[06/25/2018] Trading Recap: Volatile Day In The Markets.. Dow drops 328 points, Down -$651.02 Today!
Hey, what's going on everybody this. Is flu Gil trader Jeff, author. Of the book trading. Part-time, today, is. Monday. It's, a new week it's, June 25th. Well. Alright. Everybody, welcome. To the show today, is Monday, it's, a new week we, got a new microphone here. Today just kind of testing it out hopefully everything, works out well but, welcome, to the show, boy, was, today, crazy. In the, market I don't know how many of you got a chance to look at the market today but it. Was crazy. Okay. And so we're gonna go take a look at the account run it quick just to see how we did today let's. Get a piece of paper so I can write some stuff down. Alright. So. On. The day today, we were down. Six. Hundred and fifty, one dollars and. Two cents, yep, that's, right we were down six. Hundred and fifty one dollars and two cents. No. Big deal, I'm gonna show you the market of Minik and I can promise you this there. Is a lot, of people that lost a lot, more money than. 652. $651. So what. I'll do really quick is cuz, we're gonna go through our analysis, we're gonna look for setups, we're gonna look at entries, we're gonna go ahead and take a look at the whole market, today and see why or. Just take a look at what happened, today show. You visually, on the chart but I'll tell you this the market, got crushed. Today. I mean. Crushed, so, six hundred fifty one dollars and two cents down on the day boy. When you see how the market, got crushed, and. I'm but I thank man who we're, glad we did what we did and you know why. We know how to play defense this, game is all about playing. Defense and, then taking advantage when, the opportunities, present themselves today. There, was no bullish, opportunities. Well at least not what I was looking at but I was able to play solid, defense and, was only down 650, $1.02, so we're gonna switch to the paper-money platform by, TD Ameritrade, not. Affiliated, with TD Ameritrade, but we're gonna use their platform, illustrative. Purposes only, we might place a trade so let's go ahead and get into this and see what. All went down today. Okay. So let me back it out okay. First. Of all let's, take a look at what. Was the strongest. Index. On the day and. It was not strong but I'll tell you this the, strongest index, on the day was, the S&P. 500. Okay, and it was down. 37. Points, one, point three seven percent it was, a, massive. Red. Candle, today you, noticed how we got that bounce I guess. It was Thursday, we got a huge red candle, on Friday, and, today. Momentum. Continued. To the downside. We, dropped below. Our. Resistance. Level in this case it was support, so we dropped below support, but it was a nasty, now, I'll, be honest with you guys one. Of the reasons why we were able to play such good defense, today as today we entered a protective, put it's, an option, trade I entered a protective, put ride there, when, I saw, that. Price was breaking, support I entered, a protection. Strategy. Which basically, helped me minimize, my. Losses, right. There that protective, put, helped. Out big, time, it, pays, to know how to trade, options. Because. When things start the shift if your, portfolio, is more bullish, known. How to protect, that cute. Okay. Huge. But. Today big. Nasty. Down day it was down, 1.3. 6%, let's just go ahead and take a look at the VIX because. The VIX we would expect to be way, up if, this move was real and, I believe it was real this charts gonna look up and bam, look, at that guy's and. I'm testing out a new microphone, today hopefully. There's no problems, but, we're we're. Gonna do it bear with it you, know hopefully technology, doesn't fail us like it usually does but look at this big update up, 25%. The, VIX, which is the fear index was up 25%.
