Stockmarkets
The inescapable Financial Collapse; A 4-Dimensional analysisThis is the SP500 / Gold / the US Dollar / a G10 Composite Currency Index / Time / Price, all of it, all at once! - Lets call it: Universal Value. - Shall we...
This is a 2-Dimensional projection (being on a flat computer screen, after all :-) of a 3-Dimensional "Slice" of a 4-Dimensional space. - So try to visualize it. (Not as difficult as it first may seem.)
Envision a box with only 4 sides - i.e.: a tunnel - which constitutes the entire Universe, in which everything exists, and the only option for interaction with said universe is to twist the walls freely, into any desired configuration, along the tunnel's principal axis - in this case the horizontal, Time axis.
This is a broad-strokes, yet, reasonably accurate depiction of the concept of: Value. - In this case, projected onto the SP500 Index.
"How does one escape such a tunnel where one's options are duly limited (mathematically and physically) to only twist the walls of such a tunnel?" - You ask...
It is literarily impossible, so good luck with that!
Thus, cheer on, trade the hell out of it and take every last fool for everything they got! (Then run. :-)
... and just in case: There is no "Plan B"!
Here is a likely better - not "shifted" - view, ...
... of the "financial Universe" projected onto the SP500.
NETFLIX price action for Short term !5 month of uncertainty and Neutral trend for NFLX , But a good positions for short term trading , Buy from the Bottom of the channel and sell from the Top .
Fundamentals : The corona virus has increased again and possibility of cities Lockdown can be positive for Stay-at-home Stocks .
Price Action : Price placed at Bottom of the Channel also the 200 Day moving average is close to the price , So this Level can Be the Good support
P.s : Due to divergence, buying Netflix is Not a Good idea for the long term .
Still aiming at 3000! 🎯Due to the bullish action, we had to update our chart. We put a bullish alternative on the chart. At the moment, the bears are still in charge of the chart, and we see them aiming at the 3000 point mark. However, our alternative scenario depicted by alt. and the dashed arrows must be taken into account with a high percentage of 42%. Price action is in a crucial area right now. If the bulls manage to break above the Resistance at 3550, the SP500 could be on the breakout to 3800 and higher. Our primary expectation under the mentioned 3550 remains a further decline to about 3000. For further confirmation, we need some bearish action and prices to drop at least under the 3460 mark.
Trading After The Presidential ElectionThe aftermath of the election
The presidential election is over, so it is safe to start trading again?
First of all, as of writing this, we actually don’t know yet who has won the Presidential Election.
As of this morning, Biden leads Trump in the Electoral College 264–214, and we are waiting for an update to see who won Nevada.
If Biden wins Nevada, this will give him 270 electoral votes exactly enough to win the presidency.
The Trump campaign has also filed lawsuits against the states of Pennsylvania, Michigan, Nevada, and Georgia as the race to 270 looks to be nearing its end.
As of now, it is still a close race. We won’t have any updates until later today, as Nevada basically said yesterday:
“You know what, we’ll keep counting, but stop bothering us, we’ll let you know tomorrow around noon. Until then we will not publish any more results.”
we will see what is happening there soon.
Looking back to last week, the markets were a little bit worried about a so-called “blue wave.” This means the Democrats would control both the House of Representatives, and The Senate.
What it comes down to is, how is power being distributed? As of right now, it seems that the Senate COULD remain Republican.
However, we’re not quite sure yet. It is very close, but it doesn’t seem that we have this “blue wave” that the markets were fearing.
As for The House of Representatives, it seems that it likely to remain Democratic.
So we still don’t know for sure who will control The House, The Senate, or win the Presidency. It’s still a close race.
There’s still a lot of “would of, could of” and speculation as far as what will happen if Trump stays in office, or if Biden takes over.
How is the election affecting the markets & traders?
Yesterday morning, the day after the election, the markets were rallying big before pulling back a little bit.
The DJI was up more than 900 points as it continued to shoot up that morning, before pulling back before the close.
The S&P 500 was up 2.37% and its the same picture here, jumping up before retracing
The NASDAQ was the leader of that day towards the close. Up 4.2% and as high as 5% earlier in the day.
What is causing this?
As I mentioned, looking at the election results so far, there doesn’t seem to be a “blue wave” coming.
This means that there is a division of the powers and not everything in the hand of one party. This is what traders and the markets are looking for right now.
A division of the powers could mean fewer regulations on ‘Big Tech’. This is why yesterday, the day after the election we saw big jumps in companies AAPL , AMZN , GOOG , etc.
