Hey everyone, it’s Robert Roy, founder of WealthBuildersHQ.com. Welcome to this edition of Trade With Rob, which is for Tuesday, May 11, 2021. Now, the markets just closed up so let’s go take a look at the S&P 500 and see what’s happening there.

For those of you who are brand-spankin’-new here and haven’t seen our videos before, we define our Fibonacci in here. Here’s our V-bottom, good move up to what was our all-time high, we fell off, came back up, vacillated in there, back again. We started to show some weakness, and we got a good pop there on Thursday. Friday, we exploded – good gap up, and a nice run to what was the all-time high at that point, and today we opened up right about where we were on Friday’s close, and we gave it all back yet again. It just, once again shows the hesitations around here – all these levels, moving averages – all of those components are getting in our way a little bit.

Today’s all-time high was 4236.39, and yesterday (or Friday) was 4238.04, so we’re still not at an all-time high. For today, our closing high still holds with Friday as well. All is good there, but we’re showing a little bit of weakness in the market. If we go back, bigger zoom, it looks like we’re going to still be bullish, or bullish-neutral on the bias of the S&P 500.

So as we flip the tables around, the candidate we want to look at today is DDOG.

So the very first thing we need to do is talk about the Fibonacci. We’ve got an amazing V-top, great V-bottom. We came back in, tested once more in here. One occurrence, one attack of the zero-line. It was a here kitty-kitty. We gapped down, ran a little bit, and it just shot back up, not the way we trade them. We trade them when they’re already broken like this, and now we get another bite at the apple, we go and do it all over again a second time. We’re not playing the breakout, per-se, look what happened- that breakout. We closed here, and the next day we opened up here, and then failed down to the 77.03 level.

So what are we looking at today? Today we made the move down, we stretched a little bit lower, and we were able to hold a white candle, bullish candle – still not bullish.

So here’s what we’re going to do. Tomorrow, if we get a move to the downside, if we do, we’re looking at our first target at around 72.

But Rob, what if I only have one contract? Then the trade is over, you get out right then and there.

Target number 2 is at 66.50. So we’re talking about getting in around 76, getting out at 72 – there’s a $5-move – and then getting out at 66.50, that’s another $8 or so.

Overall, really nice setup, nice structure. It breaks above the 79.50 level, you’re out automatically.

Happy Trading,