Remember Rob’s Golden Rule For Trading… It Did It Again Today

Ok, gang welcome back. We had an interesting day on wall street today. The bad news made the market go down and stay down. That was a really powerful sell signal, we are going to talk in just a moment how. As a reminder in case your brand new today, we always have people that come and join us each day and welcome. We had a major triple top taking place here in the market that I have identified for you now for the last many videos since we were up here. And sure enough, we are pulling away from that at this point. So, where we are at with this is, we are watching this in the bigger picture. We talked about this being an individual stock pickers market.

Let’s talk about today vs. the last several days. On Thursday and Friday of last week, we had double accumulation, after a downtrend. Statistically what is supposed to happen after that, is that we are supposed to break above the high of this bar and push back here to the upside. But we got hit with lots of bad news again over the weekend. The market has been pounded with news of trade wars, escalations, and tensions with Iran. That is what happened since this weekend. But of course, there have been many other things: political issues and other aspects wearing people down for the last couple of weeks. Most of the times the markets will recover 50% or more. Given the market, people hope to stay in the trade.

Then we come into this morning and what ended up happening, was instead of it going back up like it should have, breaking above the high here. We had one of those adages I teach you all the time that when what should have happened in the market doesn’t, that that is a very powerful signal. And in this case, it’s a failure. So instead of it breaking above the high coming into this morning and shooting way back up here, instead it stalls out, rolls down, and because of the bad news we came into Monday morning from the weekend with, it opened up and then it went down and this is what we basically saw here.

Again, what is supposed to happen when we have a situation when we are going to the downside and then you get these double tails within two bars of each other or back to back, we are statistically looking for a reversal. Looking for it to break above the high of the tallest of the two bars and then that sets us on a pace to the upside. That’s what will happen most of the time. In this case, we walked in, and even before we walked in, the market was blood red, you can see my institutional trader pack of indicators, all my different strategies are all screaming, the same thing and it was a blood bath.

That’s what led to the phenomenal moves to the downside and we got some great videos of some of my traders taking advantage. In fact, I’m going to go ahead and pause the video for a moment. And pull this up. This is one of our students, I am very proud of him. He has gone ahead and made some really great strides in his trading. Let’s go ahead and take his trade that he did this morning live. So, he went ahead and went short here, 4 contracts in the S&P. As you can see, he was using my tools and strategies here. As you can see it was blood red on the screen, everything was firing off, what we call throttling, all my different indicators fairing off here, it was a mountain of sell signals. He trailed the stock down here and then he went ahead and had a profit target out there into the future and momentarily it will go ahead and take him out of that position and there it is, plus $600 dollars gross profit in his real live trading account using these strategies. So, congratulations to you Robby! So, he was very happy putting all the pieces together with that.

So, with that being said it’s a strong reminder of using those strategies. It should happen here after a downtrend. The double accumulation bars, it should take off. Bad news comes into the market and the sells go on command and the sells start selling. That is a massive opportunity to the downside which is what led to the market basically giving out at the knees today. So, no more 50% off the low, 50% off the low, kind of stuff. It is catching its breath giving people hope. This is no different than what we see quite commonly. Someone buys into a stock and then it will go down a little bit and go back up, and go back up, then it will go down more, and we will want it to go back up. I then I’m not going to sell it because it keeps on going up. Then all of the sudden panic starts to set in with people. So, it is a great, great trading opportunity as I mentioned there.

So, with that being said, again, it ends up being a stock pickers market right now. As far as I’m concerned, it is mostly about managing the profits in the longs with trades you’re in. For instance, if you are using out dash-alerts program here, for our incredible swing trading opportunities. Right now, you have a Cadence here as an example. It’s up about 61+% if you were to enter when it first went long. You have a couple of these here. So, what’s happening here is these have, the trailing stops that are coming up underneath these. You can see the new trailing stops for these here. It is just basically, with this market, waiting to see if the stops will catch up to the price, or the price will pull back enough to get stopped. With the huge, gain opportunities that were in these, its basically just managing the wonderful trades your already in. Rather than trying to get into a fresh new long, at this moment.

We are coming up on some major support levels. As you take a look here, those are right here. On the Nasdaq, we are already below them on the Dow, and right now we are below them on the Russell and just above them on the S&P. Nasdaq and the S&P are coming very close, and that’s the natural place where you would normally expect a push back up. When you start to get into a real news driven market, if anything flares up with Iran, accidentally or intentionally, like when Obama was in office, they took prisoners of some of our soldiers, launching towards some of our ships, and we let them get pretty close at times. Trump doesn’t appear like he is going to have a lot of tolerance for that. So things could escalate very fast there. There is also the China trade war situation that could quickly escalate as well. So, there are some legitimate eventful hazards out there.

But remember in the big picture all that’s really happening is, don’t worry about panicking, its where I warned you about weeks ago. Were at a triple top and we might be in a situation where we may be down and have various types of short-term trading opportunities to the short side and then back up to the long side which could last several months. That exactly the conversation I had with you previously. Which why I said if your long up above, trailing those stops tight, would be my best opinion. Taking the positions as I showed you just a moment ago, managing your successful positions, keeping the stops coming up underneath there. So that you’re not giving back all your profits. If you have a 60-30 perfect profit in there, you’re going to want to trail that underneath and make sure it’s not going to give it all back. That’s really the strategy right now.

I’m not looking to initiate fresh longs right this moment. At this point its more about managing the strong trades. In the meantime, it’s also enjoying the ride that the market is giving you on an intraday basis that’s allowing you to sell the heck out of this thing, go home at night and sleep like a baby and look forward to the next day. Really great stuff. You guys have a great night. We’ll keep you updated here with several other updates in the days to come. I look forward to seeing you here in those upcoming videos and next weeks live trading room experience and all the other fun stuff we have coming up for you guys. Take care everyone and have a great night we’ll see you soon!

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