🏠Rental Rates Fall

US rent prices have taken a surprising turn, dropping for five out of the last six months. According to Rent.com, average monthly rent decreased by 0.25% from January to February 2023, reaching $1,937, down from its peak of $2,053 in August 2022. Cities like Oklahoma City saw a dramatic 15.71% decline in year-over-year rent prices.

The rental market has been flooded with new units, contributing to the decrease in prices, a slight decrease in demand, and an "affordability crunch" caused by high rent prices and unemployment.

Our Spicy Take 🌶️

1. Short term, these lower rent costs should keep down inflation and allow the average consumer to spend more.

2. With Airbnb bookings down 50%, this continual squeeze could force owners to sell their properties.

3. With mortgage rates at the highs and not budging, there is still extreme demand, so don’t get comfortable with these discounts.

🪙GDP, Inflation, Employment

In a positive turn, the U.S. economy exhibited stronger growth in the first quarter than previously estimated, according to an upward revision by the Commerce Department. Gross domestic product (GDP) expanded at an annualized rate of 2%, surpassing the earlier estimate of 1.3% and beating expectations.

This revision challenges concerns of an impending recession, further supported by a separate report showing lower-than-expected layoffs. The increased GDP figures resulted primarily from higher consumer spending and exports.

Consumer expenditures rose by 4.2%, aided by an 8.7% boost in the Social Security cost-of-living adjustment. Additionally, exports rebounded, growing by 7.8%. Core personal consumption expenditures (PCE) prices, a key inflation measure monitored by the Federal Reserve, were revised downward to a 4.9% increase.

Our Spicy Take 🌶️ As the data keeps dropping, we have less and less to worry about. This market is on pace to have a great summer, and if data keeps staying bullish, so we will. 🌯

Small Account Trading Tips

Have no shame, small account traders! We have all been there. We want to break down the best tips for success.

We just posted a viral tweet on the exact steps to turn $1,000 into $10,000. Check it out below 👇

📈 Bulls Key Levels: After a wild Friday, $SPY has triggered our bullish breakout level of $440 and runs into the close to $444. The next levels to look for are $450-455.

📉Bearish Key Levels: Our $430-439 liquidity gap was filled over the last ten trading days. Unfortunately, the monthly candle presents the same market inefficiency from $420 to $444, where we can expect the bears to push.

⚠️Warnings: The market is too dangerous to short right now, but all indicators point to a visit of our bearish key levels. Here is why…

• RSI has divergence

• Fear Greed Index is at 80

• RSI is overbought

• The market is at key resistance

We believe there is more reward to the downside, but stay patient and await confirmation.

Top Chart of the Week | JPM 🪙

Another week, another profitable trade for our subscribers, with $MARA running 10% last week.

Next up, we have $JPM! Given the bank failures over the last two months, we believe the banking sector has gone overlooked for far too long and is our top sector laggard ready for some love ❤️. The recent breakout just adds confirmation to our thesis.

• First Target: 150.00 = Next key resistance

• Second Target: 165.00 = all time high potential

• Stop Loss: 140.00-142.00 = under the breakout zone

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.