[00:41] Um all right, so things did not disappoint in the market overnight. We we were bought again yesterday on the open, went up into this resistance area.
[00:54] We did fail there. Um but morning. Uh things were pretty wild. I don't know how many of you were watching the futures, but we started um going into the election results real strong.
[01:08] into the election results real strong. Uh we were up at 338, 339. Then when it started to look like uh the results weren't a strong Biden win, we reversed hard, went negative. Um and then we went positive again
[01:24] when when uh exact time, but since then we've just been going higher. And for those of you who haven't been following too closely what the numbers and percentages and
[01:39] prediction markets are saying um is that Biden is most likely going to win when they finish counting the votes in these last few states. Um but at the same time, it looks like the Democrats have no chance of taking the Senate.
[01:51] Historically, US markets have been strong um when you have divided second term, that was probably one of the greatest have the internet bubble. Um but you have divided government when we you know
[02:04] the GOP took the house and um and the Democrats controlled the White House. So, House of Representatives. One of our legislative branches in the US, if you're not familiar. So, um
[02:16] looking at this this morning, um before we even get in more to the to the details, for those of you who are spent a lot of mental energy and time overnight and didn't sleep, um you really want to be careful today
[02:30] uh not to do too much. You know, watch, observe. Um especially since when you tricky to trade anyway. And this is a very large gap. We're gapping up on the spies over $5. We were up over six when we hit the blue line earlier.
[02:45] you know, you got to be careful with these these these large gaps. Let's see 60 minutes. And and then perhaps some good trades will set up there. So, in terms of um bigger picture, we're right back where
[02:59] the down move started from uh a couple of Mondays ago. Remember we had the support area here above 340. We breached it. We got down on this two Mondays ago. We went we breached it and that was the beginning of this downtrend here. And
[03:13] talking about what would it look like if we climbed back up. we've talked about after the election once there was more certainty we would have strength. Although it didn't quite play out the way I think most people
[03:27] Uh but the market the market is moving higher here and the burden now is on the sellers to show that we could even close you know, at a minimum below 340, but I would even say
[03:53] Uh You know, in terms of us being able to work our way back up to these prices um in the near term uh unless we we close below three this 338 level here. And if that happens,
[04:05] maybe we can roll over a bit and you know, test this area like the low 330s buyers are in control. Um and remember, a lot of managers, waiting for the election results and to put more money to work. And those
[04:21] results have happened. So, you might get some people to chase. I don't see why people would be chasing all the way up here at one things to come in, you know, closer to 340, 339, in the high 330s um to really start to
[04:34] put some money to work. But um if people are thinking that event's out of the way and the market, you know, going into next year is going to make a new high, next year is going to make a new high, uh they may be less reluctant to to uh
[04:46] to to commit money. So, that's kind of where we are. Uh
[05:00] time we spiked to the blue, I I did short. The second time we came up here, I had a little uh-oh moment, but it's um we failed there again. Uh And the first time we failed
[05:18] around 341 and 1/2. So, what I would be looking for now is now that we're pre-market downtrend, is can we start to hold for more than a few minutes below 341 and 1/2? If we can, maybe that will be the beginning of a pullback into 340
[05:31] earlier. Let's see where we were earlier in the pre-market, we did poke our head above the 34050. And that's kind of actually where I have I have a bid to cover into this right here. Um meaning short position.
[05:45] meaning short position. And so, then we'll kind of see strength. And we are back above 280. So, we went from underperformance to
[06:01] overperformance in a hurry, uh right back up to this resistance area. And we even looks like we touched 286. Wasn't looking as closely at the Qs as Wasn't looking as closely at the Qs as the spies this morning.
[06:22] nut to crack. Um remember, we were just down at 268, so that's $18.
[06:45] 283. Um if we start to pull back more on Let's see what we've been doing in the premarket. Okay, so we did break out there from So, we did get to 282 and a half, moved
[07:00] sideways for about 15 minutes before the next leg. But that would be the area. Um better risk reward entry on on the technology via the Qs.
[07:12] and we'll see if we maybe double top, go into this range, and then come back down, and and see what how it behaves at 284. But a slice below 284 right on the 284. But a slice below 284 right on the open, I'm looking at 282.50 to 283.
[07:27] stuff, I didn't see a lot of good fresh news stuff. we did have the the proposition in California pass. There was a law in of the um
[07:39] uh gig workers into two um into employees under employment law, which changes the whole business model business models. But, they had a referendum and people voted to say no,
[07:52] they're independent contractors. So, that was really good um positive actually, as I'm talking about it, we're distorting a second move from the pre-market getting to our first potential resistance area 31 and
[08:05] 1/2 32. So, if we zoom out on the 30-minute
[08:22] was this? So, this was early June. Sold off from 40 to 28. And then they had off from 40 to 28. And then they had this range here from 28 to 32 for a while before breaking down, I guess, late September and October. So, we're
[08:35] think this would be a tough nut to crack right here, or at least close above it. Um maybe things go crazy for a little bit and it actually even works its way I'll put on the sheet, but you would think that it would have trouble closing
[08:48] above $32 today. Um it's spent a lot of time in this consolidation range. And it know, people might start to think, well, other markets, if they're going to try uh them as employees, they'll have referendums as well.
