Well Happy Saturday everyone. Rob here with you broadcasting one last time from Germany. First, I want to thank all the awesome people that came out to see me today at the booth. In some cases, they drove from hundreds of miles away. I really appreciate you. Thank you so much. That was awesome. We are having a really great event here at the World of Traders in Frankfurt. I have one more big talk this afternoon and I can’t wait. So, what I want to talk about now is that we had a really fantastic week here at Become A Better trader in both the Live Trading Room and our incredible options program. The options program just continues to be on fire.
The Kill Zone
We’ve talked a little bit about some of the different things we were doing in the room throughout the week. Let’s go ahead now and turn our attention to what we’re looking at for next week and some of our key thoughts. So, first of all, with the Euro in a situation like this where we have rising support coming in underneath us and falling resistance coming down on top of us (I show this on my charts at 1:12) this is what we call the kill zone. That is a very bad low probability place to be. The indicators are basically saying the same thing. We’ve got some of them rising, some of them falling. Again, basically nothing but a 50-50 trade and you can see as we’ve been in this kill zone the last three days that we smack into resistance then get killed back off to support and then smack back into resistance. So keep that in mind again, kill zones are bad places to be. So we are going to be staying away from the Euro as we walk into the new week now.
As far as crude oil here. I’m not going to want to do a whole lot with crude oil at this point until we get some clarification on which way we might head in the short term. Of course, ultimately I want to see us get down and start pushing down to that 90 area but in order to do that we are going to have to break below Thursday’s low here at 2:03, which was also an accumulation bar and momentum shift bar. So there is a whole bunch of support in that key area here then I’ll get really excited about moves toward the ninety and potentially below. If we start to grind back towards the 95 area I’m going to remain skeptical and I prefer not to do much until the 20 period EMA comes down to or through the 95 area. Then I might look for some short-term trades back to the falling channel. Again, the preferred trades going into next week given the trends and everything in place here, what I’m going to be much more aggressive on are shorts back below that 92.50 area.
Getting Above the Distribution in Gold
As we go ahead and look at gold here at 2:48, once again, similar situation. I’m going to kind of remain a little skeptical here as we have some cross currents on indications. Again, when we get that kind of thing, which is typically bad news for the average retail trader. They find themselves getting whipsawed out of the positions before the market ultimately moves their way. In the short term, one of the first things I am going to look at is to see if we can get above this distribution bar set from Thursday. Just to give you an idea of where that area is we are talking about the 1294 area. If we can get above that I’ll look for some short term opportunities back here above the thirteen hundred area plus. So, that would be one opportunity otherwise I’d like to see us go ahead, well, we’re going to have to do some more work to get down into a real key shortable area. We will hold off and talk about that more next week as we get to that area.
Powering Ahead in the S&P
In the meantime, with the S&P, we continue to power ahead. I’ve talked about this here. I find the short-side opportunities where we have one of the market indices going bonkers, completely the opposite of the other three. Then as soon as we see the one get back in line with the other three then I am fully looking for longs using those strategies that I shared with you earlier in the week where I’m looking for intraday alignment. As we continue to go into next week, it’s the same thing but a different week. But you know what? That’s what has been working. That’s what has been putting money in my pocket and that is what I have to keep focusing on. So as we look at this, you know, steady as she goes. All four of the stock index futures are above their speed lines and as long as they remain above the fast speed line, I’m going to be focusing much more aggressively on the long-side trades.
Trading Thoughts on the Currencies
As we look at the 30-year bond it is back into what we refer to as that kill zone. The same thing we talked about with the Euro earlier. We have some rising support underneath us, falling resistance on top of us, so now you see on my charts at 4:59 it is kind of churning back and forth in there. What I am looking to do at this point is to look for a little bit more direction to see if we can either break down this accumulation area at 5:08 or if we can push above the high of this momentum shift bar at 5:13. So either above the 134.12 area or below the 131.08 area.
As we go to a couple of the other currencies real quick. British Pound net net it’s more bullish then bearish so I’d look to see if there can be some long-side trades going into next week if we get those intraday time frames in alignment. As far as to the downside though, there is too much key support in this area and down below on my charts at 5:47. So I really don’t want to be in that area. Looking at the Japanese Yen it has already begun breaking down below those areas that I shared with you previously. One of which was below the 100.50 level. So we’ve gone ahead and we broke down through that initially, pulled back up to the speed lines and started charging back down here at 6:10. So we left off on Friday with an accumulation bar. I’d like to see us break down below that accumulation bar and see if we can start pushing towards that 99 and lower.
As far as the DAX, the DAX is a green with what we’re going ahead and seeing. Both the DAX and the Euro Stocks 50. One of the key things that we want to do with the DAX of course is get above this distribution bar (on my chart at 6:31) that we set the other day. So this ninety-two hundred level is really going to be key for this market as you can see. So we are going to be watching that very closely as we go into next week. I’d like to see us break above so that all of these domestic and European indices fire off together. You’ll see a similar story on the Euro Stocks 50. Euro Stocks 50 looking a little bit weaker. It’s got some more work to do to get to it’s top end of it’s distribution there but nonetheless we are going to see if it at least starts moving in the right direction with the other markets.
Keeping An Eye On APPL
Then as we go ahead and look at things like AAPL. The big thing I’m waiting on here before I start getting real aggressive with either put spreads or any sort of long side activity in general is to get above the five-forty area. If you look here at 7:26 the weekly chart will kind of help see this a little better. You’ll notice we have a distribution bar from a couple weeks ago right at that five-forty area (on my charts at 7:36). I’d like to get above that five-forty area. Now many of you know that one of the things I like to do is do thousand share blocks of AAPL on an intraday basis for intraday trading only and I’ll get more aggressive with those plays with the long-side plays above that five-forty as well if we can get above that area and stay above that area. So, watching that weekly chart very closely as well as the daily chart to see if we can start getting above that magic five-forty area again both from an options perspective and underlying stock trading perspective.
The Amazing Options Program
So one final thing here, you guys have been hearing about it, you know it, you’ve seen it and you went ahead and got to see some of the proof of that fantastic options trading program that we’ve put together. Gang, it is time to get on board. If you’re interested: www.becomeabettertrader.com/options. It has been an incredible program. We either opened or closed a trade each day this week and that program just gets better and better. You had the chance to read a snippet about it in the nightly newsletter this evening. You can read about the whole program and finally be a part of something that others are already trying to mimic and they just can’t keep up. We put a lot of time and effort into this program. It’s an incredible program. The other big names just can’t compete with this kind of program. So in the true style of Become A Better Trader we are doing something that most people just can’t do. We encourage you to sign up for it and be part of something special here with us.
You have a fantastic weekend. Can’t wait to see you all in the Live Trading Room Monday morning or in Monday night’s videos.