How The Technical Indicators Helped Us Trade in the S&P Today

Welcome back gang, Rob here with you all the way from Germany. As we go ahead and look at what we did today let’s just get right into it. So, first of all, you have to understand why I took the trades that I took. Now what we had was a situation this morning where we’ve talked about these correlations in the past. What we have are things like the NASDAQ, the S&P, the DOW Futures, and I’ll watch those in relation to things like the Russell. So I’m kind watching them all at the same time to see if there is just something wrong in the bunch and then to go ahead and trade accordingly.

Today’s Trading Overview

We had that exact situation this morning. What we had this morning was the NASDAQ, S&P, and DOW kind of dribbling up this morning. Dribbling up a little bit. At the same time we had the Russell making huge moves to the downside. It was just drilling to the downside. For all of you who were watching the price action this morning know exactly what I’m talking about. It would go down, pause for a second, down, then pause for a second. It was just drilling to the downside, completely out of sync with the other three indices. Since the Russell had a lot of room to grow back to the daily speed line I saw that as an opportunity to go ahead and take some short-term short side trades to seize upon those market imbalances.

Today’s Trade Set-ups

As we look at the set-ups here. First of all, when we are looking to short I love to see that my technical indicators are in alignment. Now, in last night’s video I talked to you about identifying those alignments. Right? If I’m looking to short I want to see red, red, red. If I’m looking to go long I’d like to see blue, blue, blue. So keeping it really simple and straightforward there I’m looking for trade retracements. Many of you are familiar with this set-up. I’ve taught many of these set-ups to you in the Live Trading Room and mentoring but also at a higher level in the public events with things like the Speed Line Continuation Trade. Looking for those pulls back to the speed lines. We’ve talked about the Stochastic Spike trades, right? So we were looking for shorts right here on my charts at 2:28. Then we went ahead and had pullbacks into the fall and resistance and ended up having M-pattern cells. All of these were different places where I went and focused on entries this morning and that made for decent profit and very quickly. These are all using the same techniques that I share with you during public events and the Live Trading Room. Obviously we were trading in the Live Trading Room this morning using these strategies as well.

How The Technical Indicators Helped Us Trade Today

Another thing, with the technical indicators, let look at that from a different picture (on my charts at 3:02) since this was the blue side. How did I know that I wanted to back off this morning from shorting (because that’s what I did). I went ahead and enjoyed the Russell short-side trades this morning but then I started backing off. One of the things that caused me to back off was really what I shared with you in last night’s video where I talk about the technical indicators. Remember I just said: blue, blue, blue, red, red, red? Right here at 3:27, same thing, so my Momentum, my Fast Trigger, and my Traditional Trigger all went back to blue on the S&P. So we actually started getting some buy-side enthusiasm that was showing up very clearly in the technical indicators. When I see that kind of thing we want to be looking for long side trades backing off from the short-side trades. When you start getting in a situation like that where the technical indicators start forming those kinds of trades you’re much more likely this reverse as a whole back to the upside. Ultimately, that is what the market did. It ended up closing very strong on the S&Ps.

A couple key thing to keep in mind as we recap here this evening: the correlation charts and how we use that, then the types of set-ups we shared with you publicly here, and the technical indicators. Making sure with the technical indicators that we are on the right side of those trades, which of course as we look at the set-ups this morning, you see when I was looking to short-side trade.

Lots of great stuff. Also, if you guys noticed tonight there was another trade alert video this evening. We had another fantastic options alert. We announced that program to you a little over a week ago and we’ve been doing it for several months extremely profitably and extremely well. If you’re missing the alerts, go to and become part of that program.

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