Market Update: November 15, 2020

1,2-1,2 Set Ups… Everywhere

What’s up guys, welcome to this week’s market update. Quick recap: Last week we saw a gap up to start the week followed by a drop then chop. Value stocks got most of the love on that vaccine headline as $RTY_F (small caps) gained 6.12%. Big tech took a back seat with $NQ_F falling 1.17%. $ES_F split the middle with a gain of 2.32%.

Looking ahead to this week, expect to see a bit of a rotation. Quite a few names in the tech sector put in corrective waves last week, and look nearly ready for a big move up. Some of the big winners from last week such as travel, banks, and energy may need to cool off at some point this week. Without further delay… here’s this weeks set ups…

*DISCLAIMER: Not financial advice. I am not a certified financial advisor. The ideas shown below are representative of my personal opinions and should not be interpreted as a buy or sell signal. Always do your own proper research and understand the risk before making an investment*

$ES_F (1h)

There are a few possible counts on this one, but this is what I see as the most likely scenario. No clear trade set up here yet, but this should be kept in mind as context for the rest of the set ups. For example, don’t get in a long position if $ES_F is showing signs of a reversal to the downside. Remember, always exercise proper risk management!


$NQ_F riding this channel upwards… I expect this to lead the markets as we see a rotation back into the tech/growth names. A good trade may be found as wave (iv) nears completion. Long entry around 11,965 with a 25 point stop would be a good R/R trade targeting 12,100 +

$AMD (2h)

1,2-1,2 Setup here…

The .5 and .618 fibs fall right in the heart of the support zone. Watch for a bounce somewhere between $79.50-$80 and an impulse wave up to $88 for sub-wave iii

Count is invalid if it breaks below the wave (ii) low

$DKNG (2h)

Another 1,2-1,2 set up

A=C to complete the zig zag at $40.52, this aligns closely with the .618 fib. Consider an entry between $40-$41.30 with a target of $48-$52. Watch for supporting evidence such as bullish RSI divergence or a reversal candle on the 5m chart

Count is invalided below $38.40

$TSLA (1h)

Yet another 1,2-1,2 set up!

I entered long on Friday, and expect to see strong continuation upwards throughout the week. look for an entry on a micro wave 2 pullback, with stops at the Friday low. I expect to see a Monday gap up followed by a pullback, that’s your entry opportunity. If the set up doesn’t develop, don’t force it!

$WMT (1h)

One of my favorite set ups this week… and yes, another 1,2-1,2

I expect to see a gap down, or early fade Monday morning. There is a key demand zone that aligns perfectly with the .618, I am looking to go long around $146.50, and I will set my stop below the .887 retracement.

** There is a chance $WMT pushes higher as part of wave i… If so, adjust your entry point accordingly (still targeting the .5-.618 zone).

$WKHS (1h)

Last but not least, one of my love/hate relationships… $WKHS

It appears a zig zag is forming, which would have equal legs at $17.26. This aligns with the .618 and a major demand zone. I’m looking to get long around $17.40, and ride the rocket out of the zone. This one can move very quickly so be ready! If it breaks down below $16.75, cut losses and move on!

That is all for today! I will try to update the trades as they play out. Make sure to follow my twitter @rbc_trading for live updates! Remember, don’t force any trades, let the set ups come to you! If the set up does not develop, don’t chase! This is a sure fire way to lose money. There will always be another set up right around the corner!

Lastly, I provide this information at no cost… but if you feel so inclined, I appreciate tips via Venmo (@Ryan_Chandler16)… If you find my set ups helpful and would like to make a contribution of any amount, it would absolutely make my day

Happy Trading Everyone!

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