This weekend a deeper dive into adding shorter-term trading pivots to our favorite stocks and indices, followed by a brief heads-up on the big picture. Below are a series of charts of familiar names embedded with clearly marked Buy and Sell signals going back to the beginning of this year. These signals are based on divergences between share price and any number of about a half dozen traditional momentum indicators. For clarification purposes I've omitted the names of the indicators, only the number of divergences that are occurring at any particular price point. The underlying assumption is that the presence of one or more divergences signals a tradable change-in-trend. Before going into any further discussion, let's look at the charts with all eyes on the overall accuracy of these signals. PLTR Query: How is this chart different from every other chart? (Answer below.) TSLA TSLA closed above $265 Friday, confirming the Buy Signal sent out Friday mid-day. I added TSLL calls as per the recommendations that went out in both PRO and Premium Services. RKLB GLD The appearance of Divergence Buy Signals on the way up have all been excellent places to enter new GLD call positions. SLV As with the GLD Buys, these Buys for SLV have all been stellar entries Long. SPY QQQ IWM IWM is looking more bearish the closer in we zoom. A close below $214 and look for an acceleration down: DJI Saving the DJI for last, because what price does at this trend line is the key for the next leg, whether up or down. A break of the trend line could see an acceleration down, while if it bounces, especially if accompanied by a Buy Signal and the Dow could run up to new highs into November 5th and beyond. Note: The Dow is less than 200 points from a clean breakdown with support not until 2,000-4,000 points below. Discussion & The Big Picture Short-term trading is not the focus of this service, but it is hard to ignore the accuracy of these signals, especially for fine tuning entries and exits alongside our traditional signals. I've been monitoring this methodology real time for about a month now and am convinced it can be a valuable tool, with a misses along he way, but mostly hits. There is a reason I chose the above charts to highlight this new directional tool, apart from the fact that we have been trading all of the above throughout the year. But for the first chart, PLTR, every one of these stocks is on a Sell Signal. Pay special attention to SPY, IWM and DJI, as all three are not only on Sell Signals, they are all very near major trendline support. A breach of support across the board would not bode well for the short-to-intermediate term and we could be scrambling to add put positions next week. Additionally, the October crash window is still open, the election is "pending," and more mayhem is being threatened in the geopolitical sphere. That may be good for gold and silver, but we can't count on it. In the crashes of 2000 and 2007, there was no place to hide, anywhere. Don't shoot the messenger, but instead, be on the watch for any new positions weighted to the downside. We will take our cue from the DJI, SPY and IWM, as all three should act in concert if a new leg down is in the cards. It should be an interesting few weeks ahead. Active Options: PRO Service Active Options: Premium Service
