Rob Discusses WMT, How His Directional Strategy Played Out, And What Now Before The Holiday

As we take a look at the strategy that we used going into today with the markets being above or below the speed lines and focusing on directional trading that way. It went ahead and worked very well. It did stall us out. Nonetheless, with the exception of the NASDAQ, the strategy itself worked and that continues to be the strategy for the foreseeable future. I will not be trading on Friday. Statistically speaking, barring the holiday, the big up bars usually end up having rejections to the speed lines or some small pullback. That’s roughly an 80/85+% the marketing will pull sideways or go back into tomorrow, which could make trading somewhat lackluster going into tomorrow. If we see some of that activity, the goal would be to bail out and start focusing on our families. I want you to understand if you see any signs of consolidation or the pull backs, we’re probably going to be starting the holiday early given that.

Also, as it relates to things like KOBO (kick off, blow off). Basically, what this is, if you go in the search bar in my nightly videos, you should be able to look up several different videos that address this topic. This is a classic KOBO that we had with Walmart. We had the kick off and several small bars and then we get the big wide range blow off. Statistically, when this happens you either start drifting down sideways or you outright pull back and start reversing. This is compound that Walmart was at the $100 level. Whenever we get to the $100 level, make it support so we can see much bigger prices. Understand this pattern, we have well over an 80/85% chance from my perspective where that market at a minimum will start drifting, which it’s done the last several days. Either way, buying the high where the blow off bar is equal to or greater than the kick off bar that tends to be a poor performer. Right now, going into the retail season and holiday, I don’t want to hold on to underperforming money going into holiday weekends. Just keep that in mind and study that KOBO strategy. That’s a couple of my key thoughts and I want to wish you all a Happy Thanksgiving! Have a safe and Happy Holiday.

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