Hubert Senters here.
Got a question from a viewer. Hubert, what can I expect when the stock market acts as it did today? I assume she sent the e-mail yesterday. I’m getting it today. So this is on bonds. I know with interest rates up and down what to look for but I need and want to watch for with stock market moves so thank you so much. By the way, I love bond so she’s talking about bonds.
Let’s go over here. Let me shrink down the background here. Get rid of that and let’s take a look at bonds. So I did this in the member video too. But ideally what you’re going to look for when you have a bond move like we had yesterday two and a half points. That’s a good move in bonds. If you had one contract $500 worth if you got it most.
So here you’re looking at a move from like $155 all the way up to $162. It’s a good move in a week. It’s stellar. When you look at this. The first thing I look at is okay, if I want to buy a pullback number one I don’t think you’re going to have a follow through too much to the upside. You might, right. But more often than not what happens is like we had an index futures today.
We sold off like crazy yesterday. We’re going to bounce today. Yesterday, in bonds we went up like crazy. We’re going to pullback today. Now, we didn’t pullback much. So if you look at this what I would do is I just take a fib number, Fibonacci line draw from yesterday’s low to today’s high and say okay, I would look to buy that zone.
Unfortunately you went a little bit higher. So what you got do is you grab this bad boy and you drag it up here and you go, I’m interested in buying that pullback at 168 30 seconds. That yellow line and a stop could be if it goes past 159 27/30 seconds. I’m leaving alone until the next day so it’s an area of interest or a zone that I’m on a bit on and I call it the ambush zone. It’s just a 50 percent retracement on powerful moves. It’s what it is. It’s really complicated.
So I should say it’s really easy. So from move one from the beginning of the buying to the end of the buying and now we come a retracement I want to buy in that zone. That’s what I look for. There’s other things that you can look for that’ll keep it nice and easy and simple need to deal with and you won’t be wandering all over the place trying to figure out what to do.
Another thing that you can keep an eye on doesn’t work all the time. This is just a general rule of thumb. Sometimes gold and bonds will trade together. Now, you got to trade these creatures entirely different. You cannot trade them the same way. But if you have bonds and gold both headed in the right direction together usually it’s a little fair trade. People jumping out of bonds or not out of bonds.
Out of stocks and equities and they’re like oh, my God what do we do? Let’s go hide or protect ourselves in the bond market and the bond market will jump up like it did yesterday or we’ll go over and jump and gold like it did yesterday too and gold was up 18 points so that’s the couple of things that you can do.
I’m going to be doing a special Gold Trading 101 webinar tonight at 8PM EST. I’m going to HYPERLINK you to that registration page.
Good luck. Hope it helps. See you on the next video.
Hubert.
