Rate Hikes Coming in HOT 🔥

🤔Fed shocks the markets - Get the recap from the Fed meeting and CPI numbers 🟠Popping the AI bubble - Will regulations be the death of this AI bubble

Papa Powell summer vibing after a rate pause 🍸

Great job making it through a week of data drops! CPI and the Fed meeting were no laughing matter. But don't let your guard down just yet – here's what to expect in the week ahead👇

  • 🤔Fed shocks the markets - Get the recap from the Fed meeting and CPI numbers

  • 🟠Popping the AI bubble - Will regulations be the death of this AI bubble

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

🤔Fed shocks the markets

Check it out, folks! Here's a spicy highlight reel with our take on what's happening in the stock market.

Rate cuts? Not so fast! The Fed is holding off on cutting rates for now. It looks like high-interest rates are here to stay (and could even increase!)

Higher Rates? The Fed's made it clear they're not pausing or pivoting anytime soon. Expect interest rates to keep rising this year.

Is inflation in check? Inflation's been tamed, but the Fed's not letting its guard down. They're keeping an eye on things to avoid any surprises.

Our Spicy Take 🌶️

Good news, traders – inflation's under control, and we might even see rate cuts in the future! After a couple of tough years, the stock market's finally seeing some sunshine.

The only reason to worry is if inflation sparks again later in the year and forces the Fed to keep tightening its monetary policy. We are not worried at this point. Many sectors are seeing V-shaped recoveries, which could mean years before we revisit these bottoms (if ever)!

🍾Popping the AI bubble

A majority of the recent market rally can be attributed to the hype around artificial intelligence.

  • $NVDA hits $1 trillion market cap

  • $ADBE spikes 10% after AI product release

  • $AI has soared 57% since our pick of the week

While this AI investing bubble has the potential to keep lifting stocks and possibly the overall market, news of regulations will start coming.

AI can rake in big bucks for companies, but serious risks must be considered. We're talking about ransom calls from creepy AI voice clones of kids and companies banning Chatgpt in fear of sensitive info leaks.

The EU's already on it, building a regulatory framework to keep AI in check. Check it out here.

The bottom line is regulations are coming. This will create FUD (fear, uncertainty, and doubt) and, more importantly, a great buying opportunity. AI is here to stay and is the most exciting technological advancement ever since the internet.

FOMC 1,000% Trading Strategy

Trading Fed Day is extremely difficult. We popped on a live stream and even botched this ever-so-simple trading plan. But those who understand this pattern can grab that extra guac every Fed meeting🥑

  1. Once the meeting starts, WATCH

  2. Wait 30 minutes until 2:30 EST

  3. Fade the current direction

  4. Use short-term options

  5. Scale-out at 500-1000%

  6. Only risk 50% down

This is a special day due to the volume and potential for a massive trend in the last 90 minutes. If properly used with zero-day options, you could see 1,000% returns 🚀🚀

📈 Bulls Key Levels: Our gap-fill target 438 from last week got BLOWN through. This market is on fire, and the next level for sellers is 446-456.

📉Bearish Key Levels: The magnitude of this rally recently gives a very high chance of retracing back down to 431.

⚠️Warnings: This market is extremely bullish, running into a powerful wall of sellers. With RSI hitting 70+ on the daily chart, we expect a pullback in July to around 431. In the meantime, we want to see 446-450 hit first.

Top Chart of the Week | CVNA 🚗

To follow up on two weeks of straight guac 🥑for you after hitting $AI and $LUV, we are choosing $CVNA as our brand-new chart of the week. This stock is being short-squeezed and showing signs of slowing down. After a 300% run, we see $CVNA cooling off back under $20 over the next 2-3 weeks.

  • First Target: 20.00 = low of last week

  • Second Target: 15.00 = full gap fill

  • Stop Loss: 30.00-33.00 over the high of last week

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