A Powerful Follow-Through To Yesterday’s Trading Video

Okay, welcome back gang! First of all, there is about six and a half hours of video that went out last night where unfortunately another video from another segment was put in its place as one of our staff members was training-so not a problem we did get it corrected. If you watched the video in the first six and half hours after it was released then you probably watched the wrong video and hopefully you went back to check out the right video. Just in case you didn’t we are going to put it on the end of tonight’s video because everything I said was so important and we had a nice follow through into today’s session.

Tonight we want to expound on what we shared with you in this weekend’s video.  We are seeing this risk in all of the things that I have been talking about now for several days and weeks, we are seeing all of that come together here. We have been talking about the Bond at length here and we were looking for it to break out above this resistance. We did push above the resistance and pulled back to rising support and then we took off that led to a really nice rally today.

Why is Gold taking off so well? We have to be careful because people that don’t like the message here will say that I am being political. The reality is we are all here to make money and if you are listening to this here be it Democrat, Republican, Independent, Blue, Green, Red, Purple…it doesn’t matter. YOU ARE HERE TO MAKE MONEY. With that being said, what I am saying is valid to you whether you like the political side or not. What is happening here is not only are the Bonds going up because of the flight quality in the short-term and until they would fall out of bed like they did in 2008 and 2009.  But also Gold here…if the Stock Market in whole is in jeopardy then Gold becomes an instrument of value once again.

Right now the Stock Market giving the Bernie Sanders rise in the polls, Hillary Clinton’s troubles, and uncertain future for the Republican side of things there is a lot turmoil in the market and the market doesn’t’ like turmoil. What it does is it prices in risk. What we are seeing right now and this has been my call, concern and my issue for you guys. We are seeing that risk priced in on a daily basis as more moderate Republican’s Rubio is under pressure here and not knowing what is going to happen with Cruz and Trump. Who is going to really challenge Clinton and Sanders ticket? Then Sanders and Clinton both having their own views. The whole political view is a mess. For us as traders it is awesome. If you are a long-term investor right now you are going to be a little concerned. Your 401k can become a 201k or a 101k potentially depending how ugly things get…the redder it gets over the next several months and the death of Wall Street and everything else.

I have been telling you guys for over two months we were focused on the Bonds getting through the key support levels. Well, what happened was that our resistance areas which we distribution areas which of course our Hoffman Inventory Retracement Bars. Through that we pulled backed to rising support and took back off there that led to a real nice shoot up. Then you saw what happened with Gold. The Stock Index Futures again with my Hoffman Inventory Retracement Bar Strategy we saw that in full swing a few days ago. We broke down below those in the European session which led to some really nice selling. You will notice 3 out 4 of the instruments are still holding the major accumulation area down below but not by much especially on the Russell. This is where things are going to get real fast. We want to hold these levels. If you break through these IRB levels you can have some rapid movements really fast. This is where the plunge protection team came in before. The DOW held the top end of that area, the Russell held the bottom area today and the S&P held in that main area today as well. We are holding on by a thread there. Don’t forget in the bigger picture that we have some key areas that we are watching very closely here with the S&P. Here is a big fat IRB on a monthly basis from January and now here we are testing the bottom end of that channel. This 1800 area is so critical to the bigger picture here on the S&P. We have a lot of big things happening. A very exciting time! I am looking forward to talking about that in the Premium Video and how we traded that today and we were profitable. Shorting this thing today was the right thing to do. These key levels that I mentioned to you previously are very important to us and again I want you to watch last night’s video if you missed it. If you watched it in the first six and half hours then you missed the video you need to see about the political side. I am going to start that part of video right after this. I am looking forward to seeing you all tomorrow morning in the Live Trading Room or in tomorrow night’s videos. As I have been telling you all this is going to be an awesome 2016 regardless of your politics. It is going to some fantastic moves in this market both buy and sell side as the rederick is heated on both sides of the fence. It is fantastic for traders not so much for investor. Stay tuned and we look forward to seeing you shortly. Here is last night’s video!

