So... what was that?

[] Making sense of the last week in trading [View in browser]( [View in browser]( [] AUGUST 12, 2024 [] [] Editor’s Note: If you’ve got questions about whether we’re heading higher or lower, and more importantly, what to do if the bottom falls out of the market and we enter a true recession, make sure you [catch Jack Carter’s Recession Roadmap here!]( Hey y’all, It wasn’t that long ago, a week ago today, that the market was in a full-blown crisis. A bad jobs report had sparked fear of a recession, a lot of people (myself included) learned about the Sahm Rule for the first time, and pretty much everyone who had long-term holdings took a huge hit. And then… it was just gone… [] At Friday’s close, we had broken even, putting the nightmare of Monday completely in the rearview mirror. So, where does that leave us? Well, the economy isn’t exactly healthy, when you see headlines like these… [] But the stock market feels incredibly resilient. So I asked ProsperityPub’s Nate Tucci what he thought. Here’s what he had to say: [] Me: “Nate, what are you expecting this week after last week's eventual breakeven? Any particular stocks or stories you're watching?” Nate: Well, the market broke both of the levels I suggested it would need to be back in a continuation mode toward highs and that does fit with my longer-term view of another bullish run before post-election meltdown, so that is kind of how I am playing it now. One thing I think is worth noting is that the range of movement has really opened up. In other words, when we were making higher highs every day, if the market broke lower at all it would invalidate a trade... Now the range for where a short term long can still be valid is a lot wider in my view. I think the big mistake people will/can make from here is to try to go short every time there is any downside momentum and vice versa because it's more than likely we'll get some testing of recent areas which, again, will feel like a deep correction compared to how the market has behaved the last 8 months. A smart thing to do for options traders might be to just add a week or two to the exp/timeline of their trade to give themselves a little more durability in those scenarios. I appreciate Nate’s insights because they’re even-keeled. He doesn’t get too high or too low on any piece of information. It will be interesting to see if his projection of a post-election selloff comes true. As I’ve said before, I don’t think either election outcome itself would spark such a reaction because Wall Street knows both of these candidates and the consequences of their policies. But the election itself could serve as an inflection point that lets the air out of the balloon regardless of who wins. I do think his advice is sound though. With all the short-term volatility right now, you’re wise to give yourself a little more breathing room to get out of a trade. I took a shot at a wrap order on DIS last week that never quite recovered and cost me $250. No big deal, but I’d love to still be in the fight this week to see if Disney has a stronger week. Hakuna Matata, I suppose… Have a great week, Stephen [] [] [] AUGUST 12, 2024 [] [] Editor’s Note: If you’ve got questions about whether we’re heading higher or lower, and more importantly, what to do if the bottom falls out of the market and we enter a true recession, make sure you [catch Jack Carter’s Recession Roadmap here!]( Hey y’all, It wasn’t that long ago, a week ago today, that the market was in a full-blown crisis. A bad jobs report had sparked fear of a recession, a lot of people (myself included) learned about the Sahm Rule for the first time, and pretty much everyone who had long-term holdings took a huge hit. And then… it was just gone… [] At Friday’s close, we had broken even, putting the nightmare of Monday completely in the rearview mirror. So, where does that leave us? Well, the economy isn’t exactly healthy, when you see headlines like these… [] But the stock market feels incredibly resilient. So I asked ProsperityPub’s Nate Tucci what he thought. Here’s what he had to say: [] Me: “Nate, what are you expecting this week after last week's eventual breakeven? Any particular stocks or stories you're watching?” Nate: Well, the market broke both of the levels I suggested it would need to be back in a continuation mode toward highs and that does fit with my longer-term view of another bullish run before post-election meltdown, so that is kind of how I am playing it now. One thing I think is worth noting is that the range of movement has really opened up. In other words, when we were making higher highs every day, if the market broke lower at all it would invalidate a trade... Now the range for where a short term long can still be valid is a lot wider in my view. I think the big mistake people will/can make from here is to try to go short every time there is any downside momentum and vice versa because it's more than likely we'll get some testing of recent areas which, again, will feel like a deep correction compared to how the market has behaved the last 8 months. A smart thing to do for options traders might be to just add a week or two to the exp/timeline of their trade to give themselves a little more durability in those scenarios. I appreciate Nate’s insights because they’re even-keeled. He doesn’t get too high or too low on any piece of information. It will be interesting to see if his projection of a post-election selloff comes true. As I’ve said before, I don’t think either election outcome itself would spark such a reaction because Wall Street knows both of these candidates and the consequences of their policies. But the election itself could serve as an inflection point that lets the air out of the balloon regardless of who wins. I do think his advice is sound though. With all the short-term volatility right now, you’re wise to give yourself a little more breathing room to get out of a trade. I took a shot at a wrap order on DIS last week that never quite recovered and cost me $250. No big deal, but I’d love to still be in the fight this week to see if Disney has a stronger week. Hakuna Matata, I suppose… Have a great week, Stephen [] [] [] 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](