First shorting Gold, then shorting Indices. What an exciting week!

Okay, welcome back, everybody! What a week here, so, first of all, as we kick off, we talked last week we had that distribution bar that locked in. Very similar the distribution bar over here. So, this is basically a mirror image of where we broke through that 27,000 pull back and tried to take back off couldn’t break above the high. Well, we broke through 27,000 over here weeks ago, pull back, it couldn’t break through the high and made another distribution bar. So, it went to the downside and this is what I told you from the impeachment situation. You already have enough things looming over your head. Problems with China, problems with Iran, problems all over the world, frankly, but, the real issue here was now the aggressive nature of the impeachment process that’s taking place here, regardless, of what you think of it, regardless of what your politics stance is. The bottom line is impeachment is not good when the person who’s recently credited with the economy is under attack and so what that means is, will those policies be reversed? We have one of the recent candidates indicating that she will break up Facebook if she’s elected. They made that very public and then we saw Facebook being concerned about that indicated secretly recorded tapes that they were going to have to sue the government. These are the things that people are having to worry about business a year before the election. So, we’ve got an exciting time ahead of us as traders and in the meantime though, these are the things we have to watch out for. Dow 27,000 still resistance here, so, focusing more heavily on the short side until we get back above there as we talked about before. So, with that being said Monday we were shorting a goal not an intraday basis and close out my positions before the trading-room went ahead and closed and rightfully so the but we saw that weird strange weakness in gold at the time, as well as when the indices were weak.

Gold was still weak at the time until we started getting into the last couple of days now where the market really started to peel away from 27,000. Some panic started to set in so then all of the sudden gold starts looking more interesting. While the stock indices are firing off a sea of blood-red these are my institutional indicators here, so, basically, the “Rob in a box” indicators, the best of my work all combined. All of my different setups and strategies as you can see – blood-red across the board. What we call throttling here, the double red dots up above here, everything fired off systematically exactly how it’s supposed to do and these were massive moves to the outside then it happened again over here and in the European session today continued on. Rallied into falling resistance and then fired off the signals right into the US market and down the hatch it went again for round two. So, everything is doing exactly what we want it to do and that’s phenomenal, so, in general while we’re certainly do for dead cat bounces and perhaps even some healthy retracements, overall, I’m gonna prefer to focus on short side trades here as long as we’re down below the speed lines. Which we are, as you recall the speed lines I told you guys before we got down below those speed lines we’d be focusing more aggressively on the shorts as long as we were below them we’d be focusing more aggressively on the shorts. Then we broke down through major supports here this morning and then it was like, “look out below” all over again. So, right now we are under water. With Dow 27,000 very clearly still resistance. Sell signals last week following through was solid this week. The key levels I talked to you about that we had to watch to the downside got broken – that led to this cascade to the downside and so continue to look preferably for more selective options trade shorts.

There are a couple options as long as I’m looking at we have some of the different markets like the Home Depot’s and JP Morgan’s, well not JP Morgan’s with the financials and the way they are but the Walmart, Home Depot, Costco, different areas, kind of looking around for some interesting plays to the long side with some resumptions, but, mostly the things we’re looking at are the short side of which they are about to fall here. Some of the key ones being focused on there things such as, Exxon Mobil, Cognizant and Biomarin, Incyte, you know, a lot of different great resumption type opportunities that we’re kind of setting our sights on from an options player perspectives. Do watch out right now, though, make sure any trades you’re thinking about taking any of these different instruments make sure that you are watching the earnings release dates. Some of those are creeping up really fast here, so, make sure before you are putting on a fresh options trades that you’re doing keeping the earnings in mind here, okay? So we’ll keep you up to date here right now I said it’s resistance, resistance, and, more resistance at this point and we’re due for some dead cat bounces which might lead to intraday long side trades. More options trades will be for a couple of the plays like I mentioned here. They’ll be talking about those a little bit more as we start show resumptions. But, for now any sort of retracement back up I’m looking to see if there will be fresh resumption short opportunities back to the down side until such time as we get back above these key areas and the market that has been so critical that’s why I’ve been sharing with them on a very, very regular basis with you. All right, so, have a great night gang! Happy trading, let’s go ahead and knock ’em dead again tomorrow and Friday and just close out that week strong at the next couple of days. We’ll keep you up to date while we’re doing. Talk to you soon. Bye-bye!

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

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