Tonight’s Market Review And A Sad Loss Here At BBT

Welcome back! Let’s review the market first then I have a little bit of sad news to share as well. We did get follow through today, which was great. I focused on long-side trading and did long-side trading in the Live Trading Room. That was the right course of action. The key was we had the Nasdaq coming back above the channel at 6720. The real key was we needed to get the Russell pushing back up above this 1530/1532 area. Well, we did and that worked out really nice. That really got this market accelerating this afternoon closing out near the highs. We are really over-extended going into the holiday weekend. My favored trade going into tomorrow would be a small pull back early on and then start to actually resume and blow this thing up. Or just open up and continue to blow up. Either way, it’s perfectly acceptable to me. What I don’t want is to have to start fighting my way back down to key areas back to the short side. If I have to do that kind of trade then I’m going to use tighter stop management. The preferred trade of choice is absolutely to the upside and I’d like to see that to continue. I recognize that we’re very over bought on the U.S. Stock Indices and going into the holiday weekend where you want to take risk off. That can lead to profit taking. If it just drifts down tomorrow I’ll probably just step aside and focus on education. We can slow it down for a day if we have to. It’s not just the money we make, it’s the money we keep. I’d love to see some more short squeezing back to the upside. We’ll have a bigger issue to address on the back end of this once we start getting back up toward these peaks. We’ll talk more about that in upcoming videos.

Turning our attention back to something we talked a lot about until the last several days was the Bonds. We were looking for breakdowns in the bonds previously. We did get those. Remember what I told you was we got these consolidations. We wanted to see if we could get through those consolidations to the downside. We broke through that support, rallied up to it, rolled over and broke down below the accumulation bar. That led to a really nice move to the downside, which is phenomenal. Bonds are under a lot of pressure. You can see daily and weekly chart trending. While we’re due for some retracements back up, I’m not going to be personally looking to buy a dip here based on these trends.

Gold is doing a pretty good job and is holding up real nice. We have some major resistance from the middle of last year to our recent past. If we can get above that 1360 area and actually make this area support, we could see higher prices in gold.

Another instrument I’m watching is crude oil. I want to see if we can get back above the $63 mark. That might lead to another retracement back to the 66 area. As far as some key stocks, I’ll probably go over some on the Wealth365 site as well, but basically we have NFLX challenging previous highs. This high is also made up of a big fat distribution bar on the weekly chart. I’m going to use that same strategy on an intraday basis. If it pulls down, I’ll look for a scalp on the short. The word scalp is probably misleading since we’re talking about a $13/$14 pull back. From a swing trade perspective, there’s no fresh swing trades – especially going into the holiday weekend. We’ll have to come out the other end of the holiday weekend before looking for any major swing trade on that as well as break through that distribution area that I just highlighted for you.

Finally, I’m sad to announce that we lost a long-term family member of ours. Many of you will remember Tim. He was the first person that won the St. Jude’s charity event when we started doing those in 2014. As you can see, Tim was only 58 years old. He won me coming out to his house because he donated money to charity and he won the lottery for me to come see him. I met him and his lovely wife. He was a pharmacist. He was a good man. I loved working with him. He was a good guy and good person. He lived in California near Temecula on a big ant hill. I remember going to his house and spending time with him. He was just a good person. I made a difference in how he traded. He had 11 pages of work and I got him down to one after being with him. He shared some of his exciting trades with me. It’s going to be a real loss. He found out in December that he had cancer and unfortunately I found out in January that he only had a few weeks left. Unfortunately he passed away. I want to celebrate him. I just don’t understand why good people like this have to go so young and early with good families. Needless to say I want to celebrate his life. He loved trading with our student family. From me to his wife, you’ll be missed.

Good night, take care and we’ll see you soon.

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