Why we shorted Gold this morning and what we’re watching next

Okay, welcome back, gang. This is gonna be kind of a midday video. I try to shake these up and do these every once in a while for you as well. So, basically our focus this morning ended up being interestingly enough on Gold. The US stock indices at the time this morning we’re kind of a mess they’re either downtrends or sideways, what we refer to as, technically damaged but well there was something we did notice that was happening this morning. So gold was weak, all right? And gold was weak and the stocks were weak so the blue line here is gold and this is the stock indices, but what we noticed was when the stock indices would start to firm up once we got into the session here especially we noticed this even more, as the US stock market went in firmed up the gold would go ahead and push down. So, sometimes they had both travel together but notably when the stocks would firm up Gold would go down.

So, we carry that on into the U.S. session. we saw that theme happening in time and time again here and so what that did was that brought us to Gold and then since we were looking at the strength that was in the stock indices, which we’ll talk more about in a moment, but we saw that weakness, so, gold was darned if it did it darn if it didn’t. Even if stocks and stocks were going down, Gold was still going down and then when stocks started going up that accelerated the move down.  So, with that being said we then noticed as we went to Gold, all of the hourly the 15-minute the 5-minute the one-minute charts every single one of them had what we call my institutional indicators which are basically my “Rob in a box” indicators. It’s all my life’s work kind of coming together. And you can see they were all basically blood-red on an intraday basis and on an end of day basis we were down below the speed lines. So, everything here was very negative, to say the least, we had what we call throttling. Here on some indicators here is the two double dots there that’s a very powerful sell signal and so what we did was we focused on shorts and executed shorts and that’s why we were live on the screen in front of people this morning live trading room was focusing on short side trades and then we had some of our options traders going ahead and getting some nice shorts off with GLD. And it’s a win for the future traders a win for the options traders alike. You know the underlying ETF there was an option as well. So, but just going with what we know what had happened which was people shorting with the futures and going ahead and trading with the options. So, really phenomenal stuff and the key was used in the markets there and identifying stock instruments that were weak and then got even weaker when correlations kicked in and that’s exactly what happened with Gold. So, you know I’m done with Gold at this point on the session it started to rebound a little bit. But, there might be some re-entry opportunities basically what we’re gonna be watching with Gold is that Gold still has room to the downside so there might be more opportunities particularly if we get going what I’ve been telling you about in these videos which is this all-important 27,000 area and here we are as I’m talking to you we’re near the 26,950 area and so what’s happening is, now, the real number, just remember the real numbers is the 27,300 to 27,400 area 27,300 to 27,400 area. This area up here. Those are the real numbers to beat but people are going to start feeling a lot more good about themselves on the long side as long as we stay above 27,000. So, below 27,000 I’m focusing more on shorts like with Gold this morning when it wasn’t rallying up and above 27,000 I’ll be focusing more on equity and Index longs.

So, this is a really important theme I keep telling you and it’s directly impacting how we’re focusing on options trades right now and from swing trade basis and it’s directly impacting our intraday basis. So, right now, armed with this information what we have right this moment we’re stuck in a lot of resistance on the NASDAQ right now. We’re stuck in a lot of resistance the Russell. The Russell is really weak this morning and we’ve got the S&P; and the Dow trying to poke their head above. Now, the thing is, they’ve got a lot of resistance as you can see a lot of distribution bars over and a lot of resistance above us over and over and over again so the market is gonna have to kind of climb this wall of worry back up but if it does that then that’s likely to put even more pressure on Gold potentially opening up more Gold side opportunities like how we profited this morning. So, I just want to go ahead and show you that and remind you that how on a razors edge we are as we’re sitting here at this precarious Dow 27,000 area and how this is gonna offer up both intraday trades and then swing trade opportunities as we go ahead and start to break down or break out from this area. So, we’re going to keep you apprised but I thought it’d be interesting to show you a different way how we use the strength of the market or lack thereof and that all-important Gold that everybody’s kind of watching right now and what we saw there that made us want to get short, okay? So, you guys have a great night! We’ll look forward to catching up with you in upcoming videos and lets us keep the good trading going! Take care, everyone! Bye-bye!

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