-->

Two More Tech Giants Report This Week. Then A Breather?

Post a Comment
 
   
     
   
 
AUGUST 1, 2023
 
   
GUY COHEN’S MARKET INSIGHT
Was Thursday A Warning Sign?
 

Even if it’s just an early shot across the bows, last Thursday’s action increases the likelihood of a pullback happening sooner rather than later.

Friday was a good recovery, but even if we make new highs, I would expect further bearish monorail bars like Thursday to follow in due course.

Remember what I’ve said before:
“The likely scenario for this bull run is that the giant techs need to report their earnings before this market can take a proper rest.”

With 4 of the “Magnificent 7” already having reported (TSLA, MSFT, META, GOOG) — two more go this week (AAPL and AMZN).

That leaves just one (NVDA) for August 23rd… will the market wait for NVDA to report before it takes its much needed break?

Here’s what my indicators are telling me about the major indexes:

 
S&P 500 - The S&P remains overbought but the first signs of vulnerability are evident.
 
Nasdaq 100 - The QQQ touched its 20-dma and recovered well.
 
Russell 2000 - The IWM also remains overbought and will react the most when the inevitable market pullback does happen.
 
Dow Jones - The DIA is still miles overbought, and a break of Thursday’s lows should see it drop to the 20-dma at least.
 
Follow the money,

— Guy Cohen
JEFFRY TURNMIRE
Here’s What Makes It Tick
 

Over the past few days, I’ve been sharing a unique finding with you.

You might have seen the emails about “52 wins across 52 trades”

I’m not into hype. If you’ve ever attended one of my Morning Monster shows or if you’re active in my Discord channel, you’ll know that.

So while I don’t like to brag or use undue hype, even I have to admit that a 100% win rate is pretty stunning.

Because of that, I figured I’d look into the mechanism that makes this strategy work.

Again, you might have seen the emails about a “pricing error”.

Here’s what I mean by that.

Most options prices follow a curve that looks like this:

 
 
Basically, as the time gets closer and closer to expiration, the option drops more and more in value.

It makes sense, right?

But for this “pricing error” that I discovered on this one ticker, here’s what that “curve” looks like:

 
 
Weird, right?

The price for some reason spikes up and then falls…

I think you can see where I’m going with this.

This pricing error follows a predictable timeline — so just buy the option before it spikes.

And sell it when it does.

That’s the basics of it. If you want to see more about it, I put the details into a PDF which you can view here.

And if you REALLY want to get into it, I put together a video you can watch right here.

As I said, I hate hype, but a 100% win rate is not something you generally want to ignore.

Professional traders spend their whole lives looking for an edge in the markets. 

So far this one is as good as I’ve ever seen.

Hope to see you there,

— Jeffry Turnmire

P.S. As with all trading, never trade with money you need to pay the rent. Past performance is not indicative of future results.
   
 

Related Posts

There is no other posts in this category.

Post a Comment

Subscribe Our Newsletter