Today Was A Master Class in Price Action and Trading Strategy

Welcome back! Let’s take a look at a handful of things tonight. Goldman Sachs is butting up against heavy resistance that is striking us from early this year (basically the first quarter of this year). This is not an easy level to break. We need to look to get above that resistance, pull back to show its support and take off before looking for any sort of longs. Watch the market as a whole because you can see what’s happening. The Dow gapped up today as did the S&P. As of the time of this video, it’s coming under pressure. Goldman Sachs is likely to go the way of the market. If you’re seeing the market transition to the downside. Watch for longside trades on Goldman even if this key area is a support level. If the market starts to roll back over, I’d want to get out pretty fast.

As you’ll recall last week when I did my video on AMZN, we talked about the kickoff/blowoff bar scenario. We had the kick off then this blow off. You saw that heavy volume on both those spikes. From my perspective, the way I’m looking at this, we know that after a KOBO, we expect the market to either trade sideways and slightly down or pull back down deeply. As of the time of this writing. It’s giving back a fairly healthy clip. Make sure you study up on the KOBO bars and why we’re talking about that whole concept of KOBOs. Watch the videos from last week and study up on KOBOs.

Another thing to keep in mind is, with the market being as high as it is, people are going to have to get used to these more volatile swings. A 1% move at Dow 24,000, that’s 240 points. Expect more volatility here which can be your best friend. If you manage the markets with the risk, like I did in the Live Trading Room this morning, I dialed in that risk/reward ratio. We spent a lot of time on that walking through tick by tick was incredible for people. Right now, I typically like to look for long-side trades above the speedlines. However, we weren’t universally above the speed lines this morning. We had big gap ups and we were coming roughly 50% off the high on the Russell and S&P. Of course, everyone is staring at the Dow. The Dow was very bullish at the time. The NASDAQ was anything but. It was dipping back down below the speed lines. This kicked in Rob Hoffman-type strategies that we offer you. That was phenomenal for people to see that.

With that being said, one of the key strategies I’m going to continue to use is I’m going to be very willing to take short-side trades quickly. If the NASDAQ is under the speed lines and showing weakness and the other markets are over extended and coming off their highs (with the exception of the Dow because everybody watches it). You can get a lot of selling in the market because everybody is looking at the Dow and it looks strong. I’m really quick to seize upon that opportunity.

One other thing I want to mention is we are coming to the end of this really special offer. I strongly encourage you to take advantage of this offer while you still can. It’s going to end on Wednesday. You get 4 months for the price of 2 for the first round of their membership. You’re going to wish you took advantage of this really special offer. Go to to join me today. Understand that this first time around with the holidays and that, you’re going to get four months instead of the three months, which is already a huge value. Normally, it’s $997 for three months. Once again, go to to sign up now.

Have a great night! We’ll see you in the Live Trading Room tomorrow morning and in the nightly videos.

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