Join Swingly Pro!
The Best Market Opportunity This Year Awaits!

The markets are setting up for a rare alignment of potential growth triggers that we haven’t seen in ages. With rate cuts on the horizon, a fresh wave of political stability in the U.S., and the strong seasonal push toward the year-end, the conditions for potential gains look incredibly promising.

This is exactly the time you want to have a game plan, and that’s where Swingly Pro comes in. Starting now, we're diving deep into actionable analysis, identifying the top opportunities, and equipping our members with daily, targeted insights to make the most of this environment.

Joining Swingly Pro means:

• Exclusive Weekly Market Reports covering all key movements and setups.

• Detailed Daily Watchlists curated for real-time opportunities.

• Our Full Swing Trading Curriculum is designed to keep you ahead of the curve, not just following it. Dive into our comprehensive video seminars and detailed swing trading modules, each with end-of-module exams to ensure you master the material and stay on track for success.

• Live Workrooms & Q&A Sessions where we analyze the market together every day and prepare to trade it with confidence.

Don't wait until these opportunities pass by. Join a team of swing traders like you in Swingly Pro now, and position yourself to take full advantage of what could be one of the most favorable market setups in recent years.

OVERVIEW
Confusion Breeds Volatility

On Wednesday, global stock markets saw a significant rally, with major indexes rising sharply, while Bitcoin reached a record high and the U.S. dollar made its largest one-day gain since early 2023. This surge came as Republican Donald Trump won the U.S. presidential election.

His victory spurred optimism around market-friendly policies such as tax cuts and deregulation, which many investors believe could boost corporate earnings and economic growth. The rally also reflected traders' bets on a potential uptick in fiscal spending and an increase in U.S. interest rates, leading to a stronger dollar and renewed interest in risk assets like stocks and Bitcoin.

After Donald Trump's election victory, futures for the S&P 500 and the Russell 2000, which tracks smaller U.S. companies, saw notable gains. This boost appears tied to investor expectations for stronger domestic growth, a rise in mergers and acquisitions, potential extensions of personal tax cuts, and anticipated corporate tax reductions under Trump’s leadership. Additionally, the decisive election outcome eased some uncertainties about the country’s future direction, which likely helped to lift market sentiment. Investors seemed encouraged by the prospect of clearer policy direction and potential economic support across various sectors.

Historically, U.S. stocks tend to rise in the months following elections, regardless of the outcome. While factors like tax and trade policies can have an impact, stock prices are primarily influenced by fundamentals such as earnings, inflation, and interest rates. Policy changes do play a role, but not as significantly as many might assume.

A major reason we're likely to see a stronger finish to the year is the sharp reduction in uncertainty. The Volatility Index (VIX), a key gauge of market anxiety, has dropped over 23% to below its rising 200-day EMA, currently sitting at 15.83. This decline follows a period of multi-month highs, signaling a more stable outlook and reduced concerns about potential market disruptions.

We're entering an exceptionally strong period, with the combination of premarket strength, upcoming rate cuts, and decreased political instability in the U.S. creating a favorable environment for growth. On top of this, the end of the year is historically a strong season for markets, presenting ample opportunities ahead.

Due to this unforeseen strength in the markets right now, we’re hosting 2x weekly seminars moving forward in Swingly Pro, designed to cover trading fundamentals and, most importantly, to help you make the most of this market environment. Join a team of swing traders focused on seizing these opportunities and navigating the coming weeks together.

Don’t miss out—now’s the perfect time to get involved with Swingly Pro and start gaining all the real insights that matter.

Nasdaq

The Nasdaq had a very strong session yesterday, signaling that a Trump victory may have been priced into the market. This was evident not only in the strength of cryptocurrency stocks but also in the anticipated policy changes from the Trump administration, which could lead to a boost for the U.S. economy.

The QQQ broke out on high volume, surpassing its daily 10- and 20-EMAs early in the session. However, it struggled to push through the $492 level, a dense area of overhead supply, as seen on the Visible Range Volume Profile (VRVP). We had discussed the importance of the QQQ holding above its Point of Control (POC) at $485, which had acted as support, along with the daily 50-EMA, for three consecutive sessions. This gave us confidence that the QQQ wasn’t likely to break lower, which would have been a painful way to end the year.

Looking ahead, we are now seeing the Nasdaq gap up an incredible +6%, injecting $4.2 billion into large-cap technology stocks—a major sign that we are back into a risk-on market. This level of capital inflow is not something to take lightly; it's a clear indication of strong investor confidence, signaling that market participants are willing to take on more risk. The significant move into tech stocks shows a renewed appetite for growth and the potential for continued momentum, especially with favorable macroeconomic factors in play.

