Tuesday Market Outlook: November 21, 2023

[Image] Tuesday Market Outlook: November 21, 2023 As we enter Thanksgiving week, we're approaching a weird couple of days in the stock market… This period is usually characterized by lighter-than-usual trading volumes and sometimes erratic price movements. With many of Wall Street’s senior traders off for the holiday, the market's reins are often left in the hands of junior traders, who tend to push prices around within a narrow range. This means that I’m adjusting my trading strategy accordingly, and I want you to do the same… Keep reading and I’ll show you how… The Biggest Event of Thanksgiving Week Despite the peculiar market backdrop, we do have one major event on the horizon that could shake things up: Nvidia Corporation’s (NASDAQ: NVDA) Q3 earnings report. Nvidia, a titan in the tech world, is set to announce its third-quarter earnings after the market closes on Tuesday. The anticipation is palpable, and for good reason. NVDA has been the hottest stock of 2023, up more than 250% YTD… NVDA YTD daily chart — courtesy of [StocksToTrade.com]( Meanwhile, market makers are pricing in a 7% move in the stock price for the session following the report. I think this estimate is too conservative, considering how Nvidia's stock moved 24% following its Q1 earnings announcement. Such volatility opens a window of opportunity for traders who know where to look… If NVDA has another blowout earnings print, we could see a ‘Full Ponzi Bull Mode’ squeeze past the all-time high (ATH). (But that’s not the way I’m leaning…) Speaking of NVDA’s ATH, let’s play devil’s advocate for a moment and look at the potential bearish signals on the chart. The NVDA daily chart is nearing ‘double top’ territory, getting dangerously close to the stock’s previous ATH of $502. This would be a poetic level for the chart to start tanking, just saying… Either way, be aware that betting on earnings is a coin toss. If you do it, use a small size. And if gambling on NVDA earnings is too risky for you, there’s another ‘option’ in your tool belt… The One ‘Correlated Name’ I Can’t Ignore This Week When trading around earnings, I often look at correlated names — companies that operate in the same sector as the one reporting. This allows me to play the strength (or weakness) of the company reporting without subjecting my positions to incredibly high implied volatility (IV). And this week, Intel Corporation (NASDAQ: INTC) caught my eye as a correlated name to NVDA with huge potential… INTC YTD daily chart — courtesy of [StocksToTrade.com]( INTC often sees its stock price influenced by major moves in industry peers like NVDA. Interestingly, market makers are pricing in minimal movement this week on INTC. And this discrepancy presents a potentially juicy trading opportunity… I like the INTC 11/24/23 $44 or $45 puts as good bang-for-your-buck options for a correlated ‘sympathy trade’ to NVDA. These positions could benefit from any NVDA strength. Better yet, the options will likely perform even better because the implied move is so much lower. However, it's important to remember the context of Thanksgiving week. Trading volumes tend to be lower, and many market participants take a step back to enjoy the holiday. This reduced activity can lead to exaggerated price moves on relatively little news or market action. As such, it's wise to approach trading with a bit more caution than usual. Lower liquidity can mean higher volatility, and in such an environment, even small trades can have a disproportionately large impact on stock prices. Therefore, if you choose to trade during this week, consider adjusting your strategy. You might want to sit on the sidelines, reduce your position sizes, or opt for strategies that limit risk. Avoid Tunnel Vision, Embrace the Big Picture… As intriguing as NVDA’s earnings may be, don't overlook the broader market context. Avoid tunnel vision, embrace the big picture… Keep an eye on overall market sentiment, geopolitical developments, and other macroeconomic factors that could influence trading during the week. Remember, in a quiet market, even seemingly minor news can take on greater significance. Thanksgiving week in the stock market is a time to be strategic, nimble, and perhaps a bit conservative in your approach. Consider the unique dynamics at play — reduced volumes, the potential for exaggerated moves, and the influence of significant earnings reports (like NVDA). Closing Thoughts Keep your trading disciplined and focused — look for opportunities, but be mindful of the holiday market conditions. Whether you're eyeing an options play on INTC, following NVDA’s earnings closely, or simply keeping tabs on the market pulse — the key is to trade smart and stay nimble. Happy trading — here's to making the most of the market's Thanksgiving quirks! As always… Stay Street Smart, Jeff Zananiri P.S. Veteran options trader Ben Sturgill is getting ready to set up a juicy, real-money position. Don’t miss Ben’s BIG trade idea — [Click here to get all the details BEFORE IT’S TOO LATE!](   66 West Flagler Street STE 900 Miami, Florida 33130 United States [Facebook]( [Twitter]( [Instagram]( [YouTube]( [Click Here to Unsubscribe]( **Our gurus teach skills others have used to make money. Any results displayed are extraordinary and are not typical and will vary from person to person. For more info read our [Earning Claims Disclosure]( About: Making money trading stocks takes time, dedication, and hard work. My goal is to teach you how I have succeeded in the market, but you may not achieve my results. Remember, there are risks involved with investing, including the potential loss of money. We are strongly committed to protecting your privacy and providing a safe & high-quality online experience for all of our visitors. 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