Short Side Trading Opportunities and Watching Stock Index Futures Tomorrow

Thank You CME!

Well hey gang, welcome back! Before we get started tonight I just wanted to give a warm thank you to the hospitality at the CME last week and then, of course, Scottsdale. Amy and her great group down there are really nice people. We had a room full of great people and it was a great time. Welcome to all of you that joined our student family there and for everybody else, it was great to see you and meet you. So, great weekend and a warm weekend. That was much appreciated after coming back to the cold Chicago area.

Strategy for Today

As we go ahead and get into the evening it was all about what we talked about over the weekend. This goes back to the beginning of the year. We told you we expected a great 2014. It has been nothing but that. Our Live Trading Room is firing on all cylinders. The nightly videos are firing on all cylinders. Everything is just going fantastic and I’m proud to be helping some traders stay in this business this year. It is a great 2014 and we’re expecting a lot more to come as we go into this year.

When we walked in the door our plan from this weekend, as you recall from the videos, was basically that if we stayed below the speed lines we’d be focusing on shorts and if we got above we’d see if there was opportunity back to the long side. We were really focusing on the short side today because we were so damaged. Even if we had a dead cat bounce we’d be looking for shorts.

This is a chart from this morning (on my screen at 1:51). You’ll see here that it was at about 8:55am Central Time that I had drawn this. I continued to focus on this for people, I said look, we may get a bounce but I am going to be looking for bounces as short opportunities. That was the strategy going into today and continued to be. We had the speed lines coming down on top of us so surely pop ups this morning were going to be met with short side opportunity. That was the plan. We executed on that plan this morning as well.

Live Trading In The Premium Videos

We started this new segment in the nightly Premium Videos where I’m showing a lot more of our live trades from the session and our student trades. People always want to see it in action. They want to see it and they want to learn it. Tonight we focused on this trade right here (on my scree at 2:49). This is so people can see what we do right, what we do wrong and what we can be better at. That is a great way to learn from this. So, we started this segment here last week just to make our nightly Premium Day and Swing Trading Videos even that much better. If you guys want to see some cool trading go ahead and watch that Premium Day Trading Video from tonight.

Watching The Stock Index Futures For Tomorrow

As we go into tomorrow now the plan is going to be as such. We’ve hit some key milestones from a support and resistance perspective. You’ll notice the NASDAQ, the DOW, Russell and the S&P all hit key areas going into this session. However, as you’ll also notice we are still below the speed lines. Overall my desire is to use rallies as shorting opportunities but I am keeping a real close eye on the DOW going into tomorrow’s session. Tomorrow these speed lines are going to come down here a lot sharper and that means we are going to be a lot closer to the falling resistance. If for some reason we can break back up to that falling resistance I am going to back off dramatically from being overly aggressive on short side trades. If the one starts going ahead and leading the three I’m going to be very careful. That is going to be a key thing going into tomorrow’s session.

A couple of other things to watch. If you recall what I mentioned in the videos over the weekend you’ll notice that I was dead on. I said that we were going to be watching that 13720 level and if we can get above 13720 then we would be looking for a much bigger move, especially in the European session. If it happened there it would be more likely to have a move up to the 13800. We got just shy of that 13720 and the 80/20 rule took over and the market rolled right back underneath the resistance at 13700 and did not follow through. So, going into tomorrow and beyond, we are still continuing to watch this 13720 level to see if we can get some traction and put a trailing stop in there behind it to get some traction to the upside.

As far as crude oil is concerned we are going to keep an eye on it as well. We are going to see if we can get back down below this 9500 mark.

In gold I would really like to see. There are going to be some short term short opportunities in gold. Perhaps down in this area right here (on my chart at 5:24) but really what I would like to do is get back above this 12800 area to retest this 12720. That would be the favored trade. We could also get all the way down to the 12200 level. I want to be more cautious with gold and probably wait till after the FOMC information comes out on Wednesday. No one is expecting anything different about the tapering but you never know what kind of information is going to come out. That can put things under pressure.

Speaking of being under pressure, let’s talk about the bonds. We are continuing to hold that resistance that I shared with you. I told you it was going to be key to get above that area and we are struggling to have that happen. Today, we pulled back from there. There are a lot of great long side opportunities on the bonds if we can break through some of this key resistance but right now we are struggling to do that.

Join Our Premium Newsletters For A Great 2014

I think that action really continues to be in the stock index futures without questions. Like I said, if you want to see a great example of that in action from today, you’ll want to watch the Premium Day Trading Video. If you aren’t a part of the Premium Video Subscription we made you an offer over the weekend to be a part of them.

Gang, 2014 is rocking and we want you to be a part of it. Go to www.becomeabettertrader.com/today to be a part of our Student Family. We made you a ridiculous offer where you get to be a part of the Q&A’s (where the great CMG call came from), the discussion forum, the Six Set-up Course, Fear of Pulling the Trigger Course, and also the Starter set of Indicators. Lots of great stuff to get you started. I know once you see it in action you’ll want to stay. So the bet that I’m taking is that you’ll stay with us. For $97/month it is an incredible opportunity. Join us here and be a part of this and make your 2014 a better 2014 as a trader.

You guys have a great night! Looking forward to seeing you in the Live Trading Room tomorrow morning or in tomorrow night’s videos. Let’s do it all over again. Take care everyone.

 

Leave a comment!
Read previous post:
What does VIX (Market Volatility Index) Mean For Upcoming Trades?

First let’s start with our usual cast of characters we like to run up. Lately, I’ve been throwing in a...

Close