Hey everyone. This is Robert Roy, founder of WealthBuildersHQ.com, and welcome to this edition of Trade with Rob, which is for January 7th, 2022. I know, it’s been a little while since we’ve done our last one folks. It’s been crazy with holidays. Right as November hit, it went nuts for us, but we’re back. We’re gonna get back on track with these again. They did so well throughout the course of the year for us. I just can’t wait to get ’em kicked off again here. So, the markets just closed up, maybe 15 minutes or so ago. So let’s go and take a look at what’s going on, keeping in mind that everything we look at today is for educational purposes only, and nothing is meant to be advice or recommendations. All right, here’s our follow-us page. Please do, and thank you if you are not only, should you follow along with us on YouTube and get all of the updates, but there’s other social platforms that we post content every single day, whether they’re trade setups, whether they are thoughts, mindset, type things, everything trading related.

So go ahead and check it all out. All right. With that, let’s go look at the S and P 500. So we had the big crash yesterday of course.Today, we had taken a little bit of a move down. We actually had a ping pong trade on the SPX today, between the 4672 and the 4718ish level. Great move inside of there, but we did close to the downside slightly. Okay. So we’ve got some bear- it’s in a neutral bias right now. We’ve got some bearishness looking to the overall, uh, pattern of the market.

So with that being said, our candidate for today is MDT. Which is Medtronics. Right. So if we look at the fib and lemme grab a drawing tool… Here’s our V top on our fib. Here’s our V bottom. We had a good, strong, bearish thrusting pattern with the exception of these two bullish candles. These were nothing – just sideways. They should really be gray, not even, white, meaning they have no value to them. These two white candles really mean nothing either since it came after a gap down from its earnings announcement.

So what are we looking at here? We had this nice bounce up. We failed off the 50, good move back to the downside. So we’ve already violated the -.136. We made it all the way to the -.272. We’re back! We got this quick pop here and we broke down today. Right? So last two days, we’ve had some bearishness going on.

So here’s what we’re looking at. In an ideal world. Tomorrow, we gap down a little bit on the open of the day. We come down just a little bit and then come back up and retest the zero line, hence the name zero line breakout trade. We come back and retest the zero line, the 105.02 level and fail. If so, here’s what you’re going to do.

My first target, yes, first target, T1, is gonna be at 102.75. S1, stop one is gonna be at 105.60. So you basically are putting a bracket in. What you’re doing is you’re saying, let’s say you buy two contracts. You’re gonna say, put my target in for one contract at 102.75, down here, and if it goes against me, it moves up to 105.60, we put a bracket there and we’re gonna sell two contracts on the stop side, which is the entire trade. Whatever that is. I’m using two is the example. We always take two in our examples for the trade. So we’ve got two contracts on the stop, we’re outta the entire trade if it goes against us, only one contract on the downside if it moves in our direction. If we move down and hit our first target, the stop will cancel automatically. Of course, target one goes away, right? Target two is down here at $100.50, you sell the second half of the trade. So if you had 10 contracts, you do five and five. You gotta hundred contracts to do 50 and 50. Right?

Well, we’re gonna move our stop up to just above breakeven. So let’s say we got in at 104, just for kicks and giggles somewhere above that 104 is where you got your stop for your secondary stop is going to be set. All right, fantastic.

So there you have it, ladies and gentlemen make it a profitable day. Stay focused on the quest, becoming a great trader, keep crushing it. And remember you’re just one trade away. Take care of folks. I will see all of you at our next update. Good luck with this one. Okay. Talk to you soon. Bye for now.

 

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