Price Overextension, Gapping and more (but no confirmation yet)

[] Fewer High Quality Opportunities In Markets [View in browser]( [View in browser]( [] DEC 27, 2023 [] [] GUY COHEN’S TRADE RADAR Fewer High Quality Opportunities In Markets We’re getting increasing early warning signs of a market top, such as price overextension, gapping and monorail bars but so far no confirmation as the market continues to display extraordinary resilience. As I said last week, what this means is that there are fewer high quality opportunities around our favored Key Levels, so if you haven’t participated in this run, don’t worry, there will be plenty of chances in 2024. My expectation from here is that when a market high does get confirmed, it will be followed by a retracement down to a Key Level or thereabouts, which will then give us further opportunities. The expected retracement will likely be lesser in percentage terms than previous downward retracements since July, and that will set the scene for a large number of bullish Shrinking Retracements setups. I expect this scenario to materialize during Q1 of 2024. So, as with the last couple of weeks, resist the urge to chase overextended issues… [Click here to watch now!]( Follow the money, — Guy Cohen [] [] Shocking Apple Breakthrough! One trader has discovered a massively successful, brand-new way to trade Apple stock! And if you think the 55% year-to-date returns on AAPL sound good… You need to see some of these double-digit gains that he pulls in week after week during a profit cycle! [Discover the Perfect Income Trade now!]( [] [] PROSPERITY PUB MARKET TALK Fed's Inflation Fight: Nearing the Finish Line or Just a Pit Stop? In a twist that would make M. Night Shyamalan proud, the US inflation story is turning heads faster than a sale at a designer outlet. Just when we thought we were in for a long, drawn-out saga with the Federal Reserve as the weary protagonist, the latest reports are hinting that maybe, just maybe, the end is nigh. That's right, inflation — the big bad wolf of the economy — might be getting its teeth filed down to a modest 2%. Last week, amidst the Fed's policy powwow, consumer and producer price reports dropped a bombshell: inflation’s been playing nice, potentially hitting the Fed's 2% annual target soon. Cue the confetti and cautious optimism! But before you break out the bubbly, there's more. This isn't just a lucky break. It's looking like the trend could hold for the next six months, which means the Fed might just start easing off the interest rate pedal. Now, for those of you who've been snoozing since Econ 101, the Fed's favorite way to measure inflation is through something called the Personal Consumption Expenditures (PCE) price index. It's like a Nielsen rating for prices, except you don't get to argue about it on Twitter. And guess what? It's showing that things like clothes and furniture are getting cheaper. That's right, the price tags are shrinking, and not just in the clearance section. Economists are rubbing their crystal balls and seeing a future where goods continue to play nice and services prices don't throw any curveballs. So, what does this mean for our everyday Joe and Jane? Well, it suggests that you might not need to take out a loan to buy a loaf of bread or a tank of gas in the near future. Small victories, right? But hold your horses — it's not all smooth sailing. There are still some bumps on the road. Stock prices and rent hikes are like those annoying relatives at family gatherings; they can still cause a scene. Yet, the overall vibe is like finding an extra fry at the bottom of your takeout bag — a pleasant surprise. The big takeaway? The Fed, led by Jerome Powell, might have been more David Copperfield than we gave them credit for, pulling off an economic magic trick. They're now looking at interest rate cuts that are not just whispers but actual possibilities. This twist in the inflation tale is like a season finale cliffhanger. Will the Fed cross the finish line, or is this just another pit stop? Stay tuned, because this economic soap opera is far from over. — The Prosperity Pub Team [] [] [] ___________________________________________________ [] [] DEC 27, 2023 [] [] GUY COHEN’S TRADE RADAR Fewer High Quality Opportunities In Markets We’re getting increasing early warning signs of a market top, such as price overextension, gapping and monorail bars but so far no confirmation as the market continues to display extraordinary resilience. As I said last week, what this means is that there are fewer high quality opportunities around our favored Key Levels, so if you haven’t participated in this run, don’t worry, there will be plenty of chances in 2024. My expectation from here is that when a market high does get confirmed, it will be followed by a retracement down to a Key Level or thereabouts, which will then give us further opportunities. The expected retracement will likely be lesser in percentage terms than previous downward retracements since July, and that will set the scene for a large number of bullish Shrinking Retracements setups. I expect this scenario to materialize during Q1 of 2024. So, as with the last couple of weeks, resist the urge to chase overextended issues… [Click here to watch now!]( Follow the money, — Guy Cohen [] [] Shocking Apple Breakthrough! One trader has discovered a massively successful, brand-new way to trade Apple stock! And if you think the 55% year-to-date returns on AAPL sound good… You need to see some of these double-digit gains that he pulls in week after week during a profit cycle! [Discover the Perfect Income Trade now!]( [] [] PROSPERITY PUB MARKET TALK Fed's Inflation Fight: Nearing the Finish Line or Just a Pit Stop? In a twist that would make M. Night Shyamalan proud, the US inflation story is turning heads faster than a sale at a designer outlet. Just when we thought we were in for a long, drawn-out saga with the Federal Reserve as the weary protagonist, the latest reports are hinting that maybe, just maybe, the end is nigh. That's right, inflation — the big bad wolf of the economy — might be getting its teeth filed down to a modest 2%. Last week, amidst the Fed's policy powwow, consumer and producer price reports dropped a bombshell: inflation’s been playing nice, potentially hitting the Fed's 2% annual target soon. Cue the confetti and cautious optimism! But before you break out the bubbly, there's more. This isn't just a lucky break. It's looking like the trend could hold for the next six months, which means the Fed might just start easing off the interest rate pedal. Now, for those of you who've been snoozing since Econ 101, the Fed's favorite way to measure inflation is through something called the Personal Consumption Expenditures (PCE) price index. It's like a Nielsen rating for prices, except you don't get to argue about it on Twitter. And guess what? It's showing that things like clothes and furniture are getting cheaper. That's right, the price tags are shrinking, and not just in the clearance section. Economists are rubbing their crystal balls and seeing a future where goods continue to play nice and services prices don't throw any curveballs. So, what does this mean for our everyday Joe and Jane? Well, it suggests that you might not need to take out a loan to buy a loaf of bread or a tank of gas in the near future. Small victories, right? But hold your horses — it's not all smooth sailing. There are still some bumps on the road. Stock prices and rent hikes are like those annoying relatives at family gatherings; they can still cause a scene. Yet, the overall vibe is like finding an extra fry at the bottom of your takeout bag — a pleasant surprise. The big takeaway? The Fed, led by Jerome Powell, might have been more David Copperfield than we gave them credit for, pulling off an economic magic trick. They're now looking at interest rate cuts that are not just whispers but actual possibilities. This twist in the inflation tale is like a season finale cliffhanger. Will the Fed cross the finish line, or is this just another pit stop? Stay tuned, because this economic soap opera is far from over. — The Prosperity Pub Team [] [] [] ___________________________________________________ [] [] 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](