Morning Market Briefing – Election Eve

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Morning Market Briefing – Election Eve

Morning Market Briefing

Morning Market Briefing – Election Eve

November 2, 2020

Heads up! Two Roads Trading and SCTrade are getting new live trading schedules. You can catch SCTrade from 9:30-10:30 am and 1-2 pm Eastern, Monday through Friday. You can catch Two Roads Trading from 2-3:30 pm Eastern, Monday through Friday.

So here we are.

After a volatility filled second half of October, the markets finished the month just shy of 10% off their recent highs, putting us close to correction territory as we move into November. Big tech earnings on Thursday failed to rally the markets with the presidential election looming tomorrow, as the markets wait to see what the makeup of the federal government will be for at least the next two years. With it being unlikely that both the presidential and all the senate races are called before market open on Wednesday, it may be yet another week filled with intraday reversals and lack of bullish conviction. Until the races are decided, it makes little sense to speculate on how the markets will view the victors. If the presidential race is in dispute for the coming days or weeks, expect choppy waters until the winner is declared and accepted.

On Friday, the SPY rallied a bit late in the day to come off the 322.60 lows. This will be a key area of support to watch for today. 320 is the next level to watch, with the 200 Simple Moving Average (SMA) on deck below that.

The QQQs remain well above their next support level at 260, and big tech is worth keeping an eye on into the rest of the year. With the US hitting new daily COVID highs, the tech names that keep business and people in contact and entertained will be important to watch.

Watch List

Symbol Why We’re Watching
NFLX COVID Play, could see uptick in subs with whole countries back into lockdown
ZM Similar to NFLX, what few workers that had returned to the office will likely be moving back to the wonderful world of online meetings
AAPL Coming off disappointing iPhone numbers, watch for a base around $105
DIS On watch from two perspectives. Their parks may suffer in quarantine but will their reorganized focus on streaming push this higher?
CLX Saw steady movement up in the initial COVID crash, and with a surge in the virus, a run on cleaning products could push this higher

Upcoming Earnings

Symbol Date
PYPL Today
WM Today
AMC Today
WING Today
CLX Today

Upcoming Event

The Narrow Range Indicator

November 3rd, 7:00 PM EST

Volatility expansion and contraction is one of the core principles of the markets. As options traders, we’re always looking for signs of price expansion, no matter the direction. Join Two Roads Trading Head Coach Matt Hensley as he shows you how he uses this simple indicator to help find or confirm trade ideas.

You will learn:

  • Basic ideas of price expansion and contraction
  • What the NR4 and NR7 indicators are
  • How to put them on your charts and scan for them
  • How Matt uses the indicator to find trade ideas
Matt Hensley
Register Now
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