💣Volatility Explosion Coming

The VIX just hit 13.80 this week 👀and we don’t expect these levels to last long with the upcoming economic calendar.

Here is what you need to be aware of.

Core Inflation Number: The number to watch is whether core inflation can fall under 0.45%. If it does, we could be looking at 4.1-5.3% inflation on an annualized basis. Given that we were at a staggering 9% last year, we believe the Fed may have this under control. Unless inflation unexpectedly rises, we anticipate the stock market will continue to keep trucking.

Fed Decision: With a 30% chance of a rate hike, there is no reason to think the Fed will keep aggressively raising rates unless inflation runs hot again. The chance of a hike in July is 50%, but if the Fed decides to pause that this would keep the stock market running hot.

Either way, expect wild reactions to both economic events and be careful getting trapped in trades before.

😎3,500 for VR?!

$AAPL is at it again, amigos! They just dropped a VR headset that costs a whopping $3,500 💰. But let's be real. We all know $AAPL is the king of charging premium prices for their products - no surprises here!

So, what does this mean for the stock? By keeping those 25% margins, buying back shares, and paying dividends, $AAPL is in a strong position to keep growing.

Even though the Mac, iPad, and wearables don't bring in anywhere near the revenue of the $200 billion iPhone sales, they're still valuable touch points for $AAPL to make bank on their services (which have doubled to $78 billion over the past three years).

Our Take: The most powerful company on the planet just added another premium product to their arsenal - and in a space that could seriously blow up over the next 5-10 years. This was a smart move, and we're confident that the price point, use cases, and revenue will follow suit.

Pro Tip: If Warren Buffet throws his hat in the ring, you know this company is a top contender. Keep an eye 👀!

Get Busy or Go Broke

Contrary to popular belief, making money in trading doesn't require complex strategies or rocket science-level intelligence. We see traders making $10,000 in a single trade all the time on the internet! 

However, constantly being glued to the computer and taking low-quality setups can result in losing more money as a trader. The key to consistency is knowing when to pull yourself away.

Here are some tips to help you stay on track:

• Designate certain times of day for trading

• Wait patiently for your setup, and if it doesn't present itself during that time, walk away

• Keep your schedule full and stay busy outside of trading

Lastly, prioritizing your health, relationships, and mental well-being during your free time will also contribute to your success as a trader. By taking care of yourself, you'll perform better when it's time to hit the markets.

📈 Bulls Key Levels: The break has been clean through 420, and we are still trucking to the 438-440 gap fill. Look for a break over 432 (the high of last week) to get bullish.

📉Bearish Key Levels: This tight weekly doji candle gives traders a low (425.75) to target. Once under that key level, we could see a retest of 420 (the breakout zone).

⚠️Warnings: The bulls are having a field day with the VIX hitting 13.80, and the bears might want to think twice before getting short! But watch out, amigos - we're expecting some spicy volatility soon with CPI and the Fed Decision. Our advice? Stay nimble and trade the reaction - it's better to dodge the heat than get roasted!

Top Chart of the Week | LUV ✈️

Holy guacamole, did you see AI? Last week’s pick of the week run for 30%. Now to introduce our new favorite, LUV, which has hit key support from the COVID lows. With most of the travel sector heating up, this is a lagging name to watch. We will look for a possible channel breakout over the next 3-6 months.

• First Target: 33.00 = Channel resistance

• Second Target: 36.00 = First resistance after a channel breakout

• Stop Loss: 28.50 under the low of the year