*Accuracy rating update: 93% or 13/14 predictions correct*
Day’s theme: A rally that offers an opportunity to open up a short position to protect against long positions. There’s also a decline in the midst of a rally that presents an opportunity to open up a long position.
Behavior around the high: N/A
Behavior around the low: A fast, sudden move to the upside out of the low around 1:00 p.m. or 2:00 p.m.
Trade opportunities:
There’s an opportunity to open up a short position for a day trade early in the day.
I’m advised to sell the puts bought in the morning around midday.
There’s another opportunity to buy calls around midday for an overnight swing trade. I’m advised to sell these around the open the following day.
Overview:
On November 1st, we’ll likely open lower than where we closed on the last day of October. In the pre-market, we’ll see the completion of a rally. There’s a trade opportunity at the first low for the day early in the morning. We’ll see a move to the upside that marks an opportunity to open up a short position. If you’re planning on day trading, I would sell that short position around 1:00 p.m. From the decline right around the open, we’ll see a big move to the upside that reaches for a distant resistance on a one-day chart in the first half hour. Around 10:00 a.m. or 11:00 a.m., there’s a decline through key support after failing to break through resistance. It looks as though we’ll decline through 1:00 p.m. or even into the 2:00 p.m. hour. Right around 1:00 p.m. is when I would sell the puts purchased this morning for a day trade. There’s another trade opportunity around this time to buy calls for an overnight swing trade.
A low for the day will be between 1:00 p.m. and 2:00 p.m., and we’ll see a fast, sudden move to the upside out of that low. We’ll also have some erratic behavior back and forth through the same price level around this time, followed by the revisiting of a crest that was recently a past opportunity. In the last hour of trading, there will be a notable rally that commences. In the midst of this rally, I’m advised to open up a short position for a long-term swing trade (likely two weeks out). In the post-market, there’s a move to the upside.
Sneak preview:
We will likely open higher on November 2nd.
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