Nice Trading Today And Rob’s Final Thoughts Pre-Election And FOMC Announcements

Welcome back! I’m a little under the weather today. I had some great trading in the live trading room this morning so being sick didn’t stop me there. I’m getting these videos out a little early today since I’m not sure what the rest of the day is going to look like for me.

We’ve got the election stuff taking place today and the FOMC tomorrow. Right now I continue to look for breaks above the last three trading session highs for any sort of long side trades and for short side trades, we have so much work to do to the down side I’m just not really focused on that. There will be other trades that will present themselves much earlier from my perspective.

Gold continues to fail off of the levels that I’ve shared with you multiple times in the last few weeks. The negative divergence really kicked in. The distribution bars kicked in. The false breakout during the European session kicked in. That marked another sell signal. Right now, there’s not much to do with this until we can get above the high from the other day. Especially not during the FOMC announcement. Any breakouts/breakdowns during the FOMC announcement will not be considered valid breaks. I will be waiting at least 30 minutes for any breakage after the news going into tomorrow’s session.

For crude oil, you still want to break above those resistance levels that we mentioned the other day like this inventory retracement bar that we have here. We’ve got the inventory retracement bar, which also happens to tie with this long-term resistance that we’re still holding. I warned you about that yesterday and we continued to break down here today. You can see why that’s so important to not trade with your emotions but trade with science. For those of you who fly planes, instead of being a VFR pilot, you’re an IFR (Instrument Fight Rules) pilot. You learn to fly under the hood and trust your instruments. That’s exactly what we’re talking about right here. Not saying, “well I should buy this because the news media is really bullish and this should go up.” That could have been very hazardous to your financial health if you bought into that hysteria.

Bonds continues to have the same challenges I’ve been warning you about. We had that big, fat distribution bar up over here that’s continued to hold, which created more distribution bars. Now we’re stuck in the channel. As you can imagine, for me to even consider a long, I’d have to be above this area, which would give me a small playing field. The real joy for any long side trades can’t really happen until we break above this distribution bar. Otherwise, as has already been proven, there’s already plenty of resistance above us. For short-term shorts, we want to break down below yesterday’s lows. Again, make sure these breaks aren’t happening during the FOMC tomorrow.

All the action was on the stock index futures this morning – particularly the Russell. It continues to be down and stay down. The other ones held the speed lines on the NASDAQ, DOW and S&P. You cannot discount an index with 2000 stocks. While the other three stock index futures were more or less choppy and sideways today, we had some really good activity on the Russell, which led to several great trades. I did multiple trades, Colorado John did multiple trades. It’s great to watch a student family member. He grossed about $290 profit. In the premium daily video section, I showed other student trade review videos. Make sure you’re keeping up with those different sections here if you have access. The bottom line was the market was strong to the downside today and the stock index futures. We focused on multiple shorts. We came, we saw, we conquered there.

As we go into tomorrow, I want to get above the short-term resistance levels. Ideally, I’d like to get above yesterday’s high on the NASDAQ, the high from last Friday on the Dow and a week-and-a-half ago’s high on the Russell and the high from last Friday’s S&P. That’s what I’d like to see from a long side perspective. As far as shorts, if we’re down below the speed lines, I’m going to be aggressively looking at shorts. That’s been a leader here in the short term. In the big picture, do not mistake the long term resistance crashing down on us in the S&P and the Russell. Meanwhile, we have rising support underneath us in terms of the speed lines and channel support. What this makes is one big, fat kill zone. We’re looking at the election news from this evening and the FOMC tomorrow to give us some guidance to see what this market is going to look like. If it’s anything like the last few legs, it’s going to be exciting and will offer us some opportunities for some real profitability. I’m looking forward to going ahead and doing everything we can to keep the good times rolling through this awesome election year cycle.

Have a great night! See you in tomorrow’s live trading room or in the nightly videos.

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Rob’s Trading Ideas Pre Election and FOMC Drama

Welcome back everyone!  Let’s take a look at several instruments this evening! The Euro has two consecutive days of consolidation. ...

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