Rob’s market review as we approach the breaking point

Okay, welcome back everybody, let’s go ahead and take a look at a few things you need to know. First of all, I’ve been talking about, even from last year, the DOW 27,000 area. We’re making equal highs in price or slightly higher highs in price but lower highs in indications that led to the pull-down then back to the 27,000 area pullback back to the 27,000 area, pull back, guess what, back to the 27,000 again. The 27,000 level is super key here right now. We are watching this very closely as we bring it down to a daily chart. You can see for the last two days now we were holding that DOW 27,000, the question is can we start to break back above? Notably, initially, these two distribution bars and immediate backout is one of the things we’re watching. As we bring it down to the daily charts you’ll notice a lot of stress in the system here. You’ll notice tails and accumulation and distribution tails back and forth and what that is doing is leading the market back on an intraday basis. That is an ugly chart, let’s look at why. 

The daily chart is sideways and what we call technically damaged. The hourly, the fifteen-minute, the five minute, and the one minute here are all sideways and technically damaged. Pretty ugly charts here on an intraday basis. What this is doing is chewing up a lot of retail traders. This cycle happens all of the time. It chews up retail traders then all of a sudden what happens is the market starts to break back out but then they watch it go and they say “maybe I should get into the trade”. But they don’t because they got burned up when they got chopped up and spit out here just before the big breaks which is where we are at right now. So, then the big break comes and they don’t believe it because they lost so much money getting chopped to pieces prior to this. Then right about the time they finally say, “oh my gosh I can’t take it anymore, I should’ve have gotten in here, I’m gonna get in” and then it does actually pull back and they lose again. So, this is a vicious retail cycle they go through often. So what’s happening right now is that you can see on a daily basis what you have is, the distribution bars above and the accumulation below. Over and over again you got distribution even on the DAX, you got accumulation below. Distribution above on Russel accumulation down below. So it’s happening over and over again in all of your favorite indices. Basically, what’s happening is caught between a rock and a hard place and in many cases right near those magic speed lines and that or in them and so all of this is one big coiled spring ready to pop and then that’s when we can get real excited for some of our trades again. 

I wanted to go ahead and in the meantime, what I’m doing is focusing on very selective trades like this options trade. We put out here for our options program. So what we did is we went ahead and pushed up to target 2 a couple of times then what I was looking for was then we pushed back through target 2 again, everything else was there the backdrop fired off on the Trader Rescue package – great signals. We’re looking for a long and sure enough, it went ahead and pushed to the upside and then came out with some great news on top of it, go figure, so, that was really nice. So, we’re looking at different and very select plays in this market and focusing primarily only on options signals, you know, for the end of day perspective and then on an intraday going in and trading I’ll be right back in the trading room tomorrow morning focusing on things like “crude oil”, “gold”, the bonds and stock indices. Focusing on several different markets there on an intraday basis as well. So, very intentional options swing trades and that’s going great and then the live trading with the intraday group there as well. Very selective moves getting ready in anticipation of the big breakout. So, I just wanted to give you guys an update here, now that I’m back from Europe and let you guys know what we’re seeing here and get you caught up on other videos over the next few days. 

One final thing to keep in mind for those of you who trade futures, I was shocked to come back and find out that some new students had not rolled over from the September contracts into the December contracts in stock index futures. The quickest way to find out where you should be is to put a 5-minute chart up of the existing contract which is the September contract. Put it up again for the December contract rolling over to and if we have more volume in the 5-minute chart on the new contract than we do on the old contract it’s time to switch. It was time to switch last week, gang. There is a fractional volume here, you can see this right here you’re talking 5 times plus more volume in the new contract which means you’re hurting yourself with poor fills, slippage, etc. So, you definitely want to move over to the new contracts there, as well, okay? So, a little bit of information about intraday and the stocks and options focal point here. We’re going to be watching over the next few days with the DOW 27,000 which is what this is all about once again. So I’ll talk to you guys once again real soon. Take care, everyone, bye-bye!

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Rob’s market review as we approach the breaking point

Okay, welcome back everybody, let’s go ahead and take a look at a few things you need to know. First...