Hey everyone. It’s Robert Roy founder of WealthBuildersHQ.com. Welcome to this edition of Trade with Rob, which is for Friday, September 10th, 2021. Now keep in mind, as we look at our candidate today, everything we do is for educational purposes only. Nothing is meant to be advice and/or recommendations. All right, so let’s go take a look at our candidate today, but first we want to take a look at the S&P 500. Now we recently closed up 20 minutes ago or so, and here we looking at the SPX. UGLY… Right? So we had a nice little move up today, early out of the gate. Good move up, and we fell apart. We kind of based out at yesterday’s closing area, and a big thrush down about 1:30 and then mostly sideways into the end of the day. So overall, on S&P, went down 20 points. We were up at one point, so overall it’s not been a strong day for the market. How about that?
So with that being said, our candidate today, that we’re going to take a look at is Amgen. So the very first thing we want to do is look at the entire fib so we know where that fib is drawn, you understand what exactly we’re working off of. So what do we have? Great V top in there and a strong V bottom. Love the moves up to the .618 over and over again. Failure points. Next one only makes up the 50 failure point. And now today, we broke through the zero line, which is the 220. 25 level. Good, strong push to the downside. It’s our first time of breaking through. Could you have taken the breakout? Yes. I am not a breakout trader. This is not a breakout trade. This trade requires a retest.
I’ll leave a link in the description down below. There’s a training that I did right here on YouTube that shows you exactly how to go about and take this whole setup and work the entire thing, your stops, all it are right in there.
So look what happened. Look where we closed and what are we looking for? I am looking for a push back up and a retest tomorrow or the next day. It could be on Monday, but a retest of about that 220 level, 220.25. About 220. I needed to retest that level if it does and it fails, here’s what we’re looking to do…
The way that I set these up (and they’re for example purposes) is, my first target is right here, target one. So we come back up, we fail and we take the entry of the trade right in there. Beautiful. Now what? Target one, we sell one half of our position at that 213.50 level, and our initial stop is up here at 222. If we move back up and hit the 222, we’re out of the trade, it’s over, it closes both contracts out and we’re done. But if we’re right and it continues to press to the downside, once we hit that 213.50 level, we’re going to move our stop down below breakeven. So wherever you entered into the stock, just down below there somewhere, so the second half of your trade is basically a free trade. You’re not giving anything back on that first half.
And then we’ve got target to set down here at 206.25. Could you do more contracts? Absolutely. Watch the training video that I did. We do two to show that this trade setup needs to have two stops. What if I only can do one contract on it, Rob than just take target one and you call it a day trades over.
So with that ladies and gentlemen have a great rest of your day, make it a profitable one, stay focused on the quest to becoming a great trader, keep crushing it. And remember you’re just one trade away. Take care, and I will see all of you at our next update. Bye for now.