[09:02] go from there. Um it's the same thing that's to to it's the same idea in Uber. I just decided to to use the levels in Lyft um rather than Uber. And then, I guess, tan, the initial gut reaction from people was to
[09:15] to sell the crap out of it because without a Democratic-controlled Senate the Biden really can't do a lot on uh on clean energy. So, um you know, maybe they'll negotiate some sort of deal,
[09:29] but it was kind of sell sell tan first and ask questions later. It did rally back pretty hard from the support here in the pre-market. resistance. We did fail into that. I actually got inside of this range.
[09:53] reacting pretty strongly to the to the idea that assuming the Supreme Court doesn't overturn the the ACA that Obamacare that that that's going to be really good for some of these healthcare names. But
[10:07] they're very difficult to trade UNH and the others. But they are gapping quite a the others. But they are gapping quite a bit.
[10:32] how much volume we got. We got 300,000 shares. It's about 13% of average daily Um I don't have a strong strong view on this. Um I think you know the levels that I put
[10:46] up there at 66 I put on first support. Um this thing uh right back up to this potential resistance. So you know the good risk reward is down
[10:58] here. But maybe maybe it'll make a higher low. It'll leak below 66 and play it into this where people are long from down here. You would think people would sell after the open. If it slices right through above 68 like it did in
[11:11] the premarket on volume then people are going to just shrug off this news and any timeframe you're trading when something moves back inside of range it has a tendency to Well you can see once it goes in the range it goes back and
[11:24] forth inside of the range. So that tendency applies on all timeframes. So that's on those things. Then, tech So that's on those things. Then, tech second days and technicals.
[11:51] don't think Lyft is Uber's anywhere close to its all-time highs. close to its all-time highs. Uh strong recently. So, let's just quickly go through these second days and
[12:05] technicals. Um so, NIO NIO is really starting to remind me a little bit of I remember our our friend JKS last month when it was 30% pullback. So, I mean, it's a real you know, it's it's starting to go
[12:18] you know, it's it's starting to go vertical here. And No. Had this trend and then it went
[12:32] back into the 50s. It's now consolidating here. Um the 70s, so we'll see. It was a little bit weaker this morning, I guess, on the on the election gap down, but it's it's right back above 60.
[12:46] down, but it's it's right back above 60. So, getting back to NIO. we go to the prior day and we look at the prior day's high, the prior day's
[13:00] afternoon support, and we use those levels. If something gaps higher and then kind of reverses inside of the prior day's range, that's a potential reversal day. Um and the more it gets extended, the more vertical it gets, the
[13:13] more fun it is in terms of the pullback on a percentage basis. So, let's see. So, hopefully this will keep on getting strong yesterday on the um I guess on the news of the The it gapped up in the
[13:26] pre-market here was the entry into the European market. We actually talked meeting we talked about buyers stepping up, sellers stepping down, and then I break? Is it going to break this way or this way? Um
[13:40] time did it break? Broke at 10:30 to the upside and then closed at the high, pre-market high there. That's a level above that there obviously is no real um cuz it's a new new high. Um and in terms of the support, all I did was use
[13:55] this. Um looks like I just covered this bias on a $2 pullback. So, um um the
[14:08] in terms of uh in terms of judging whether or not if we extended this trend from yesterday morning,
[14:21] on the game plan sheet. We're on the 30-minute trend from yes- yesterday. And so, and then maybe you get that then it gets gets above 38 and then maybe it just
[14:33] goes completely vertical. But, be prepared for either direction. you know, follow the levels we have from yesterday and the trend that formed from the prior two days on the 30-minute once it broke
[14:46] to the upside. So, that's on NIO. Uh Baba was pretty good. Um it did actually retest the pre-market uh right at the open. I was able to get it there. I didn't think it was going to
[14:58] have then immediately go back up to 290. Um it did go up there pretty quickly and moved back in range. So, I tightened things up a little bit today. Um
[15:11] it's 292 and 294. You know, maybe this will stay in range today. Tighten up, stay between 284 and 294. Would be great. You know, if it got a little bit tighter today and tomorrow got a little bit tighter, I mean
[15:24] out about them being able to list the Ant IPO, and if it does, it could be back above 300 pretty quickly. But until that until we get that piece better for a tight consolidation and then a a play of the break.
