Rob’s Strategy Going Into The FOMC This Afternoon

Welcome back! I want to do a little special pre-FOMC video for you. So far this morning, we were watching very important levels. This day is basically on three out of four stock indices an inside day. On the 4th index we just ever so slightly popped out above that high and got smacked by the speedline back down. Other than that, it has really been an inside day for the stock indices. Of course that’s a consolidation getting ready for a breakout. This morning, on the S&P and Dow get above the daily speedlines. The Russell and the NASDAQ stayed below these key levels. I’m focusing more on an intraday strategy. It will determine what we will look at for swing trades in the days to come as well as the intraday trades. I really want to get above these key levels that we failed to break through this morning. In particular, I’d like to be above the 7313 area. I’d like to be above the 25470 area on the Dow. I’d like to get the ball rolling on the Russell around the 167750 area or better. On the S&P, I’d like to be above today’s high. Show me that we’re holding these areas and regaining them. We’re very close on that this morning. The speedlines just held it all down unfortunately and that’s what I was worried about. If the Russell didn’t go and the Nasdaq didn’t go, then these other markets weren’t likely to go with it. Sure enough, they all failed.

Going into the afternoon on the opposite side (the sell side), I’m looking for a breakdown below the 7250 area on the Nasdaq. That would be great to see. On the 2810 area is where it will start getting more interesting for me. There’s room to grow to the downside on some of these different markets. The Russell has a great deal of room to grow.  The Dow has plenty of room to grow. Going into the afternoon, I don’t want to take that first short to the downside, I’d almost prefer that it goes down slightly then look for the short. There is a lot of room to grow for the short side. I won’t want to take the first reaction to the short side. I will look for subsequent reactions to the downside if we can get down below some of these key levels. In this case 25300 on the Dow. I’m an equal opportunist going into the afternoon but those key levels were critical this morning. The market got right up to the speedlines this morning and rolled right back over. Anyone who went long right in that area, if you didn’t heed that warning, you were caught in that longside rollover and that didn’t end well.

Have a great night! I’ll look forward to seeing you in the Live Trading Room tomorrow or in the nightly videos.

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