(ZeroPro: 31/10/22)

As of October 31, the $SPY has continued to hold the key $355 level which reclaimed around two weeks ago, showing no further decline.

Investors will likely be looking at earnings season for a positive break should any of the bigger blue-chip companies provide solid reports.



(ZeroPro: 31/10/22)

Looking at $META, unless you were trading to the short side, things may be feeling bleak after the ticker fell under the $100 level after its October 26 earnings report.

Whilst it's the season for earnings, it’s also seemingly the season for gap and craps.

What many may not realize is that traders can turn a profit when stocks go down. While stock market patterns can go in and out of fashion, sometimes working and other times not. There’s been some failed follow through in small cap stocks, particularly on day one (gappers) failing (crapping) at or near the market open in the mornings. Let’s take a look below.

Watch: Strategies Revealed: How To Profit During The Bear Market of 2022 | feat. Alex Temiz (MIC)

Day 1 Gapper failed follow through: $INPX

(ZeroPro: 24/10/22)

After making a run a few weeks earlier, $INPX on October 17, gapped up again overnight. As you can see from the open, it could not hold the $8.30 line and subsequently fell to $7 offering short sellers, who timed it well, more than $1 per share.


(FlashSEC: 24/10/22)

Interestingly, it fell to as low as the $3s in the days that followed. See above, some SEC filings indicating potential opportunities for dilution that could have caused the move down.

Day 1 Gapper failed follow through: $RMED



(ZeroPro: 24/10/22)
$RMED, one day after $INPX, fell on October 18. It also couldn’t hold a key level in the morning. Once it broke $7.70, it retraced throughout the rest of the day.

Day 1 Gapper failed follow through: $HOOK

(ZeroPro: 24/10/22)

$HOOK, two days after $RMED, fell on October 20. It also couldn’t hold a key level around the $1.65 area. Those who had the stomach to hold all day would have generated a nice return on investment.

While these patterns may be new to some, to others I’ll be repeating information they already know. Most often, what separates a trader is not their knowledge of a pattern but their discipline in executing it across the days, months and years.

Watch: Mindset for Exponential Growth by Edu Trades to learn how to cultivate the mindset of an athlete to trade stocks.

To Conclude:

  • The stock market is about spotting patterns that go through periods of working and not working.

  • Currently, we’ve seen a lot of stocks break support at the open before fading in the morning and sometimes the afternoon, too.

  • Many traders are familiar with stock trading patterns so often it is mindset that separates one winning trader from the other.

DISCLAIMER:
This content (“Content”) is produced by Stephen Johnson. The Content represents only the views and opinions of Mr. Johnson. Mr. Johnson’s trading experiences and accomplishments are unique, and your trading results may vary substantially. TradeZero does not endorse the Content and makes no representations or warranties with respect to the accuracy of the Content or information available through any linked third party sites. The Content has been made available for informational and educational purposes only and should not be considered trading or investment advice or a recommendation as to any security. Trading securities can involve high risk and potential loss of funds. Mr. Johnson is compensated by TradeZero for producing the Content and may also receive compensation for customers he introduces to TradeZero.

TradeZero provides self-directed brokerage accounts to customers through its operating affiliates: TradeZero America, Inc., a registered broker-dealer and a member of FINRA and SIPC; TradeZero Inc., a dealer registered with the Securities Commission of the Bahamas; and TradeZero Canada Securities ULC, an IIROC member firm and member of CIPF.

Reference

  • ZeroPro | Trading Software: Accessed: 31/10/2022

  • Yahoo Finance | Meta stock tanks after earnings miss on revenue, lighter-than-expected Q4 guidance: Accessed: 31/10/2022 (https://finance.yahoo.com/news/meta-thid-quarter-earnings-130316557.html)

  • Seeking Alpha: | Stocks to watch Apple, Microsoft, Boeing and Amazon lead earnings barrage: Accessed 24/10/2022 (https://seekingalpha.com/article/4548210-stocks-to-watch-apple-microsoft-boeing-and-amazon-lead-earnings-barrage)

  • YouTube| Strategies Revealed: How To Profit During The Bear Market of 2022 | feat. Alex Temiz (MIC): Accessed 24/10/2022 (https://www.youtube.com/watch?v=UMyauT01CLM&ab_channel=TradeZero)

  • FlashSEC | Software program: Accessed: 24/10/2022

  • YouTube| Mindset for Exponential Growth | Dan Pipitone interviews Edu Trades: Accessed 24/10/2022(https://www.youtube.com/watch?v=8dANZGrsFkY&ab_channel=TradeZero)