Rob’s Strategies From Today And For Tomorrow

Welcome back everyone.  Let’s take a look at several instruments today!

Apple continues to fail around the 200 day moving average break out.  We have been talking about this a lot.  We have yet to push up, pull back, and take back off.  As far as I am concerned, the long term resistance is still resistance.  I want to be very careful to not jump in looking for trades.

The elephant in the room has been the VIX.  I talked about how the VIX came down to the 12 level.  We have had a bounce, followed by a bigger bounce up.  I had mentioned in last night’s video that we really wanted to get above 13.80 because of the distribution bars.  That would be more bearish.  That exasperated the selloff today.  We will want to watch how we respond to the channel going into tomorrow.  Do we stop and roll back down?  That could bode well for a retracement tomorrow.  If we continue to push deeper into the channel, then the market could probably come down further.  Here is the damage that was done today.

We were looking for the big move here.  A lot of the indicators have already been rolling over for some time.  Where we were making a higher high over here, we weren’t over here.  That is called the negative divergence.  When the market energy is making a higher high in price, but the indicators are making a lower high, it is called negative divergence.  80% plus of the time we should expect the market to roll back into the direction of the indicator.  We told you that the other part of the strategy was to get below the speed lines.  We got below the speed lines on all four Stock Index Futures.  That is when we sprang into action with our Champion Setups Momentum Fund Trader Professional Edition.  The traditional version fired off a sell over here.  However it was not really a sell because it was a red dot, blue bar.  We need a red dot, red bar for selling.  Those different momentum shifts are great reentry spots in a downtrend.  There is another piece in the arsenal.  The wonderful breakdown came from the Professional Edition.  It showed us that right there was the perfect time to enter the short.  From that point on, this thing dropped as low as 119700 area.  That is around $1600 per contract.  That was a nice move to the downside.

Congratulations on both Colorado and Hershey John for taking some great trades this morning.  It is great to be back with them from Colorado this morning.  They made a bunch with live money.  Tomorrow we should expect more excitement and fun.  We will be focusing on the VIX and the speed lines on the Stock Index Futures.  We will want to see if we continue to climb, or do we stay below the speed lines.  If we stay below there, and the VIX continues to climb, we will look for more aggressive shorts.  If vice versa, we will look for some popping on the market for short term longs.  If we get above the speed lines we will look for more aggressive longs.  That is the overall strategy for those indices and I look forward to seeing everyone tomorrow!

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