll back, if we fail like this all this resistance is coming down on top of us, so, if we fail that roll back over here and start to break down and get down below this distribution I was telling you then basically, the buy doesn’t buy on this positive divergence then that could bode very well for continuation selling and I am going to be very aggressive there. At the same time though, as long as we have that positive divergence in place so we can get back up here above the speed lines I’m gonna really be looking to see them get back about 2,800 and then look for long side trades kind of like I was showing you just a little bit ago where there’s basically buy signals within the overall down market look for the short term by stones because they can be so powerful these markets just spiked, and spiked, and spiked, and if you just look at these examples of the ranges that we’re talking about they don’t look like much but they’re 20, 25 point ranges twenty points with one contract is a thousand dollars, you know what I’m saying? A thousand dollars can add up real fast when a lot of traders have goals of five hundred dollars a day or whatever, two hundred, three hundred, four or five hundred dollars a day you know five hundred hours day is approximately a hundred thousand dollars a year, one hundred twenty thousand a year so it adds up. The point is that right now there is opportunities on the long side there will be even more if we can do what I talked to you about. You should hold these areas get above twenty eight hundred on the S&P that could bode well for equity short-term trades, SPY intraday long trades potentially those kind of things but if we go ahead and fail that positive divergence so it starts to kick in then rolls back over breaks kind of that rising trend line and then we break down below the low of today in that big fat accumulation area we break below it, pop back up show it’s resistance then that can bode very well for further selling.

So, that’s gonna be kind of my strategy going into tomorrow and I know a lot of people continue to ask me about long side trades I’m just not really focused on long side trades here at this point because, remember, we have all that resistance coming down on top of us from up above so it’s really a short side or bust in general for from a swing trade perspective rather look for fresh by first my fades are like that United Airlines, the Delta Airlines and different consumer stocks and that could suffer and different types of markets that could suffer from these continuing quarantines and things like that, okay? So, you guys have a great night. We’ll look forward to seeing you in live trading room tomorrow morning and or upcoming videos. Take care everyone. Bye-bye

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