How Rob Traded Today And What He Is Watching Ahead

Welcome back gang! Let’s take a look at some different strategies I used today. I will also be sharing my thoughts on the bigger picture as well!

I pegged the RUSSELL this morning against the NASDAQ. The DOW held up pretty strong. It ended up closing up. That could be misleading because it makes people think everything is alright with the world. Right now that is a big fat indecision bar. This comes on the heels of multiple accumulation bars in the back drop.

I am really want to know if the DOW is going to play catch up. That could very much help the picture of further lows. Are we going to hold the speed lines and go back up though? All three of the other market are key support levels now. The S&P is a key support level around the 2879 area. The RUSSELL is a key support level around the 1715 level. We bounced off that level and held it today. The NASDAQ held the mid-point of the channel. It came close to testing the bottom end of the channel. It was holding the channel right now. None of them are in a bear market condition from my perspective.

The DAX is though. We are below the 12000 level. This is a positive divergence there. This could be a very interesting inflection point if we don’t hold that level on the DAX.

The DOW is a key going into tomorrow. Today the RUSSELL was the key. I wanted to see if it would come along with the NASDAQ. It actually ended up doing that. I was focusing on shorts earlier in the morning. The market then rebounded after that. I want to see if the DOW gives out and falls below the speed lines and starts cutting into the accumulation bars. We have had some pretty deep cuts here previously into the rising support levels. I want to see if there will be a buy point on the resurgence if we start to push back up. That is what I will be watching on these different markets. I want to see if we can get above the speed lines. I always say that I think that could be a better place to go long.

Amazon normally pulls back into the channel. We would then look for it to break back out above. I would have liked to see the indicators firing off as well for trading opportunities. We had some really nice runs in the indicators here. They were all green, green, and green. That is really what I would’ve liked to see there. I would really also like to see the market firm up as well.

We can now look at an intraday basis. These strategies would apply if this were a swing trade too. My work is very fractal as you already know. I focused on the short side earlier. Those were the first ones I took today. My institutional indicators were firing off repeatedly on the sell side. Then something ended up changing.

We were making lower lows in price and higher lows in indicators. That is a very bullish sign. When we turned around and started to go back to positive that ended up being a buy signal then. That also ended up working out very well. It also ended up being a good profit on the day. I first focused on shorts, then the longs after. Catching the reversal was great stuff. In addition to the indicators firing off, we also had the positive divergence.

We also had S2 support there. That is the normal maximum statistical daily range. We hit that none only once, we hit it twice. That is why I always like to see if this break, not just trade through. That is exactly the kind of thing that can happen. That is not survivable for the normal retail trader. That move alone went back 20 points. That is more than four times the normal trader’s stop loss. As it was making the lower low in price, the indicators was making higher lows. My biggest losses in my trading career involved me trading against my indicators.

Keep those things in mind when looking for positive and negative divergences. The last two days in a row I have been doing short side trades early. I have been doing long side trades from there. That is all a part of the strategy. I also want to make sure I’m watching the DOW going into Friday morning.

Next month is trading and investing month. We also have the Wealth365 Summit coming. Many of the speakers are going to be addressing what is on most of our minds. The upcoming election and earnings should be on our minds. What will happen if the democrats win? What will happen if the republicans do better? How will we setup our positions long and short? There will be a heavy focus on those questions. The next Wealth365 Summit is focused on trading and investing. There will be special pre and post show events as well. You can register by going to www.wealth365.com/bbt right away. It is free for you to register there. You will not want to miss any of that. We just did a VIP event today for Wealth365 VIP membership. We also have two more coming up in the next couple weeks. I am so excited to be a part of this as well. This is by traders for traders. This next event will have a large focus on education to prepare people for the upcoming turbulence. I look forward to seeing everyone tomorrow in the trading room and in tomorrow night’s videos.

Leave a comment!
Read previous post:
Really Monday Made Today Using Last Night’s Strategy Video

Welcome back everyone! Let’s take a look at a couple important things. We had wonderful sells on my Institutional Package...

Close