➖Despite Rally, Technical Indicators Suggest Bigger Market Correction

Traditionally, the Federal Reserve has refrained from making decisions based on asset prices. Instead, their various mandates and expectations center around economic growth, with a heavy emphasis on employment. [Trading Tips] Good morning. Technology gets a lot of blame for today’s problems, from a feeling of loss of personal connection to too much dependence on technology. But like any other tool, it’s neither good nor bad. It depends, rather, on the user and their intent. Case in point: Hong Kong, where protestors against China’s moves to consolidate power are moving off traditional forms of communication to coordinate their activities. Protestors have gone so far as to use apps such as Tinder and Pokémon Go to get information as more mainstream internet sites have become blocked—showing that, somehow, technology will find a way around any restrictions that can be placed against it. Sponsored Content ["Diversification is for idiots."]( So says tech billionaire Mark Cuban. And even though the Wall Street Journal and your stock broker preach diversification, history shows the world’s greatest fortunes were built by investors who focused their attention on a handful of stocks. [Video reveals]( why your “diversified” portfolio is exposing you to unnecessary risk and which 8 stocks could turn every $10,000 you invest into $118,000. MARKETS DOW 26,033.25 +1.23% S&P 2,881.86 +1.30% NASDAQ 7,833.27 +1.39% *As of market close • Stocks rallied on Tuesday, as the yuan stabilized, with all major indices rising over 1.2 percent • Oil dropped to under $54 per barrel, and gold gained slightly to $1,485. • Cryptocurrencies trended down, but not by much. Today’s TOP TIPS [Despite Rally, Technical Indicators Suggest Bigger Market Correction]( The sharp drop in stocks over the past few weeks have sent markets down about six percent from all-time highs. While that perspective is helpful for fearful traders, chart analysts warn that markets will likely decline a bit more before rallying again. That’s because technical support levels—prices where traders are willing to buy in—have been breached, and lower levels likely have to be hit before markets bottom and rally again. » [FULL STORY]( [Chinese Economy is “Crumbling” Says White House Economic Advisor]( "The Chinese economy is crumbling. It’s just not the powerhouse it was 20 years ago,” said White House Economic Advisor Larry Kudlow on Tuesday. With China’s economy growing at the slowest rate in 27 years, there is some merit to the claim. However, China, the world’s second-largest economy in the world, did show growth of 6.2 percent in the past quarter, far outpacing the United States. » [FULL STORY]( [Insider Activity: Universal Insurance Holdings (UVE)]( On Monday, August 5th, Sean Downes bought another 1,100 shares of Universal Insurance Holdings (UVE), where he has served as CEO in the past and now serves as director. The total cost of the additional shares came to just over $29,000, and increases his total holdings in the company to 1,431,833 shares. Downes has been a buyer in shares in mid-June as well as back in May at higher prices. » [FULL STORY]( [Unusual Options Activity: Beyond Meat (BYND)]( Shares of Beyond Meat (BYND) may rally over 50 percent between now and August 30th. That’s the bet behind the surge in August 30th $250 calls on the plant-based meat alternative company, whose shares currently trade around $160. On Tuesday, over 2,100 of the options traded against an open interest just under 200, for an 11-fold increase in volume. » [FULL STORY]( IN OTHER NEWS • Public pension plans [suffered their worst performance in three years](, increasing their shortfalls. • Chinese internet company [Tencent is looking to buy a 10 percent stake of Universal Music](. • As markets get more volatile and energy prices drop, [utility stocks could be the best defense play](. • Luxury retailer [Barneys files for bankruptcy](. • In tech, [Snap looks to raise $1 billion]( with a private debt offering. • [Apple is rolling out its Apple Card]( preview to select users. • And [Amazon’s foray into the pharmacy space is facing pushback]( as it tries to roll out the program. • In real estate, [mansions in the Hamptons are selling at steep discounts to asking price](, indicating a slowdown in high-end homes. • In earnings, [Take-Two Interactive Corp beats on earnings and revenues](, sending shares higher. • And hotel chain [Marriott drops after a weaker than expected]( earnings report. S&P 500 MOVERS TOP DG 13.669% TTWO 7.956% ZTS 7.64% KLAC 7.259% BHF 5.733% BOTTOM IFF 15.947% MOS 6.695% MYL 5.943% CAH 5.774% ABC 5.175% PFE Quote of the Day At this point, we think it would be a mistake to dismiss the possibility of a Lehman-like shock as a mere tail risk…We would add here that the second wave may well hit harder than the first, like an aftershock that eclipses the initial earthquake. - Nomura strategist Masanari Takada on how the markets may sell off even more steeply from here Sponsored Content [The investing “rule” you should be breaking]( So says tech billionaire Mark Cuban. And even though the Wall Street Journal and your stock broker preach diversification, history shows the world’s greatest fortunes were built by investors who focused their attention on a handful of stocks. [Video reveals]( why your “diversified” portfolio is exposing you to unnecessary risk and which 8 stocks could turn every $10,000 you invest into $118,000.  Not sure the best way to get started? Follow these simple steps to hit the ground running. › Step #1 - Get These FREE Reports: [Warren Buffett's Top 5 Stocks]( | [10 Great Stocks Under $10]( | [7 High Yield Dividend Stocks](  › Step #2 - Join Our Premium Advisories: [The Next Superstock]( | [Triple Digit Returns]( | [Options Cash Cow](  › Step #3 - Connect With The Community: [Trading Tips Official Facebook Group](     Nothing in this email should be considered personalized financial advice. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment. 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