Rob’s Early Morning Warning & Short-Trading Successes

Okay gang, welcome back! Today was the perfect day, putting all the pieces together again. This morning, similar to last Thursday’s event that we had with Infinity Futures, we had to be patient earlier on in the morning. Now, at THAT event, I was able to get the trades off before the Room closed up, but today, we knew what we were looking for going into the afternoon, and boy, did it happen.

First, of all, let’s take a look at the Euro. We were on “Euro watch” all morning, but there was no way to take that trade, because I identified for everybody, now you can’t see it on the 2-minute bar, but the 15-minuts, the hourly-version was a big, fat accumulation bar, so an inventory retracement trade. What that means in English is that when we were coming down, here, we were expecting this area to hold. When we had that combined with lower prices, and the positive divergence on my fast and core trigger, what that means is we expected that to sell into a bait. We had, kind of, a double-support system, there, so we backed off on any attempts to short, and that was the right thing to do, we see going into the rest of the day. This Market just stayed flat as a pancake, and was a fantastic Market to avoid.

Stock Index Futures Talk

As we went on to some other ones people have asked me about today, Gold stayed right where we talked about, from when we mentioned it this morning in the Room, that all you guys were invited to be a part of. Crude Oil, the same thing, just kind of stayed stuck, there, in what we call that “gobbly-gook”, the support and resistance levels. And then, of course, it came down to the Stock Index Futures, that was the big deal. Right from the beginning this morning, I warned people it was going to be a heck of a time trying to take trades from there, because we had retracements back into that “gobbly-gook” area with resistance on the S&P, resistance on the Russell, resistance on the Dow, and we also had resistance on the NASDAQ. Now, the NASDAQ was able to gain a little bit of ground today due to some earnings, but everything else managed to hold down below these key resistance levels, and that really effected the way trading took place today, because what was happening was, every time we were coming up to those key resistance levels that I was warning people about, we were getting knocked down to the tune of 20 to 30 ticks, plus. It was great to walk through this with people, so they could get to see this in action, and avoid those stop-losses, because we were getting these slightly higher highs, some of our guests are like, “you should be looking at a long! You should be looking at a long!” and it’s a solid reminder why some of these retail traders lose a lot of money, because they are looking at what is sort of the inverse of what they should be thinking of it. We managed to avoid those losses, and because I was looking at that resistance, going into the afternoon, here, that still being a factor, having that resistance, I was seeing if we could push back down. Well that did happen, actually, right here into the afternoon, and you see it just couldn’t have been better. It started firing off on my indicators, there, and made the accumulation breakdown trade. We saw a lot of great stuff, here, and this is also known as the “inventory reversal trade”. It went down and broke-down below there, and that gave me multiple short-side trades, here, into this rapid move to the downside. It didn’t last very long, but it was well worth the wait, nonetheless. That’s what we were kind of talking about, here, I’m not going to sit here and trade in these tight, congestive, and quiet areas, I’m going to get where the getting’s good, and this is very similar in nature to that trading I did Thursday, late-morning. If you go back and watch the video from Thursday evening, you’ll see exactly what I’m referring to. All in all, great stuff.

Short-Trading Success

As we go into tomorrow’s session, let’s take a look at we’re looking at. As we look at this, all of these are locked into what we call an “M-Pattern” sell. Now, the Market’s in an uptrend, so what I do when I see M-pattern sells in an uptrend is typically just avoid the short-term longs, initially. Remember, we still have that resistance on the Dow, we still have that resistance on the Russell, and we still have that resistance, over here, on the S&P, that I even showed you at 8:42 this morning. So you take the picture there, and draw this over there. Everything I drew at 8:42 this morning is still very appropriate going into the day at 3:00pm CST, with the close of the cash session. Going into tomorrow, initially, like I said we have this M-pattern sell. I want to see; are we actually going to pull-back from here? Is it a shallow pull-back? And, if it is a shallow pull-back, do we start to break back through this resistance level? I did not just want to go “gang-busters” at the first sign of a long tomorrow morning. I want to give it a little bit of chance to show me that it’s actually going to be able to break through these all-important resistance levels on the S&P, on the Dow, in particular, and I want to see some more work out of the Russell. The Russell, like I said, had a lot of work to do today, and still does. You can see there is a lot of technical damage, we’re caught in this “gobbly-gook” area, rising support/falling resistance and that’s just a kill-zone. We saw that in action today. Every time retail traders wanted a pop-up, it was dropping back 20, 30 ticks. That’s a normal retail stop-out for the average retail trader, which is 12 to 20 ticks. So in the end as we put all the pieces together, everything we talked about in the Room this morning came to fruition, and then into the afternoon, gave some really nice short-side trades, which didn’t last really long, but it was a nice, quick move to receive payment on the day. I was really glad to fire off those trades. Welcome to all of you that joined us today, who came from our special event. If you didn’t join us, you are really missing a great opportunity to have a second half the year with us. Go to www.becomeabettertrader.com/ltr and read about what we gave you as an offer to join us today, we’d love to have you with us for the second –half of the year. I think you are going to see a lot of videos that are going to make you regret not being with us this second-half of the year, you’ll see what I mean. So as I look forward to the back-half of the year, welcome to all our new Student Family, and for everyone else, we’ll look forward to seeing you either in the Live Trading Room tomorrow morning, or in tomorrow night’s videos, here. Take care everyone, have a great evening!

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Watch Rob Hoffman in Action – Futures Trading

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