Be sure to check out my Post-Market Analysis videos weekdays
after the close for tradable insights!
We’re seeing a big election reaction today — which is what markets do when we have certainty — with many stocks gapping up this morning, and some sectors gapping down.
My advice is simple: Don’t get tricked into new positions!
Wait for volume to come in and show you where to put your money to work. Today is a day for taking profits, waiting for losing positions to recover, and watching where the money flows.
When we see a surge like this morning, seasoned traders know it’s a prime opportunity to take profits on any existing positions. Gapping up to new highs often brings a cooling-off period, sometimes with a few more days of upside usually followed by sideways chop or a pullback.
This pattern played out recently in China, where their economic stimulus news sparked a similar rally, only for the market to fade and move sideways afterward.
Just like that setup, this current U.S. rally isn’t an open invitation to chase prices higher.
With so much volatility, today’s market is best treated as an observational day. We’ll need to see if this gap holds or if it quickly fades. Does the market continue higher, consolidate, or start pulling back?
Observing this action is critical because it will help us plan for stronger entries when the dust settles. Less seasoned traders might feel the pressure to act now, but disciplined traders know the real opportunities come after the initial noise dies down.
Here’s why that patience matters…
Rushing into trades on a gap up — especially during heightened market events like an election — often leads to lower returns. Instead, avoid reacting too quickly, whether it’s jumping in on a big up day, or panic-selling in a gap down. With volatility in play, the best approach is to let the market show its hand.
On that note, it’s also essential to reevaluate our plans when the market moves unexpectedly.
Watch, reassess and then act if necessary — this is what separates smart trading from emotional trading. In times of big market moves, traders who practice patience and let the market’s true direction reveal itself tend to outperform.
The election might be decided, but the market’s moves are just beginning, and the best opportunities lie ahead.
Let’s stick to the plan and wait for the right moment.
Kane Shieh
Kane Shieh Trading
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
- Telegram: https://t.me/+Ji2OakXnGMM5OTI5
- YouTube: https://www.youtube.com/@GammaPockets/featured
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. A Ticker Wall Street Could Be Forced to Buy Like Crazy!
I have a quick question for you…
What if you had access to the only system in the world that’s able to track down the biggest market maker positions in real time… And even front-run what could be their next move?
How would that feel?
Great, right?
Well, I created a system that’s mostly overlooked and does exactly that — track down market maker positions.
And so far, it’s shown the power to profit from almost four out of every five trades!
Most in the upper double- or lower triple-digit returns…
Now, I can’t guarantee wins or prevent future losses…
But I just discovered a new ticker that Wall Street could heavily pile into in the coming days… even if it just moves by a tiny 1%.
And I believe it’s something we should pay attention to.
if you want to see the ticker in question and you how i plan to trade it…
Disclaimer: The profits and performance are not typical, we make no future earnings claims, and you may lose money. From 1/1/24-10/24/24 we have seen a 79.5% win rate on LIVE trades with a 53% average return of winners and losers and a 79% average winner over a 5 day average hold time.
