Finally Some De-flation For Once...

[] chains are rushing to cut prices [View in browser]( [View in browser]( [] MAY 23, 2024 [] [] PROSPERITY PUB MARKET TALK Finally Some De-flation For Once… After years of relentless price hikes, it seems like corporations might have finally realized they stretched consumers too thin. With inflation squeezing budgets for nearly three years, many shoppers are now prioritizing essentials over discretionary items like clothing and electronics. Target (TGT)’s recent weak earnings report underscores this shift. The retailer announced significant price cuts on thousands of household staples such as milk, peanut butter, and diapers in an effort to win back budget-conscious shoppers. Meanwhile, Walmart, which has consistently focused on value, reported strong earnings. Walmart's "rollbacks" and new low-cost grocery brand have attracted more shoppers, including higher-income households feeling the pinch of rising food prices — with possibly even some of those former Target shoppers joining their ranks. This trend isn't just limited to retailers. Even fast-food giant McDonald's is rolling out a limited-time $5 value meal, acknowledging that consumers are balking at the rising cost of dining out. The big question remains: will these price cuts lead to a meaningful decrease in inflation, or are they just token gestures to lure customers back in the short term? Only time will tell if this newfound "de-flation" will provide real relief for consumers or if it's just a temporary strategy in a fiercely competitive market. Target Stock Meanwhile, our friend Jeffry Turnmire tells us that if TGT can stay above the current support level of between 133 and 140, the chart setup for the retailer now looks bullish, with a target (no pun intended!) as high as 230. If those newly discounted items can start luring shoppers back, Target might just have blue skies ahead. — The Prosperity Pub Team [] [] “I’ve never seen a market anomaly as reliable as this one.” A while back, on an anonymous message board someone posted a message… A message that would change everything! They claimed that there’s a short window of time when options on one particular ticker are almost always ‘mispriced.’ And while most people wouldn’t even know what to do with that information… [One maverick trader as turned it into a 79 - 0 win streak!]( [] [] SCOTT WELSH’S TICKER TALES MS Close to a Breakout We’ve talked about the recent rise in bank and financial stocks, and that move has continued. Several banking stocks have climbed near a breakout point and the banking group in general is now one of the top 35 hottest in the world. And, like its cohort, MS is now nearing a breakout after a very long consolidation period. Here’s the chart: [] MS is nearing a high it hasn’t seen since early 2023. A break above $100.99 could lead to a sizable explosion. Especially if we get hints at a future rate reduction. We’ll keep an eye on it. Happy trading, — Scott Welsh P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on [this Ask The Pros episode]( starting at timestamp 20:45. [] [] [] [] MAY 23, 2024 [] [] PROSPERITY PUB MARKET TALK Finally Some De-flation For Once… After years of relentless price hikes, it seems like corporations might have finally realized they stretched consumers too thin. With inflation squeezing budgets for nearly three years, many shoppers are now prioritizing essentials over discretionary items like clothing and electronics. Target (TGT)’s recent weak earnings report underscores this shift. The retailer announced significant price cuts on thousands of household staples such as milk, peanut butter, and diapers in an effort to win back budget-conscious shoppers. Meanwhile, Walmart, which has consistently focused on value, reported strong earnings. Walmart's "rollbacks" and new low-cost grocery brand have attracted more shoppers, including higher-income households feeling the pinch of rising food prices — with possibly even some of those former Target shoppers joining their ranks. This trend isn't just limited to retailers. Even fast-food giant McDonald's is rolling out a limited-time $5 value meal, acknowledging that consumers are balking at the rising cost of dining out. The big question remains: will these price cuts lead to a meaningful decrease in inflation, or are they just token gestures to lure customers back in the short term? Only time will tell if this newfound "de-flation" will provide real relief for consumers or if it's just a temporary strategy in a fiercely competitive market. Target Stock Meanwhile, our friend Jeffry Turnmire tells us that if TGT can stay above the current support level of between 133 and 140, the chart setup for the retailer now looks bullish, with a target (no pun intended!) as high as 230. If those newly discounted items can start luring shoppers back, Target might just have blue skies ahead. — The Prosperity Pub Team [] [] “I’ve never seen a market anomaly as reliable as this one.” A while back, on an anonymous message board someone posted a message… A message that would change everything! They claimed that there’s a short window of time when options on one particular ticker are almost always ‘mispriced.’ And while most people wouldn’t even know what to do with that information… [One maverick trader as turned it into a 79 - 0 win streak!]( [] [] SCOTT WELSH’S TICKER TALES MS Close to a Breakout We’ve talked about the recent rise in bank and financial stocks, and that move has continued. Several banking stocks have climbed near a breakout point and the banking group in general is now one of the top 35 hottest in the world. And, like its cohort, MS is now nearing a breakout after a very long consolidation period. Here’s the chart: [] MS is nearing a high it hasn’t seen since early 2023. A break above $100.99 could lead to a sizable explosion. Especially if we get hints at a future rate reduction. We’ll keep an eye on it. Happy trading, — Scott Welsh P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on [this Ask The Pros episode]( starting at timestamp 20:45. [] [] [] [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub](