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We’ve been catching a lot of moves this year using a simple setup: the daily 21 exponential moving average (EMA), Big 3 Buy and Sell signals, and confirmation from lower time frames.

I put together a “Big 3 Heat Map” that helps us confirm signals across multiple timeframes at a glance. While I can’t share the proprietary Big 3 Heat Map, I created a free “Moving Average Heat Map” for our subscribers that might not have the Big 3 indicators.

Here’s a flexible grid for the MA heat map: http://tos.mx/NDnDM3X 

Note: For those of you that do have the Big 3 Buy and Sell Signals, you can find a link to the Big 3 Heat Map by visiting your Dashboard – My Indicators – Big 3 Buy and Sell Signals.

In the video above, we’ll review our recent trades and analyze the Big 3 Heat Map on our recent trades and the SPX and QQQ.

Stay Focused!

 

Let’s talk about the importance of alignment across lower time frames. For example, if you’re trying to get long on the daily chart, you’ll get your best entries when the lower time frames are also bullish. Many times your lower timeframes will trigger that move higher.

 

 

In the video above, we’ll walk through both bullish and bearish examples and review our AAPL trade opened in the Compounding Growth Mastery on Friday.

Stay Focused!

 

We’re sticking with our “buy the dip” game plan until the market proves otherwise. Below are key levels of support and resistance that we’ll use to navigate the market this week.

 

 

As mentioned in the Friday newsletter, the Big 3 indicator switched from bearish to neutral on the SPX weekly chart for the first time since March 2022. The lower time frame charts are also behaving like an uptrending market.

In the video above, we’ll lay out the key levels of support and resistance and targets above and below these levels. We’ll review names on our watchlist including NVDA, which we took action on last week in the Compounding Growth Mastery.

Mark these levels on your charts!

$3,900: Key support near the daily 21 exponential moving average (EMA)

$4,000: Key resistance, lining up with the daily 200 simple moving average (SMA).

 

 

The stock market is closed on Monday due to Martin Luther King Jr. day. There will not be a newsletter sent on Monday, but Chandler will be back on Thursday to deliver his focused list. In the mean time, enjoy your long weekend with family and friends, and we’ll see you again for trading on Tuesday!

Stay Focused!

 

Structure and momentum is shaping up for the bulls. The key moving forward is if the bulls can keep up this progress on any dips.

 

 

For the first time since March 2022, the Big 3 indicator switched from bearish to neutral (red to gray) on the SPX weekly chart. This is a big shift in the favor of the bulls. It means that momentum is no longer supportive of a huge push lower on the weekly chart.

On the daily chart, the Big 3 signals also changed from bearish to neutral. The SPX is back above the daily 21 exponential moving average (EMA) and 50 simple moving average (SMA). There is a daily squeeze printing with a positive histogram. All of this suggests the bears are losing control on the daily chart as well.

The SPX hourly chart continues to print the Big 3 buy signal, as the market continues to grind higher.

In the video above, we’ll review the progress the bulls have made, define which spots we’ll look to take new trades, and analyze the U.S. Dollar (DXY).

Stay Focused!

 

 

As a trader, it is important to recognize which days to take advantage of the opportunities in the market and which days to remain patient and “sit on your hands”.

My best advice is to focus on what you can control. There are a few things we can control as traders: showing up every day with a game plan, ready for either direction. Keep in mind that every day we can go higher, lower, or even nowhere.

In the video above, I break down two trading days in December, December 9th and 12th, to show when to stay patient and when to take action in the market.

Stay Focused!

 

This week, Sam Shames, VP of Options at Simpler Trading, shares his macro review on the market for the week and key levels that must hold for the bulls.

 

Story of the Week

Bulls enter the week having held key levels on weekly closes: SPY $380 and QQQ $262

These remain the must-hold levels for bulls.

There are some advancements that have occurred beyond the Friday short squeeze… Dow now has weekly buy signals + structure… bonds are attempting to make a tradable bottom… Dollar has a bull trap pattern… bottom of the barrel assets like XLC and EEM are showing bottoming patterns… AAPL and TSLA and AMZN all triggered reversal patterns on Friday (must hold the lows to stay valid).

Knowing your index levels into the next few weeks/months will be critical.

You’ll notice that Sam refers to his proprietary premium indicators, the TrendOscillator Pro (TrendOsc) and HiLo Pro. For more information on Sam’s true momentum indicators and how to apply them to your trading, visit the link here or reach out to our support staff at [email protected].

 

Game Plan

The plan for the next week is straightforward.

It is the quintessential “if this, then that” dynamic.

IF the SPY holds $385, THEN we look for a battle higher at $390.

IF the SPY holds $390, THEN we look for a battle higher at $400.

IF the SPY loses $380 on weekly close, THEN we look for a max short situation.

From here on out the bulls must continue to press the short squeeze they started on Friday… it doesn’t have to be straight up, but they have to hold key levels.

The $PCALL remains high and that can act as the fuse for a continued short squeeze… $PCALL alone is not enough, but as long as price continues to inch higher and hold pullbacks that will encourage the shorts to look for the exits.

The internals are vibing with the bull case as well with VIX and VVIX showing bearish patterns, especially VVIX with a new low.

The internal breadth readings also held key levels for the first time in a long time, so the breadth implies rallies should be relatively broad based and could be led by laggards like tech and semiconductors.

The Dollar potentially breaking down further and bonds holding also help bulls.

This is the best chance the bulls have to run for a while, know your levels and your plan on what to do above and below those key SPY prints.

Cheers,

Sam Shames

 

 

After a pop on Friday, the S&P 500 (SPX) is approaching three major levels of resistance that we’ll define in the video above.

Bigger picture, the weekly chart is still showing to short the rallies.

If the market can approach the hourly 200 simple moving average (SMA) and the hourly chart still isn’t printing a Big 3 buy signal, we’ll move to the lower time frames.

In the video above, we’ll review an area for a potential short position with a solid risk versus reward. We’ll also observe names on our focused list, including AAPL, BA, META, and more.

Trade names on Taylor’s watchlist in real-time with Taylor’s Compounding Growth Mastery program. Start a 30-day trial for $7 today.

Stay Focused!

 

 

We’re focusing on the S&P 500 this week because quite frankly, this is the only chart that matters.

The Big 3 indicator is printing red on the weekly and daily charts, representing a bearish signal. Although the market rallied all day on Friday, the hourly chart prints a grey bar, representing a neutral signal.

The market hasn’t flipped quite bullish yet, and it is rallying into heavy levels of resistance.

In the video above, we’ll review the weekly, daily, and hourly charts of SPX and where we plan to play the market higher (or lower).

Stay Focused!

It’s the last trading day of the year!

We had tax loss harvest trading on Friday morning as investors disposed of positions with large losses in an effort to reduce their tax bill.

My pick for a reversal trade was on META as the lower time frames are showing positive structure and momentum. We’ll break down that trade setup in the video below.

 

 

Please note we will not be sending a newsletter on Sunday or Monday next week due to the long holiday weekend.

Stay safe, traders, and have a happy New Year! Let’s have a great 2023 trading year together.

Stay Focused!