[15:51] And and still in the strong longer-term Um PayPal was pretty interesting. I feel a little bit lucky that I was able to make money on the short side in it. So, um right on the open yesterday, it
[16:04] failed at 180. You can't see it on the 30-minute. discussed that in the morning meeting. Um that was I think R1, and it dropped $5 immediately, but it reversed really hard.
[16:20] spike. I was able to short into the spike. It came off $5 pretty hard. I was here. And you know, once it got above 180, I'll say it did flag. It was pretty clean break on the on the second leg.
[16:34] could hold above 180, you got this tight consolidation here. Oh, this little red downside before it went up. For those of you who are new, remember, whenever you get a flag like this, and if it breaks one way, and then on the next bar
[16:47] doesn't follow through in the initial direction and goes back up, usually that probability because you got people leaning the wrong wrong way on this red bar. And so, when it goes back up here, and then starts to take this out, um
[17:00] there's a high probability you can you can break to the upside. can break to the upside. Um so, looking at it for today,
[17:12] gapping up with the market. It reversed pretty hard from 188. I I could see this, you know, this one I could see consolidating in this area for a while. it based on they had good numbers but the guidance wasn't great.
[17:31] know, between 180 and 190 seems kind of reasonable to me as as I zoom out And you definitely give the sellers I guess technically are still in control as long as it can't close back above 188 or so.
[17:43] So, that's how I'm thinking about that. Um yeah, pins were still long from the pullback to 57. Uh it's gapping up. My thought is that, back a little bit. But if it got really
[17:56] extended today, you probably want to get flat at $63 or something like that and then play it you know, pullback higher low above 60 or so. closes above 60. If you can get a couple closes above 60 here and then a break to
[18:09] the upside, I think that'd be really clean um on pins. Uh and then let me just quickly um I do know that the you know, the marijuana them. I don't know if we talked about them yesterday or a couple days ago. So,
[18:21] them yesterday or a couple days ago. So, CGC Then I guess there was probably a bunch of referendums around the country and
[18:33] that's impacting them a little bit. Maybe that's why this is gapping down.
[18:46] to be closing above $20. And even yesterday pulled back when it flushed to have some closes above 20 to feel good about it. Otherwise, I wouldn't be area in the range. Until right, people are still trading
[19:00] it down at a dollar or something? Where did it come from?
[19:19] talking about his short from back up here. watched that. It was funny seeing people picking fights with the guy who's, you know, makes millions of dollars a year, better than 99% of traders.
[19:31] He knows what he's doing. Um Anyway, Anyway, that was a tangent.
[19:43] the intrinsic value of this is of this company is and I can see why people, you know, it came back up to $10, it makes a higher low here. Maybe if it gets above to become Neo and go back to 25, 30 dollars, but you never know.
[19:56] You never know. So, it's double topped here at seven. Um Yeah. So, let's take good care of that. Quickly on Tesla, um well, it's already come off about $7.
[20:09] you know, it's back inside of range. So, I thought if it got, you know, to 440 440, I would sell some more of what I picked up on this this pullback below 410. Um and just keep on trading in this range and if it ever closes above the
[20:24] top of this range here above 450, um then start to think about maybe buying some 470, 480 calls and look for that move to 500. But, until I see some closes above 450, I'm just going to continue to like sell strength when it
[20:40] you know, moves into the 430 to 450 area and buy weakness when it, you know, goes down to around 400 and anytime it goes below 400, get really aggressive buying.
[20:54] I So, I gave up on this one below 40. Um trying and it has turned the core It has, you know, it's trying to change. So, let's take a look at it. So, it double bottoms here at 35. It's
[21:08] back up to here. So, there potentially is a lot of resistance right here. So, for this actually to go up for real, I mean, it's back up to kind of where now. And so, what you want to see is
[21:24] a close above 40. Um even if it fails here today, pulls back in, stays above 38, maybe does some work in this area here for a couple of days, and then does something like that.
[21:38] work its way back up to 44, 45, maybe even 48 eventually, but it's uh this is a good move right back into resistance, potential resistance. that is that. And just on uh the final
[21:54] answer her or his question so you didn't address it to everybody. Um but on most of these ideas we share in the morning meeting, um generally I don't have a strong bias either way. Like the other day in Neo I did a few
[22:06] days ago, thought it would pull back to 32, but um generally I'm just identifying the prices where buyers potentially could take control. That's why we have inflection points. And playing up to the resistance areas.
[22:18] And then if I see selling at resistance and failure, playing it to pull back down to inflection. And if it's holding below inflection, down to support. And most stocks do not trend. Most stocks we identify where they're gapping to, we
[22:32] support, and we watch how they trade off trading in a nutshell. As always, be patient and good luck.