Stock market bulls are clinging on to these hopes

Okay, gang welcome back! While the stock market bulls are clinging on to a lot of hopes right now. Let’s go ahead and talk about some of those hopes. Number one, they are hoping that President Trump does not go ahead and get impeached. That impeachment process is grueling and brutal for the public as a whole and of course because of where the economy stands right now. President Trump has given a lot of credit for that and the fear is if he’s taken out then a lot of policies of concern will be put back into place. So, one thing is hoping that this whole Ukraine situation doesn’t go ahead and lead to bigger issues. Obviously, if you’re not a president Trump fan you’re hoping that it leads to bigger issues but if you’re a market watcher you’re probably hoping that it doesn’t. As far as the other thing at hand here is you know what happens with that all-important Dow 27,000 area. Once again, today, we had another down day at one point it was pretty brutal if you didn’t see my institutional indicators were firing off like crazy for hours today, several hours just a bloodbath, an absolute bloodbath. You had all my institutional indicators across the board everything the throttling, stochastics, the double-dot system here which is a culmination of numerous different strategies of mine all coming into play. It was just an absolute bloodbath. Well, the reason why this is happening if you recall is because of the whole failure to break through, pullback to and hold the Dow 27,000 area. So, what that’s done as we look at to the daily charts now.

We’re hanging on by a thread so you don’t want to see the president get impeached if you’re bull you don’t want to go ahead and see any more failures at the Dow 27,000 level effect what you want to see here – the hope that you’re looking for is that because we’re making higher highs in the the charts here you’re hoping that we’re gonna stall out right where we’re at and I’m gonna be watching for this myself very closely to see if we can stall out here and start to charge head. It would take nothing really for this market to start to drive back to the upside from where it’s at. We’ve been making the higher highs in price the higher lows and, so, you can imagine here when the cursor around. You know what’s happening here is that this is a very shallow pullback in the grand scheme of things compared to like the previous ones. The big issue that we have here is the durations. So, before we had you know five plus weeks to the downside then you had three weeks to the upside right now we have approximately you know a week and a half of downside again so the cycles are getting faster and faster if you compare them to the previous ones that were longer these these whipsaws back and forth of getting tighter and tighter so if we could stall out here let’s move to the downside and push right back up we had a heartbeat this could be unbelievably bullish and that’s what though that’s what the bulls are basically hoping for right now. That we’re gonna stall out right in this area right now and that we’re not gonna continue down any further and we’re going to start to push right back up that’s what you want to see if you’re a bull. What you don’t want to see is us basically, breaking down through trend lines here and that you know getting down through that 26,000 area it could be very painful. Breaking that down into a daily chart what we have is, you’ll notice that the S&P; got to the midpoint of the channel, the Russell got to the midpoint of the channel the Dow got to the midpoint of the channel and the Nasdaq was so weak it got to the bottom end of the channel, so, you can see a theme here though no coincidence amongst all these different charts they’re holding out for dear life and we need those areas to hold if you’re a bull do you need these areas to hold.

What you don’t want to do is start breaking down through the bottom end of these channels on these different markets so let’s take a look at those levels real fast. You’re looking here at the 2,940 on the S&P; you’re looking at the 1,521 area on the Russell. You’re looking at the 26,480 area on the Dow and the 7,710 area on the NASDAQ. Those are the areas you really don’t want to be down below otherwise you’re gonna start getting the chills as a long, okay? So then our special options class today we went ahead and we looked at several long side bull side type trades. One thing to keep in mind that to put out the big running type trades right now you really want to get for a short you want to get down below those levels that we just talked about and to get really running to the long side we want to get above those areas that we talked about over here so otherwise which would take is very short term directional trades. Looking for trades that last only a couple of days and are very quickly trending with the trend whatever the trend is like right now with the with the pullback you’re really focusing on the short term – a couple day shorts and then if we start to push back up here then we’ll let’s see if we can start focusing on a couple of long trades and if we break above this area that’s been the area I keep telling about over, and ove,r and ove,r and over, again we want to break through then, that could lead to some massive more let the run runs type longs. So, we’ll break down some of the individual trading ideas that we’re looking at here in some of the upcoming videos but the first thing we want to cover tonight that’s super important is, what are you looking for if you’re a bull, where are your last stands in this market that you’re focusing on and hoping that you hold, all right? And then in upcoming videos we’ll take a look at some of the plays if you are bullish versus if you’re bearish that might be most favorable from our perspective. So we’ll see you in upcoming videos, gang, you have a great night and we’ll see you in the next video. Take care everyone. Bye-bye!

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The market is still failing to break Dow 27,000

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