Do This Every Day: 3 Numbers to Frame the Market

How to Frame the Markets Every Day: Just Use These 3 Numbers I always tell my subscribers that successful trading happens one day at a time. Looking too far into the future is a recipe for disaster. It's all about taking it a day at a time. One way to gain an edge is learning how to frame each day the right way. Framing the markets puts you in position to succeed, especially when it becomes a habit. You'll become much more attuned to the patterns of the markets, and best of all, it will be a lot easier to make money using repeatable strategies. Today, I'm going to share with you the numbers I use to frame the markets every day. Kind of like checking in on the seven sisters, framing the market is the kind of habit that allows us to see things that other people miss. And there are always opportunities to take advantage of when we're armed with this information. Framing the Market: Just Use These Three Numbers There are many numbers that different traders use to frame the markets at the start of each day. Truth be told, it doesn't have to be that complicated. For me, framing the markets is as simple as knowing three key numbers: the resistance number, the support number, and the pivot number. I like to know what know what each of these numbers every single day : Support - This is the price we do not expect the stock to drop below. Resistance - This is the price we do not expect the stock to rise above. Pivot point - If the stock is trading above this number, we consider it bullish. If the stock is trading below this number, we consider it bearish. What These Numbers Looked Like This Week It was a wild day on Monday. That was the day that Pfizer announced the vaccine that it has developed with BioNTech was proven to be effective with 90% efficacy. Then, things calmed down quite a bit.

As you can see here, the S&P 500 shot up past 3600 on Monday morning before sharply pulling back on Tuesday. As my TBUZ TV subscribers know, our support, resistance, and pivot in the S&P 500 remained pretty steady as we traded each day from about Wednesday onward. Support was at 3502. Resistance at 3585. And pivot at 3545. It helped out make the most of some opportunities that were sitting right in front of us: As of Friday morning, we were up $0.80 on a spread for Moderna (Nasdaq: MRNA). We took a $21.50 bid on Workhorse (Nasdaq: WKHS), a Cincinnati-based manufacturing company based. NIO Inc. (Nasdaq: NIO) was an interesting one in the EV space that was soaring pre-market on Friday. It calmed down a bit once the markets opened- but we'll be keeping our eye on it. We're also going to continue to keep a close eye on Zoom (Nasdaq: ZM). Zoom has been a success story in 2020. People have been using Zoom to make just about every kind of video call and meeting you could imagine this year. With the big vaccine news on Monday, it seems like traders suddenly don't know what to make of this stock. For whatever reason. Zoom was at $515 last Friday. It went down to $350 on Monday, and by Friday afternoon it had leveled off at just below $404. That was after bouncing up to about $420 mid-week. It seems like traders don't quite have their minds as to what to make of it now that there's a vaccine. Seems like there could be opportunity there. Tonight, I'm going to share my standard Sunday Night Traders planning with all my TBUZ subscribers, just like I do every Sunday. That's where I lay out my plan for the coming week. I can tell we're going to have another big week next week - so I hope click here and learn more so that you can join us. Catch you on the flip side, Tom

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