Which Means those, people like myself that, bought protective, puts boy. Those puts one up in value big, time and that's how we made so much money on our protection. And that's why we only lost six hundred fifty one dollars and two cents. Today. The. Dow Jones was. The second. Weakest. It was down, 300. Right the. Dow. Jones was, down three, hundred. And. Twenty-eight, points. So. If I look at some articles, today, let's, just go pull up stock, market, let's just see real quick if I can see. Any. Nice funny. Titles. House. Inc says trade wars fear. Stocks. Slammed. This, one up I just like somebody's little charts. Stocks. Slammed. On, latest. Trump, tariffs fear slammed. I mean, they didn't just get beat they. Got slammed, okay. I. Like looking at these sometimes just. Look at a stock market again because remember the stock market got slammed, and we were only down. 658. Trump. Trump. Trump stock. Market, down ooh. Let's. Pull up this one no. Big deal but. Again trade wharfs fear spread, to tech and Dow shits. 328. Points. Wall, Street's trade, more anxiety I, mean. You can just search. Markets. Now brought. To you by mdy, one, of many first-to-market ets from State Street Global Advisors. Crazy. But. It was down 328. Points today now, I do. Want to point something out. Look. At this. This. Was, support. Right here now yeah we broke through this hi we crash we crash I mean we've had some nasty. Downloads. Some nasty, downloads, and. It. Fell, all the way down to this support and then look what happened actually I pushed below, the support, and then, Beier step, back in and now it's hovering right at the support, level this is our key, area. So, what we want to look for tomorrow if see if the price continues to the downside, if it does it. Could fall all the way down to this area that's a big drop guys if you don't protect yourself, and know how to play defense there's, a lot of money that can be lost that, move but. If we get some bullish candles, okay, that's a positive sign, then. We can you know again if we're gonna trade this you're, gonna trade the diamonds we can then target back up to this area, okay, so, again, be. Mindful tomorrow, is a critical. Day okay. But, it was down. 328. Points just go to google search you're gonna find all sorts, of bad headlines.
The. Russell 2000. Was down 28. Points, okay. 1.67. Has, a big. Red candles, okay so we. And again I didn't adjust it but the reality, was we have moved our stop-loss, up to here okay. So, remember we have moved it up here, and. We went up and we were just kind of riding the lows we moved it up here so we got stopped out on Friday thank, goodness we did because it took a beatin, today and, we didn't take any of those losses and if. You see you, can trade the ETF that follows the Russell 2000, is the i, WM. Okay now this. Is can I talk about this this is kind of I hate to say it but what. I wanted. I wanted, it to break and I wanted to come back and test this area but there's one thing I don't like about this, if, a test that area, that means it's gonna drop below our 30 day moving, average I don't. Like that but the good news is I'm out of that trade I took. Advantage of the profits, and I got out before the beat down today but it was the third. Weakest. Today, and. Then the weakest, in deck on the day was that Nasdaq. Remember that title, said a min ago about stocks. Got slammed, I. Don't. Want to pull up that video again but it says something like it was led. By technology. In the doubt or the downside of all technology which, is the nasdaq-100, it. Got crushed. Down. 159. And it broke, it. Gapped, down the morning and momentum, just kept going and it broke through support, okay but again we're right at the next support level so, we're gonna watch for tomorrow okay to see kind of what happens, did, you're sticking around here watch, the shows I'll let you guys know what's happening, and what. We see based on the charts. Okay. I got a line here probably one of my classes, but we got a line right here which was represent. Down - bottom. Line is it fell, below the 30, day moving average it was a vicious, down, day all four. Indexes. Went, down and, the. Dow was down bad. But. Guess what there, was two sectors, that were up today, utilities. And. Now, you see this green we got out here because we hit our target and today, it was up 1.6. 6%. I mean it was a, massive. Massive. Update, now. We got, out of this trade so we missed this move but that's ok we, collected, our profit, we will see, we were looking to see if it was gonna do a turnaround, cuz. Remember when it comes to resistance, you see they're gonna break through resistance, or, it's gonna fall over they, broke through and it actually broke through the resin since high of 4:30. This, is a big, big. Breakout. Move guys if I take my Fibonacci, retracement.
