Rob Hoffman’s Award-Winning Strategies For Tomorrow

Welcome back! It’s a great way to start off the week. Let’s run through some of the key markets we were looking at today and for tomorrow.

First things first, you’ll recall I was looking for short side trading down below some of the key support levels. Our focus was monitoring this from a short side perspective going into today. Going into tomorrow we will continue to do so. As long as we can stay below 10880 into tomorrow morning’s session, we’ll be looking for short side trades down to the 10780 level or lower.

Gold is kind of an important one right now from my perspective. We have to watch out for the key distribution bars ahead of us and above us. We had that today. That was a key focus. Initially gold looked good but we are actually between two distribution bars back to back. That puts us under a lot of pressure and it has on Friday and again today. Until we can break those distribution bars, I’m not going to be concerned about long side trades.

As we look at crude oil, it’s kind of interesting from the perspective that we had this distribution bar on Friday. For those of you who are familiar with that work know how important that is. We couldn’t get real follow through going today. That’s important because until we can break through the high of that bar, I want to stay away from long side trades. There’s too much risk that we can walk into tomorrow’s session. We’re going to wait and see what happens. We’re going to see if we can break through and look for long side trades.

Bonds is another one that’s been working really well. We have to continue to pay a lot of attention to this strategy. Once again, the inventory retracement bars of the distribution kind are wreaking havoc on the bonds. You’ll see over and over again that we’ve had these distribution bars. Every time we smack into one, the market is getting killed off a little bit lower. What happens Friday into today? We’re caught and not proceeding the upside. You can see the mountain of resistance that we now have. We have the speed lines coming down on top of us. We’re caught in a kill zone on top of it. Right now, we have an accumulation bar below us. We’re caught between rising support and falling resistance, which is an absolutely terrible place to be for traders playing the bonds. I have no interest in trading the bonds until we can break out/break down.

Stock index futures were really important today. The Russell this morning was rising the upside. I have so many new students who joined us last week after I won the trading competition in New York. People were saying we have to go long. A big thing that was happening was the Russell was showing strength but the other stock index futures were holding distribution bars. You can see we barely creeped into those from Friday. While the Russell was shooting strongly to the upside, the other ones were barely making a mark. I said that’s a big, fat warning sign. To add insult to injury walking in the door, we had so much chop and volatility. We have a daily and monthly pivot, which is why we sat there for 20+ minutes. We had another push above that and that’s when people really got excited. This is a negative divergence where the Russell was showing strength but the other stock index futures were not showing strength. The underlying indicators in the downside were saying sell. Save yourself a huge amount of money or make yourself a huge amount of money getting short then once we actually had the Russell rolling back with the other stock index futures. That was all based on that strategy from this morning.

As we go into tomorrow’s session, we had some major reversals off those distribution bars. What we actually made here was a double distribution bar. Double distribution bars across the board. As you can imagine, going into tomorrow’s session, any signs of short side activity going across the speed lines on the charts, I’m going to be looking aggressively to short. Only the Russell is even above the speed lines at this point. The others closed at or below them. I’d like to see some further movement to the down side to be sure. That’s going to be the strategy. If for some reason we take off to the downside, I’ll be reducing my size and tightening my stops. We have double distribution going back to back. That’s a tough wall to climb. The preferred trade would be going short. Any signs of long side trades, I’m going to need key support from the intraday charts and I’m going to reduce size and manage stops a little closer.

That’s some of the key strategies on the key markets going into tomorrow. We’ll talk about these and more going into tomorrow night’s videos. Take care, everyone!

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