Rob Hoffman’s Levels Being Tested Right Now And The Key Trade Ideas Around Them

Welcome back! There is so much to cover this evening. Let’s talk about both the swing trade and day trade side. First thing’s first, the market was testing this major resistance level to the tick on the S&P. Also, I told you in the last couple of videos the 25400 level. As of the time of this video, we’re at 25401 so you can’t get much closer than that. We still have the major resistance above us on the Nasdaq. I told you about the previous videos. The usage of the Russell as a guide. Mainstream media tends not to focus much on the Russell. What does that mean? It means typically that’s a good place to look. A lot of people just don’t know where to look. Getting guidance and ideas from the Russell can be very helpful. You’ll notice the Russell moved up yesterday despite the fact that the other markets pulled back. This was a tip-off going into today’s markets. When you can move a few thousand stocks, that’s something you want to pay attention to. Sure enough, that led to a nice rally today. What I want to let you know is three out four US Stock Indices are testing these major levels. The Russell is already pushing through these levels, which is great as long as it holds and takes back off. It can lead to massive rallies in the days to come. We’ll be watching that very closely. That can lead to some great swing trades and day trades.

Let’s talk about day trading and swing trading. First of all, on the day trading side. Walking in the door, you’ll see massive buy signals here. Right now, if you don’t have my ITP indicators, just know there were 30 or 40 different buy signals that fired off the hourly charts walking in the door today. What does that mean to us? It means we’ll be focusing on long-side trades. You can see we fired off Trader Rescue Package buy ideas here early this morning, got up to Target 2 and stalled out. We made a sell signal, but we know in an uptrend like we had on the hourly and 5 min chart, we break back above those sell signals in an uptrend, that’s a fresh buy signal. That also happened to coordinate with an actual fresh buy signal and off to the races it went right up to target number 2. Putting that into here, we had a major consolidation early in the morning and then we broke out to the upside, pulled back to rising support and kept taking off into the early afternoon. We had a three-wave pulse where we pushed up, pulled back and made an even higher high. Typically, we get one more push that makes a higher high in price but does not make a higher high in indications. That’s where we expect to back off. That’s how we trade that and that’s why I was focused on executing long-side trading in my Live Trading Room this morning.

Let’s switch gears over to the swing side. Basically, a couple things you need to know. One terrifying and one that’s kind of cool. First of all, the terrifying thing. You’ll notice we had a TRP buy the other day on TWTR. The market ended up going up the next several days then all of a sudden it crashed. We had a student who asked why it’s happening. There were indications in the buy side. The only reason is because this student forgot to look if earnings were coming out and that’s exactly what ended up happening. When you have a runup to earnings, even if they meet their earnings, they have to be way beyond good and be really stellar to keep on going. Otherwise, if they meet the expectations and if there’s any negativity, then people end up booking profits. This trader saw buy signals and forgot to look for earnings on sites that will give you the earnings in advance. The student took a good winning trade and turned it into a losing trade because they didn’t look at the earnings. That’s a huge no no. It’s got to be in the top 5 mistakes traders make. This is something that you need to watch out for. Don’t take any swing trades unless you know exactly where your earnings are going to be. For the average retail trader, the best thing to do is let the earnings come to pass and a few days later, when no one is talking about a stock and look for fresh moves in those stocks. A lot of people put out these great earnings plays but what you  don’t see is all the losses that they have with a lot of their earnings plays. They show you a couple winners. Understand that if you’re struggling with your trading, you should be checking for earnings.

Another thing to note when you’re looking for ideas, remember you have this free resource by going to www.wealth365.com. I’ve been telling you for weeks, the only type of trade we’re looking for is long-side trades. You can go back and look at the videos themselves. It was way back at the end of December, early January. I was looking for long-side trades only. In hindsight, you can see what I warned you about in foresight. It’s already off to the races and started my year to a great start. The quality of the information was solid and the long-side has been the right side to the upside. If you go to www.wealth365.com, you’ll see NFLX up at 300. This weekend, the website is going to be down on Sunday as they’re making massive upgrades to handle all the infrastructure due to growth. So many people are hitting the site throughout the day. Your load times will be much faster going into next week. Make sure you also check out the exclusive articles that you have taking place over here as well. With all that being said, NFLX is at a 300 and that’s a great thing. We look for long-side opportunities then we had a pull-back to the uptrend and we had a sell signal in an uptrend. It becomes a fresh buy signal. We had fresh resurgence buys as well. We’re holding above that stop point in the upper quarters, which is all great signs. We’re seeing what that’s meaning with the nice jumps in NFLX. We’re already making nicely with our first target again. The last time it fired off, it got not only to the first target and to the second target. It held there and took back off again. NFLX is doing really well and it all started because we got off that 150 area. You can also just click on here and see a whole list of different types of stocks that are meeting these criteria as well. Keep that in mind. A lot of great ideas can be found in there: www.wealth365.com.

We’ll look forward to seeing you in the upcoming trading events and videos. Have a great night!

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