Tonight Rob Answers One Of Your Viewer Questions On When He Uses This Key Strategy

Well hey gang, welcome back, Rob here with you.  Listen, before we get into it tonight I want to go ahead and make an apology.  I always tell you guys what we do right, what we do wrong and what we can do better. In this particular case over the weekend we went ahead and offered you guys the opportunity to fill out this form to get customized information.  Well that was all great and then a whole bunch of you went ahead and tried to click on that form and we had already had a couple thousand of you fill it out the other day and this weekend evidently a lot of other people are trying to do it and the link just wasn’t there. That’s my apology, we’ve added a couple of new staff members here just recently in fact this was their first week and kind of put things together. Needless to say we forgot to go ahead and get that link in for you. The good news is we’re growing exponentially and adding staff to take good care of you, the down side is there is going to be some growing pains.  We apologize the link wasn’t there.  I promise you three of my staff paid for it today by having to clean out the emails from all the people trying to find the link.  My humble apologies about that.  With that being said the link is in there tonight for you guys to go in and fill out the information to get access to more customized videos from me using my award winning strategies on your favorite instruments. Let us know your information there, we already have your email address and first and last name anyway but just fill that out. Let us know what you’re interested in, if you’re a full time or part time trader, intraday, swing or long-term so we can send you videos using my strategies in different ways. For instance, our fantastic options trading program should be award winning at 96+ percent profitability based on our close P&L that should win an award somewhere compared to what’s out there in the world.  Needless to say we have a lot of great stuff to offer you.  Fill out the form and will in fact get you those videos, sorry about that.

Now, tonight I am going to take a viewer question we had. This comes from Dan, while they were sifting through that mountain of emails to let people know about the links.

“Rob you talk a lot about the 3 to 1 and 2 to 2 but I was wondering how much attention you pay to this on the hourly chart along with the daily charts of the indices?”

Ok, so it’s real important to understand as we take a look at this that this is very much a strategy that gets used on an intraday basis. This is primarily an intraday basis strategy. It can be used to determine multi day runs for instance, when we saw the Russell up here when it was dramatically weaker than the other stock index futures. Basically the DOW and the S&P effectively were trading sideways while the Russell and the NASDAQ were coming off. So, it can be a precursor, when you see such a broad index like the Russell 2000 having a sell off and the Dow and the S&P not making any forward progression. So that can help with short term swing trade ideas, not long term investment type strategy in this particular case. We can talk a little more about those investment videos for you guys.

So, this is an actual screen shot from this morning. I want you to see how we looked at this and how important this was throughout the morning. So we do very much look at this on an intraday basis compared to the end of day. This is a screenshot of 8:19 CT this morning as I was talking with the group about this and how important it was. Here is a snapshot at 9:05 CT where we were talking about it once again. You’ll notice that we went from a 2 and 2 issue in pre-hours, so we basically had the NASDAQ and the Russell holding down below the speed lines. Meanwhile the Stock index futures were holding up very well so I was telling people that this could push back up to the upside. Effectively, these two were so weak and yet these other two stayed strong relatively strength speaking wise. So what we were looking for was to see if we could break above this blue line on the DOW. The S&P continued to push up into the previous resistance area over here and we were actually watching that quite closely this morning. So, this was at 8:19 CT in the morning. Then we go to 9:05 CT in the morning and I continued to point this out because what was happening was that the NASDAQ was starting to strengthen up. The DOW burst through that blue line of mine. The S&P was doing a great job and got up above, but the Russell was stuck. That was the issue, so then it was the 3 to the 1 that we were focusing on. So it was all about the Russell. What I was looking for was to see if the Russell would actually push up. Now, this is very important. So, at 9:20 CT in the morning, I start pointing out that we went from a 2 to the 2 situation to a 3 to the 1 situation where the Russell was still stuck there. So as of 9:20 CT in the morning, what I had to get that Russell bursting out from underneath in order to take a trade. Well that finally started to happen and that allowed us to focus on long side trades. In fact, here is the last snapshot of the day regarding that, as I was letting people know what to look for going into the afternoon session.

So, you’ll see that the Russell did burst through here that allowed us to focus on and take long side trades in the Live Trading Room this morning. So I don’t have an intermediate shot between 9:20 and 10:40, but make no mistake about it we were looking at it on an intraday basis including the hourly charts. In fact, the hourly charts were a pivotal part this of this morning’s play. So as we go ahead and look at the Russell this morning, we initially got us into an overbought condition. And that really buried everything out, stochastic and everything here. My concern was that we were looking for a pullback here, which we ultimately did get and that led to some additional trading. So we focus on the hourly in relation to this break out/break down. So, the trading that we focused on this morning was actually long side trades on pullback.

So, Dan, I hope that answers your question and you can kind of see how even through the morning, this continued to be in play right up until the very end. It is an ongoing discussion. What’s happening, is it 2 and 2? Is it 3 to the 1? Which is the one that’s the leader? Which is the one that’s lagging? Because that is what we’ve got to keep an eye on. Just like I did this morning, we were stuck there while that other 3 were bursting through. And what I need to see was the Russell come through and it sure did and that is when we started focusing on taking long side trades. I hope that answers your question. I’d love to answer more questions on these and your favorite instruments. So, I encourage everybody, now that we have the link in your video tonight. It is at the end of your video and in your email tonight. Let us know what you are interested in learning out, your favorite instruments, whether you are a part time or full time trader. That makes a difference in the way I frame up the discussions differently for a full time versus part time trader and where you are a swing or intraday. So, fill that form out for us tonight. I apologize, the link was not in this weekend’s email. But fill it out here tonight. Click this link in order to fill out the Trader Special Interest Form

Have a wonderful evening, gang. I look forward to seeing every one of you in the live trading room tomorrow or in tomorrow night’s video. Take care everyone. Have a great night!

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