Special Trading Time With Rob Hoffman To Kick 2014 Off Right!

Free Webinar Monday December 30th – Trading Time!

Welcome back. Before we get too far into tonight I want to remind everyone that we have a great event for this up coming Monday morning. It is a free webinar and everyone is welcome to attend it. It is going to be Monday morning at 9:00AM CT/10:00AM ET and we’ll be reviewing my favorite setups as well as answering questions to help you kick-off the New Year right. This is outside of many classes that we have coming up in the New Year for the students. We have numerous classes coming there but this is outside of that. That student information will be given in the other videos.

So, this coming Monday morning you’re welcome to join us. Click on the link on our website at www.becomeabettertrader.com and sign up to be a part of this special educational event.

Answering an Important Question on Holiday Trading Volume

I received a question in multiple formats and so I wanted to take a look at that question with you guys here tonight. The question was, “What is this you’re talking about with how during the holiday trade the volumes are lighter and the market can bleed out because there’s not two-sided trade. What’s that all about?”

Well, what we’re looking at here is kind of some examples of recent holiday trade. You’ll notice here that this is Thanksgiving time frame (on my charts at 1:36) and now this is Christmas. This link right here represents the last couple of days trade as compared to the volumes from just the last several months. You can see just how much lower it is even compared to Thanksgiving at this time of the year. Hang, there is just not as much participation going on. I talked about how my institutional clients have said that they are done and are stepping away for the holiday. There are some people on standby to manage positions based on world events that may cause some portfolio allocation but for the most part the institutionals that I know are done.

What that means is that the market can continue to go up beyond its maximum ranges to the upside. It can also go down beyond its normal maximums to the downside because there is not going to be as much participation on the opposite side. Normally the market tends to stay within the norms. Most of you that trade see that the market will move a certain amount and then all of sudden get reverted back to the mean. The market has that tendency to do that on most days most often. Well, the thing is that during holiday trade the market has such a light volume. There’s not necessarily institutional that are coming back in saying, “Hey we’re overdone. I’m going to start selling into this because we’ve gone beyond our normal standard deviations.” You saw that same phenomenon actually did happen into Thanksgiving. So Thanksgiving we just bled up, bled up, and bled up. We consolidated and moved up a little bit and actually reached a high here on November 29th that we then didn’t see again really until about here three weeks later when it was finally broken.

So, what happened was as soon as we got past Thanksgiving the volume started to come in. (Remember on the futures these are about one day off there) and dropped for the next couple of days. That is what I’m saying, once that two-sided trade comes back in the market could revert right back to the mean again. That’s what we’re talking about here as well.

As another piece of information for you I’ve also included a little video on the back end of this tonight. I want to make sure you’re all a part of this process; even those that are on our nightly guest videos. I would love to get your feedback as well. Help us help you into the New Year. I’ve included a survey that you guys can fill out for us. To fill out the survey please visit this link: www.becomeabettertrader.com/2014

Thank you and take care everyone.

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