Daily Profit Compass Oct 28

Did I help you profit?

Please consider making a modest donation to help me continue producing valuable content.

Tickers discussed: SPY QQQ IWM FATMAAN DKNG ROP FIT XLB XLF XLI DXCM

The Daily Profit Compass provides stock market technical analysis for the indexes and other market moving names. Key levels and trading locations are provided, along with trading plans and timely commentary to keep you on the right side of the trade.

Earnings 

 

 

Companion Video

The companion video covers  the indexes, FATMAAN names and offers several trade set ups that may be appealing to you. Key Trading levels and trading plans along with timely commentary to keep you on the right side of the trade.

Find the Video HERE

Election Outcome Matrix

Interesting piece from BoA laying out the possibilities of Monday’s election with an outlook on economic scenarios.  One thing that isnt considered regarding a blue wave sweep is the possibility of a wave of year end selling to avoid the inevitable Capital Gains tax hike coming about 2 days after Biden is sworn in. Lots of people with massive embedded gains that I am sure don’t want a healthy chunk of those gains disappearing. Not a prediction, simply a possibility that is not presented in the graphic.

 

Option Buying in a Hi-Vol Environment

Buying directional Calls / Puts is not advisable with the VIX north of 35 especially considering that after the election there there is a high degree of likelihood that there will be a great degree of vol -crush.  That will reduce the value of your option regardless of where price stands.   If you want to place a directional bet, please use spreads. Buying a spread will insulate your position when / if volatility comes out of the system after the election.

Call Buyers get run over

After some extreme PUT buying on Monday, the extreme CALL buyers came roaring back yesterday. The dipsters are highly conditioned to buy every single dip no matter what.  Maybe this morning they will be re-thinking that move.  Taking shots here and there is fine. Just keep in mind that this is a defensive environment and with VIX over 35, options are very expensive.

INDEX CHARTS

Commentary for the charts on the indexes as well as the FAAMG names and other trade set ups can be found in the companion video HERE

SPY 4 hour

QQQ 4 hour

QQQ 30min

IWM 2 hour

 

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.

Registration is simple and FREE   Visit our homepage  HERE

Spread the word?

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

Leave a Reply

Your email address will not be published.