A Swing Trading & Stock Index Futures kind of Day

Okay gang, welcome back! I hope you are having a great start to the weekend here. Listen, what can we say? Let’s start off with the basics here as we look at the $VIX.

When the $VIX is poppin Rob & Ryan are rockin. Friday of course we fired off five different trades between Ryan and I which kept the room really engaged in the process there and seeing how and why we do what we do. Just really great stuff here as the $VIX continued to pop out of that congestion band here. Let’s see if we can get some more of that action going into next week. Every tick the $VIX goes up so do my number of trades. I always love to go ahead and see situations like that. The $VIX is rising.

Taking a look at APPLE real quick, what can I say about APPLE. All sorts of articles coming out here, I’ve kind of pointed that out a little bit in some of the recent videos. Particularly in Swing Trading Videos. Everybody’s highly negative on APPLE, talking about how APPLE is going to be obsolete in three years for instance and so on and so forth. Since this split was even announced telling people that they’re going to buy the rumor sell the fact well the rumor came out, the split came out and this thing is still continuing to be higher there. Will it go straight up forever? No, of course not but if you’ve been listening in to all that you know ‘muckidy muck’ in the news you missed some really great opportunities.

You recall my Swing Trading Videos, I was sharing with you guys where I was selling puts way down below here with really quick results obviously coming out of that. I’ve been kind of APPLE-ble for a little while here since they announced they were going to do that split. Again my logic being, if you liked it at $600 you’ll love it in the 90s. Makes it a lot easier to afford with those fundamentals. Just beware, it’s another one of those pieces of evidence. Watch out about what you hear in the news. We do have a negative divergence here, we certainly would like to see it pull back, I’d like to see it pull back. Let some of that divergence be absorbed and then have it take off to new levels here again. Nonetheless, if you bought into all the negativity it’s been out since down here, you really missed some great opportunities.

The Euro is most of the way… Thursday and Friday I stayed out of the Euro here. There’s a lot of news that came out for it and the Stock Index Futures just offered up too many opportunities such as the five trades this morning. There’s a little bit of room left until the next major round of support at 1.34. Beyond that my next opportunity to look for this would be below 1.33 80.
As far as Gold is concerned, looking at this both ways you recall the other day I was looking to get a break down below the 12 87 level, that just could not happen. It held that 12 87 I told you about, went right back up here to some falling resistance. We’ve got some more work to do on Gold. I’m actually looking at Gold kind of from both sides of the fence now. I’m looking to short down below the 12 87 look for longs back above that magic 13 20 level you’ve heard me talk about many times over the last month and a half or so.

Crude Oil was a great example of our work in progress here this morning. Crude Oil is one of the trades I actually took here as well. This market came right down to my round number support which is also S2 – Normal Statistical Maximum Daily Range and then shot right back up like a rocket. It was great for people to watch that whole thing in action.

Stock Index Futures Talk

Let’s look at the Stock Index Futures as a unit here. With the Stock Index Futures what I would like to see going into Monday here… we’ve got room to grow to the down side if we can get below this inventory retracement bar here. We’ve got room to grow if we can get down below the low and I’d really like to get below the low set here earlier this week. I would really like to get down below that 11 35 level on the Russell, that would make me a much happier camper. That opens up another hundred tick plus move to the downside immediately and of course below that opens up a whole nother can of worms which I’m looking forward to when that happens. In the meantime we’ve got room to grow to the down side on the NASDAQ on the DOW and we’ve got it to go on the Russell. The Russell as you can see has been the weakest of the bunch since the get go here. the S&P certainly has room to go to the down side but it’s going to be a little bit of a harder journey on the way down here. Some of these other ones, particularly things like the Russell could much easier fall out of bed, a little bit quicker there. Could be a bit of a rocky ride for the S&P traders on the way down for that. A lot of these retail traders have 6-12 tick stops there and 10 to get themselves stopped out very early.

Let’s take a look at the Bonds. We talked about this area right now not looking for the longs until back above this area over here, that’s the earliest otherwise there’s too much stress on the system too much resistance up in this immediate area here to make me real excited about looking for the long side trade. Did have a nice stochastic spike trade here which is all well and good. But looking for the continuations on to my next market at the 140 area I would like to see it get above this area over here set at the end of May.

A lot of great stuff taking place there. Stock Index Futures is definitely one of the primary places. The action was also in my personal trading this morning, in the Crude Oil. As a rule these Stock Index Futures are just opening up a lot of opportunity and while it’s giving a lot of Swing Traders and Options Traders a lot of headaches its opening up a lot of trades for the futures traders. We’re looking at this from a multi-faceted approach of course, Stock trading, Options trading and Futures trading but that’s why the Swing trading video that I do is so important in my Options program. Nonetheless, firing off all the different trades this morning. Great stuff! Looking forward to another big week of it.

Of course we have some milestones that I’m looking for because with the Russell here we’ve gone ahead and had this negative divergence that I’ve been telling you about for a while. That’s lead to various types of selling here. Initially we started that conversation way back over here where I showed you the negative divergences that kicked in and now we’ve seen that even more so as we came back up to those levels, those negative divergences were reinforced and we continue to drive to the down side. As you can imagine, what I would really like to do in the sweet spot here is get down below the 11 12 area on the weekly and then watch this thing deteriorate much further. That’s just because I like to ride the elevator down vs. walk the steps up for no other reason than that. I’m certainly not impermeable by any stretch of the imagination. I just like to ride those nice quick moves to the down side as you can imagine. That’s the beauty of being a trader!

Great stuff! Great week! Great way to end the week with five more trades this morning to really teach traders and have them watch exactly how we do it and why we do it. You guys have a great weekend, I’m looking forward to seeing each and every one of you in the Live Trading Room. If you didn’t already join us this week when we made that special offer consider doing that. There’s a little link to the video down below in your email. You can read more about it if you want at becomeabettertrader.com/ltr. But no matter who you are and why you’re here you guys have a great weekend and we’ll hopefully see you Monday morning to see what we do and why we do it. Otherwise we’ll see you Monday night in the videos here and keep helping you from afar. Take care everyone, have a great weekend!

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