A Very Bullish October Wraps Up, Similar November Incoming? Nov 1st Plan
As readers know, I spent nearly all October talking about the setup for what I called “the October rally”. October is seasonally the most bullish month of the year during mid-term years, and on October 13th, we got the technical setup to confirm this seasonality: A perfect failed breakdown of the October 3rd low to put in a large capitulation candle. It doesn’t get better in terms of a bottoming setup, and I’ve been bullish since.
October was a big green month, and seasonally November is similar being second best month of the year during mid-terms on average. The problem?: ES has failed to put in more than 2 green months in a row all year. In addition to this, we have FOMC on Wednesday, which is a 50/50 event that can easily crush the recent rally.
This will be a week for tactical, level to level, non-biased day traders. Last week, I was looking for a rally to 3925-30 then dip and we clipped Friday and spent today consolidating. In today’s newsletter, I’ll be talking pathway into FOMC, broader targets, and my system for managing trades.