What Rob Hoffman Is Looking For Tomorrow After A Great Event Today

Welcome back everyone! As we reflect on the day and what we are looking at going into tomorrow we had a lot of focus this morning on a couple of key aspects that we don’t get to talk about every single day. That is because they don’t happen as much. We had a combination of, what we call, a max range extension here this morning in the stock index futures and at about the same time we had an announcement that President Obama was going to be speaking. These are marked on my screen at 0:37. This set off a great learning opportunity for the max range extension which is one of my classic set-up identification areas where we want to cease and desist trading or look at short side trades depending on the nature of the instrument you are trading. That worked out very nicely for us.

People got to see areas where I am interested in trading and why. We talked about my indicators this morning, which is a conversation for another time, then watched me do a little bit of trading here as well. There was a nice little combination of things going on and something for everyone this morning.

As we go into tomorrow I want to look at a couple of instruments tonight. Number one is the BRITISH POUND. I want to see if we continue down. We lost momentum here (on my chart at 1:26) and we’ve started pushing to the downside both on the Fast Trigger (which has already gone red) and the Core Trigger. That caused us to have a nice move to the downside. We broke down below my point here and we’re a little over midway (about two thirds) to my initial target. We are going to see if we can’t hit that target going into tomorrow.

The second instrument(s) are the stock index futures. I’ve been doing a lot of trading in those. On average 2-3 trades per morning let alone what I do in the afternoon. That is going to be the focus tomorrow. We’ve got options expiration. Right now we are back above the speed lines. That was a tough call on the market this morning. We were stuck in the speed lines quite a bit this morning and they were really struggling to break out of there. As we go late into the session you can see that we’re back above the speed lines (on my charts at 2:23) on all four of the stock index futures. What we are going to be doing is weighing off these, what I call, M-patterns. You can see me marking these on my charts at 2:34. The one here on the DOW is called a Hoffman Fade when it overstretches like this. So, we have a couple of M-pattern type signals and a couple of Hoffman Fades. The bottom line is that typically from a technical perspective those are usually signs that we’re due for retracements. At the same time, we are currently above the speed lines. So, the choice is going to be clear tomorrow, if we push right back down underneath and get into those speed lines and the M-pattern start to fulfill itself, I will be looking for short side trades. If the sells don’t sell that is usually a pretty strong indication to buy and I’m going to be looking (if we get back above the highs of today) long side trades which could be vey powerful especially if those sells don’t sell. That is going to be the two key focuses going into tomorrow morning.

Also, you saw we did close out three trades in the last two days on the options. We closed out FSLR, SHLD, and EWZ. So three more winners to add to that fantastic Options Portfolio of ours.

Don’t forget we have that great Live Trading Room offer that we will not be offering in April. So, now is your chance to get this. If you go to www.becomeabettertrader.com/ltr you can join us. I am not going to be wasting any time talking about this here because we spent a lot of time talking about it this morning.

I do want to give a special shout out to Margaret M. I got to meet her at the CME event and she is a part of our student family now. I also want to welcome all those additional students that joined us and will be joining us for our special class tomorrow morning.

We did the first part of this class last month and we will be doing part two tomorrow morning. It is the same stuff that we use to help bolster our fantastic Options portfolio that you just saw. This is a great strategy and has been in 2014. There was student that actually took a trade with this strategy during the first session of this class and he made $650 gross on that. If you sign up this evening you can still watch the video from part one before we even go into the live class tomorrow morning. The bottom line is, this is a fantastic opportunity to join, especially since we are not going to be doing this in April.

You guys have a great night! Looking forward to seeing you tomorrow in the Live Trading Room or in the weekend videos. Take care.

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