What’s Next As Rob Gives Kudos To Great Traders For Great Trading

Welcome back! It’s the end of the fifth day of private mentorship. What a great group. I’d like to publicly congratulate them. Many of them did a really great job with some sizable gains this week. Thanks for working hard with me.

The VIX right now as we go into Friday and beyond I’ll be watching now to see if we can get back above the 16 mark. You can see we’re kind of struggling. We couldn’t get it back above the 16.50 area. As you can imagine, for me to get excited about downside moves, I’d like to get above that 16.50 going into Friday’s trading session. The higher the better for a nice selloff. Otherwise I’d like to get back below the 14.70 area where we would have a lot of room to grow to the downside, which would imply some really sizable retracement trades. I’d really be focusing on the longside. That’s my high-level game plan there going into tomorrow.

First things first, the Euro failed my Hoffman distribution bar the other day. This inventory retracement bar we saw come in and down the hatch we’re going. Until we can break above that, we’re not going to be able to do anything with that from a longside perspective in the short-term.

Same thing with Gold. Gold’s inventory retracement bars showed how powerful they are. If anything, I’ll be looking for gold-side shorts going into tomorrow if we can break today’s lows.

With crude oil, we walked in the door with a roughly five percent move and I told people that’s just not going to be sustainable. This was a big fat inventory retracement bar. Right there, institutions showed that there was a lot of overhead inventory before and we got killed off to the T from that area. That’s why it’s so important to understand some of these methodologies because whether you’re a day trader or a swing trader, you might want to consider getting in or exiting trades that institutions are showing their ugly heads on. I told you if we got back above the channels, we’ll be looking for longside trades today. As you can see, ultimately, it ended up a longside day.

Bottom line with stock index futures is we held below my speedlines once again. You can see S&P, the Russell, the Dow and the NASDAQ. The NASDAQ is sitting on the edge of the abyss again. We have a lot of room to move to the downside below this 4300 level. You can bet I’m going to be looking to see if we can make that 4300 level no longer a support level but a resistance. That could bode very poorly for this market to say the least. Be watching for key levels. If we get a big spike off that low, it’s going to be a very powerful retracement short-covering rally where a lot of people get their heads handed to them on the shortside. This is a line in the sand we’ll be watching very closely tomorrow and into next week. This includes all the markets where we have the channels holding us up. That’s going to be the key thing that we are looking for.

With that being said, tomorrow could be another big day. This has been a phenomenal week. Congratulations to all the traders I’ve traded alongside this week. I’m really proud of those guys. We really had some wonderful gains. Let’s have a great day in the live trading room tomorrow morning. I’ll look forward to seeing you in the weekend videos. Everything we’ve been talking about is coming true.

Have a wonderful night!

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