Trading Into Earnings And This Afternoon’s Key Levels For Breakouts

Welcome back gang! Let’s take a look at a couple things first.

Facebook had been climbing nicely for a while here. I had mentioned that as well. We saw all the indications pointing in that direction. I always say not to execute trades during an earnings report. If you went down for several days before an announcement comes out. A lot of that might be priced in. Even if it is a bad announcement it can still spike up.

This is where the old adage comes in. The adage is buy the rumor and sell the fact. The institutional have people who make a ton of money to know what will happen before you. There are many investigative tools to guess where the markets will go. You see that a lot around the holidays with shopping. They will have people counting bags and seeing if there are large ticket items.

Once you have a situation like Facebook and it has a huge drop, there will be a lot of people who are big believers in Facebook.  Typically it would be able to reclaim the 200 day moving average traditionally. I look to see if it holds that and rolls back over. The massive bar in the back held us up. We don’t have an IRB just yet. But we still want to see if we can hold the 200 day moving average. I still see opportunity here. If we got up to the 200 day moving average, hold it, and start to pull back away, I would be concerned.

I put out a trade alert earlier today for members. We are already above the 1700 level on the RUSSELL. I want to be above that and be above 7440 on the NASDAQ. I want to look for longs from there. I had a similar strategy that I used yesterday. I want to see if I can get a repeat on a similar strategy today. Until that happens, I will refrain from any longs.

You guys have a great night and I look forward to seeing you all the Live Trading Room or in tomorrow night’s videos!

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