Rob’s heads up on the market divergence hit and broke key long levels

Okay, welcome back gang. Really great action today and this was really important because this ties onto a lot of things I said here recently. First things first, as we look to the negative divergence, we had a negative divergence that’s been forming here for a while so what I said was as long as we stay above the speed lines I’m looking to go ahead and still focus on long side trades only but with the negative divergence here I went ahead and wrote in the weekend options update that we did, in fact, let me I should just bring that over here and show you. So, what I said is part of this email here was going into this week you’ll notice here clear and negative divergences on all major stock indices as per the image below therefore rather than issue alert from Monday morning try to join us live on Tuesday for our special training class we have which is tomorrow on maximizing income and credit vertical spreads. So, the thing is, that was basically sailors look we’re holding off we’re not gonna go ahead and do any trades here Monday morning on the options because from our perspective, we saw the writing on the wall looking for a meaningful pullback here with the you know negative divergence and even triple top divergences that were taking place here. Sure enough, we broke down below the speed lines and the rest is history so let’s go ahead and take a look at that on an intraday basis you can see the ITP indicators it was just a bloodletting.

We went ahead and we fired off the sell signals then they confirmed the sell signals and we had every single Rob Hoffman indicator going ahead and firing off sells which was a nice carry on to the daily charts with the negative divergences the extremely overbought stochastic that you can see here with M pattern cells and super-high stochastics and fishhooks sells even on the dax there so everything was primed for a sell here with the negative divergences. We broke down below the speed lines I said I’ve been looking for Long’s as long as we stayed above the speed lines but below the speed lines, forget it exit stage left and focus on short term shorts only. That’s basically what happened here this market went ahead and died a horrible death with the indicators going to selling until we finally went in based with a positive divergence so then we pay so the positive divergence here as you can see it we were making a lower low in price but a higher low in the indicators – that ended up basically be in the bottom of the day and short some short-term retracement back up and they said the market just kind of drifted a little bit into the end of the day as you can see here. So, it never really made a lower low but it it stemmed the bloodletting but the indicators were just on bonafide full-blown sell here all morning until that positive divergence kicked in, so, another classic case of the ITP indicators going ahead and you know doing their thing and full living color.

So, where we’re at right now as long as we’re down below those feed lines I’m not innocent catching that falling I’ve pulled back even if we do get some short-term retracements back up and so until we’re back about the speed lines I want to back off and if we stay below the speed lines we get more selling I’ll look for some additional short-term sells here like was the focus today if you were in the live trading room. So, those are a couple of the key things to keep in mind. Also, I told you know don’t forget actually as relates to you like the ITP, I told you save your Black Friday save your Cyber Monday dollars and your efforts and go ahead and focus on what’s coming up here. I’m gonna do a really incredible class for you here it’s gonna be early next week we’ll send you more details later this week as I promised and you know learn how all these different strategies, numerous different setups and indicators and strategies might all kind of come together from a daily and intraday perspective so whether you’re an active day trader or a swing trader this is really important information to learned that I’ve never shared publicly before. So, stay tuned from the invite to that later this week but in the meantime enjoy what we were saying even as recently as this weekend the options alerts like with the divergences and my indicators we’re not doing a trade Monday morning at the normal time that we would we’re gonna go ahead and revisit Tuesday at our special training class. We’re practicing what we preach and we’re talking about these things and making sure that you guys are kind of kept up to speed here as well with the for those of you that don’t have some of these advanced tools that I have. So, with that being said, you guys have a wonderful rest of your evening. Remember what I said about not trying to catch the falling knife or a short-term retracements right now not really going to be focusing on the long side trades until we get back up there above those speed lines for now and if we do continue selling I’ll wait till we get some of these great sell signals – focus on those for further opportunities, all right? You guys have a great night. See you soon, take care, everyone.

Leave a comment!
Read previous post:
What a market ride above Rob’s pre-Thanksgiving buy levels!

Well, welcome back gang, let's go-ahead and just have a quick video and do a couple things. First of all,...

Close