Before the Bell Nov 1

Tickers:  SPY QQQ IWM FB AAPL TSLA MSFT AMZN GOOGL NFLX  SMH BLNK AFRM CELH

Before the Bell  is premarket prep for active traders. The note provides detailed stock market technical analysis focused on the indexes and FAAMGs. Key levels and trading locations are provided, along with trading plans and timely commentary to keep you on the right side of the trade.

Inspiration

Taking the Test when you have the Answers

Recently I listened to a Podcast that featured Tom Brady and a Panel of sportswriters. Find it HERE.   In one segment, Brady, who is in his 22nd year in the NFL, discussed that after 15 years in the league there wasnt a time when he walked to the line of scrimmage that he was confused about the defense.  He’d seen every look, knew every alignment and coverage, knew how to call an audible at the line to attack the weakness. In essence, he had the answer sheet. Then as Brady explains, its all about execution. You wont win every play, or every game, but having the answer sheet makes a huge difference.   Its the same in our trading. Time in the chair makes a difference. Seeing the technical patterns. Understanding the tendencies of the favorite stocks you like to trade ( THats why i like trading a select number of tickers in active trading rather than new ones every day )  So that experience you build while in the chair will make it more about your execution than trying to understand the technical set up. Keep that in mind in your trading. Stay in the game and become an expert in your craft. 

A habit of excellence

in yesterday’s game, Brady and the Bucs were trying to come back to win their game in the last 1.30min of the game.  Brady threw an interception and thus sealed their loss. A failure of execution. So with less than a minute to go and down 9 points, the game was over. In that situation it would have been understandable to a thrown helmet, a Gatorade cooler smashed, or a general look of disgust.  Instead, Brady walked to the bench, set his helmet down, and grabbed a Tablet PC to review the final play. Did he miss the coverage?  Did the receiver blow the route? Or did he simply make bad throw?  That my friends is being a pro and building upon a habit of excellence.  So instead of being disgusted with a junk trade, learn from it. File the experience away. Try not to make the same mistake.  You will get better!

Earnings 

Companion Video  

The video is a detailed technical review of the indexes and FATMAAN names. All the key trading levels are identified along with commentary and trade plans for each ticker. Trade ideas are also discussed.  Run the video at 1.25x to reduce run time.

Find the Video HERE

Macro Data Releases Week of November 1

  • Monday – PMI MFG / ISM Index, Construction spending
  • Tuesday – Vehicle sales, Redbook, FOMC meeting kickoff
  • Wednesday – ADP, PMI Composite, Factory orders, ISM services, oil inventories, FED Announcement 2pm followed by presser at 2.30
  • Thursday –  Challenger Job cuts, Intl Trade, Jobless Claims, NatGas inv. 
  • Friday – October Jobs Report

Market Insights

Trades about to happen

$AFRM  A ticket to ride

A move above $160 opens door to much higher prices after hugging the 8ema for several days. Like it long against $160 or the 8ema depending on your risk tolerance

$CELH Gimme the Juice

Energy drink maker CELH has been trying to take out the $98/$100 zone since Mid -September.  I like this long over $100 with the hopes of a Livermore effect on the break of par. THe technicals support that type of move after the consolidation.

$BLNK   Charge me up!

After a brutal year, Charging station builder $BLNK is showing signs of an emerging turn. I like it long here against the 200ema / $30 after Friday’s recapture.  The proposed spending bill is loaded with subsides for all things solar / wind and EV.  Should be a boost to the whole space if it passes.  If you dont like this one, you can look at CHPT, VLTA, EVGO, RIDE, LCID, FCEL, XPEV, NIO, LI, FSR

More on ESG ( Energy Stops Growing )

Coal consumption flat for  a decade despite trillions spent over that time to eliminate its use. Separately China just revealed it will be constructing more coal-fired utility plants as the country faces increased shortages of power.

Nuclear  Belgium announced that 2 nuclear reactors previously slated for closure will now be kept open.  Sorry no reference.   As the power shortages dig in, I doubt you’ll see many reactors being mothballed. Here is the US there have been a rush of applications by utilities for 20-30 year extensions to our reactor fleet.  Duke Power, which has the largest fleet of nuclear reactors says the goal of net-zero carbon is “impossible” without a healthy contribution from nuclear.

Nuclear:  Bill Gates now promoting Nuclear   Read about it HERE

Logistics / Supply Chain A 20 yr veteran Truck driver sheds light on the backup at the ports and explains the structural problems with the supply chain.  Read about it  HERE

Food Crisis Update:   Chemical & Fertilizer  price looms large for Farmers heading into 2022.  Read about it HERE

Podcast: “How the distorted climate conversation is hurting the quest for effective energy”.  Interesting & informative.  1 hr. Listen HERE 

Green Transformation:   Congress eyes $235B in Green Energy subsidies   Read about it HERE

INDEX CHARTS

A detailed walk-through of the levels and trading strategy for the indexes is given in the video ( link above) . The static charts are provided for reference. The FATMAAN names are also reviewed in the video along with trade ideas and other charts of interest.

SPY 2 hour

SPY 30 min

QQQ 2 Hour

QQQ 30 Min

IWM 2 hour

IWM 30 min

Get inspired, empowered and prepared.

Join us!

As the host of Trader’s Profit Compass, I work hard to inspire, empower, and prepare aspiring traders to face the markets with fortitude, quiet confidence and inner calm. It’s a protein-rich, sugar free environment without ego or judgement. While I can’t promise that joining our group will change your life, I’d like to think it will help your trading. Give it a spin!  Nothing to lose and potentially much to gain.

Our group of aspiring traders are into active swing trading using technical analysis to find objective, high-probability,  low-risk trades.  Using these processes we’ve been fortunate to be winning; not perfect but winning. If that is appealing to you, join us!  I’d like to think you’d benefit from the work.  You’ll get premium  content 6 times a week including a copy of my Daily Profit Compass, Weekend Profit Navigator, along with other actionable content delivered directly to your mailbox. You’ll even get an invite to our new trading room on SLACK.

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