Market in Review📈📉

[RagingBull Elite]( Happy weekend, Folks! How about this Market??? On Thursdays, it was a candlestick chartist’s dream, with several major market indices like the S&P 500, Dow and NASDAQ (see below), as well as several key sectors, displaying very rare bearish engulfing patterns. Without getting too much into a lesson on this, the granddaddy of all bearish candle patterns, the key thing to realize is that an important psychological shift in the market seemed to happen on Thursday. One where bears completely took control of the opening gap higher. And one that will now leave an indelible mark on the daily charts that many traders will use as a high water mark (resistance) in the event the bulls try to stage a rebound. So what happened on Thursday and how should traders play this market going forward? Uncle Jeff’s going to tell you all about it, right now. On the economic front, the news was actually pretty good on Thursday: - GDP beat forecasts and rose to 2.4% in the 2nd quarter. - The personal consumption expenditures index (PCE) decelerated to 2.6%, taking small pressure off of inflation concerns. - U.S. durable goods orders jumped vs. expectations. - And labor statistics showed ongoing tightness, with initial jobless claims dropping to 221,000 vs. the 235,000 expected. Also, internationally, the European Central Bank (yes, they matter) hinted at a potential pause in rate hikes in September as it gives time for its policy to impact the economy. So why the massive downside market reversal? Folks, I have been warning for some time that the market has become priced for perfection. And so, coming into this week, with the major indices still floating near 2023 highs, I knew that something very dangerous was permeating through the air. Something that leads to the ruin of many unprepared traders. Complacency. You can see it right here on this next chart, which I circulated last week. That’s why I began switching gears when analyzing all corners of the market for new ideas. And that’s how I found BIG money rotating into the energy sector. Folks, what I am about to say can NOT be reiterated enough… You can’t fall in love with certain stocks. Big tech stocks have been great to us all in 2023. But when you start seeing top players like NFLX and TSLA get clobbered for not hitting expectations, it’s time to let them cool off and look for ideas elsewhere. A top priority in my LIVE training with Bullseye Trades student members this week was to teach them how I capture where Wall Street’s biggest traders are reallocating their money. And simple, yet EXTREMELY POWERFUL tools like I show on this next chart, are just a part of the larger tool kit I use to find rotation. This 3-year daily chart shows the relative strength ratio (not the RSI momentum indicator) of SPY divided by the energy sector ETF (XLE). So, armed with everything I’ve discussed here so far… 👉 I decided to make purchasing ERX Calls my Bullseye Trade of the Week. Bullseye Trades is my absolute best idea for the week ahead, and it’s week’s like this past one that make holding trades in stocks/ETFs that don’t trade like the broader market for a multi-day swing a great idea. ERX is the Direxion Daily Energy Bull 2X Shares ETF, and my trade plan from this Monday’s pre-market Bullseye Trades alert to members looked like this: --------------------------------------------------------------- My Trade Plan Details: ERX Aug 11 2023 $60 call near $1.80 Stop: Close under $54 Target 1: $64 Target 2: $68 --------------------------------------------------------------- Folks, I have said it over and over…if you are going to buy straight calls or puts, you must understand how to find stocks that have the potential to move far and move fast in order to overcome Theta (time decay). As you can see here, even when SPY was at its highest levels this past week, ERX’s performance was far superior: Now, when it comes to showing you just a small piece of what I dissect from charts to find ideas with the best potential to move, this next chart of ERX is a mini masterclass in itself: So, now that another Bullseye Trade idea has moved far and fast, what am I looking at for next week? Well, again, it comes back to finding ideas where money is just starting to ROTATE into them so that I can capture momentum that can last for several days. I have narrowed my search down to three ideas in sectors that are known to outperform the market when risk appetite is in transition, as it is now. And, as is always the case, the best of these ideas will be delivered before the market opens on Monday. So come join me and my HUGE community of traders as we all walk through how I plan on entering and managing [next week’s Bullseye Trade](. I’ll also be sharing some bonus ideas for the week, along with my latest take on where I think the market is heading next. Remember, right now is the time to have multiple trading strategies at your disposal, so my weekly Bullseye ideas are designed specifically to help keep traders away from the vulnerabilities of the broader market.  It all happens [here](, LIVE at 11am EST on Monday, as I’ll be getting members ready for ANOTHER busy week of data that is all capped off by the uber important Jobs Report on Friday. And if you’re already a member of Bullseye Trades – great to have you! If you’re not, get in here before my NEXT idea drops TOMORROW MORNING (premarket on Mondays!) → [JOIN BULLSEYE HERE](. And if one trade idea isn’t enough, consider taking it up a notch and joining Bullseye Unlimited – 🎯[Upgrade to Bullseye Unlimited]( 🎯 To YOUR success! P.S. If you have any questions about Bullseye (or even more ideas in my “Bullseye Trades” program), call Jeff Brown @ [800-585-4488](tel:/+18005854488) or ([jbrown@ragingbull.com](mailto:/jbrown@ragingbull.com))! [Image] [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 [Manage your email subscriptions.](   © Copyright 2022, RagingBull  DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at [(. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any RagingBull Service offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision. 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