Rob’s Trading Strategy Saved The Day… Again

Welcome back, this morning was another fine example of a couple of things. First things first, going back to the strategy from last night. I told you I wanted to see all 4 of the stock index futures down below the speed lines to get short. When we walked in the door this morning you will see here that two of the markets, despite all of the negative news, the RUSSEL and the NASDAQ, which I often consider leaders were still above the speed lines. When the DOW was down the S&P were down but the other ones were not down with it, you know what not taking the short. Plus this goes back to another concept I have taught you many times in using the news. When we walked in this morning, first of all we had a down movement in the overnight session, so there was negativity there, let’s just take a look at that negativity in a couple of areas.

First of all Crude Oil, we had a spike down, several small bars, and a spike down, that is called a KOBO, kick off blow off bar, one of my trading strategies there, and I identified the bottom right as it was happening here this morning and sure enough it went ahead and popped right back up. Then as we go ahead and look at the stock index futures, take a look at those you will see how going into the morning session here we were negative, so we were going down, in the early morning. That is an hourly chart by the way at that.

At the same time this morning, if you watch the news early in the morning you saw a couple different things. First of all let’s just take market watch here for a second, you will note that we saw this article, this was front page early this morning. I actually grabbed a great staff shot of it, it is not just Brexit, but it is also Grexit, Spexit, and Frexit are on the brink talking about all those things. And I told you guys it is going to be a great time being a trader here going into the summer. Well that’s what is going to be great, a lot of traders are going to lose a lot of money this summer being on the wrong side of the trade. But I am excited because I got a whole bunch of new traders in addition to my long terms student family members that I am going to be able to help now this summer, I am looking forward working with them through this, but we got four different things taking place there in the economy.

That was front page news there, well then later in the morning, we went ahead and started seeing other articles come out. Talking about the market being due for a 15% pull back according to banks and such. This is also another front page article later in the morning after the one about Brexit, Frexit, Spexit, Grexit etcetera. Then we went ahead and had this come out, Where to hide as big bank warns of 15% swoon for stocks, so lots of negativity plus the market was going down in the US open. What is that ripe for gang? Based on what I have taught you for here many times. It is ripe for a reversal, by the time main stream financial media gets on bored with something, writes a bunch of negative articles, and the market has already been moving down we are usually due for a reversal, that is just how the market works. This all ticks and ties very well with the strategy that I laid forth from you last night, that if we didn’t go ahead and have the NASDAQ we didn’t have the RUSSEL cooperating here, we would want to avoid those shorts. Sure enough went right into the US open and virtually immediately the market stopped, reversed and wiped out the shorts. And then we started taking off to the upside here with the RUSSEL and such.

I just finished off another trade here myself a few minutes ago. We had Colorado John teaching about some of the great strategies this morning, and speed line continuation trades, which were a big hit here late last week. Of course as well were all in the mix. Really the daily charts on the RUSSEL are still a big fat speed line continuation trade until we break down below them. That is why I told you the strategy, no shorts unless we can get below those. At the same time if we started bringing the DOW and S&P back up, I would be looking for long side trades that is what we did. I was focusing on the long side trades this morning rightfully so. With that being said, that is going to be the game plan also going into tomorrow’s session. The market is not closed yet, we still have some time on the clock, I have to get the video down a little early today. You guys have a great night, you have the strategy again for tomorrow, worked flawlessly today and we will see you in the live trading room tomorrow morning or in the night’s videos. Take care everyone.

Leave a comment!
Read previous post:
Rob’s Market Focus Right Now

Well welcome back everyone. A couple things, first things first I want to welcome to all of our new student...