Welcome back! I hope you had a fantastic Friday and what I want to talk to you about this weekend is that precarious position that presidential politics are putting into the market right now. Normally I give you the breakout/breakdown levels and keep it at that. That’s what we do. We don’t trade emotionally. What we have to understand is there are a lot of people right now cheering on people because they want to take down Wall Street and take down the big banks. I don’t want to get anywhere near that conversation. Everyone has their opinions, but here’s the problem. The same people who want to take down Wall Street are now saying “Wait a minute, my 401K is going down. I don’t want my 401K going down.” People are having to be careful what they wish for. Right now, there is all this death to Wall Street. It used to be death to America. Now it’s death to Wall Street. When we had these presidential debates about who is going to take down Wall Street harder, you can imagine it can get some investors worried what it will happen to their portfolios.

Now people are starting to unwind their portfolios. We’re at some very pivotal areas. I’ve mentioned some of these areas before. In fact, I’ve mentioned them before when we actually bounced off of them. As we were coming down, I told you the 1800 level will be a real important level on the S&P. Sure enough, we launched off a big, fat accumulation bar off of there. Now we’ve hit falling resistance and having a presidential debate where everyone is shouting “death to Wall Street.” That’s weighing very heavy on people’s minds. If you start thinking we have someone who is willing to tax us 50%, 60%, 70%, our debt may go up 18 trillion dollars if certain social plans are put into place. I don’t mean to make this a political talk. You never ever hear me talk like this. I just tell you what you need to know about the market. You have to understand that there are a lot of people who are asking me why this is going down. They want Wall Street taken apart but they want their 401K to go up. What you have to understand is that those two different wishes may be in direct conflict with each other. Whether you’re a Democrat, Republican or whatever you call yourself, you have to really watch the S&P near this 1800 level. That’s where we had the plunge protection team come in here. We used to call it that term back in the 90s. Key levels where we don’t hold, bad things can really happen in the market. We bounce back with a major accumulation bar. With an accumulation bar, the entire area here is a key support resistance level. We hit that, bounce off. Hit that, bounce off. The problem is, the pressure keeps on going on who is more anti- Wall Street and what that’s going to mean. The threats are getting larger about how they’re going to dismantle Wall Street. It’s making people uneasy and making people much more prone to sell the market vs sell the market if you’re worried things are going to get ugly. Right now, I want you all to pay attention. If you look at the weekly basis, just below the 1800 level, we have long-term weekly resistance. We have very key long-term institutional support. We went from the last few years of having this beautiful uptrend. We took a cut in 2015 and rallied back then took a deeper cut as you can see. What this means in English? It means the market is very fragile.

Let’s take a look at another chart that I’ve mentioned to you before. It’s the monthly chart on the S&P. We get below the 1800 level and we’re cutting deeper and deeper into my channel. We rallied back up and cut deeper into the channel as you can see here. Also, my long-term fast-trigger lines on the monthly chart have been driving down for some time. That’s not a good place to be. We also had a monthly sell signal with a hockey stick sell. People just need to be very careful with the politics of Wall Street. If they’re trying to tear Wall Street down and take people’s 401Ks into 201Ks, then they can talk about how they want to kill Wall Street. Regardless of who you are and your politics, you don’t want this to go below the 1800 area, because that can lead into deeper ramifications. Everybody talks about how terrible it was back in 2008 and 2009 and how we’ve had a recovery. That recovery may come to an end here if people with their talk kill it back off. So, something to think about. This year is a big year of politics. As a trader, I love this volatility. I have so many of you who are so concerned with what you’ve been seeing. I wanted to talk about what’s in part to blame for this and what the key numbers we have to watch. This is going to be a great, great year to be a trader. It’s already proven to be. What you don’t want to do is turn a blind eye to longer-term investments. Some of these key levels are going to be really important like the 1800 level on the S&P and others that we’ll talk about in the weeks to come.

I hope that gives you a little perspective about what’s happening and what’s causing some of these things as well as some key levels we all have to be aware of in the coming weeks. They’re going to be more meaningful in the weeks to come.

Have a wonderful weekend. Looking forward to seeing you in Monday’s Live Trading Room and in Monday night’s videos. Take care, everyone!

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Dangerous Presidential Politics Are Close To Killing The Market

Welcome back! I hope you had a fantastic Friday and what I want to talk to you about this weekend...