Donald Trump’s Presidency already caused a lot of volatility in the stock market.
Major indices pushed to new all-time highs after November 5.
And he technically isn’t the President yet … The inauguration is January 20 at noon Eastern.
We only see election-trade opportunities every four years …
Take a look at the market since Trump won the election on November 5. On the S&P 500 ETF Trust (NYSE: SPY) chart below every candle represents one trading candle:
Key crypto coins also made new all-time highs. Take a look at Bitcoin below, every candle represents one trading day:
The next Presidential catalyst is right around the corner: Trump’s inauguration is on Monday, January 20.
We’re watching stocks like Trump’s Trump Media & Technology Group Corp. (NASDAQ: DJT) as we approach Monday.
Plus …
I’m hosting a LIVE prep session tonight with Jack Kellogg at 8 P.M. Eastern. We’ll gather to plan positions for this unique election surge!
See the post on X below:
URGENT 🚨 Tomorrow, January 16th at 8pm ET, @timothysykes is hosting a critical Pre-Inauguration briefing with $15M trader @Jackaroo_Trades. Once this window opens up on the 20th… there’s no going back! So secure your seat now >> https://t.co/eEGpp29ULU#daytrader #election… pic.twitter.com/nIDZdQfLEH
— StocksToTrade (@StocksToTrade) January 15, 2025
Let’s look at the current DJT price action in today’s blog to prepare.
It’s consolidating above a key support level …
Trump Price Action
We have to be aware of the long-term chart for DJT.
The share price spiked past $70 in 2024 … Traders who bought at that level could still act as bag holders to oppose a price spike higher.
But don’t worry, the chart also shows obvious levels of support and resistance that we can use to build smart positions.
There’s an opportunity here, we just have to approach it correctly.
Take a look at the multi-month chart below of DJT. Every candle represents one trading day:
If we zoom in on the intraday price action recently, we can see a spike to $43 and consolidation around $39.
On the chart below, every candle represents one trading day:
The volatility grows as we approach Trump’s inauguration on Monday, January 20.
But be careful … Traders can still lose money on this stock.
We have to follow certain trading rules to keep our account safe.
For example: When we’re approaching a highly publicized catalyst in the market (like Trump’s inauguration), we follow a rule called ‘buy the rumor, sell the news’.
Here’s what it means:
There’s no telling what a stock will do when the catalyst comes to pass …
- It’s possible that everyone who would have bought already did in anticipation of the catalyst.
- Then, when the event comes to pass, there are only sellers left and the price tanks.
We can trade the volatility before and after the inauguration, but don’t hold shares through Monday’s event.
For a comprehensive trade plan, join the LIVE prep session tonight at 8 P.M. Eastern!
More Trump Stocks
DJT isn’t the only stock we’re watching …
Tesla Inc. (NASDAQ: TSLA) is another stock that experienced bullish momentum after Trump won the presidency.
This is largely due to Elon Musk’s new friendship with Trump and Musk’s efforts to get Trump elected in the final months of the election race.
Phunware Inc. (NASDAQ: PHUN) is another Trump-related stock that I’m watching. And it’s much cheaper than TSLA and DJT.
PHUN helped Trump during the election race in 2020 that he lost. The price action still reacts to Trump-related news.
Keep an eye on these stocks as we approach the inauguration on Monday and throughout the next week.
Remember, don’t hold shares through the inauguration.
How I plan to play this momentum.
Cheers.
*Past performance does not indicate future results
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