A Nice Surprise In AMZN To Close The Week Strong

Welcome back, everyone! What an exciting week! As we close out the week, I said yesterday, if we got through yesterday’s highs we would be focusing on long-side trades. Well on most of the stock indices with the exception of the Dow, we were through the highs very early on – particularly with the NASDAQ. This is one of the reasons we talk about this. Until the earnings came out, we were in a technically driven market and it pulled back. Once we get into a news driven market, all bets are off. That’s why I warn you about impending earnings cycles that you need to be aware of. All four orders I put out there this morning were focused on long-side trading. I even managed to get a nice little burst in there. The bottom line is that every order I put out there, we pushed above those highs from yesterday. That was the right thing to do.

As we revisit the infamous question that I’ve gotten all day is “What now”? Clearly AMZN went and has a lot of people who are caught on the wrong side of this trade throughout the session. We’re coming up on round number resistance so armed with that I’m going to be watching this whole band 1080 and 1100. I’d like to find support in this band and take back off to the upside (preferably through 1100) looking for fresh longside trades. What may end up happening is we may drift and go sideways for a while (possibly even down). I don’t want to have any part of that. I want to hold in this 1080/1100 band and I will aggressively be focused on long-side trading.

With AAPL, we talked about different levels. You’ll recall with AAPL one of the key things we want to do is the 160/162 band to become support. We pushed up through 162 to see if it pulls back and holds but instead it dipped back down below. It never held and that led to that pull back so you’ll have to sit on dead money for basically two months. Now, we’re starting to see a small profit. It’s not the way I want to play the trade from my perspective. We’re looking for this 160/162 band to hold and then look for resumption longs.

You’ll recall for the last several weeks with TSLA, I was talking about the magic 360 level. I wanted to see us break above that, pull back and look for a longside trade. It dipped its toe above one day, closed right back below and hasn’t looked back since. That’s why these key levels are so important.

As we go into next week, we’re going to see if we get small pullbacks and then resumptions on several of these different markets. That would be the preferred trade of choice.

Have a great night and a great weekend. I’ll see you in the Live Trading Room on Monday or in the nightly videos. Take care, everyone!

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

Leave a comment!
Read previous post:
Rob Reviews CMG Swing Trade Thoughts And His Market Strategy For Tomorrow

Welcome back everyone!  Let’s talk about today, going into Friday, before talking about Chipotle.  We closed well off the highs...