Entry is Key...Exit is Everything! ^TM

Updated: 12/5/21 4:00 PM PST. 

Greetings SC Traders!

What a volatile week of trading we have had in the markets with all the FOMC, Congress and COVID news swimming around. You could not catch a break on either side of a trade with regards to a fixed strategy; therefore, I have not had many trade ideas for the Stimulus Compounder Strategy for a few weeks now.

With earnings season pretty much over, and no more FOMC meetings for the rest of the year, investors are going to be placing bets for the end of 2021 trading; as well as the coming tax loss trading opportunities...translation...MORE volatility.

My plan is to start placing fishing orders for the SC strategy looking to catch some more of volatility over the next three weeks.

Although this year has not hit some of my goals with this strategy it is still positive overall for 2021 and I am confident that 2022 will be the year we can really get this machine going and reach those 6-Figure ProfitsUP! Trading goals we know this strategy will achieve.

Here is some analysis of the current SPY charts:

As you can see, there were multiple SGB's in place as the SPY was topping out, and true-to-form, the result was a massive move DOWN. This week the SPY was bouncing all around the current SGB zone at (455) and closed right at the VWAP (orange dot) indicating a potential bottom could be close. If the SPY can hold at this current SGB zone, we may have a nice run higher this week; however, if that is not the case, then I expect the SPY to fall to the next SGB zone at (434); which  should intersect with the 200MA and it is widely known that 200MA becomes a magnet when markets are close to it—take notice that these two SGB zones are at Fibonacci price levels “55 and 34” which has significance in the trading world.

Now that the SPY is fully entrenched in a Bear 180 (see weekly chart), I will play close attention the my "T Levels" and looking for the SPY to test T-3 as early as tomorrow, so am going to start placing my fishing orders on CALLS. 

Your best strike targets are always the SGB zones, so pay particular attention to them when you are adding strikes and expiration dates to your Lotto Trades.

Another thing to notice is the SPY has broken through ALL previous price channels (purple lines) and now my updated ones (thicker lines), so the markets are poised to begin a trend lower, but until it clearly takes out T4 with even larger volume, I am still looking to maintain my SC strategy bias to the CALL side into 2022.

As you can see on the TTM Squeeze below, the "BLACK" dots are the "early" indication of future moves, and if we see ORANGE dots, it can get very ugly for more DOWN moves on the SPY.

The weekly chart tells us a different story as we are now fully entrenched in a solid Bear 180 sell off. Take note of the two yellow boxes as this indicates we could be in for a bounce this week since the current one is identical in only two weeks of selling vs. the original one that took 4 weeks to find a bottom—keep a watch on the trading action at T-3 on the daily charts.

The TTM Squeeze on the weekly chart has started a "black" dot, but usually you need 2-3 of them to consider it a confirmation that a continuation move is immenent.

Keep your fishing orders in play and take your 50% or 100% ROI when they come. The strategy performs best over time and the compounding is what takes you to the land of 7-Figure profitability!

Profits UP!

Frank

The don-Franko