And I go all the way down here, this. Is a valid, breakout, today okay so you could actually take, this trade, a valid. Breakout now this is not a trade it's gonna happen overnight this, trade took two months or this pattern, to two months to develop we're. Gonna target the. 50. Was, at 50 495, so, the price target, if you're trading utilities. Is. $54.95. But do not expect price. To go right to that move remember this is a valid breakout okay don't. Expect it to go right to that move you could get several, bull flags along, the way but the key is it was up, massively. The market, took a beatin, and utilities. Were, strong the, utility, sector is a defensive. Sector. Okay. And so, this is what we would expect when, the market, goes down quite. A bit we would expect our defensive. Sectors, to lead this. Was one of them okay, the, next one was, the staples, and it was up and that again that it's a defensive sector you see here we hinder to breakout, right here we, entered, it right here that's where was and we. Just kept going up so today was a positive day for us in the, staples, and again that's probably, part, of the reason why we were only down. $651. When, the market was down. 328. Points and the Nasdaq, got obliterated. Now today, actually. Friday. Friday. Was a valid, breakout, entry, again so, I think that line was a half a position, so remember I told you guys you can take a half a position, on the breakout, that way, if the chart just continues, to move up you, still experience, the gains but, then if you get that pullback. And you, start to see the bull flag form, you can take the other half, but, utilities. Were up point. Five, zero percent. Today okay, that's, huge there were the only two sectors that were up and that's in, because, so. Much but. Those two sectors were up inning and they are defensive, sectors. Real. Estate was the next strongest sector, but it was down point, zero eight down point, two five, percent now. We, we. Circled, it right here because we took that intermediate. Term breakout, from gotta. Go way back from here this, was an entry, okay, now, there was a second, breakout, right here, which happened, on Friday. So. You could have taken this trade on a breakout, Friday. Today. It pulled back let, it pull back to what's called s1, which, is support, level, 1 s1. Is the middle, of the white candle, can, this case is a big white candle this is what we would expect price. Came down and. Then, buyers pushed, it back up and it formed, righted here but this.
Candle. Pattern is a hanging, man candle, pattern it is a bearish, candle. Pattern so be mindful, okay, be. Mindful it could get a pullback but again that's what we would expect because. It broke out we expect, 70%. Of the stocks that breakout to, test the breakout, area but, real estate was, the. Third. Strongest today, pretty. Much flat, only down point zero eight point two five percent but it was down healthcare. Healthcare, was down point seven, eight point. Nine two percent, now, you see here, we entered, into this bull flag it, formed, a pennant, and I told you give you the break to the upside or, the, downside today. It broke. Through the downside, of our pennant, okay, so, the next support level is right there so, tomorrow's, candle, is critical. To see what happens, at this area, it, starts, to form bullish. Candle patterns in that area then, that's what we could look to get into this trade and if we do decide to get into this trade then. What we're gonna do. Is. We're gonna target this, area. Okay the pennants, already come and go okay, so what I'm going to do is I'm going to erase this line, so. Now we got us a channel, so, if, price. Bounces. Off. Level, in the healthcare sector, then. We could be looking to target this now, again it's inside the channel, some of you don't maybe necessarily, like, to trade in the channel, so what I suggest is, to go look in the healthcare sector, and find those strong stocks that. Are in that sector, and if they bounce, take. Those bull flag trades, if there's any in there okay, financial. Sector, down, 0.29. Down. 1.0. 