How We Traded Off Of Last Night’s Video Made For You

Welcome back. Let’s go ahead and take a look as an update to yesterday’s video that we put out for you. As you recall   we were looking if the Bond could continue to push down, allowing for the market as a whole to rally. Instead we held the area that I told you was so important yesterday and we pushed right back into that channel. Still no break down decisively of that channel and of course that kept the market as a whole at bay going into today’s session.

The way we ended up playing this was looking this morning, we opened up we started pushing down here. As Bonds were pushing up we were looking at the market pushing down. Now the thing was we were still above the key daily speed lines. In fact, notice that my speed lines acted as support in all of these markets today.

How do we play this? There was great short opportunities this morning in both the 2 minute and 5 minute charts. We had phenomenal speed line continuation opportunities. Also there were some really nice stochastic spike opportunity there for those of you who are familiar with that work as well. Great opportunities there in the trading room this morning. The actual live trading was focusing on short side trading, that is where money was made.

As we go into tomorrow now. Well the things we have been saying to you, Monday night’s videos, and Tuesday night’s videos here it is all the same. We are looking for break out break down. Really like to see Bonds push away from this area and then the market as a whole push up. That is what I would like to see just strictly from the technical ease of use, path of least resistance perspective.

As we take a look at the stock indices as a whole, you can see from a short side perspective, take a look gang proof in the pudding. My work continues to hold here. Those support levels that we told you were so important in yesterday’s videos continue to be important. Now the resistance levels are what we are watching here on the upside. We have got this resistance here on the DOW. We have got this resistance on the S&P. We have got the double dutch resistance on the Russel here two days back to back with distribution bars. The NASDAQ has multiple distribution bars.

We have got all this resistance right above us, but that is still a lot easier, path of least resistance wise, it is a lot easier to get through this a little bit higher and start taking back off than it is to  break down through this support. From a path of least resistance perspective I would like to see the Bonds roll back down again. Like to see the stock index futures start to take back off, there is much less resistance up above than there is support down below.

As you can imagine I will be watching those resistance levels above us going into tomorrow’s session and at the same time I will continue to watch the speed lines for any break down which could accelerate a move to the down side very quickly. Don’t forget we still have these big fat negative divergences. We are looking for them to come to for a wishing and have this market tank, and I mean tank hard if that is going to happen.  Or we go ahead and we break out above, and then these sells stop selling which would lead to at least on last hurrah in this market which could be really fun to the upside. Either way we are expecting big moves here. We are expecting big moves with the election cycle, Brexit is going to be nothing compared to what we ultimately see here. We have some fun trading ahead. You guys got to see that done if you are in the trading room. We are going to use these same strategies going into tomorrow’s session. Great job John and John. We look forward to seeing you guys in the live trading room or in the evening’s videos.

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