Will Apple Drag the Market Down Further?
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Will Apple Drag the Market Down Further?

John F Carter 1/28/2014

Welcome to the free video. Let's take a look at the S&Ps today. So the SPY gave it the college try but in the end could not close the deal. So you can see they were up a little bit early in the session and then they got whacked, recovered almost into the close and then got whacked into the close. So didn't recover, you know, didn't get the job done in terms of averting margin calls. So that opens up the possibility we get margin calls tomorrow. I did like that we got pretty close to testing that tree line. I think that on something like this when you have a move of this magnitude you essentially need to test the next big magnet.

So right here -- so really the best thing that could actually happen is if tomorrow we gap down which may happen with AAPL. So earnings came out on Apple. You can see it's down 40 bucks after hours. That's a little less than two standard deviation moves. So that's you know, off the screen -- down here where it's going to open. Obviously that is going to impact the NASDAQ. And we can see where that's going to take the NASDAQ. And yeah, so I mean that's after hours and down another 30 points. So you know, that's kind of a -- you know -- that's kind of its first big retest there. Then it opens up the door to 3370.

And then there's a couple of stocks out there like QIHU it think acts great...beautiful set ups there. And then of course you guys know I like Tesla and you know we did get to that firing line today. We'll be taking a look at that. And what I'm going to be doing with these is for essentially the markets in general, including Apple. And then some of my favorite stocks like Tesla and QIHU and the list that I look at. And this is the list that I look at here and I'll have these together. I've got the radar screen set up with all the time frames that I like to look at and you know this list of all the stocks that I like.

What I'll be doing on Tuesday and Wednesday is just trading these live kind of soup to nuts. Like hey, this is what I'm looking for. This is how -- like even like Apple in the morning -- like how I would trade Apple in the morning and stuff like that. And a big part of what I'm going to be talking about too is just capital management. I mean I -- I'm the first to admit...you know what, I did not catch this move down. But I will say that I went into this move essentially flat. So why is that flat? Why did I hate the market long? Well if you look at this put call ratio, the put call ratio is down here by .70. That's the 10-day moving average of the put call ratio. Whenever that happens -- I mean you know, look at this too. I mean it hasn't happened for almost a year and a half. But when that happens you can see essentially that everybody's long and when everybody's long it's not that the market...it's not that the market is going to collapse it's just that if everybody's long there's no one else to buy, then it's time to clean up the loose ends before you can go. So when you see something like this you can short if you want to. OK. Obviously shorting in this market has been tricky. But the main thing is, is there's no reason to be long at that point. Why? Because everybody's long. So dump your holdings and then wait to load up. So now what I'm watching for, and this could be timed out pretty good, is once we get to a level here where we can actually start buying -- and what I want to be doing on Tuesday and Wednesday is showing you essentially like, hey it's time to start putting capital back to work and just essentially showing you how I do that.

So what I'm going to do in addition to showing you things like the put call ratio and what I look for in the VIX and things like that just to kind of stay on the right side of the general market, is live trading strategies. Now I'll be doing this in the morning session from 8:30 to 11:00 and then also into the close on Tuesday and Wednesday. And very specifically because a big part of shorter tern trading is the Voodoo lines. So I'll talk about how to trade those the right way, especially on gaps.

Now tomorrow we could actually have some pretty exciting gaps in which these, the Voodoo lines. So we'll be doing that. What indicators to use at what time in which stocks. That's actually pretty key because you don't use the same set ups on every single stock. You know, there's different nuances that you use based on the strategies that you want to use and honestly based on your own account goals. How to recognize a good set up at the right time and when to enter the trade, the right time to get out. OK. And the idea is you get out when the ducks are quacking. So a good example of that is, you know, we were looking at the put call ratio. And the put call ratio comes down to .70, that's a great time to take profits. Everybody's long, you know, dump it and wait for the pull back. Which stocks to trade and which stocks to avoid like the plague. Then I'll also be going through current market analysis, etc., etc.

Now if you're already a gold member, just to let you know, I'll still be in the room in the afternoons. OK. This is geared for people who are newer to the site and just kind of want to just learn all the different strategies that I talk about in terms of a live environment. And I'll be trading in the morning live and then in the afternoon live both on Tuesday and Wednesday. OK. And the timing is great. I mean I think this is going to be a very volatile market. There's going to be some huge opportunities and we'll be diving into that together. OK. So for 2 days, $297...just kind of if you want to dive in there and get up to speed. And again I'm looking forward to this because these are the kind of markets where timing becomes very important. And, you know, whether your managing trades aren't quite working out I can kind of show you what to do there. But really it's just kind of recognizing when you get into a market like this, when do you get back in and do you get back in with big size, and while you're waiting for that to happen what kind of trades do you take. And that's what we're all going to be doing this week. And it's going to be awesome. All right. I hope it helps. You guys have a great night and we'll see you at the next update.