Episode

Welcome to WaveRider NDP. Next day prep. Get ready for tomorrow's momentum plays. Let's dive in. What if the most profitable thing you do tonight isn't a trade at all? It's the 15 minutes you spend getting ready for tomorrow. Yeah. Right. The market whispered today. Let's make sure you heard it. In the next six minutes, you'll have a complete game plan for tomorrow. Watch lists, scenarios, and the one habit that separates prepared traders from reactive ones. I'm here with our market analyst and honestly today felt quiet. You know what? Right. And that's actually the signal. Mm-hmm. Wait, what do you mean? Low volume, narrow range days, I mean, historically speaking, they're more likely to precede expansion moves. Like the compression has to go somewhere. The quiet is the signal. Yeah. So the boredom is actually to tell. Well, sort of. I'd push back slightly on calling it boredom. It's more like controlled indifference. The market isn't bored, it's waiting. There's a difference. It's like the ocean pulling back before a wave hits. Right. OK, that's a better way to put it. So let's start with the scorecard. What did the market actually do today and what does it tell us about tomorrow? So basically, we chopped sideways all day. The S&P held right around that 20-day moving average, which is, look, that's not exciting, but it's not nothing either. Right. Volume was about 15 below average which historically when you get these compressed low sessions something building underneath Yeah low today does that make you more or less cautious going into tomorrow Honestly actually more optimistic Because when the market can't go down on light volume, that's usually a sign that the selling is exhausted. And here's the thing that caught my eye. The tech names. Exactly. AAPL, MSFT, they actually held green while the broader market was flat to red. So you're watching the stocks that refuse to go down. Relative strength is, honestly, it's everything. That's the whole game right there. When a stock won't sell off with the tape, that's your watch list. Yeah, totally. All right, now what could shake things up overnight or before the open? Let's hit the calendar. Okay, so checking the economic calendar is like checking the weather before a road trip. You may not change your destination, but you'll adjust how you drive. After hours, we've got some mid-cap earnings that could shift sector rotation themes. And when three or four names in the same space are reporting, It adds up. It adds up, yeah. And tomorrow morning, we get jobless claims, which has been moving markets lately. Does it matter where we are in earnings season, like early cycle versus late? Like, oh, totally. Early in the cycle, beats get rewarded more. Late in the cycle, the bar is higher and misses punish harder. Right now, we're kind of in the middle, so... So prepare for both. Exactly. That's the whole point. Yeah. Okay, so let's build the actual watch list. names and setups that deserve attention tomorrow morning. Building a watch list is like mise en place all your ingredients prepped before the heat turns on I love a good cooking analogy I mean so I want five to eight names maximum Focus list beats a sprawling one every time First, I'm looking for names consolidating near highs with tightening ranges, coiled springs. Right. What does tightening range actually look like? Are we talking days or weeks of compression? Look, good question. I'm looking for at least three to five days of narrowing candles. You want to see the volatility just squeeze out. And when three or four names in the same sector are doing this simultaneously... It's a theme, not a coincidence. Right. Second, those relative strength leaders we talked about, stocks that held green on today's tape, get top priority. Third, I'm identifying key support and resistance levels tonight, so I'm not making decisions reactively under pressure tomorrow. Mm-hmm. And here's a clue most people miss, unusual volume in the final hour. That's often a tell for next-day momentum. On a day like today, I'm sizing down by default. Half position until the setup confirms, then add. Yeah, yeah. So we've got our names, we've got our levels. Now what do we actually do when the open hits? Right. Right. Let's say we gap up tomorrow. What's the play? So, basically, gap up, I'm focusing on continuation plays in leading sectors. Don't chase laggards trying to catch up. And I want to see overnight futures volume confirming the direction. Right. But what if the leading sector from yesterday isn't the one gapping? Do you still follow it? Great point No you follow the money not the story If a different sector is leading the gap that where the conviction is You adapt Mm Okay gap down Here the thing Gap down, I have predefined support levels for high conviction names. I avoid weak names with no floor. The plan you write tonight is what keeps you from making an emotional decision at 9.32. Right. And flat open after a quiet day like today, patience becomes the edge. Wait for a clear directional break before committing size. Wait, this is basically just you're describing a game plan, like a full game plan. It is. You have your plays for when you're ahead and different plays for when you're behind, all decided before kickoff. The best traders don't predict, they prepare. They walk in with a plan and let the market come to them. Yeah. Okay, so if I'm a listener right now and I've got 15 minutes before bed, what's the actual order of? Of operations, exactly. Okay, so review today's action, note what held strong, check tomorrow's calendar for landmines, build your focused watch list, five to eight names, levels marked. Then close the laptop. Seriously, the work is done. Sharpening your axe tonight makes tomorrow's effort more efficient. And when the market gives you nothing, the disciplined trader gives back nothing. Capital preservation is a strategy, not a weakness. Do your prep and let tomorrow come to you. Exactly. That's the edge. Trade smart, stay prepared, and we'll see you back here tomorrow night. That's all for today's episode of WaveRider NDP. Next day prep. Get ready for tomorrow's momentum plays. See you next time.