Last updated on November 17th, 2020
Trading this past week was completely dominated by election headlines. We saw markets rally the entire week once we got some clarity on the outcome of the elections. Over the past weeks we have dealt with earnings season, stimulus rumors, election headlines, and virus numbers picking back up. We should see a stretch over the next few weeks that is more focused on price action and technicals on the charts instead of being on pins and needles waiting for the next headline to hit.
We had a really nice week with all of our options trading. We have been targeting smaller profits the last few weeks with all the headline risk but we were still able to book decent profits. Our Overnight Pop trade also produced nice winners on SPY and QQQ Thursday afternoon into Friday’s expiration. Booking profits going into the weekend is always a nice way to wrap up the week.
Many markets are now overbought in the near term. Both SPY and QQQ had nice rallies the entire week and are due for pauses going into next week. We aren’t expecting anything too serious on the downside but it would be great to get pullbacks into the 8 EMA before the next wave higher. A pullback could help build energy for another push to the upside into the end of the year.
In this week’s Options Recap Video we take a look at markets on our radar going into next week. Our watch list for next week includes names like QQQ, SPY, AAPL, MSFT, XLE, SNAP, and XLF. Take a look at the recap video to see the details of the trades that are setting up for early next week.
We do expect another active week of trading as traders continue to put capital to work after the elections. We will be back on Wednesday for our Midweek Update. If you have any questions between now and then feel free to contact me directly. Mike@netpicks.com.