Today’s Market Proved Rob’s Point From Yesterday

Welcome back! Today was a great example of trading what you see, not what you want. Going into today, what I was hoping for was we would actually see the market push back below these speedlines and start to take back off to the upside. We knew that was going to be a tall order because the NASDAQ was so buried down below. If we could have gotten these above the speedlines, that would have made for some good trading – at least on these three stock index futures understanding that the NASDAQ would be more problematic. As we went into the morning session, we did not break out and start trading above the speedlines on the stock index futures. We basically held the speedlines and stayed under them. You guys who have been following me for years know that it is such an important piece of the puzzle. Phenomenal trades come when we fail those areas and/or we break out above those areas. As we went into the live session this morning, we had nice trending to the downside and then even after all the news was cleared out, we had a resumption pullback to falling resistance. It rolled right back over and had a Champion Setups red dot/red bar sell with plenty of momentum shift breakdowns, momentum shifts with trends, etc. There were lots of opportunities for entries and reentries down the pipe with that fantastic tool set.

It all came starting from what we wanted and would like to see from the market if it would cooperate. We walk in with a bias and as soon as we see that bias isn’t materializing, it’s like a great sell signal. If a great sell signal isn’t selling in the market, maybe it’s time to buy. If a great buy signal isn’t buying in the market, then maybe it’s a great time to sell. That’s what we had here with today’s information. We couldn’t pierce the speedlines. We couldn’t get the NASDAQ have a massive snapback rebound rally. We held there and fired off all of those phenomenal sell signals that I showed you here from this morning. Down the hatch she went. We were focused on shortside trading.

Bottom line is we need to keep all that in mind and I hope that makes a lot of sense. Going into tomorrow, we’re still under the speedlines. Until we get back above them, any sort of longside trades are going to be very cautious in nature. You’ll notice we held the midpoint of the channel on the three stock index futures: the Dow, Russell and S&P. If we get down below the 4300 on the NASDAQ, that could bode very poorly for the market going forward. A level to keep in mind that was a very important level today was the VIX focusing on the 16 level. When we started being above 16 in particular, we were starting to back off. Right now we’re closing at 15.60. Let’s see if we can break down into some of those key support levels pushing 16 and 17 can make for some fantastic trading. We’re looking for some rebounds on the market tomorrow pushing down on the 15 and lower. Maybe we can get some W Pattern buys taking place. We’ll keep an eye on those but those won’t be the favored trades. I always love trading with the speedlines just like today. Those end up being the best trades. That’s our plan for tomorrow. It ties with what I said last night. I was expecting a big move and today was going to be critical. Sure enough, it did have a very nice move today. It was very decisive.

Have a phenomenal night. I’ll look forward to seeing you in the live trading room tomorrow morning or in tomorrow night’s videos. Stay tuned for more trade alerts on your apps. Have a great evening!

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