The market is an historical probability machine, and looks to past scenarios to predict future outcomes. That’s why tendencies have a powerful influence on trader and investor behavior.
The current expectations for the election tells us to be bullish. In the meanwhile, let’s stay nimbler and look to relative outperformance to the upside because the market is still in chop and that means “boats”, not the tide.
There is a bullish pullback zone on the 30 minute chart in DOCU. DOCU is now a royal setup on the Daily.
We had a really crazy overnight trading session and it continued during the day, with indexes ripping higher. We still have no decision in the election process, so why the rally and what comes next?
We’re in limbo. The markets are waiting for a final tally that may not come for days. In the meanwhile, where can we look for opportunity?
The last two days have brought a bullish Directional Bias to the market which changes our daytrading entry preference. I also discuss where to anchor the VWAPs as we shift into November.
I don’t know if SPY will be up or down on election results, but I know I’d take this trade every time it sets up.
Volatility has come in from its recent pop, but there’s still enough premium in the indexes to set up trades. Let’s review my favorites, along with a list of swing setups I’d like to add, once the dust settles.
