Welcome traders,
Today’s the day …
Millions of Americans are going to the polls to participate in one of the most heated election races that the nation has ever seen.
I’m definitely interested in the outcome.
But I’m MOST interested in the market volatility tomorrow, November 6.
Make no mistake:
There will be profit opportunities this week as a result of the election.
There’s no way of knowing who will win. And there’s no way of knowing exactly how the market will react. But we can expect volatility. And as traders, we can use that volatility to profit.
The most obvious stock to watch is Trump Media & Technology Group Corp. (NASDAQ: DJT).
It’s a little higher priced than the penny stocks that I usually trade. But the chart shows us obvious signs of support and resistance. That makes it tradable!
Plus … It’s not the only election stock that’s spiking right now. On Monday we watched a stock in the renewable-energy sector spike 120%*.
And it’s still in play today!
How To Trade These Runners
We’re always looking for the same patterns on every stock spike.
The patterns never change because they’re based on human emotion/psychology.
People behave predictably when they’re stressed. Like when they have cash in a stock that’s spiking +100%.
One of the major results of this predictability: Support and resistance lines.
People like whole numbers. If a stock hits $5 per share, that’s much more significant than a price of $4.87 or $5.13.
Someone who’s stressed while trading will likely react to a $5 price level rather than some other random price.
These whole numbers A.K.A significant price levels, act as support and resistance for the price action.
We see this happen a lot on volatile stocks. It’s how my students and I build smart positions.
As I mentioned earlier, DJT shows obvious signs of support and resistance, especially on a daily timeline.
Take a look at the chart below, every candle represents one trading day:
We can see support and resistance lines intraday as well …
For example, on Monday morning, Advent Technologies Holdings Inc. (NASDAQ: ADN) spiked 160%* with news that it was awarded a grant from the EU Innovation Fund for RHyno Project.
Take a look at the intraday price action with regard to key price levels. On the chart below, every candle represents one trading minute:
ADN is spiking with a solid news catalyst and it’s also an election play …
The Democratic party is often associated with green energy initiatives, and ADN develops hydrogen fuel-cell systems.
Plus, ADN isn’t the only green-energy stock that’s running during this election race … Vast Renewables Limited (NASDAQ: VSTE) spiked 690%* since last Tuesday, October 29.
Keep an eye on these stocks on Wednesday, November 6.
But be careful! Don’t fall for a common beginner’s mistake!
Don’t Make This Trading Mistake
No one knows who will win the election.
And more importantly, no one knows how the stock market will react.
As a result, it’s important that traders follow a key rule. It’s called, “buy the rumor, sell the news.”
It means, we can trade the volatility before and after the election, but we don’t want to hold shares through the election.
Someone who holds shares of DJT is essentially gambling on a Trump victory.
But even if Trump wins, the stock could still fall lower.
Truth Social is an underperforming company and it’s possible that everyone who would have bought after a Trump victory already did in anticipation of a victory. So then when Trump wins, there are only sellers left.
The same goes for a Harris victory with relation to green-energy stocks.
Wait for the election results on the night of November 5. Then scan the market the next morning for a market trajectory. That’s how professionals approach these opportunities.
Luckily, you don’t have to be a professional. My newest students can use AI to track the hottest stocks in the market. Stocks that follow our patterns!
I trained the XGPT AI bot to look for my patterns in the market. Remember, the patterns are always the same. It was only a matter of time until the AI caught on.
On Wednesday morning, find the hottest stock in the market and type it into the XGPT trade bot!
It will spit out a trade plan as if you asked me directly.
There IS a science to this!
Cheers.
*Past performance does not indicate future results
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