Hubert Senters here.
Let’s take a look at The Dow. This is a two minute chart as you can see the Fed has decided to raise rates and then initially The Dow went up, pulled back, went up again and now it’s rolling over and it’s down $108.14 points.
On CNBC it’s like oh my god, The Dow has fallen. It’s fallen a hundred points now that the interest rates. It’s a knee jerk reaction. Don’t worry about it right now. There’s a couple different ways you can play this. You can get short bonds. Now, you would think that bonds would be going lower with an interest rate higher.
They won’t actually drift sideways to slightly higher then they’ll roll back over very counter-intuitive and then obviously knee jerk reaction if you don’t feel like trading this stuff you can always just sit out and wait until Thursday or Friday or wait until next Monday. There’s always a trade right around the corner so if you missed this one don’t freak out there’s another trade right around the corner.
Now, this is selling off down $135. Let me pull up a bigger chart. Here’s a daily chart. And as you can see you have got all kinds of lines here for support and resistance. Overall it’s still in pretty good shape. I’m going to pause the video and remove all these lines. So it really comes down to your objective what are you trying to do if you are a longer term or a mid-term trader?
None of this stuff really matters if you’re short term and you’re just day trading and you’re freaking out. Oh my God, doing this, yeah, it’s going to freak a little bit but trying not to let it longer term you’re okay. We’ve been down one, two, three, four days. We’re still on a valid uptrend.
If the valid uptrend does get broken then you can start looking at potentially short on some things but overall it looks okay right now. And if you really want to look at the longer term we are definitely due for a pullback. I’m not saying we’re not because we are. I mean this is one heck of a run.
We should pull back but so far acts pretty good. Just give it a couple of days, let it kind of work out what it’s going to do and then start trading after that.
I’ve been asked to speak at the Wealth365 summit October 8th to October 13th, The Ultimate Online Trading and Investing Education Conference. I know on this one there are only going to be talking about trading and investing those are the two core subjects they’re going to focus on earnings and the election.
So if you’re into trading and or investing and you’re interested in trading earnings and or trading around the election this summit is for you. I am going to HYPERLINK you over there. Just go ahead and fill out the information first name, e-mail address, optional telephone number, claim your free seat. Now that big yellow button that will scroll down so that you can see right there it is.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
