Welcome women and also gents, this is Rob owner of WealthBuildersHQ.com. Welcome to this edition of Trading Like A Boss. Let’s go take a look initially at the S as well as P 500, remembering that whatever we take a look at today is for instructional purposes just. Absolutely nothing is indicated to be advice or referrals, right?
So let me bring up the SPX and allow’s conversation. So let me obtain a pencil. Here’s our V base on the market. Nice move up, there’s our V-top. We’ve pulled down into this retracement, 50% of what I’m trying to find from down around 4,100, took a little of a bounce today. We’re still in a bearish bias. We’re getting lower closes still. Well in fact we shut higher today, but the overall pattern is still bearish. It’s still trending down and also we are below that 8 relocating standard on the close. So we’ll see how the market deals with over the next number of days. It doesn’t suggest there aren’t bullish trades to take does imply you have to take bearish trades. There are various trade setups that will still work regardless of the instructions and what the marketplace’s doing. Right?
So let’s go have a look. Our prospect today is ABBV. Allow’s go have a look at ABBV. There it is. Let’s draw the fibs as we always do. Terrific V base therein. Good, solid, favorable propelling pattern and a fall short. We’ve had currently a breakout of the zero line. It went up to the mid factor, we’re great. That informs me we are okay to go three, check marks, that we are alright looking at a possible no line outbreak on this configuration. Now with that said being said, I’m mosting likely to bring it in a bit.
So we’ve obtained above the 109 today on a shutting basis, right? We’re closing at 109.6, 109.15 is our support degree. So what am I seeking this to do? Somehow, either it’s mosting likely to move down, test the 109.15. Ideally, I ‘d like it ahead down a little below as well as make the go up. You can do it where it shuts near the 109.15, you could do an intraday bounce off the 109.15, yhat will be left as much as you based on your own personal danger account as well as threat tolerance. Right? So if we enter this profession, now, the manner in which I reveal these professions, we do 2 contracts, tnd there’s a reason for it. You can do these with one; they just have a better outcome with two, because we’re going with the home run part on the 2nd fifty percent of the profession.
So what do we got? So what we look for is the entry to jump off of below, right? Our target one is that 112 level. Currently we make it approximately 112, you’re mosting likely to sell half of your position. And that’s why I stated we do 2 contracts. If you just have one contract that you’re trading, no harm, no nasty. You leave the trade. It’s over. You’re done. Move on to another thing. Well, my original quit is right down here which is at 108. And also what we’re looking at is this. If we put our order and we’re going to place it right into cell 2 agreements. If it violates us, we’re mosting likely to place it right into sell one agreement at target one, T1, we’re mosting likely to sell one contract. If we hit target one that quit goes away. We move our block over break even, as well as now we have actually obtained target 2 that we offer our second fifty percent of the profession at. So in.other words, if we get involved in the tray that let’s refer to it as 110, we go out at 112, the very first half of the trade we get out of the second fifty percent of the profession at one 16, life is great.
If it goes up, strikes a quit. See, the whole idea is this. Getting into the profession part is easy, ideal? That’s not what the tough component is. The hard part is taking care of the threat once you enter that trade, we’re establishing our quit. Do we have trades to go against us? All the time. If it goes against us, so what? It’s a profession. You’re mosting likely to have trades break you. That’s just what happens, right? Move up to the first target. Go up to the second target male, home run, and we’re excellent to go.