Rob’s Key Correlation That Needs To Follow Through For The Next Major Market Move

Okay gang, welcome back! Let’s go ahead and take a look at this market. Let’s take a look at a handful of instruments. The Stock Index Futures had a lot of potential today and ended with a fizzle. As we start off here taking a look at the VIX we are still caught in some major support resistance. So, today we hit the speed lines at the top of our resistance and then we held the channel as support here. So a lot of opportunity here this morning as we hit some key levels on that but could not get the follow through.

As we look at the Euro. I am trying to look at a handful of ones that we have been looking at. The Euro continues to consolidate here in these areas with no break-out or break-downs. Crude Oil is one that got our new traders excited. You can see how this works so viciously.  I spend my time here trying to get the new traders to calm down explaining that in this immediate backdrop we have a lot of resistance here and distribution bars. Sure enough it came around and crashing down. It is real easy to see how traders get into that mindset. They see an up-bar and that is calling traders to the slaughter. We look at the big picture on the hourly and on the daily charts that help guide the way. We are back in the channel and still waiting for a legitimate break out break down.

As we take a look over at Gold here the same thing. It has been holding on for dear life right at the bottom end of the channel. We are really looking to get down below 1100 to make Gold a real viable candidate for a trade down below. Otherwise, we are just hanging out below that channel with no break-out or break-downs. We have got a little work to do on Gold.

As we take a look at the Stock Index Futures, it didn’t start off too bad. We were trying to get the Stock Index Futures to be in agreement. The Russell was very anxious to go down today. The NASDAQ was holding up above its speed lines as well as the DOW. Although, at one point it was the second one to have a shoe drop.  The S&P unfortunately, was extremely strong today. Both in the Trading Room and in trade alerts my focus was trying to get a push down. I managed to do some good trading in the Room today but it could have been so much better if we could have the S&P come with us. The goal this morning and in the afternoon session was to see if we could get through the 1080 level as well as get down below the 1890 area. A break of those two simultaneously would have led to a much better afternoon here that would have dwarfed those profits from this morning. That is what we were focusing on this morning and into the afternoon.

Going into tomorrow that is going to be the same thing I am looking for. I would like to get down below 1080 push through there, pull back up there, show me that it is resistance and roll back over. I would like to get through 1890 pull through and push back up and show me it is resistance. These things would lead to some fantastic short-side opportunities. Now, on the upside here if we get through todays highs on these various instruments I will look for long side trades. We locked in some distribution bars on the NASDAQ, DOW, S&P, and the Russell. We have distribution above so to get excited about long-side trades we are going to have to clear the highs of each of those three bars. That means I am going to want the four Stock Index Futures to get back above todays highs or I want the S&P to break down below 1890 and I want the Russell to break down below 1080. That is going to be the favorite trade. That would have made for a good day! That being said, we will rest with the profits that we took from the Trading Room this morning and we know what we are looking for going into tomorrow. Some great trading ahead with a lot of profit opportunities! I am looking forward to doing these things with you as we move forward. You guys have a wonderful night we will see you tomorrow morning in the Live Trading Room or in tomorrow night’s videos. Take care everyone!

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