Updated: Oct 29, 2022
*Accuracy rating update: 92% or 11/12 predictions correct*
Day’s theme: An attempt to establish new support at a high.
Trade opportunities: There's an opportunity to buy calls around the open and sell them between 2:00 p.m. and 3:00 p.m.
On October 27, 2022, we have sideways rotation with a bullish trend that precedes a decline in the pre-market. Right around the open, there’s a decline that offers an opportunity to buy calls, however this opportunity is brief. Even in the face of seemingly overwhelming headwinds, that decline is followed by a move to the upside around 9:45 a.m. There’s an opportunity to open up a long position as a rally commences between 10:00 a.m. and 11:00 a.m. This rally continues between 11:00 a.m. and noon. The rally is cut short by being range bound around midday and then we have a bit of a decline from roughly 1:00 p.m. to 2:00 p.m. We’ll then see a prominent trough around 2:00 p.m. Out of that trough, there’s an unexpected and prominent move to the upside.
There’s a cash out opportunity to sell the calls purchased earlier in the day between 2:00 p.m. and 3:00 p.m. We’ll see a completion of a rally around 3:00 p.m. and a lot of movement toward the close. There’s a big price movement in the last hour of trading. In the post-market, we’ll see a U-shaped dip.
A good trade on the 28th in the midst of sideways S-shaped rotation between horizontal resistance and support.