Short Side Trades – Rob’s Thoughts In Advance Of Tomorrow’s Session

Ok gang, welcome back. As we look at our Tuesday, a couple of things to note. Last night we told you with the Euro video that we would be looking for those short side trades, but one of those places we would be looking to back off on those trades would be the 1.3550. Well, couldn’t have been more prophetic on that today. Even at the close, you can see, we were only 4 ticks off of that. We pretty much hung around that 1.3550 virtually all day today.

As we look at Gold, it did break out of the little triple top area with the distribution bars I shared with you. It made a run almost back to the falling resistance, so it had the majority of a speed line to 20 trade that came to fruition. Nothing really new to do with that one at this time, we’ll wait for further information now for the next trading opportunities.

As far as the Euro going into that 1.3550 area that we talked about, now, let’s see if we can break that in overnight trade and look for a move to 1.35 and below.

As we look at Crude Oil it has an inventory report tomorrow. So, we are going to look to see if we can break through, with the inventory report’s help, though this key 105 resistance. We locked in a distribution bar today and we have had distribution in the past right up in the same area going back to April. So, it is a pretty important area that we are going to be following and we’re kind of eating through those areas. So let’s see if we can break through 105 and see if we can all start paying more at the pump or at least make some money trading.

Sound Strategy In The Stock Index Futures

As we look at the Stock Index futures, the strategy with that was very sound. I told you that we wanted to avoid the short side trades if we were caught down here in the rising support, we wanted to get through the speed lines and be looking for shorts. Unfortunately what happened for some traders this morning, as soon as the market starting pulling down, because everybody is looking for the big pullback, people started jumping into short side trades and from my perspective that was a mistake and not one that I made. What ended up happening was that I tried to warn people that this was not a good idea. So, sure enough we can see that we had a little bit of a pullback this morning, a half hour, 45 minutes into the open and we “V” spiked right back up there again and took that away. People who were overly exuberant and overly ambitious to the short side trades found themselves getting stopped out pretty quickly thereafter.

So, going into tomorrow, the strategy will remain the same once again. Consistency is key. We are going to have the slow speed lines that are going to catch up a little bit closer underneath us going into tomorrow so we are going to see if the market is going to legitimately break through those areas because, once we do, we have a great opportunity all the way back here to the downside into their long term rising supports. We haven’t touched those supports in quite a while so there is some nice room for movement here back to the downside. So as you can imagine, in addition to things like Crude Oil and such that will be an area we will be watching. So, with that said, have a fantastic evening. I look forward to seeing you in the Live Trading Room tomorrow morning or in tomorrow night’s video here.

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