• 📉 CPI Shocker - Did the Fed really just do their job properly?

• 🤖  Big Tech Chatbots Race - Who will make the greatest chatbot?

• 🌮Daily Menu - See the spicy stock movers, the chef's top pick, and more.

📉CPI Shocker

Inflation in June reached its lowest annual rate in over two years, primarily due to slower price increases and favorable comparisons to a period of high inflation. The consumer price index (CPI), a measure of inflation, rose 3% from a year ago, the lowest level since March 2021. On a monthly basis, the index increased by 0.2%.

Despite the good numbers, the FED is still being cautious with a projected 95.5% chance of a July rate hike. This is likely to be the last rate hike for a long time, and surprisingly enough March 2024 has a 40% chance to be the first rate cut.

Our Spicy Take 🌶️ The market seems to be pricing in lower interest rates and lower inflation for the next 5 years. If we look at the statistics, typical recessions last 2 years, and bull markets last 7. So is this the start of the next greatest bull market? We like those odds.

🤖 Big Tech Chatbots Competition

$META is joining the generative AI race, challenging OpenAI's ChatGPT and $GOOGL’s Bard with its own AI model.

Meanwhile, Elon Musk's new AI company, xAI, aims to explore the universe's true nature with a dream team of experts from OpenAI, Google Research, Microsoft Research, and Google's DeepMind. Brace yourselves, universe!

As $META's CEO, Mark Zuckerberg, hints at creating AI chatbots across Instagram, WhatsApp, and Facebook, the AI race is heating up.

Our Spicy Take 🌶️ These chatbots will make life easier for all customers across all platforms. Think one-click emails ($GOOGL), WhatsApp message suggestions ($META), or maybe even AI integrations with Siri ($AAPL). We believe this will add billions of revenue to these companies while making our lives much simpler.

The Key to Trend Trading

I was listening to the headlines saying the crash was coming, and watching the market make new highs for years. Missing out on massive profits because I always trying to play the downside.

If I could teach one concept to new traders, this would be the trick to understand momentum and get the voices of others out of your head.

Don’t waste years like me figuring out this hard-earned lesson. Check out my Twitter Thread of the Week.

📈 Bullish Key Levels: Our bullish targets (450-452) have all been hit, and the next key levels will be 460 and 465. After that, we are heading for new all-time highs which is incredible given we were in a recession.

📉Bearish Key Levels: The market will seek to fill the most recent gaps in the future making those valid targets.

📉 Gap 1: $446.50-447.50 📉 Gap 2: $442.50-446.00

📢The Game Plan: This market is without a doubt euphoric, the worst decision traders can make is trying to spot the top. There is no reasoning behind this 20% move in three months. We can confirm this euphoria from the fear/greed index and RSI being so high.

We are very confident the market will seek liquidity levels lower that were spotted in our current/previous newsletter. Until then we are risk off and watching the markets without any serious positions.

Top Chart of the Week | ROKU 📺

Are we 5/5 for our weekly picks!? $JPM ⬆️5% from two weeks ago finally made the move. While $AI ⬇️7% is slowly selling beginning the sell-off to our profit targets.

On to the next play, $ROKU. The stock market has likely hit peak levels, which has led to Friday's weakness especially in the growth stocks. These stocks have produced large reversal candles after failing to displace higher. This is a huge sign of weakness for more to come 🔥 

• First Target: 70.00 = Middle of the range

• Second Target: 64.00 = Low of the range

• Stop Loss: 79-81 = Previous week’s high

Fair Value Gap [LuxAlgo]

Curious about what a Fair Value Gap (FVG) is and how this trick can spice up 🌶️your trading? Let’s break it down.

A fair value gap is a market inefficiency created when there is a large gap between the first candle’s high and the third candle’s low. Due to the extremely efficient stock market, these areas have a 90-100% chance of being revisited 😋.

How to Add the Indicator

1. Head to Tradingview

2. Add Fair Value Gap [LuxAlgo] created by LuxAlgo.

How to Trade the Indicator

Step 1: Wait for your Fair Value Gaps to be created and visually shown using the indicator.

Step 2: These are usually created when a large move occurs, so be patient for the reversal.

Step 3: When the reversal comes, target the FVG for your profit zone and be sure you have proper risk to reward.

Indicator Suite for Serious Traders

LuxAlgo offers over +100 indicators to help over +50,000 traders spot institutional order levels, buy/sell opportunities, liquidity, reversals, and more. If you are lacking a trading edge their indicator package might be right for you.

If you want to grab a free trial just click the link here to get started.