The Summer Of Volatility And Trading Was In Full Form Once Again Today!

Welcome back everyone!  What an exciting day today.  We talked to you about the summer of volatility ahead of us.  It is a great time to be a trader.  I keep telling people don’t fear the summer!  It is already on a great track to say the least.

The focus was on short and long side trading today.  I focused on the moves to the downside, then caught the Three Musketeer opportunities to the upside.  There are a lot of great opportunities here on both sides of the fence.

There are a couple things to note on all the markets.  The favorite market that I am looking at is IRDM.  You can see that we are back to testing some key levels on a weekly chart.  This is some long term resistance going back to 2015.  You see that every time we get to that area, we get distribution after distribution.  There is just so much distribution.  If we can get above the 12.50 level, which is currently the major resistance, that could send us off for much higher highs.  We are going to keep an eye on that.  The 11.50 is that initial major resistance level.  However, the ultimate resistance level is the 12 dollar mark.  If you are really looking to see if this is finally breaking out, I want to wait till above 12.

We are focusing on short side trades this morning.  The vast majority of the markets were down below the speed lines, falling like a stone.  The DOW was the only one above the speed lines for part of that.  Once we hit those key support levels down below, I then looked for reversals.  We had positive divergences, we had the Three Musketeers, and all of those things kicked in place for reversals to the upside.  It gave opportunities to the downside and the upside.

This now makes big accumulation bars below us.  At the same time, on some of the markets, we have big resistance levels above us.  We have distribution above us on the DAX, RUSSELL and S&P.  That could make things a little more volatile and choppy going into tomorrow’s session.  I will use my speed lines as a guide for longs or shorts.  I will understand that I will be trailing things tighter there until we break below the supports.  This is actually just one big chop fest in here.  This is great for short term trading!  This allows us to turn up the microscope a little bit.

I am going to watch those key support and resistance levels, my Hoffman IRBs.  We are also going to tune up the microscope based on that distribution.  My favorite trade would be if all these markets got above the speed lines.  I would be way more excited about bullishness.  I told you guys in the recent past about those before some really great moves to the upside.

Everything that I do is rinse, cycle, and repeat.  The markets is all about fear and greed.  You guys have a phenomenal night and I can’t wait to see everyone tomorrow!

 

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