Hi everyone, this is Robert Roy, founder of WealthBuildersHQ and welcome to this edition of Trade With Rob which is for June 9, 2021. Hope you’re all having a great day. Markets just closed up just a few minutes ago. Let’s go, first, and check the S&P 500 as we jump in, keeping in mind that all of our candidates are for educational purposes only.
So here we are with the S&P 500. What did it do today? Here’s our V-bottom on our fib. Here’s our V-top. Remember, we’ve got 4181 which is a major fib level, 4191 is the zero-line, and 4200 which is the dot/dashed line. We’ve broken above that nicely. We came down to that just a few days ago, moved up, and now we’re bumping our head on ugly – ugly is wherever resistance is. 4237.25 is resistance. We didn’t get to all-time highs today intraday. We got pretty darn close, which is phenomenal. We closed at 4230.64 or right around there, and 4232.60 is our all-time closing high. So, although we didn’t burst through the 4237 level, we’re definitely attacking it the right way. Showing constant pressure on it, we’re so close to all-time highs. We’re going to break the 4237, even if it’s just for a second. Someone’s going to ring the bell, even if the market falls apart and collapses, we’re going to ring the bell.
So with that being said, we’re very bullish in our bias on the market today.
So our candidate for today is LLY, which is Lily. Look at that move! Look where we’re sitting right now. We had a phenomenal zero-line breakout yesterday on the market. But, how do you say on LLY, “yes, I’m taking this trade! It broke out of the zero-line, the 218 level, and that’s the time to get in”? Really? After it moved up from 200-ish? That’s the time to get in? Probably not my most excited moment to want to enter in a trade.
But, with a typical zero-line breakout, we look for a retest, which we got today, which is phenomenal. So what I’m looking for tomorrow is the same thing. I need it to pull back closer to the 218 level and bounce. It doesn’t have to get all the way down there – get me close enough where you’re comfortable with the entry, take that entry, and look for the bullish trade to be taken.
If we are wrong and it goes against us, 215 is where our stop is. Our first target is 224, and our second target is 232. Now, understand, if you’re taking just one contract, the trade is over at 224. If you’re trading more than 1 contract, you’re going to scale out of the trade, 50% when it gets to 224, and the other 50% at 232. You’re not holding one contract until 232. We want out of this trade at 224 at our first exit because you just don’t know if it’s making it there. Now, the beauty of this is that we did it yesterday. The stock has memory. It has the potential to go back to where it was yesterday, or where it came from.
The video is about the BX trade not LLY.
Thanks, Anthony. This has been fixed.