Rob Answers The Question “Are We At A Bottom Yet?” With Profits To Back It Up

Welcome back! Let’s take a look at a bunch of things that you need to know. Part of this is a major recap for you and you need that. Let’s start out back in August. We talked a lot in August about Goldman Sachs. I kept telling you that at the time we were watching the 240 level and then the 245 level. We talked about all the resistance. What ended up happening was we popped up to the 245 and it means nothing unless we pull back to 245 and hold and take back off again. Unfortunately, what ended up happening was it hit the top resistance at 245 and rolled back over. Go back and watch the videos because that put me in a bearish and sour mood about the markets. We talked a lot about why I was cautioning you at the time.

Over the last couple of months, we just keep hitting this falling resistanace and I’m not going to say this is the time to buy. Everyone keeps asking me when is it time to buy? I keep doing intraday trading on the longside and more aggressive trading on the short side. I’m not willing to put long side trades on a swing trade basis. That to me is a bad place to be and continues to be. What I’ve said the last couple months is holding true. When we had the big dip in October I said as long as we’re down in that channel it means nothing to me. Then of course, we went back and did it again.

The point that I’m making is the these videos I’ve shared the last couple of months and they continue to hold true. Here we are with fresh lows in today’s trading on the Russell. If you’re trying to catch the bottoms on this, you’re probably getting cut. It would be better to focus on the overall trend for the best success.

This brings us to where we’re at. If we look at Goldman Sachs, we locked in distribution bar and that $245 attempt locked in another distribution bar. Instead of holding that 245 level that was so important, we went right back below and it rolled over and died a horrible death. You can’t get a good feel from where the market is going. Now if you take a look for those who have my Trader Rescue Package, Goldman Sachs fired off weekly sell signals. Then we break it down to a daily chart. We fired off additional sell signals on a daily chart and it pushed us down another $32. Why is this so important? So goes Goldman Sachs, so goes the market as I often say. Goldman Sachs is under significant pressure. The market as a whole is in a downtrend so I’m primarily going to focus on short-side trades. That brings me to intraday trading.
Today I grossed about $1500 but I only had about an hour to trade today because I spent all morning at a car dealership getting updates/upgrades on the new car I got. That being said, not bad for an hours worth of work but not some of my best. Why was I focusing the way I did? You can see here we fired off some really nice short-side trades here. As a whole, they were in the overall trend in the backdrop. Also there’s some uncertainty in the market with the news and the political front. It does a lot of damage in the market. The best trade from my perspective, is on whole going short.

In the interest of full disclosure, I did do a little bit of long-side trading because my Trader Rescue Package said we’d almost hit my negative 50 level, which is my max range extension if you will. That goes back to my bigger point that I’m focusing primarily on conservative and aggressive short-side trades but I am doing a few intraday only long-side trades when we get extremely over-cooked and get some buy signals.
I’m doing exactly what I said we would be doing. I encourage you to go back and watch some of the previous videos. Everything I said would happen, happened. This is why I’m trading the way I am and how we’re putting all these pieces together. It doesn’t mean we aren’t going to have some dead-cat bounces. The Dow pushed above the channel for a day, rolled right back over and died. Until we get above the channels, make them support and take back off. That’s our first potential chance to a real bottom from my perspective. I’m not going to be catching a falling knife, I’m going to be trading the falling knife and loving every minute.

Have a fantastic weekend. Looking forward to seeing you in the live trading room on Monday.

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