7%, and again it is still looking ugly, I'm staying, far. Away from the financial, sector don't, want anything, to, do with that sector, it is ugly, ugly. Ugly. Bottom. Industrials. Down, 0.92. Okay. Down. 0.12. Percent now this is another reason why we're positive, today I told you right here and I forgot to draw my line but I told you go back to the shows that. We entered, a bearish, trade right there, and I told you that on these bearish, trades they need to happen quick and they, need to happen fast, so what happened was price. Momentum, boom we got that candle, on Friday I told you we were gonna move our stop loss down that, way if price momentum. Can it, switched, bullish, Lee who, we're gonna be out of that trade but today we got paid nicely. Because, look momentum. Just food plumbing. It to the downside, okay and so. We're in this trade, bearishly. Looking. Good we're gonna move our stop loss down here, again, that, way of momentum, shoots back up tomorrow we, collected, some nice profits, on the downside, now we're, at a big time support, level so, if we start to see bullish, patterns, down, here, that's, the place where you can place your trades, and you can target up here again you've got to, place your trades, at critical, areas when you're doing a bullish, trades you want to place your bullish, trades at support. We're at support, that's, where you can make your most, money. At, support. Okay. That, is critical guys so let's be watching, tomorrow. But. Again if, you're not in this trade right, now there's no setup it was down on the day. Basic. Materials. Was down we took this support, bounce trade right, here okay, today. Whew it rolled, over no. Big deal we've got stop-loss, in place I don't know exactly where, it's at I'm gonna have it on my platform malicious. Kind, of estimate, that it's down here. A little. Bit again, it's on the main platform, let's just that's just moving. Probably. About it's probably about right there 3%, below this area so, again we're not out of the trade yet we took this trade we, have our stop-loss, down here today was a nasty day I get, it but we're still right at the support, level so, tomorrow, is a critical, day we start to see bullish patterns, where a bullish, candle we. Could have a nice, run, back up to the upside, again. Take, advantage of, these gifts, when, they're given to you if, tomorrow, we get some bullish, candles, that. Will be a gift, we, can take to the upside hopefully. Everybody my microphone, is doing well I had to trade out microphones, it doesn't work good with the software, that, I'm using but um, hopefully. Everything's, working out well. Energy. Energy. Today, was down, it, was actually, down 2%. Okay. Again. Support, bounce trade right here boom. Fell. Back over, right at support, okay so it's under the 30 day moving average it's looking ugly so let's take a look at oil because remember we look at oil and. We put energy together and. Yeah I was down to man we had that huge, breakout, on Friday huge. Today. I mean. If fall nasty. Then the downside, so big, red candle. Okay. So, if we get some more continued. Down moving this, chart, then the energy, chart, could. Break our, support, level and if it breaks our support level it could be off the racist, this, next, level down. Here. Okay so, we gotta watch tomorrow.
Critical. To see what happens. Right. Now if. You're in this trade let. Your original, stop-loss, do. Its job don't. Mess with it don't, freak out this. Game is not about freaking, out it's having a solid plan and, sticking, to that plan okay, which, means we're, not touching that chart we're in it we, lose we, lost the amount of money that we wanted to lose right money. Management critical, go, watch my podcast, that I posted on my blog on money management because it is the single most important, thing in trading in, there's a lot of important things but money management, is critical once, you position, size accordingly, and, you're willing to lose the amount of money that you're wanting to lose and it meets your sleep factor. Xlk. Technology. Right. Let's, take a look here technology. Really quick. So. Technology, was down, today, one point four seven down, to point, zero, eight percent, again. A nasty. Mood we were inside that channel, sellers, they, won the battle today. Boom. Broke. This support, level now, we're gonna target, down here, and we're gonna just forget if you're not in this trade let. It play out, let, it fall see. This area see, what happens right now it's in the middle of this channel we, don't trade in the middle, of channels, we only trade it resistance, and, support, today, was ugly, and again cuz the Nasdaq, was down the most, technology. Got crushed, it, was down to point zero, eight percent and then the weakest, sector Hyundai look. At this guys we don't make this stuff up this is beautiful. Okay. So discretionary. Was down two point one seven percent, two point, four to. Look. At this we. Got out up here I told you we move her stop boss up we, had a huge, run. We, made out. Of money red. Candle stopped, us out, it was another, down day Friday, and today continued to the downside, so the good news is we were already out of this trade so, we collected, all this profit got, out and today, we didn't lose anything. In that, sector but, I'm at a critical area, now guys see. This is that huge. Huge. Resistance area, we broke dude