- Simplify Wall Street
- Posts
- Sunday Deep Dive 10.27.24
Weekly Market Insights, Trade Ideas & Simplified Strategies
Good Evening,
Stay ahead of the market with your Sunday edition of Simplify Wall Street.
Business Briefing
Stock Watchlist
Tip of the week
1. Business Briefing & Stock Insights
Headline News: Delta sues CrowdStrike over software update that prompted mass flight disruptions.
Ticker: $CRWD and $DAL
Details: Delta Air Lines has filed a lawsuit against cybersecurity firm CrowdStrike in Georgia following a global outage in July that resulted in significant flight cancellations and disrupted travel for 1.3 million customers, costing Delta over $500 million. Delta claims that a faulty software update from CrowdStrike led to the crash of over 8.5 million Windows-based computers worldwide, resulting in 7,000 canceled flights over five days.
Check the charts:
The stock price has dropped nearly $200 since July.
When you look at the story holistically, you see that the $200 level was a territory that was not breached for many months. Therefor, the fact that it flushed through those downside levels in 1 day, it is a major deal.Two things to keep in mind.
News always wins. It doesn’t matter how bullish a stock looks. Bad news is bad news.
Dips caused by negative news can create buying opportunities if the news doesn’t change anything fundamentally about the company.
In my opinion, this 276-280 area has proven its support before. If it continues to trade above the box on any backtest, we could be testing the mid-300s again.
Speaking of traveling, I think our friendly sponsor could be great to help with lower-cost vacation locations globally.
How to save big on your next getaway
Over 2 million travelers are saving 40-90% on flights with Going. They provide real-time alerts on deals for 900+ destinations and saving couldn’t be simpler…
✈️ Just choose your airport
👀 Watch the deals roll in
🏖️ Book your next quick trip or dream getaway
Just imagine going from Chicago to Cancun for $166. Or Baltimore to Paris for $260. These are real deals members have booked.
2. Strategy Simplified: [Timing Market Cycles]
Timing is everything.
Example: If the market is going up and up and breaking new highs every week, what action would you take?
If the market is sideways what action would you take? My point is there is a time for investing, swing trading equities, futures trading option day trading or scalping.
How do you think I’ve made it this far year after year?
Every month is not a high-volume trading month, and every week is not a futures trading week. Some weeks are equity-buying weeks instead of options trading weeks. In fact, theres many time where its best to say nothing.
Most people ARE NOT informed.
When the Market is Bullish (Uptrends)
Investing strategy:
Less aggressive buying. Add to winning investments.
Look for laggers. Sometimes, the $S&P index leads, and other companies are in an uptrend, but they may not be leaders in the move. A non-leader doesn’t mean it can’t be.
Low to Mid agressive buying unless you are at the beginning of the bullish cycle
You DO NOT become your most aggressive unless stock prices are at a heavy discount.
When the Market is Sideways (Consolidation)
In a sideways market, prices move within a defined range without making significant upward or downward progress. This is often called a consolidation phase.
This is when you build a position. You do not need to go all in every time.
When the Market is Bearish (Downtrends)
In a downtrend, prices are falling, and the market sentiment is typically negative.
Many people sell their stock, start shorting the market, buy hedges, or, my favorite, aggressively add to their current position.
Note: Hedges are not meant for everyone. If your overall portfolio does not have a positive return on investment for the year, then using options to hedge may not be the best idea. Bonds or dividend ETFs may be a better route.
3. Thematic Watchlist: [Trend Focus of the Week]
Theme: [Watching for a pivot near]
Company 1 ($SMCI) – Do they beat earnings this week? Will they have any news to support the move?
Company 2 ($PLTR) – [$36-38 could present a good buying opportunity].
4. Quick Tip of the Week & Reader Q&A
Quick Tip
When entering a trade, always establish your stop-loss and take-profit levels in advance. This not only helps manage risk but also takes the emotion out of trading decisions. Expect 0 and your feelings can never be hurt.
Wrap-Up
Thank you for reading! Have questions, feedback, or suggestions? Reply to this email or join us in our Discord community. Let’s make this a profitable week together.
Best,
Simplify Wall Street
Reply