Rob’s Nightly Trading Videos And Live Trading Event

Ok gang, welcome back. We’ve got a lot to cover tonight so we are going to get right into it. Welcome back to all of you that are just getting started with your New Year of trading today versus last week. As we start off tonight looking at the EURO it was an instrument we were watching once again at the 13600 level. We’ve talked often about the 80/20 rule and it certainly held in there this morning. We see that there was a lot of trading at the 80 level (on my charts at 0:39) and it bounced all the way back to the 20 level, so it went down to the 13580 level which is an area we said we were going to be watching very closely. Then it went back up to the 13620 level. We’ll talk about that more in tomorrow night’s video perhaps.

Let’s go ahead and look into tomorrow for the EURO. Unless we can get down through that 13580 we’re not going to be really interested in doing a whole lot with that as it stands. With crude oil we’re going to be looking to see if we can get down below today’s lows. If it moves below today’s low we could be set up for more selling. We certainly should have been getting a decent bounce here with as oversold as we are in the short term. We’ve taken a pretty big hit here (600+ ticks) in a very short amount of time. Typically what you’d expect is a halfway decent dead cat bounce off this. So far we have a lot of resistance coming down on top of us. If we can start to roll back over through today’s lows… in other words: the buys don’t buy because they don’t rejected where they should… then that might be an opportunity for further selling. I’m going to be watching that very closely going into tomorrow’s session.

The Wild Ride in Gold Today

Gold was on a wild ride today and all sorts of speculation as to what caused it: fat-fingering, market manipulation and all sort of other spooky things. Well, you know, what we want to do is to not spend any time worrying about that. You get your head very wrapped around the axle and in the end it won’t do any good for you. What I’m going to be doing is watching the 12500 level tomorrow to the upside and see if we can break through there. So far, as we’ve been watching each of our levels, we were looking to get through here (on my charts at 2:22) for a move to here. Then we were looking for breakthrough here (on my charts at 2:24) to get up to here. So far those things did happen. Well, now we’re looking to see if we can get through that 12500 for a move up here to around the 12600 level. Otherwise, we’ll be looking to see if we can get back down through that fat-finger/market manipulation/whatever you want it to be bars low today. Looking to get back down through there because that will also get us through the speed lines if we actually get back down there after the incident today then that could be very bearish. I’ll be keeping a very close eye on that.

Watching As the Volume Comes Back Into the Stock Index Futures

Let’s take a look at the stock index futures from today (on my charts at 2:58). This kind of goes back to the same theme but different day. We said that as volume started to come back into this market that we expect it to pull back. Since the volume has come back in the market we are seeing it pull back. The way we’re looking at this is to look for short-side trades if all four of the stock index futures are below the speed lines, which they have been. So, we are going to continue to look, at this time, for sell-side trades, although I will be watching the VIX here because I need the VIX to help me out a little bit. Right now you’ll notice there is some overheard resistance and basically more or less price congestion in this area (on my charts at 3:36). For me to get real excited about further and real meaningful heavy selling I would really like to see us get above this peak we set in the VIX the other day. The more this can go up here the more likely the market is going to go ‘kerplunk’. We are going to be watching the VIX with a great deal of interest over the next couple of days too in order to see if we can get past this recent high.

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