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Stock Market Pullback - Scenario 2

On 7/23/2021 we sent out a delayed alert on the expectation of a continued market pullback. We alerted members and prepared for the initial pullback from July 14th to 19th.


How we played the first downtrend

Some delayed high risk trades from the first expected pullback are shown below:


$NVDA High Risk Trade Idea: Alerted members on 7/14 and alerted on social media on 7/15.

$AAPL High Risk Trade Idea: Alerted members on 7/14 and alerted on social media on 7/16(note: date is July 23).


$PINS Medium to High Risk Trade Idea: Alerted members on 7/12 and alerted on social media on 7/14.

How we played the bounce:


$AAPL Extremely High Risk Trade Idea: Alerted members on 7/19 - alerted social media 2 hours after.

$AMZN we were stopped out of this high risk play at an 8% loss given time decay and risk profile changing on this trade idea. We recommended longer dated options to members to take advantage of upside. Short term price target was reached.


Next downtrend

We are now currently awaiting the next downward price movement. The public post on 7/23/2021 that is below was from a July 13th chart we sent our members.


This chart depicts two scenarios our system generated.


Scenario 1 was a three day bounce followed by a sharp continuation lower. This was invalidated on 7/23 giving our system a higher probability of scenario 2 taking place.


Scenario 2 was more in line with a propped up market headed into a key July 29th deadline and overall month end window dressing. Although not every system is 100% correct, we firmly believe this scenario will play out and have core trade ideas to ensure we take advantage of this decline.

The infrastructure bill and first of the month window dressing will provide enough optimism to prop up the market the first two trading days of this month. The next 3 - 5 trading sessions after that should provide significant volatility once economic news unfolds. Until then - expect continued consolidation at the highs with the established range from these past 6 trading days highlighted below:


Trade Ideas still active and actionable are:


$SPY Puts - a more high risk outright short of the market. Not recommended for new traders. Members will be alerted when to add remaining position size.

$SPY Hedge - for those who do not wish to short the market but want to remain protected.


$SOXS - for those looking for a higher probability trade they have patience to wait on. Note - this is 3X leverage which is still high risk but ensures a higher probability of taking advantage of this expected decline.


Note: we recommended adding the remaining portion of this position on 7/30/2021. This is still actionable.


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