Focus is on $VIX, Stock Index Futures And Gold

Welcome back, here, everyone! What an exciting day! As we take a look, of course, the story continues since this weekend, the title, the theme, was about the $VIX. We followed through with that, yesterday being all about the $VIX and then once again today it was a story about the $VIX. So, great stuff here, nice pop-ups leading to really good trading in the Trading Room, although, I must admit Ryan beat me out this morning in the Trading Room, so we’re going to have to come in there tomorrow morning and see if I can show him who’s the boss right? That’ll be a lot of fun, just have our fun, little, friendly competition and see who makes more money each day. So we’ll see how that works out tomorrow morning.
As we take a look, in addition to the $VIX, coming off these lows, having the nice pop-up, here, which, of course, leads in general, more trading, also effects the way we handle things , such as stochastic spike trades. Certain trades tend to work a lot better as this $VIX continues to pop-up. People are getting to watch that, live in the Trading Room, which is awesome.

The Bonds

As we’re focusing now, there are certainly lots of different Markets I can focus on tonight, but let’s talk about two of them. First is going to be the Bond. We focus on the 30 year, here. The reason I am bringing you back to this is because over the last 6 months, I spent a lot of time on the Bonds, here with you. Looking through this whole process, we were looking for a breakout, pullback to support, and then a rally. For month after month, from January to February to March, into April, we kept looking and finally in April that’s when it happened. We kept looking for a breakout, a pullback to this key support line of mine, and then a resurgence back above, closing above the speedlines, here. It’s a fantastic setup, here, and it is one we were hunting there for months. I kept saying, “Gang, I know everyone wants to go long here, but not a good idea”, “I know everyone wants to go long here, not a good idea”, over and over, you remember, month after month after month. And then, finally, we pushed through, it pulled back, closed back above the speedlines and Voila! We got to the next target. So what ended up happening, here? We got through that resistance, we pulled back to it, and then we closed back above the speedlines and the BAM, over the next day and a half we ended up having some real nice spiking, there. We got 75% of the way to the next target. So, then, we went into “no traders land”, you recall, not a lot of interest here, we got up to that resistance, got killed right back off of it, got right up to it again today. We still have not broken through it, pullback and start to take back off. And the reason that’s so important, well, we can see that in Gold, because, I told you, the same thing I’ve been watching in the Bonds, historically, is the same thing I’m looking at here in Gold.

Gold Shows

Gold is just incredible. I know you are going to think I am just showing the same cart from a week or two ago, but gang, I’m certainly not here! If you’re following Gold, this is fantastic! Here we are, just sitting here, right at that 13200 level AGAIN, day after day. Opens, highs, lows, closes right at that 13200 level. I warned you about that level before, and we continue to see this. The thing is, what I want you to watch out for now with this, is what happened today, we went in pushing above the speedlines, here, like, “Well, that’s great gang, but we have not closed back above there”. So, we may have pushed up, pulled back, but we have not closed back above there, and that’s a real issue, here. The reason why that’s a real issue is because we don’t, necessarily, then have the full setup in place to have the continuation. Well, sure as can be, no sooner did I say that this morning, then shortly thereafter I talked with the room about that, right here on this pop-up bar, because, as you can imagine, some of our newer students to us getting excited in those kind of moves. Those are the kind of moves that retail traders get excited about, and as we’re correcting bad behaviors out of new students and such, getting them to think about the Markets in a different way, I was explaining that to people. Well, no sooner did I do that, then, within a few moments, when the Market already started rolling over, and then it died a horrible death, dropping over 80 ticks, there, in the next 10 minutes there. It was a great reminder of, and you can see that, then, right over here, how important it is to wait for that strategy to come to completion for follow-through, otherwise, you’re asking to get your head handed to you, okay?

So, great stuff today. It was a lot of fun, and I’m looking forward to another great day. I mean, just look at this. You got the Euro looking to breakdown below the $1.3580. We got Gold, here, looking to breakout, preferably to the upside, above the 1320, that’d be a favored trade, as you can imagine. We got these great Stock Index Futures, that’ve already had these really nice pullbacks these last couple days, because of the $VIX and all that that entails. Going into the coming days, we are going to continue to watch that looking for additional short opportunities, and we’re going to start out with that, of course, when we’re below the speedlines, here. That is going to be our natural inclination here. But, a lot of that is coming to a head. You can see those negative divergences that were resulting in this Market, pushing down. Everything is working the way it’s supposed to. It’s fantastic. So, let’s have another great day trading tomorrow, let’s see who wins the Rob/Ryan battle in the Trade Room tomorrow morning. That should be a lot of fun. You guys have a great night! We’ll look forward to seeing you tomorrow in the Live Trading Room, or we’ll see you in tomorrow night’s videos, here. Have a great evening!

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