AMZN was up 6% near the close. AAPL was up over 5% and finished up over 4%. NFLX closed up almost 2%, FB closed up almost 8%, and GOOG and MSFT both closed up almost 6%.
This is why The NASDAQ was leading the way higher, when before it was lagging behind The S&P 500 and The DJI .
News from the election that is affecting the markets
In California, voters pushed for Prop. 22. This will allow UBER and LYFT to keep classifying their drivers as independent contractors instead of employees.
This was a big win for both companies resulting in both companies being up almost 12% and 13%.
Another thing on trader’s minds is the stimulus deal (or lack of one).
Recently, Senate majority leader Mitch McConnell said that a stimulus package should be passed by the end of the year.
This is what market participants were waiting for, as new cases for the Coronavirus continue to rise.
We are up to almost 95,000 new cases of Covid-19 a day, and Dr. Fauci has said that we are positioned really badly as we head into Flu season.
It’s important to keep in mind that uncertainty could creep back into the markets as the Trump Campaign is calling for lawsuits, and as new Covid-19 cases continue to rise.
Is it safe to trade after the presidential election?
The key question is, “How do we trade this?”
Before the election, I said that we should all sit on our hands. For those of you trading The Wheel Strategy, we had an opportunity, on election day, to close out a TQQQ 100 put that I sold.
This is the ONLY position that I had going into the election. I sold this put last Thursday and I was able to buy it back on election day, for a nice profit of about $250, after only being in the position for 5 days.
Now, the next morning when I saw the markets were up, I thought that after the initial excitement we would fill the gap.
After we saw that we might not have any results from the election for a few days I thought we would hover where we opened at around $133 or maybe lower.
Instead, we went higher so here’s what I did. I sold a call with a strike price of 148. I sold this call for $2.45 which means I took in another $245 in premium.
My break-even price on this trade was around $132. At one point I was down $3,000 but I just kept selling more premium according to the rules of The Wheel Strategy.
Overall I’ve realized $2,300 by selling premium. If I would have closed out the trade right then, I would have closed it with a profit, but I didn’t plan to do that just yet.
Should TQQQ keep dropping, I will be able to buy back the call that I sold against my shares.
If my shares are “called away” I would lose $200 of the premium I earned, but would still be up over $2000 on this trade.
I checked this position yesterday and it started the day up $1,400, and this is the only position I am in. For now, I am not taking making any other trades. I may start trading again later this week, but for now, I’m just going to sit on my hands.
The markets are still rather flat, trending sideways, as market participants are waiting for the final results of the election to come in.
Trading After The Presidential Election Summary
Whether you like what’s happening with the election so far, or whether you will like the final results of the election or not, as traders it is our jobs to react to this and make the best out of it by adjusting our trading strategies.
With still a lot of uncertainty looming, I recommend sitting back and waiting to take any new positions until the air clears.
There is a saying among sailors: “You can’t change the wind, but you can adjust your sails.”
SPX500 - next movesImportant zone below, if it falls below it down we should visit bottom of parallel channel, alternative would be to go up to top of channel and then we should see what would happen. Covid cases may impose restrictions on global level thus if everyone expects a crash, we might actually not get to it due to contrarian ideology. Vaccine news are to be expected soon as well so currently I would increase cash positions until clearer time.
The US Market is waitingThe US elections next week bring the market to a point where all we have to do is wait and of course, prepare our trading account for the crucial hours when it will be revealed who will lead the country in the next 4 years which are expected to be very difficult and challenging especially in the economic and social aspects.
Technical analysis aspect
We can clearly see the market prepare itself for the election day based on the S&P500 triangle pattern, the breakout will take place next week between Tuesday to Thursday How will the identity of the winner affect the market? See the post from the 5th.
Strong fluctuations in the leading US indices are not expected during this week, and even if the upcoming earnings reports show unexpected results, it will be a sharp but temporary and short-term reaction.
What should you do until the election?
Portfolio protection: If you are a low-risk investor, avoid trading assets that are considered volatile such as Bitcoin, low market cap stocks, exotic currencies, and oil.
Get Ready: With a proper post-election trading plan that includes exit points (stop loss & take profit), accurate and right ratio of the exposure based on account balance, a good trader can make around 20% within a short period of time (1-2 weeks) after the election.
The 20% can be $100 or $100,000 (depending on the account balance), in addition, a large balance reduces risk by spreading the risk across many assets.
Increase the account balance is a-must in such events if the current account balance is low or insufficient in order to split the risk across 5 different asset at the same time.