now we did the test so, we started to get some bullish, patterns, tomorrow, maybe a bullish harami, this, could be a wonderful. Sign, for. The bull traders. Out there but, today. You. Not. Placing any bull trades on this, puppy I want. To see how the dollar did today so I'm gonna pull up the euro United, States dollar remember. The market, got, obliterated. So, we would expect the dollar to. In most cases the dollars up when the markets down but today, look at here today. The, euro was. Powerful. Which, was good for us because we entered, into this trend you know go back and watch Friday's class let. Me see here we entered in a bunch of Forex, trade ok so, if you take the euro United States dollar check, this out we. Got paid huge in the forex market today we entered down here, I told you this was a double, bottom potential. Forming we entered right down here and, look at that we've had three beautiful up days we, did, awesome. The financial, mark and I was down six hundred something in the stock market, okay, I was up tons. In, the forex market because of these charts, I traded. Down here to support I'm targeting. This area, and then if it, breaks through this area that, could be huge now I'm also in that well so key, to remember is the euro was strong today the dollar was weak today, cuz again I know. How to trade this forex market I'm offering a class for those of you that want to actually learn how to trade it as well now, same, type of chart this, is the New Zealand dollar, versus, the United States dollar I enter, down here, at support. This, huge, hammer. Candle. Pattern down here we. Closed above that I entered it today was a down day but. We're, still above support so I'm not I don't do nothing man we got messages popping everywhere I'm not doing that I'm in this trade boom, boom boom now, I'm also in the United, States Canadian. Dollar I'm in this to the downside. Okay I shorted. This pair which, means I want this to go down so, I want the dollar to be weak against. The Canadian, dollar so, for those of you who are in this trade, today. You're, not gonna do anything we entered, right. Here. We're. Not doing anything we're letting our original, stop-loss, do its job okay so going. Here and just looking at the year a little bit closer the, Euro was strong today the dollar was, weak. Okay. But again this market is gigantic. As far as the leverage, you don't need much capital, to turn it into a fortune the, currency, market, again we analyzed, the patterns, just like we do the stock market, the big difference is the leverage, and the money management, right but, the patterns, are the same okay, so we, looked at you, just want to take a look at gold really quickly.
Gold. Was down today, 0.45. I mean it's had a nasty, run, to the downside, okay, now, point three seven percent, but let's see if it's approaching, any major, areas, okay so, the area that I'm looking for is right now it's a no-man's, land but, let me tell you something, down, here, on. December. Of last year, it, hit the low we. Went up here we've done some nasty, stuff so, if price can come back down to this area in gold, we. Start to get like, patterns, such as divergences. And things like that look. At this drop that'll. Be the air where you can make. Potentially. Well. When, I say Meg I mean your reward, is, way. Bigger than your risk I am. Gonna be patient, on gold, if it comes down to that area the 117. That's. Where I'm gonna drop the, hammer now. When I say drop the hammer I'm gonna follow my rules, but, I'm looking. That area okay, looking, for that area so analyzing, everything all, four indexes, were down the, Dow was crushed. 328. Points to the back, to the red right, two sectors, up utilities. Stables, there are defensive, sectors so that's what we would expect and then. Eight, sectors, down. Discretionary. The, worst the, euro was up I mean the dollar was weak right okay the fix, was uh the fix was of huge, huge. Oil. Was down energy. Was down gold. Was down and, yet today, crazy. Volatile. Day we were down, 651. But, that is nothing. Compared. To what everybody else did, I, promise. Really, quickly we're running out of time I'm just gonna drop it to the three-month chart I wanted to go look at I wrote down XLV. Which. Was the it. Was since it was up, there today, it. Wasn't the strongest but I wrote that down I wanted to go take a look to see if I can find any type of I'll see if I can find any up trending stocks in. That area okay so, what we're doing is we're looking at the 30 day moving average it's going down okay. There's, no bullish trades yet but I like what I'm seeing I'll, let you know as it develops, okay but it's not today, now, I drew some lines here, get rid of them today. Down. Day Abbot. Laboratory. Got