Rob Hoffman’s Day And Swing Trading Market Strategy Update For 1/7/19

Welcome back everyone! Let’s give you some important updates that you need to know from a day and swing trading basis.

We are right in the all-important down trending channels from a swing trading perspective. That is on all four Stock Indices. I have been looking at this for quite a while. I want to see if we can finally get back above. I have been telling you since October about this. I want to see it get above the channel, pull back, then take back off. It kept getting close then dying a horrible death. The plunge protection team kicked in. You can Google Mnuchin plunge protection to see all these different places that you can see about this. He reassured banks that things will be good over the weekend. That is exactly where the market found support. We are now at this critical stage where we are testing this channel. Remember, we want to push up, hold, and then take back off for any type of meaningful swing trades. Make sure you read about the mnuchin plunge protection team if you don’t know what I’m talking about.

Once this concept is enabled, that will dramatically change how I look at pull backs in the market. Whenever the market were to roll back over I would look for short. Once the plunge protection team was enabled, I would then look at the long side trades as legitimate and short term buy opportunities.

We were dramatically oversold on Goldman Sachs. The buy side ended up hitting target number 1 and 2. Remember that once we break through target 2 we are looking for break away. We fired off target number 1. Since then we have hit target number 1. That is right below the all-important channel I was talking about. We have to get above that channel because we might hit target number 2. If we can break above there that could potentially lead to some more movement to the upside.

Now let’s look at this from a day trade perspective. Typically if we pulled back into the channels and stalled out, I would look for a short. I said that I am not looking at that right now for shorts. I want to see it get back above the channels and become a long side trade. This is the same process that I am looking for on a swing trade basis. The point is that I am not looking at the pull backs into falling resistance as a short opportunity team. Once it was announced that they would try to reassure banks and shore up the financial system, I want to see if it can break above again. I am looking at this from a day and swing trading basis.

We didn’t hit target one in two spots. However, we did hit target one after that. That is exactly what I am looking for. I want to check for any buys thereafter. That is a very important strategy. If we roll back over into the channels I will look for shorts. When they are coming into the channel I am not looking to short. That is how I am looking at it from a day and swing trading perspective.

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Rob Hoffman’s Day And Swing Trading Market Strategy Update For 1/8/19

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