Daily Commentary: October 24, 2024

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Don’t Short This Market

Posted by Pete Stolcers on October 24
www.oneoption.com

The message the last month has been to trade from the long side and to buy dips.

PRE-OPEN MARKET COMMENTS THURSDAY – Yesterday the market probed for support and buyers were not interested. The second consecutive gap down was a sign of selling pressure so they let it run it’s course. That resulted in a bearish trend day. This morning, buyers are back and almost all of the losses from yesterday have been erased overnight.

BUY DIPS AND DON’T SHORT

Tesla is up after reporting earnings and that is providing a boost. Initial jobless claims came in at 227K and that is a market friendly number.

We have major earnings and economic news next week and we have officially entered a bullish seasonal period. The week after that we have the election and the FOMC statement.

Did you notice how the SPY bounced right off of AVWAPQ yesterday? I tested the method I use and it is relevant.

We don’t chase gaps up. Wait for the bid check. All of the alerts you have been setting are going to trigger and you will have some really nice entry points. We want the bid check to be brief and shallow.

Support is at AVWAPQ and resistance is at the all-time high.

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