crush, it broke through the 30 day you know setup we're looking for bullish, setups. Okay, here we go now. Again. This is a channel. Right, it's up here at the channel it's, above the 30 day moving average that's good but. There's nothing, here today what we're waiting for now is a breakout, so this is the breakout, setup writing. That down. This. Is a breakout, setup okay so you could, place, conditional. Orders if you don't know what a conditioned order is get my book I talk about conditional, orders all the time you can place a conditional, order to, get in that trade if the momentum continues okay, but I like that same. Here, we have almost the same type, of setup pattern right we, got us a breakout, setup on Gil I'm, writing these down so I'll expect you guys to write them down as well, one, breakouts we can take a half a position, right. And then if it breaks. Up pulls. Back and. We start to see a bull flag we can take the other half so I got two trades that I'm writing down so far okay, right here there's no set up on J and J Johnson, and Johnson, now. Here there's no set up you see I'm waiting for price to come up to this area no. Setup so we got to murk, again. Price came up here pulled down there's. No setup on this trade right no setup I'm looking for the breakout, right now we're inside a channel okay. We could get some bullish patterns, and again if you can you can trade some you, can trade some spread, trade so this would be a good place to trade. Options. Like, spreads, any anytime you have a sideways, channel, you, can trade strategies. To take advantage, of the sideways, channels, this, might be one again you go look at the option, chain you go follow your rules okay or, if you have coaching with me we'll do it together, if you don't though that's, okay I'm, telling you go look at the option trade we've done it many times go, back to some of mine caught my shows in the flu Geils show and you can see us demonstrating. Option. Trades okay. But no set up there no, set up there that's. Ugly no set up there UnitedHealthcare. Same. Type of concept right next, next. Entry. Would be a break of that area gonna bullish, we're talking about bullish here right now it's. In a channel, it could break through the 30 if it breaks through the 30 day moving average tomorrow could. Be in for some serious job. Okay, everybody so, today. Crazy. In the market, we. Were down 651. No. Big deal when everything, else was down I mean, way crazy down. 328. Points, I wrote. Down and. AM, GN right and then, gild GI LD for a possible, breakout, setup so you can go place conditional, orders or most breakout, setups there in the healthcare sector healthcare, sector, today was down but it was closer to the top in the bottom right, other, than that man I'm glad to be back it's Monday we're gonna do our analysis, all week so make sure you're going, to my blog regularly, looking, at the podcast, that we're posting.
Looking At the articles, we've got some wonderful things coming, out again. Get. My book trading, part-time I'm gonna love this ship this book to you and you, can start, to just again, start to get excited, about this stuff start to learn about this stuff and this is your first step right here if you haven't done it yet you can join on a coaching classes seven, day free trial we also have a seven day free trial, into the Forex classes, we're about to really get that rolling we got a lot of people for, those of you on my Facebook page today you saw I want to give a shout out to rods, capital, hey everybody. Rods. Capital, I was there Saturday, we were talking. Forex, trading to a whole bunch of people awesome. They're all getting involved, in the Forex we're, in the site and we're gonna learn but y'all saw that today I've posted all the pictures shoutout to every one of their rods capital, that was so much fun on Saturday you, know talking about the forex market so those you out there like them that want to get in the forex market you saw today in the euro the New Zealand dollar the Canadian dollar I mean, there's a sea. Of money, and that mark join us who would love to have you in that class and, everybody will work together and we'll all benefit, so join our Forks, class and I'll, have the link in the chat as well alright everybody so, I got a run thanks. So much for being here hopefully, technology. Didn't fail, us today like it's been filling, us but, again I'm just a one-man show, as far as this shot on how many spotlights. And any technical, people helping me out do it all by myself but, I'm doing it for you alright everybody we got people commenting, on photos, and we're all right everybody blue gill trader Jeff author, of the book trading part-time we'll see you next time peace.