Earlier this month on August 2nd we provided a caution alert to market participants who were long.
Our scenario expected a gradual increase in higher prices followed by a swift break down. We got that breakdown on August 17th and by the 19th volume dried up intraday and buyers stepped in.
We were still cautious being fully committed to short positions and walked members through what we were seeing as the days progressed.
Certain scenarios call for layered short positions and others call for swift full positions. In this instance our system suggested a layered position. Please see Member Trades at the end for past trade suggestions members have received.
Whats Next?
We are still preparing for an overall market pullback that is greater than 5%. Throughout this time we have walked our members through the market action until this event occurs. Time and time again the markets have been held up into major events for the Fed and White House. During this period the market breadth has deteriorated. A more recent and significant decline was by a major market leader $AMZN taking the lead to the downside. We expect $AAPL to potentially follow soon.
. Throughout this time we have walked our members through the market action until this event occurs. Time and time again the markets have been held up into major events for the Fed and White House. During this period the market breadth has deteriorated as shown by a major market leader
In terms of the expected pullback period - mid September is the next window our system is showing for this event to occur.
We have been actively monitoring consumer sentiment and discretionary income trends. While we don't get into economic theory too much, the spending trends that have occurred over the past 9 months are not ideal leading into the holiday season. With another stimulus and infrastructure bill passing we will dive deeper into our expected performance of $DXY, $GLD, $SLV and miners.
Additionally, in a separate follow up post we will explore the housing market.
Member Trades
Below we will walk you through some suggested high probability positions for members. Lastly, we will provide a glimpse of what to expect moving forward.
One trade example that was closed at a significant profit was $SOXS. We began layering into the position on 7/29 and notified members when to be fully positioned
We closed out the profitable position on August 19th as seen below.
We also alerted on $UVXY $VXX which were also closed on the 19th
$AMD - was our only losing trade suggested to members. However we noted it was a higher risk play prior to entry. Set up was bullish short term but just didn't follow through. No system is perfect.
Another trade we notified members of was an $AAPL Trade Suggestion on August 9th that had much higher probability than $AMD.
Despite being down 35% at one point on this alert the probability remained high and ultimately paid well for members who took the trade. $AAPL eventually broke out on August 11th. Free delayed chart was also provided to market participants to capture additional upside in this name.
Next we called for $AAPL to continue lower
It followed through and has made another attempt at strength as we suggested to members.
Several other trade suggestions were provided to both market participants and members. Feel free to follow us or sign up to become a member.
More to come soon - trade 'em well!
-J