When The Sells Don’t Sell It’s Time To Buy

Welcome back! Friday was a classic case of something I’ve taught you many times in these videos. When the sells don’t sell, it’s time to buy. The last couple of days in the news all we heard about was Trump tariffs and how the world was going to fall apart. Well, one thing we can say with certainty is that regardless of that, this market climbed the wall of worry. So, what should have happened with these terrible tariffs is the market should have gone ahead and sell off. What ended up happening was the market pushed up. You’ll recall from the previous videos, I was looking to see if the Russell would continue to drive to the upside because we had room to grow. We didn’t have as much help from the Dow. We were looking to break the mid-point of the Dow and the bottom line is it all happened. It drove the Nasdaq straight up. I fired off multiple long-side trades in the live trading room. The same concept happened not just on a news basis but on an intraday basis as well. The market would push up, we would have a short-term pull back signal and then it would go right back to buy signals again and supersede those breakout levels. Even on an intraday basis, the sells weren’t really selling. The buys were the way to go. This concept is so important and I continue to share that with you.

As we go into next week, we were very overcooked. We are due for some pull backs but in general, with us being above speed lines and channels, I’ll monitor any pull backs for some short-term trades but really I’ll be looking to re-engage the long side. The positioning on the daily charts is much better on the US side. Dax not so much. It’s into falling resistance but even that’s a positive divergence. Bottom line is focusing on the long-side. That’s going to be a key thing going into next week.

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

To learn more about Rob Hoffman Trader visit www.becomeabettertrader.com

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