Rob’s Key Levels To Know For This Week’s Trading

Welcome back, Rob here. We have a couple of things tonight. First of all, VIX is still above that 14 level which gives all sorts of fun trades in particular. Also having some more fun trades with options. If you haven’t noticed we have been firing off a lot of options trades. We have also been firing off a lot of trades in the Live Trading Room this morning to the short side early on. VIX continues to help us and not hurt us here. As we take a look at the Euro right now it had a nice rebound today so going into tomorrow my strategy is to see if we can get back above this 1.27 level, if we get above that there might be a short-term long opportunity, it won’t be long lived from my perspective because we do have the downtrend resistance coming back down on top of us, but we will keep any eye on that none-the-less. We do really want to get back down to the 1.25 for it to be best.

As we look at Gold, because of the inventory retracement bars we have here, if we do a speed line to 20 type of trade here I’m probably going to step away from that if the market moves that way. I will probably stay away from that one, just because there is so much resistance. The risk vs. reward is too great at this point.

Crude Oil was a big conversation getter this morning. What happened was we drove to the downside here. This got a lot of our newer traders excited and I had to let them know, that this is actually one big fat support level with this inventory retracement bar. Anywhere near this level and I specifically said this 89 dollar level was the culprit to hold this, particularly the 88 to 80 level, which is the Rob Hoffman 80/20 rule that we use. It got down to 88, 80 and this violently turned around and spiked back up.

Everything we watched in the Live Trading Room we got to watch today unfold tick by tick, so a couple key elements, the inventory retracement bar support, the round number support and using that 80/20 rule of mine as well really came together for crude to avoid very unhappy losses for the people that shorted not seeing that information.

As we take a look at the stock index futures going into tomorrow, really what I would like to see at this point, we are bracketed. I would like to break below the speed lines. We were shorting as we were pulling back into the speed lines, and trying to break so we got several trades off there. We just never could get the follow-through into the afternoon session which is what I was really looking for there. Right now, you can see we’re in kill zones on the SnP right up over here on the DOW, and the NASDAQ. The Russell is slightly below its speed lines. You can imagine what I’d like to do here. I’d like to get down below this area and push down, and get above todays high above some of these bands of resistance and push up. I’d like to see that on both the DOW and the NASDAQ. If you may notice these are both Doji stars on both the NASDAQ and the DOW. If we look to the SnP you will see the same thing, either below the speed lines or the midpoint of the channel here which would be today’s high.

These are very important levels of resistance today and I either want to break up or break down from those for any potential next move. Same thing on the Russell, get either above today’s high with the falling resistance, or preferably get under today’s low and get that support on the other stock index futures for further downside. Just because the path of least resistance would be to the downside in general. That’s a couple of key things we’re watching.

Don’t forget I sent everyone an email today. I spoke at an annual MetaStock conference this weekend. We had people coming from as far as Denmark for that. Jens thank you so much for coming again all the way from Denmark. We had Gary who came all the way from Toronto, who I will see next week, but next week I will be in his neck of the woods.

We have a couple of great places that I will be at around the world. Stay tuned for these emails. Anyone that can make it to these events is always great. We had a gentleman come all the way from the Bahamas and people traveling from all over just to see me at the Las Vegas conference here. Next weekend I’m going to be in Toronto and a few weeks after that be in London. I will send you notices so that wherever you are you will be updated on where we are. We will also be seeing you at the National Las Vegas Traders Expo. I’m sharing some really great insider information at some of these upcoming conferences. Lots of great places to come see me around the world.

I look forward to seeing you in the Live Trading Room in the morning. Hopefully at one of these places live in just a few short weeks.

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