Hey everyone, it’s Rob from WealthBuildersHQ.com, and welcome to this edition of Trade With Rob which is for Monday, April 12, 2021. The S&P 500 is closed at this time, so let’s go ahead and check out the market first and see what’s going on with the market itself before we start looking into our candidate today.

Here’s our Fibonacci setup – here is our V-bottom, here is our V-top. We’ve had a phenomenal move. We don’t have a topping pattern yet; we need to have a small move down before we have something we can draw off of, but we don’t have that yet here today. So overall what is the market doing, the S&P 500 doing? Well, all-time highs, all-time closing highs…I’d say it’s doing pretty darn in the grand scheme of things. We’ve had some great moves on there, and with that being said, our candidate for today is a company called LABU.

Let’s go take a look at LABU.

So you can see the nice move to the downside. So if you can identify the V-tops and V-bottoms here – here is our swing-high, our V-top, and our V-bottom. We had a quick breakout here once; I love that his has happened already. We got a close below the 70.33 level, which, once again, I am a big fan of.

“Rob, this is kinda going against the market…”

Yup, exactly. And, not long ago, we put a video out – one of the videos we did – was on BIDU, which also had the same type of pattern to it, and you can see the rollover taking place.

Now we’re looking back at LABU, and it’s trading contrary to the overall market – correct. So here’s what I need to have happen… give me a small move to the downside, either tomorrow, Monday or Tuesday, a pullback up to the 70.33, and a failure off of there. Everything about this company is telling me that we’re looking bearish at this point. So if we’re right, our target is going to be right about $56.

The best way to handle this, to make it easier to understand, is we’re going to turn it into a green line, and that becomes our target for our position. Well, our first target. Our second target is about…let’s say $41. There’s our 2 standard deviation move. As far as a stop goes, we’re looking at $77 as our stop.

So there you have it, ladies and gentlemen, LABU is our candidate.

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