Rob’s Trading Strategy For Next Week In San Francisco

Welcome back, let’s go ahead and take a look at our favorite instruments here. First things first, let’s go ahead and look at the stock indices.

From the stock indices perspective we have a lot of negative divergences taking place and that has really stressed out the market as a whole. Let’s start out here with the S&P. You can see we got the higher high in place, but the lower high from indicator perspectives, then as we move ourselves over to things like the Russell.

We can see it very clearly on the Russell as well. We can see it clearly on the DOW and of course clearly on the NASDAQ. We have negative divergence across the board. Bottom line though is one of the first things we are going to be looking at here is. Are we above the speed lines? Or are we below the speed lines? That is what I am looking at first and foremost each day now.

If we get above those and we start getting buy signals here on the champion setups indicator, then absolutely we will look for long side trades. That is how we looked at this week. Got very aggressive on days it broke down below and very cautious it hung around the speed lines there. You can see going into the end of the week here that we have a lot of very interesting price pattern taking place.

We have accumulation bars taking place on the S&P. We have accumulation bars on the Russell, we have accumulation bars on the DOW, and we have got accumulation bars on the NASDAQ. As you can imagine going into next week if we start breaking above the highs from Thursday and Friday, and are above the speed lines as well, which we will have to be to be able to break those highs at this point, then we will get aggressive on the long side.

Armed with the fact that we have these negative divergences here. We start breaking down below those same accumulation bars. That could lead to some pretty healthy corrections. We will be looking to see if that VIX can start popping back up to the 13/15 area. If that happens that could be a sustainable pull back then that could lead to some really phenomenal short side opportunities. We are going to be keeping a close eye on that to be sure.

As we take a look at things such as Bonds here. Bonds here have been held up by some previous accumulation. In fact you can see how into this accumulation bar from back several weeks ago kind of held us in there. Right now I am just not interested in doing anything with Bonds ass I have said with this sideways activity until we can break back above, more ideally this area here for a long or break down around this area for a short. Just not much going on there from my perspective.

As we take a look at Crude Oil. Crude Oil is slowly creeping up to those areas that we were talking about. Looking to see here soon can we actually fire off a champion setup here? Remember the last champion setup we fired off, really great stuff. In fact you can see some other previous champion setups here firing off here a lot of great entry and re-entry opportunities. Then the short here that went down about $3500 gross profit opportunity since I had mentioned that to you in the nightly videos. Well here we are back up over here. The key I am looking for now is I want to get above the $50 mark. I want to break above, I want to get a champion setup indication firing off and I want to make this $50 level support, which could lead to some really great trading to the upside. We are going to be watching that very closely as well. Look forward to the live trading room Monday also looking forward to seeing some of you in San Francisco next week and seeing you at my speaking engagements. Have a great weekend.

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