Awesome day today for those who were patient. Our set ups went 2 for 2, with $AAPL and $NFLX bouncing from the buy zones for 3.03% and 1.64% respectively-paying out calls nicely. The most exciting development of today was the clarity given by the market. I will go more into depth about this throughout today’s update, but it appears very likely we are about to see a huge run into the end of the year. Get ready!
Recap:
$AAPL: Winner- 3.03% bounce from the zone! 100% gain on 115c runners!
$NFLX: Winner- The low held perfectly, a slow grind up of 1.64%. Calls banked for 50% profit
Overall Market Structure: Update…bullish!
$ES_F (4H)
With today’s price action, it appears to me that the downside is now very limited. If the count plays out, I project we could see $4200 by mid January! Yes, you read that right… $4200 by the end of January!
$NQ_F (4H)
I’ve been very focused on big tech lately, and it looks like the group is finally starting to turn the corner. $AAPL $AMZN $MSFT $FB should be the names that soar, carrying us to new highs. Assuming the count plays out as shown, $NQ_F would gain 15% in the next 6-8 weeks.
As always, make sure to be wise. This is not a signal to go all in long, unhedged… The market is not kind to those with poor risk management. But, I would be extra alert for dip buying/long opportunities and prepare for one hell of a run in the next 6-8 weeks.
Set Ups for 11/25:
The day before a holiday is typically low volume and not great for trading, so you may consider just taking the day off. I have a few set ups to watch, but I advise extra caution. If the set up isn’t there, don’t force it.
$ES_F Short Set Up
We may get a nice short opportunity tomorrow depending on how overnight price action develops. Look for $ES_F to move upwards to complete wave v of (i) around 3680. This also happens to be channel resistance. Look for other signs of reversal such as RSI divergence or a reversal candle for confirmation. I will post on twitter if/when I take the trade
$FB Long Set Up
$FB showed some strength today and led the $FAANG group. It could see a sub wave 2 retracement tomorrow which will be a nice dip buy opportunity. I will be looking for an entry between $269-$271 for a trip back up. This could make a nice scalp or swing trade depending on your style. If there is a gap up or a a higher high is made, make sure to adjust the fib levels to adjust for the price movement. Invalidation is at $265.
Stay tuned for updates on twitter, I may add another set up if I see it!
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… That 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 contributions of any size (click here)… If you find my set ups helpful and would like to make a donation of any amount, it would absolutely make my day. Thank you.
Happy Trading Everyone!
*DISCLAIMER: Not financial advice. I am not a certified financial advisor. The ideas shown in this newsletter 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*
Pingback: Weekly Recap 11/23-11/27 – Chandler Trades