Welcome, ladies and gentlemen. Robert Roy of WealthBuildesrHQ.com. Welcome to Trade With Rob, which is for Wednesdays, June 30, 2021. I hope you’re all having a fantastic day and trading day. Let’s go ahead and jump right in.
We’ll start off with the S&P 500 where we had a nice move up today, and then a good pullback. From where we closed on Monday to where we are today, slightly up, but the overall pattern was bearish, especially at the end of the day. We had that really big push down. We got that recovery, and were able to pull this one out as a win for the day, up over a point on the S&P 500.
We look at the VIX, the fear factor, and fear today is up slightly, but not bad whatsoever. If you go over to the daily charts, here is our VIX – overall pattern, down. And if we look at the S&P 500, overall pattern, hitting all-time highs. So, rockin’ it, no matter how you slice it on the S&P. I’m not worried that the VIX is up a little bit today.
Our candidate for today is PANW.
So, what are we looking at? The very first thing is, I need to grab a drawing tool. We’ve got a nice V-bottom here. Good, strong, bullish thrusting pattern, great V-top, made the pullback to the .236. Kind of a 3-check-mark. Yes (x3). Everything aligned itself perfectly. We had the nice pullback, an inverted “h” pattern. (If you don’t see it, go ahead and check out some of our YouTube stuff.) And, what happened? We pushed up, barely, over the zero-line, which is 373, and we failed. We came back here with a “here, kitty kitty,” and we failed. We pushed up again, we retested, and that was the opportunity to take the potential bullish entry. We gapped up to our first resistance level, and then pulled back to the 373.01 which is where we are right now.
So what are we looking for? In an ideal world, we’re looking for a pullback down to the 373. Does it have to hit it exactly? It doesn’t. It’s all a matter of, the closer you can get to 373, the less risk you are taking on in your stock. If we can get the move down to 373 and take a bounce, or a close near it and a bounce (either way, it’s your call based on your risk profile), we’re looking at 380 as our target and 388 as our second target.
If you’re taking on a trade and you have one contract – I just gave you two targets – T1, you’ll take the entire trade off there. If you have more than one contract, you’d take half the trade out at T1, the other half off at a T2. And, your stop is at 369. If you’re just wrong, you take the bounce and it fails, 369 is where we are out of the trade.