Rob’s Strategies Next Week After That Poor Jobs Report

Welcome back everyone!  Let’s take a look at the markets after the unsavory jobs reports from Friday.

The Euro had a fantastic rally today.  That came in very early this morning.  Remember I wanted to get short down below the 111800.  This is why we wait to hit some key levels before we go after trades.  I said I wanted to look for longs above this level.  We had a one bar push through here.  I want to see if we can pull back, then hold the top end of the channel and long term resistance, then take off for long side trades.

Gold had a nice rally today as well.  However we smacked right back into resistance.  I have said before that I don’t want to get short with Gold until we get below 12000 level.  I don’t want to go long unless I get above the 12600 level.  I will want to look for the similar pullback as the Euro to see that it is support.  We have some work to do on Gold as well.

Crude Oil is an exciting story, but we need some specific things to happen first.  We got up to my target at the 50 level.  We have multiple days of accumulation bars that locked in.  We need to break up the 50 level, pull back show that the 50 level is support, then take back off.  I want to see these resistance levels on the Euro, Gold, and Crude Oil become support levels.  That could lead to some great long side trading up above.  Until that happens, I am not too excited.

The Bonds have been very boring to me in the big picture until the last three days.  Ironically it was a few days ago that I had my first exciting moment with the bonds in a while.  I told everyone that I think that this is a great long opportunity from a day and swing trading perspective if we can make a resistance level support.  From a day trading basis we have been bullish and long.  We were walking people through this process using my speed line continuation trading today.  The Bonds have been great the past couple days in the Live Trading Room.  I want to see if we can break through these key resistance levels up there.  That could lead to some great moves with the bonds.  There is still inventory in the backdrop that needs to be dealt with first.  We need to start testing that first to show that this is now support first.  That is a key thing to watch for with the bonds.

We have accumulation bars for the third day here in the full market.  You can see on the NASDAQ there are many accumulation bars.  You can see on the DOW there are many accumulation bars.  Even the RUSSELL there was an accumulation bar.  The RUSSELL has clearly been holding the market up.  It has shown way more strength than the other Stock Index Futures.  It just continues to hold.  This morning we did have a nice push back down.  We did take short side trades live in the Live Trading Room today.  Those definitely worked.  In order to get more aggressively short, I need to break down below these key highlighted areas.  I will take less aggressive shorts as we inch close to there.  If we try to force something, that is when bad things can happen.  It has been an unbelievable year.  My equity curve has been phenomenal in the Live Trading Room.  We have very specific things we need to look for before we get aggressive.  We do have all these accumulation bars right now.

If we go into Monday by breaking the highs from these past three days I will be very aggressive on the long side.  We have two plans of actions here.  The first is for the short, and the second for the long.  We don’t want to get too aggressive yet because of the resistance in the back drop.  Only the RUSSELL has broken through the recent resistance highs.  That has been holding us up.  If the other three markets can get on board with this there could be some great rides to the upside.  If we can break down below those inventory retracement bars of the accumulation order then we will focus aggressively on shorts.

Those are the key points that I am looking at with Gold, Crude Oil, Bonds, and the Euro.  You guys have a phenomenal weekend!  I will see you guys in the Live Trading Room Monday, or in tomorrow night’s videos.

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