Daily Profit Compass Sep 30

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Tickers discussed: SPY QQQ IWM, FATMAAN names, GLD, SLV,  WYNN

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

Trader’s Couch

You cannot control the market. You can only control your responses and reactions to it.  We are reminded of this all the time, but my question to you is this. What tangible things are you doing in your life to be in alignment with this universal truth? Be mindful of your reactivities to events beyond your control both inside and outside the markets. Why are you getting mad? Why are you frustrated? Why are you disappointed and crest-fallen?  These are exactly the emotions and reactivities which cause people to eventually crack and go “TILT”.  When life or the market throws you a curve ball, absorb the information. If the info is monumental, give yourself plenty of time before saying or doing anything. Break it down, then craft a measured, well-balanced response. Watch and experience your life and trading smooth out. 

Companion Video

The Daily Profit Compass video provides a detailed technical view of the indexes, FATMAAN names along with plenty of market commentary aimed at keeping you on the right side of the trade.  Tickers: SPY, QQQ, IWM, FB, AAPL, AMZN, MSFT, GOOGL, NFLX, TSLA,  Trade ideas on GLD, SLV, WYNN


News Flow

  • Trump / Biden Presidential Debate closely resembled a food fight.
  • $DIS announces layoffs of 28,000 from its US theme parks
  • Pelosi awaits Mnuchin’s Covid relief package counter offer and readies for a vote
  • $CZR to buy British Bookmaker William Hill for $3.8B which opens the door to further penetrating the online betting market

Market Snapshots

Swing Trades and Trade Idea Tracker

With people coming and going from the site all the time I want to provide something that creates some continuity in the trade ideas and official trades on the site. In this way, even if you only check in only 2-3 times a week you’ll be able to see what’s happening and quickly get up to speed. I have not decided whether to include the tracker each day within the Daily Profit Compass or to publish it separately for subscribers only.  Anyway, this is an FYI on what I am working on.



SPY 2 Hour

SPY 30min

QQQ 2 Hour

QQQ 30 min

IWM 2 hour

IWM 30min

Pulling it all together – Strategy and Outlook

  • Staying Tactical within the recent trading ranges.
  • Strategically will go long or short on breaks above or below the range. ( Methodology in the video )
    • Sell signals on the daily charts still in effect.

Other Observations and Commentary

  • FATMAAN names, aside from GOOGL, are still way above their 200 ems even after the recent pull back.
  • We have not even had a 38% Fib retrace of the March  – September advance. Technically speaking There is still more to go.
  • Until proven otherwise by price, I am not buying that we can put in a durable bottom with excess call buying and zero fear in the market.
  • Sentiment is far from washed out. Dipsters still very active, especially in tech.
  • Political turmoil from here until November does not lend itself to piling in long. ( Tactically maybe, Long-Term no )   Expecting increased Vol through election.
    • If DC can come together for a substantial Covid Relief Package, that would be a big boost for markets but IMO would only come after a market dump as a catalyst.
  • We have daily sell signals across the board on the indexes and the RSI / PPO indicators are all in bear territory for the first time since March. THat is a change of character that should be respected.
  • Weekly hi-level PPO bear crosses are pending for major indexes and FATMAAN names and could be confirmed tomorrow. These signals would favor lower prices for longer and a deeper pull back. For reference, we had weekly sell signals in March, Q4 $2018, and for “Volmageddon in Feb 2018.  They don’t happen every day.
  • In the Bulls favor is the FOMC.  If there was a big market dump, Powell & Co. would likely bring out the bazookas but it would have to be a big drop. I dont think the Fed wants to step in weeks away from an election to save everything for fear of being accused of partisanship.

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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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