[Watch Out!] If you’re late to this market move, you’re dead

Welcome back! For those of you who are brand new to our student family, let’s give you the big update first. I’ve been warning for quite some time that this 27,000 level never really got broken. What we needed to was push back and take back off. We could never take back off and break through there. We had a little bit of an up move and everyone said there we go to 30,000 and I said “not so fast.” It was a blood bath for those who got caught up without this information. On the daily charts, we can see with a little more clarity what I was warning about. You can see these negative divergences. We were making higher highs in price but lower highs in indications. There was a lot of great information there.

One thing you need to understand is, if you’re trying to jump into the market now, watch out. You’ll notice that on the Dow for instance, this is a major level at this 25,500 level. Each of these 26,000, 27,000 and the mid points 26,500, 25,500, 24,500, etc. are all important levels. We also have long-term massive support as well. Plus, it’s the big red bar theory. Typically, what happens to the average small lot retail trader was they finally get in on the green red bar to the upside or the big red bar to the downside and then the market is usually due for a correction. Unless we’re in crash mode, seldom do we make tomorrow an even bigger gain to the downside. We’ll talk more about that in a moment what to look for. Now we can certainly see much lower lows. But, initially the size of the reactions we had dead cat bounces. People will think that it’s a bottom in the market. Now, we look at this and people can say at least it’s coming back now and they can be lulled into complacency. What I want to see is some sort of bounce back up and some push back up in this area to get excited on a swing basis. Let’s go back to the daily, I said watch the Wealth Strength Index. When you go to www.wealth365.com, you can look at the market as a whole and see the individual stocks like the FAANG stocks. They were up around 300 only to have them falling down the last few weeks. And AMZN you can see was getting worse and worse. It crossed over sharply to the red side. Let’s take a look at what that means. AMZN crossed over to the downside with big fat sell signals in this downward move. We crossed the zero line on the Trader Rescue Package as well. Basically, the short was taken at the close of this bar. Even here, it was down below but that’s okay because you had a reverse inventory retracement bar, classic IRB so plenty of re-entry opportunities. Here this market went down easily into today’s move to the 1760 level. It was a $160 move to the downside. First it went down to Target 2, bounced and came back through. Of course, that’s always a re-entry signal for those who came to my classes last week already know. Sure enough, it led to that nice runaway here. Even AMZN here is making a big fat accumulation bar into the close of the day.

You can’t watch one of my videos without the warnings I’ve been giving you the last few months. As far as the WSI at www.wealth365.com, go there and check out your favorite stocks and indices. We’re coming up to the end of the day so that should update by the time you see this. I’m sure they won’t look much prettier. On an intraday basis, in case this market starts to do the crash scenario, I’ll be looking for selling and the down-trend and making sure I’m down below the zero line. This is for the TRP, which as you can see does the trick. What you can do is wait for a buy signal in the down trend and short below that. Actually, you’ll notice that these right around the same time, generated fresh sell signals as we’re breaking down below those buy signals. It was coincidental but it was confirmation at the same time for further selling. Also, all those strategies I taught you over the weekend were entries and re-entries. You’ll also notice the strategies of getting down below Target 2 and those can lead to those runaways. Everything I taught you on Thursday and Saturday, boy perfect timing.

What a great day to follow along the lessons I gave you on the weekend. If you didn’t heed the warnings before, now’s not the time to execute the fresh short-side trade. The best thing to do is to wait and perhaps break down the 27000 levels on the Dow. Only in a crash situation would you have another day bigger than this. But I’ll be on the lookout for this. You don’t want to discount that move. I’ll want to see are we down below that channel and most importantly the buy signals to go back to sell signals. When buys don’t buy in a downtrend, it’s time to sell and when the sells don’t sell it’s normally time to take a fresh buy. That’s the super important on both sides of the fence. This is a great way to take intraday opportunities and swing trading opportunities. Use WSI at www.wealth365.com and see the great news articles as well. It’s all about trying to be successful with these macro and micro views.
Have a great night!

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