Today’s Relief Rally Is An Example Of Risk Right Now To Overly Aggressive Investors

Welcome back! Today emphasizes the dangers of sitting there betting that the end will come to an end over a weekend with much anticipation. If it doesn’t, there will be a significant relief rally. This is why I warned you, no matter what way you are going to heavily focus on going into a weekend, you want to consider a hedge going into it. Especially when you have longterm rising support coming up underneath us. At the same time, we have a resistance coming down on top of us on some of these incidents. You’re caught in a kill zone. The reason why we call it a kill zone is that it’s whipping back and forth chopping people into bits.

Just an update on AAPL given all we’re seeing, it’s responding very well technically to stochastic spikes. We still have that 160 level, which is a major resistance level at this point. Sure enough, it’s holding. We also have an inventory retracement bar here. We have to get above the 162 level to get too excited on the long side. The environment we’re in with bad things potentially on the cusp with North Korea, we have to be careful.

Finally, on an intraday basis, when you’re seeing a situation like this where you’re hourly charts are strong and all your indicators are firing off like my champion setups. We’re focusing on trading long on an intraday basis but making sure we’re closing out and not holding any positions. This is what we’re looking at on an end of day basis. We’re also caught in that kill zone right now being very careful not to spend too much time on the swing trading side of things given the wide-range of moves we’ll see more of until we break out of this kill zone.

Have a great night! We’ll see you in the live trading room tomorrow morning or in the nightly videos.

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