Daily Market Brief

Rip Mode & FOMC

Reminder - the webinar is at 6pm EST tomorrow.

I have a surprise for everyone to kick of The Active Trader so whether you attend or not you’ll get it.

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This also marks the last week for the daily market recaps, next week it will transition to general posts here - will explain further tomorrow.

Market rally today somewhat expected just not to that effect, but we did get close to a buy zone on Nasdaq hence the expectation.

Everyone is going to pick apart Jerome’s statements today to see what the move is and what really is next for the broad market. I like to believe my view is simple (how I like it) and that’s this:

• September rate cut happens still

• $19,750 or higher weekly close means we’re bullish

• This is just a standard technical squeeze

• Not the time to be allocating long aside from trades

I talked about the approach in the Sunday report - and to be clear - for selloffs is a repeatable approach where you expect rips, drops, rips and you TRADE them. This has been the mental playbook for years and it hasn’t changed: now it’s just looking for the short-sided traded which I’ll discuss tonight.

I don’t really care what Powell said and I don’t spend hours trying to figure it out - price leads the way and in selloffs like this it’s about trading positions not taking the “is this the bottom view”. So, nothing has changed for me from last weekend’s article of the week - the bounce was expected, and it was traded.

Moving on….

RumRunner (Curt) had a field day doing what I just said above: trading.

One thing to make note of is the size: I’ve preached this to many of you for over a decade now: you don’t need to try to be Rambo and overcompensate - you can trade small and make money IF you know how to trade.

On my end…in AST Alerts from The LongVol Report we went 6-7 in July.

That’s 6 for 7 on Swing Trades using the DITM structure (some members with larger portfolios buy the equity).

New month tomorrow and there are 2 AST Alerts that are about to go out. I don’t expect us to be that good in August but even a 60%-win rate works given the way the ideas are structured so let’s see if I can keep this up.

Quick recap inside for tonight to discuss some ideas for tomorrow on the broad market.