S&P AREA OF MAJOR PLAY FOR NEW PRESIDENT COMINGShalom Wadu Community,
Here We Go Over the 2 MAJOR POSSIBILITIES WE HAVE HAPPENING that will be happening as a Prelude to the Presidential Election coming in for the Following Week coming! Tune into the Video to listen on the analysis of these plays that WILL happen. We are trading under a 4 Hour Downtrend Line with the Possibility of Respecting here, and sellers coming in to Respect the Downtrend. On the other hand, it is also equally possible for the Downtrend to be Broken with a Nice Impulse Move, AND THEN Use this Downtrend Line as the NEW SUPPORT that will take us into New ATH territory!
YOU CAN'T MISS THIS.. SPAQ is in the most important position ever, also with 200D moving average at 11.60, support level at 11.60 and RSI30 near (oversold) + we see from Webull analysis that the total profited shares proportion is only 0.75% everyone has lost money with average cost 15.46, so I see a very good opportunity to earn som money. My target is $17.
Fisker now expect to formalize its merger with Spartan Energy (SPAQ) on the 28th of October.
IBM Earnings report will be published todayNYSE:IBM The American technology giant publishes its quarterly earnings report with a very optimistic forecast.
The report will be published after the market closes.
Earlier this month the company announced that it is splitting itself into two separate public companies, a move that could attract new investors due to the result expected - a cut in the share price.
In recent years, the company has been mentioned as irrelevant and unable to keep the technology development speed like other leading tech companies such as Apple and Samsung but, with more than 350,000 employees serving clients in 170 countries and a great roadmap for long term development projects, IBM is absolutely still is considered a tech giant.
Analysts expect a Gross margin of 48.4% for the quarter.
Over the last 2 years, IBM has beaten EPS estimates 100% of the time and has beaten revenue estimates 38% of the time.
Revenue in 2019: $77 billion
Quarterly Revenue Forecast: $2.58 billion
SPY NeutralAs of right now, neutral on SPY. Expanding megaphone shows a lot of uncertainty with higher highs and lower lows at the same time. On the daily, we can ARGUE that it's possibly a cup and handle pattern; however, on the four hour chart we can see a failure to complete an inverted HS formation.
I am completely neutral as of right now as Pelosi and Mnuchin attempt to get a stimulus deal going by Tuesday, they are scheduled to speak tomorrow (Monday, October 19, 2020) ... election is actually RIGHT around the corner. I will be really careful or maybe just make quick day-trading scalps.
Good luck to all of you guys.
This Is The Moment.. With RSI30 (oversold), 100D moving average at 27.50, 20 weeks moving average at 28.40 and the support level at 27.90 + Elliott wave that us we still miss wave 5. Thus I think this is golden opportunity to buy.
Is the DJI (Wall Street) in trouble?Yep - it's beaten me. This is a very weird market where hope and greed rule. America is basically burning down with COVID, supply demand chains disrupted everywhere, no sign of a vaccine "momentarily" as we've been told - yet this market struggles north.
Every drop of good news moves it further north. In the last few days we were told that the cure was found for COVID. No one dares to disagree. Hopes of 'herd immunity' are in there.
This 8H time frame pump north in what appears to be a subtle rising contracting wedge, does not look confident to me.
The instability in the picture creates a probability for the south (not a prediction) - and there is probability for the north as well.
I'm not suggesting trading on this 8H time frame. Exploits are better on much lower time frames between 5 min to 15 min. But timing is everything. DON'T sleep! 😂
Disclaimers : This is not advice or encouragement to trade securities. Chart positions shown are not suggestions. No predictions and no guarantees supplied or implied. Heavy losses can be expected. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
"CRM Long" Bullish will this see $278.28 by mid Nov. early Dec.NYSE:CRM CRM like the range test today at 256.51 will keep a close eye on this one. CRM has created a nice bottom over the past few days around the 239.45 area. It has also broke a nice down trend and is holding the recent uptrend if this one can get going on the break of the range this can have room to 278.28 area before it test its recent high of 284.50.
$TLSS BREAKING OUT ~ DO NOT GET LEFT BEHIND$TLSS Countdown to financials Mid November. Q3 #'s will be fantastic.
TLSS acquired the assets of GRC Trucking. Cost savings and creating more revenue.
Deal with FedEx as we know. #FedEx #1 transporter for #Walmart, #SamsClub etc. #Walmart+.
Waiting for confirmation from TLSS in PR. We have done our DD.
$TOTAW Falling WedgeCome down to me :),
Lets see how this plays out the coming days.
Lots of downside $till
$TOTAW