S&P Analysis Week of 11/1/2020: Election 2020
Updated
This is the week of the presidential elections in the United States. How will the election madness impact the stock market?
If you want to know exactly what happens during this week, you came to the wrong place. Sorry.
What I do know is that there is the potential for two very profitable trade setups. Similar to last week, I believe price is consolidating to make a break away move in either the northern or southern direction (highlighted in the No Man's Land pink box). Isn't that convenient that price has pegged itself into an area where the technical pattern allows for either breakout direction. There are no coincidences in the stock market.
I'm neutral as to the direction the market goes, however, it is worth pointing out that price seems to have started to form a bearish flag last week. Not always, but these typically break down in the southern direction. I believe the market is going to do what it does regardless of who wins the election.
I think the setups I've labeled on the chart are self explanatory. Just remember DO NOT PLAY THE BREAKOUTS. Always wait for price to come back to test the breakout/breakdown area and resume off. This is just a general good trading principle. Also, don't play in No Man's Land.
If my charts seem overly simple, that's because they are. Trading is complex so I try to make it look really easy. I focus on major support/resistance lines that provide entries into the direction of the trend. This has served me well and made trading a lot simpler and my previous posts have been spot on week after week using this method.
Remember:
"When it feels really right, it's probably wrong. When it feels really wrong, it's probably right."
Good luck trading. Don't forget to support me by hitting the like button.
If you want to know exactly what happens during this week, you came to the wrong place. Sorry.
What I do know is that there is the potential for two very profitable trade setups. Similar to last week, I believe price is consolidating to make a break away move in either the northern or southern direction (highlighted in the No Man's Land pink box). Isn't that convenient that price has pegged itself into an area where the technical pattern allows for either breakout direction. There are no coincidences in the stock market.
I'm neutral as to the direction the market goes, however, it is worth pointing out that price seems to have started to form a bearish flag last week. Not always, but these typically break down in the southern direction. I believe the market is going to do what it does regardless of who wins the election.
I think the setups I've labeled on the chart are self explanatory. Just remember DO NOT PLAY THE BREAKOUTS. Always wait for price to come back to test the breakout/breakdown area and resume off. This is just a general good trading principle. Also, don't play in No Man's Land.
If my charts seem overly simple, that's because they are. Trading is complex so I try to make it look really easy. I focus on major support/resistance lines that provide entries into the direction of the trend. This has served me well and made trading a lot simpler and my previous posts have been spot on week after week using this method.
Remember:
"When it feels really right, it's probably wrong. When it feels really wrong, it's probably right."
Good luck trading. Don't forget to support me by hitting the like button.
Trade active
Price spent Monday testing and closing above 3300. During the futures (monday evening), price made a higher high after the retest. This is a buy entry for those that are willing to risk taking a trade into election. Because the market gave me my buy signal, I will take it. Since there is a high risk event in the U.S. on Tuesday, I will be taking a smaller than usual position on this long.
To manage my risk, I have a tight stop loss under 3300 and I will set my stop loss to break even once price hits its first resistance (if I'm not stopped out before)
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