Rob’s Strategy For The Market And A Few Stocks This Week

Welcome back everyone!  We have a lot to see in all these different markets.

APPL, with today’s, pullback continues to push right back into the heart of the channel.  There is no trade here yet at this point.  As you recall we have been kind of bearish on APPL because of the fading market energy.  In order to get into sell side mode, we would really have to roll over and break down below some of those key supports before any potential visit down in the 90s.  I would otherwise like to get above the 110 area with a break out above the inventory retracement bar in order to look for longs there.

TSLA has been one of those stocks with a bunch of great rebound opportunities.  A lot of times we would start breaking back up above the speed lines.  That would get us some trades into the channel.  We want to wait and see if we get that type of activity again.  We will want to watch tomorrow’s activities closely.

We locked in a distribution bar at these lows today on the Bonds.  We will want to look at see if we can break down below today’s lows for fresh short opportunities down into the rising long term support.  We have already been very bearish the last couple days on the Bonds.  That continues to be true until such time that we break above the distribution bar.  All bets are off for the shorts there.  It is basically break down below today’s lows or step away completely.

We have been talking to you guys repeatedly in the nightly videos about this whole concept of the negative divergence.  There has been a lot of higher highs in prices, but not a higher high in indicators.  Therefore that is a negative divergence.  I told you that the market was going to have to resolve that.  I also said to watch out for some very big moves.  If you compare this to Brexit you would see some similarities.  Brexit dropped for a couple days and pushed up very nicely.  I told you guys that we were going to have some really good moves as we go into the back half of the year.  It is a great time to be a part of the trading room.  Today we put out a great trade alert that worked out really nicely.

The strategy for today was to watch the VIX.  We really want the VIX to get below some long term support.  We gapped up at the open and pushed back down.  Once we got below the long term support, we were looking for a continuation move down.  That meant we were looking for a long side market up.  There were also some other pre requisites that had to happen first.  We had the verbal trade alert in the room and the physical trade alert this afternoon that reinforced that activity.

We came all the way back up to the speed lines on all four Stock Index Futures.  This is not a coincidence.  The question is can we break back above these speed lines to look for long side trades?  We also will want to see if we roll back down as well.  We are going to be looking for longs above the speed lines and shorts below the speed lines.  If the VIX starts pushing down towards the 13.50 area, I will be definitely looking for long side trades.  That is especially if the market is above the speed lines.  If we continue pushing up towards 16, I will be looking for shorts as long as we stay below the speed lines.

What a great way to start this week.  I will be looking forward to seeing you guys in the Live Trading Room or in tomorrow night’s videos.

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