S&P Midcap 400

The midcaps are absolutely soaring in the premarket, continuing their momentum from yesterday's breakout, which was even more significant than the QQQ's. The MDY broke through its descending resistance at $570 and its falling 10 & 20-EMAs after finding solid support at the 50-EMA. Now, we’re seeing a +5% rally premarket, showing a strong shift in sentiment and confidence in the midcap sector. This breakout sets the stage for potentially higher prices if the trend holds.

Russell 2000

The small caps are following a similar pattern to the midcaps, with a strong breakout and an even stronger continuation premarket, highlighted by a notable gap-up. The Russell 2000, representing smaller U.S. companies, is poised to benefit the most from the current environment. With the Fed set to cut rates by 25 basis points (BPS) on Thursday, a seasonally strong end to the year, and reduced political uncertainty under a Trump administration, small-cap stocks are in a favorable position.

Small-cap stocks are particularly sensitive to interest rates and economic growth, and the anticipated rate cut should provide a boost. These companies often rely on cheaper capital to expand, and in past periods when the Fed lowered rates, the Russell 2000 experienced significant rallies. Additionally, small caps tend to perform well during November and December, historically gaining 6-7% due to the "Santa Claus rally" and year-end portfolio adjustments.

Historically, after major election cycles, the Russell 2000 has outperformed large caps, with average gains of 2-4% in the months following clearer political conditions. The last time the Fed cut rates during a period of economic strength, the Russell 2000 rallied around 15% over the next six months. Given the current outlook, a similar opportunity looks to be on the horizon.

Note:

With such strong gap-ups premarket, it’s easy for traders to get a bit euphoric and start piling into positions. However, keep in mind that big moves higher can be followed by sharp pullbacks. Before we get ahead of ourselves—especially today—let the emotions cool down and allow the trend to develop. While a fade intraday is unlikely, it’s still something to keep in mind. Stay cautious and wait for a clear trend to confirm the direction.

DAILY FOCUS
Put Your Political Opinions Aside

DAILY FOCUS: Manage the Euphoria – Trade Like a Professional

The market is buzzing today, driven by the excitement surrounding Trump’s presidency, but it’s crucial to keep your head on straight. It’s easy to feel the urge to dive in, but rushing into trades during a euphoric moment can lead to mistakes. If this is truly the beginning of a strong end to the year, the trend will last—you’re not late if you don’t get in immediately.

Here’s how to approach the current market with a professional mindset:

1. Wait for Confirmation: Just because the market is moving doesn’t mean you need to chase it. Let the trend establish itself with clear price action and volume patterns. Be patient and wait for setups that align with your strategy. You can use things like the 5 minute opening range high (ORH) before you enter a breakout or episodic pivot to actually increase the probability that the trade will see follow through.

2. Stick to Your Rules: Stay disciplined and follow your process. Only enter trades that meet all of your criteria, regardless of the market’s excitement. This is where many traders go wrong—acting on emotion instead of logic. You should have a maximum of 2 setups that you like to trade, don’t stab yourself in the back and now start to introduce random trades just because you see things rallying; even if they work, you are making a mistake not being disciplined.

3. Manage Your Risk: With volatility rising, risk management is critical. Never risk more than 0.25-1% of your account per trade, and limit your position size to 30% of your account overnight. Avoid getting too exposed early on in a volatile environment.

4. Avoid FOMO: It’s natural to feel like you need to jump in, but fear of missing out is a trap. If the trend is legitimate, it will provide more opportunities to enter later. Don’t let emotions dictate your decisions.

5. Be Professional: Professionals don’t let market noise dictate their actions. Focus on the charts, the price action, and your own strategy. Stick to what you know and trust your process.

In moments like these, discipline is your greatest asset. If the rally has legs, you’ll be able to participate when the timing is right. Stay calm, manage your risk, and remember, the market will always give you more chances if you’re patient.

WATCHLIST
Today’s Crypto Breakouts: The Trump Trade

WULF: TeraWulf Inc.

• We are focusing on cryptocurrency-related stocks today, especially those strongly linked to the Trump presidency. WULF stands out as one of the top picks due to its high volatility, with an average daily range (ADR%) of 9.75%, meaning it has the potential to rally aggressively within a short period.

• With the stock gapping up, we're treating this as a pivot (EP) trade and will be targeting the 5-minute opening range high (ORH) for our entry. Our approach will be more aggressive with position sizing, as we’re aiming for a full position of 1% net asset value (NAV). This strategy aligns with the volatility we're seeing, so we'll need to stay sharp and manage the risk carefully while pursuing the upside potential.

MSTR: MicroStrategy Incorporated

• MSTR is another key cryptocurrency-related stock that’s leading the charge today. Following the impressive rally in Bitcoin, which has surpassed $75,000, MSTR is showing a major pre-market gap-up, riding along with the strength in both Bitcoin and the broader equities market.

• We'll be aggressive in our approach, targeting the 5-minute opening range high (ORH) for our entry, and looking to take a full-sized position.

If you’re interested in seeing our complete watchlist, including a sectoral breakdown and an updated daily focus list, click here.