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This week’s technicals lead the market as it broke down.

On Friday, two economic reports end the week.

The Producer Price Index (PPI) will be reported at 8:30 a.m. Eastern, followed by the UMICH Consumer Sentiment Index at 10:00 a.m. Eastern. The UMICH report provides insight into overall consumer sentiment and inflation.

As mentioned in Monday’s newsletter, the S&P 500 (/ES) was sitting at a bigger-picture trendline. /ES rejected the trendline and has since rolled over. Pay attention as a newer structure is forming near the 21 exponential moving average (EMA) at $3,965. 

Check out the video above to get a breakdown of my critical levels and possible scenarios on /ES as it approaches a new structure.

Stay Focused!

The last month of the year is here. Let’s end the year strong.

The week is filled with economic data.

On Monday, the first report will be the Purchasing Managers’ Index (PMI) at 9:45 a.m. Eastern, followed by the ISM Manufacturing Index at 10:00 a.m. Eastern.

On Thursday, Jobless Claims will be reported at 8:30 a.m. Eastern.

Friday’s reports include the Producer Price Index (PPI) at 8:30 a.m. Eastern and the UMICH Consumer Sentiment Index at 10:00 a.m. Eastern.

The S&P 500 (/ES) is sitting at a bigger-picture trendline. Even if /ES breaks structure, there are still major levels in play above around $4,327.

Check out the video above to get a breakdown of my critical intraday levels and larger time frame levels on /ES. We’ll discuss two setups in TSLA and ROKU and their major levels to mark.

Stay Focused!

The bulls have done well holding support thus far.

The Dollar index (DXY) is continuing to help the bulls on both the Hourly through the Daily charts.

HYG looks better than it has in a long time, since the market bottomed post-COVID.

The last piece of the puzzle is whether we see a positive MACD cross on the weekly charts. This will give us a tell if this is just another bear market rally or a reversal.

Stay Focused!

All in all, it was a good week for the Compounding Growth Mastery.

We closed our SPX put credit spread, took profits at the highs on NVDA, and took an exit for a loss on ADM, protecting our capital from larger losses.

We bought calls on the solar ETF (TAN), which has had a good start thus far. The TAN trade has buy signals across multiple time frames, and we’re looking for a push toward $90.

In the video above, we’ll review the current market conditions, observe names on our watchlist, and discuss the key moving forward, specifically on how the market will handle the dip.

Keep a look out for Sunday’s video where we’ll review the last puzzle piece needed for a reversal as well as other trades we’re potentially looking to open.

Stay Focused!

As a day trader, there are four main patterns I’m looking for in the market.

The 4 patterns are:

• Double Bottoms
• Double Tops
• Bull Flags
• Bear Flags

These patterns are not only formed intraday but also on bigger picture charts. The combination of using both intraday and bigger picture can help add extra confirmation of market conditions to your trading.

In the video above, I break down these patterns and show different examples on various stocks. This video is for educational purposes, and the levels discussed are from 11/11/2022. Keep in mind these levels may not be accurate at this time.

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Fridays unlock same-day expiration options (0 DTE). Almost every stock has same-day expiration on Fridays. As a trader, this is my favorite day to play with profits. 

Taking a “lotto” on Fridays is a perfect way to set up the week strategically with profits. Due to the options premium, we can allocate smaller risks on our best setups with a higher percentage of the reward.

Size down, play with profits, and take advantage of the opportunities that Fridays provide.

In the video above, I break down basic examples and key ways to leverage Fridays during your trading week to get the most out of same-day expirations.

Are you ready for some Cyber Monday specials? Now through November 28th at 11:59pm, take 30% off select courses & indicators in our store! Use the code: CYBER.

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The bulls made progress and now have a decent chance to take the market up to the 50 simple moving average (SMA). The million dollar question is whether this is a rally or the beginning of a reversal. We’ll discuss the differences between the two and signs to watch out for in the video above.

One major chart we’re using as a template for a reversal is the Dow Jones Industrial Average (DIA), as this is a pocket of the market that shows the bottom could be in. We’ll review the structure on DXY and other names on our watchlist list ADM, ENPH, NVDA, and more.

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We hope everyone had a great Thanksgiving and had a chance to take a break from the charts. The market closes early on Friday due to shortened holiday market hours.

The bulls appear to have a chance to take the market higher into the end of the year. We are targeting the weekly 50 simple moving average (SMA) around $4,152 to $4,200.

In the video above, we’ll observe the structure on the weekly, daily, and hourly charts of the S&P 500 (/ES). Keep an eye out for Sunday’s weekly watchlist video where we’ll look at the Dow Jones Industrial Average (DIA) and potential setups for the week.

Stay Focused!

Major economic reports are taking place on Wednesday.

The first report is Initial Jobless Claims at 8:30 a.m. Eastern, followed by the Purchasing Managers Index (PMI) at 9:45 a.m. Eastern. The University of Michigan (UMICH) Consumer Sentiment Index is reported at 10 a.m. Eastern. This is a good gauge for inflation as it identifies the relative level of current and future economic conditions. To end the eventful day on Wednesday, the Federal Reserve  (FOMC) minutes will be released at 2:00 p.m. Eastern.

After getting through option expiration (OPEX) last week, the S&P 500 (/ES) chopped around Point of Control (POC) levels at $3,993 and $3,976. Keep these levels in mind this week as /ES gets closer to structure.

Check out the video above to get the breakdown of my critical level on /ES and my favorite setups this week in GOOGL and NVDA.

Tune in to trade SPX, and other potential opportunities in the market with me live in the Simpler Day Trading room.

Due to Thursday’s holiday, we won’t be sending a newsletter. Hope you have a Happy Thanksgiving, Focused family!

Stay Focused!

Let’s take a look at the market structure now compared to August.

The bulls are shaping up. We want to be long in an environment similar to August while avoiding getting caught in something like we saw in September.

The S&P 500 (SPX) is back above the 21 exponential moving average (EMA) and the 50 simple moving average (SMA) with a positive moving average cross.

We’ll review other similarities as well as the weekly MACD crosses on the overall market, our anchors like HYG and DXY, and individual sectors.

To see which trades we’re opening for December expiration, join Taylor’s Compounding Growth Mastery! Get a $7 trial for 30-days here.

Stay Focused!