Trading Strategy – How Rob Is Trading Tomorrow

Okay gang, welcome back! Let’s take a look real briefly at a couple of the key Markets and what our trading strategy is for them.

Trading Strategy For The Euro, Gold, And Crude Oil

As far as the Euro is concerned right now, the Euro is in “no trader zone” from my perspective, unless you are absolutely short term scalping this thing, which is not really what I’m looking for from a trade. As long as I’m looking at this I’d like to break down below this inventory retracement bar, over here, or I’d like to get back above the down-trending resistance up above, which is currently around $1.3450 area. So, we’ve got a little bit of action there, and a little bit of range that we need to get through to take a trade there. Right now, no trade, no fresh trade in the Euro here.

As far as a Gold trading strategy is concerned, Gold continues to be in those “watch” ranges I have told you about. We’re not breaking through, so far, above the inventory retracement bar, here, to the upside or the downside. So, that status quo is still intact, here. That’s why I’ve warned everybody about this, because in the big picture, this is still a very, very tight consolidation range. Remember what I told you about this from the weekly chart, you really want to get above the weekly range, here, or below the weekly range, here. Anything in this area, right here, is just going to be more noise and just some pretty violent whipsaws and that can really cause traders some angst.

As far as what we did today in Crude Oil, we got just above the inventory retracement bar, right over here, set last Friday, but it got stopped here at price resistance from the day before. We just couldn’t breakthrough that area that we locked in a distribution inventory retracement bar. What our trading strategy is for this get back above those highs set earlier last week, around the 9870 area, approximately. If we get above that 9870, we have a decent chance of moving up, approximately 80 to 100 ticks, back up over here. Otherwise, I want to back off and wait to see if we can push down below the 9650 area for a move back to 9500.

As far as the Bonds are concerned, something I mentioned to you from the weekend video, we’ve locked in this inventory retracement bar. The target’s already been achieved. We hit that target last Friday, so, we’re already done. We hit the target, all the targets that I mentioned in the Bonds continue to be hit, once the signals are firing off. Now we’re looking for a fresh trade, here, a fresh signal, and right now, we have no fresh signal. We need to get back above here, pull back, and then start to take back off again for the next target up above, but as you can see that is not in place, yet.

Looking At The Stock Index Futures Today And Tomorrow

As we look to the Stock Index Futures, those were certainly the place to be, from my perspective, this morning. As we start off, let’s move this over, I see my indicators were firing off, here, quite a bit throughout the morning and that gave some really fantastic moves to the upside, here.

As we look to tomorrow, our trading strategy is this; we got the Dow, the Russell, and the S&P that all came approximately 50% off their highs, so they were all inventory retracement bars, back there. We need to see what is going to happen tomorrow. Tomorrow is really the key day. Because, with the inventory retracement bar, are we just going to roll right back over again. If so, this Market is still very much in jeopardy. If we can actually push through the highs of these bars, that would be much more likely to a little bit more sustaining for the bulls. So, the bulls are really going to try to push this thing higher. I warned everybody last week that this is that point of no return, this is the area that these Markets are holding on for dear life, because if they get much lower, look out below! There is nothing but air down below some of these, as we talked about. Lots of air down below, and you can see it even more clearly on the Russell, lots of air. And so, these were the last bastions of support, and if we didn’t hold those, this Market was in deep trouble. This is where the big fight was going to take place between the longs and the shorts. So far, the longs are winning in the short-term. Tomorrow’s going to prove to be a key day for me after this inventory retracement bar type days, these distribution bars. Does the Market start to push right back down again? If it does, I’ll aggressively start looking for short-side trades again. If we start to hold and break above the high of these inventory retracement bars, I’ll be looking for a lot more aggressive long-side trades. Okay?

With that being said, you guys have a great night. Lots of announcements to come later in the week, and I’ll look forward to seeing you guys, each and every one of you, in the Live Trading Room tomorrow morning, or in tomorrow night’s videos here. Take care everyone!

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