Important Support + $RIVN Earnings Idea
Welcome to Issue 057 of Masters in Trading Digest.
We continue to look at a longer-term chart of the S&P 500 Futures and discuss how the market reacted once it approached the last two months' low price.
A few more live sessions to end the week.
Enjoy,
Jonathan
The Week of April 24th, 2022
We started the week by sharing an extremely important support level for the S&P 500 Futures. As volatility continues to stay elevated, it is important for traders to pay close attention to downside risks.
We have surging inflation and the 10-year Treasury bond is storming towards “The 3% Tipping Point.”
“Historically, the stock market has struggled when the yield on the 10-year Treasury bond crosses 3%, as it appears poised to do” – Barrons
Watch NEW Video – Important Stock Market Support
- April Low: $4139
- March Low: $4129
- February Low: $4101
From Monday’s MIT Digest:
“I do think the market will trade down to these levels before the end of the week. Expect $4129 to be MASSIVE SUPPORT.” – Jonathan
EARNING SEASON IS HERE
This Thursday is our quarterly Earnings Academy live class where we present our 5 favorite Earnings trades. We have found too many traders place trades before an earnings event hoping to get lucky with a big move in the stock market.
This approach is fun, but certainly not sustainable.
Instead, we teach a systematic approach around Earnings Season that is repeatable every time earnings season comes back around.
Rivian Automotive (RIVN) is a good example of a trade that looks interesting to us.
Earnings Date: May 11, 2022
$RIVN has only released earnings to the public two times, therefore it’s fair for traders to assume that analysts and the financial community do not know much about the inner workings of $RIVN.
Ask yourself this, do analysts know more about $MSFT, a company that continues to release quarterly earnings for over 20 years, or a company that’s opened its books only twice?
If analysts don’t know much about $RIVN, I can assure you that the market makers don't have any better information about pricing options.
These Rivian options will eventually get priced efficiently as the company matures and analysts build trust with the company's reporting.
But until that happens, just sit back and watch what the smart money does.
$RIVN is splattered all over the Wall Street Wiretapper Unusual Options Activity tool.
Wiretapper is trained to find stocks that are priced to move.
$RIVN approaches its 3rd earnings release, and we see big Unusual Options Activity. These are the names that can potentially move big post-earnings releases.
Learn About Earnings Academy – Live Sessions this Thursday 1 PM
Masters in Trading Digest - Issue 57
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FINAL THOUGHTS
WHAT TO EXPECT IN THE NEXT MIT DIGEST
We are into Earnings Season, and with elevated volatility earnings trades present excellent opportunities.
Excited for Thursday’s live session.
Want in? Here's the best deal.
Just the next Earnings Academy Class? I got you.
Keep your feedback coming into support@mastersintrading.com. We’re excited to share your feedback along with fantastic suggestions for upcoming issues.
Until then, trade smart and always manage your tail-risk.
Thanks for reading,
Jonathan Rose
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