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Volatility Spikes Ahead of Bullish Season’s Start — Don’t Fall for Low-Liquidity, Overnight Traps

by | Oct 31, 2024

Stocks are down sharply across the board a day ahead of the bullish period that begins Nov. 1 and lasts until May. About 15-20% of traders then really do “Sell in May and go away,” as the saying goes…

But while futures are down this morning, particularly in tech, we are well off the lows from around 6 a.m. ET. It’s not crazy to see volatility at night following earnings from big companies like we’ve seen this week. 

Don’t fall for the banana in the tailpipe when you see low liquidity at night! It’s meaningful, but don’t take it as the gospel because looking at the S&P 500 (SPY), it’s also filled half the gap lower back up, and it’s been going straight up since bottoming. 

If the Nasdaq 100 (QQQ) trades above $493.75, that means we’re starting to fill the gap, and we’re almost already there. 

We also have some major earnings reports on deck for after the close today in Amazon (AMZN) and Apple (AAPL)…

Remember, lower position sizes this week because there will be a lot of volatility…

I’ll cover all that, my daily hitlist of longs and shorts and more in this morning’s “Premarket Must Watch” video!

Roger Scott
Roger Scott Trading

Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!

P.S. The Best Seasonal Period for Stocks Is About to Begin…

You’ve heard of “Sell in May and go away,” right? 

Well, Halloween flips that script! Check out this chart from Bloomberg… 

It’s a hard look at the past 50 years of stock market data. 

And guess what? Almost all the gains? 

They happen between Nov. 1 and April 30. 

That’s right… 

Tomorrow isn’t just about costumes and candy — it’s the kickoff to what could be the most “killer” season for anyone with skin in the stock market. 

Can we guarantee what the market will do next? Absolutely not. No one can. So we can’t promise returns or prevent losses. 

But if history’s any guide, and if you’re looking to play the odds…

Jeffry Turnmire and I are going LIVE today at 1 p.m. ET today…

And we’ll be LIVE trading the “Halloween Effect” so you can see how we approach this window of opportunity… along with the stocks we’re following. 

We’ll See You at 1 O’clock!

WRITTEN BY<br>Roger Scott

WRITTEN BY
Roger Scott

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