CRITICAL ALERT–Trade deals and earnings today are about to rock the market. The signs are pretty clear BUT there is something that is going to keep you from acting on very obvious signals. Ironically it is something that is completely preventable. I want to reveal this profit blocking problem and show you how to fix it. I am taking a handful of traders into an online room today at 1pm ET and showing them exactly what wipes out their wins. Be there with me by clicking this link to grab a spot.

Last Friday I had a nice buy signal on Meta. Monday that looked fabulous with a nice $9.00 up day. Tuesday it gave it all back. That is quite informational, not only for Meta but perhaps to some degree for the large caps in general. It’s just not an up day, followed by a down day—– It’s an up day responding to a very nice buy signal — that now looks like it could be failing. Within that potential failure is the important information. That is to say if Meta cannot regain its footing on Wednesday, it will present one of few opportunities this market has given in July. If the buy signal looks good then fails, the subsequent sell off will more often than not have some staying power. In price action terms weakness from the close of $705 in Meta will be bearish for Meta, and a little bearish for the general market. 

Additionally the semiconductor index —-a very key piece of the market puzzle— has run a very sharp and steep price incline from 12 month lows to 12 months highs, all without really stopping to breathe along the way. That smacks of a squeeze, and that isn’t the best for a sustainable rally. Lastly the banking index might be making a lower high, and if it starts to drop then the pattern it is trading also has downside potential. 

So overall, there isn’t evidence to go out and start shorting everything. But there is certainly evidence this is a very poor risk reward location for longs. 

Thanks,

Joe

PS-Hope to see you at 1pm ET. This was a game changer for me and I will walk you through it.