Market Milestones: Mark Freaking Zuckerberg

[Image] Good morning ! Well if it isn’t our old friend, the bearish engulfing candle. When I say our friend, I am just being polite. I didn’t invite him to the party, I thought you did. Well if you didn’t, I guess the FOMO buyers invited him, as per usual. They just can’t help themselves, can they? For all of Q2, they have been rewarded for buying the gap up after five bullish candles with a trading plan that reads something to the tune of YOLO, sent it, buy high & sell higher and brrrrrr. It looks like this time the big bears took the other side of the YOLO buyers trade and stuffed it back to earth. SPY [Image]( We have been talking about the market needing a slowdown and retest for some time now and if this is that retest, it would be a welcome change of pace for those looking to get long at better prices. Companies like AAPL, META, and NVDA were dip proofed in 2023. Dip proofing is a special process that involves a secret blend of ingredients including a previous bear market, FOMO buyers, many bear skins, a splish splash of A.I. hype, and apparently one of the fasted rate hike campaigns in history. When it comes right down to it, META is actually the one who can be blamed for the markets bearish engulfing candle. That’s right, it wasn’t your fault for losing on that 52-week high break out buy after a 269% run, it was Mark Freaking Zuckerberg’s. But hey, that 1R you lost going long at an utterly insane level is nothing compared to the 40 billion that Zuck has lit on fire chasing that sweet, sweet metaverse action. It is possible that META’s earnings gap is an exhaustion gap. It completely filled the bearish gap from February 2022 that started the disastrous 10-month, 72% selloff. If META shows weakness and a break below $288.00 that will be a sign that a larger retest is coming and that it was in fact an exhaustion gap. If it holds that level look for META to keep grinding higher, giving Zuck even more money to burn on the Metaverse. META [Image]( The QQQ filled the July 20th gap today and created some pretty sweet looking price action for some anxious bears. If QQQ can close below $375.00 and run, that is going to be a warning sign to the bulls that August might be owned by the bears. However, if we close above Thursday’s candle any time soon, those same bears are going to be sitting in a taxidermy office. If we look at what could push us over the edge, we can see that MSFT, the second biggest component of the QQQ since the rebalance, is sitting right at a very solid and critical support. It gapped down with a gnarly gap and go over earnings and had some decent follow through on Thursday. If it breaks and closes below $327.00, it could push to $310.00 pretty quickly. QQQ [Image]( MSFT [Image]( ETF of the Week Our ETF of the week this week is Ark Innovation ETF (ARKK). We slayed the last ETF of the week trade on ARKK which can be seen [here](. Since that trade, ARKK bounced, made new highs, filled old overhead gaps and is possibly breaking down once again. It has formed a lower high and lower low on Thursday and is showing more weakness than the QQQ. If we zoom into the 4-hour chart, the stop can drop down slightly lower than the main high in order to get slightly better risk reward. If this trade gets stopped out there is a high probability it is going to $54, so it could be flipped with an aggressive swing or quick bullish day trade. ARKK [Image]( Enjoy your weekend, Yates Craig, RLT & TPN Market Analyst Disclosure: You are responsible for your own trading decisions. ALWAYS, do your own research before investing in any of the above securities. This is not a solicitation to buy/sell ETFs or securities. NEVER invest money in ETFs or stocks that you can't afford to lose. You can lose all of your capital by trading any securities mentioned. These ETFs/securities are very volatile and gain and lose value quickly. We reserve the right to freely trade in any mentioned ETFs or securities. We are not compensated by any mentioned companies. We trade ETFs and securities based on our opinion of intrinsic/possible future value only. We are not registered investment advisors, so always do your own research before buying any securities. Unable to view? Read it [online]( If you no longer wish to receive mail from us, you can [unsubscribe]( Sent from: Real Life Trading in Nashville TN 37221