๐ŸŒฏ Earnings Season is Getting Spicy

๐Ÿ“‰ $TSLA Earnings - What is causing this 12% sell-off? ๐Ÿ’ฅ The Last Hike - What you need to know about the hike this week! ๐ŸŒฎDaily Menu - See the spicy stock movers, the chef's top pick, and more.

Yo Extra Guac-ers ๐Ÿฅ‘,

Earnings season is upon us, and the market doesnโ€™t seem happy ending the week down 0.9% from the highs.

With the Fed raising rates on Wednesday, we got some canโ€™t miss insights for you in this newsletter! ๐Ÿ‘Š

๐Ÿค– AI Driven Portfolio Launches This Week

Upgrade to Premium and get guac-folio access. We will use AI to invest and adjust to the markets. Time to make long-term investing sexy again.

  • ๐Ÿ“‰ $TSLA Earnings - What is causing this 12% sell-off?

  • ๐Ÿ’ฅ The Last Hike - What you need to know about the hike this week!

  • ๐ŸŒฎDaily Menu - See the spicy stock movers, the chef's top pick, and more.

๐Ÿ“‰$TSLA Earnings

$TSLA faced a rough day as it tumbled 9.7%, the worst since April, following the release of its earnings report. Although the company beat revenue and earnings expectations, margins fell short.

Elon Musk, Tesla's CEO, predicted a slight dip in Q3 production due to factory upgrades and summer shutdowns. Gross margins and operating margins also declined compared to last year.

However, Musk remains optimistic, emphasizing the long-term potential of autonomy. The report revealed $TSLAโ€™s progress on the Cybertruck installation in Austin, Texas, with demand for the truck exceeding expectations.

Despite the market's mixed reaction, analysts viewed the report positively, with some raising their price targets. $TSLA reported revenue of $24.9 billion, exceeding Street estimates, and adjusted EPS of $0.91.

Our Spicy Take ๐ŸŒถ๏ธ  $TSLA is up almost 200% from low to high this year, making it easy for investors to take profits after an earnings report. The market is extremely bullish, and every dip in your favorite stock is a gift! Do your research before deciding if this dip is right for you.

๐Ÿค–  The Last Hike?

The Federal Reserve is heating things up and planning to raise interest rates by 0.25 percentage points in their upcoming decision on July 26 (with a 98%).

The June economic projections hinted at two more sizzling rate hikes in 2023. Fed Governor Christopher Waller said, "We need two 25-basis-point hikes to keep inflation moving toward our target!" ๐ŸŒถ๏ธ

But hold on to your burritos! Not everyone's on the same page. Raphael Bostic of the Atlanta Fed thinks we can cool it and keep rates where they are. ๐Ÿฅต

Our Spicy Take ๐ŸŒถ๏ธ There is a high chance we have hit peak rates with these last 1-2 hikes. If history repeats itself, we should see rates come down over the next 1-2 years, which is extremely bullish for the stock market. Please understand this opportunity is at the mercy of inflation, getting back to 2-3%.

Types of Trading Charts

After Matt made a youtube video outlining Heikin ashi candles, one student tested the strategy for himself and made $80,000 in ONE DAY.

Trading is hard enough, but a simple change of candlesticks can change everything.

For this Twitter Thread of the Week, we will outline the most popular candlestick types for traders.

๐Ÿ“ˆ Bullish Key Levels: $SPY still keeps channeling higher and has the potential to hit our next key level (460 and 465).

๐Ÿ“‰Bearish Key Levels: The bearish gap fill targets are below ๐Ÿ‘‡but the market will not become bearish until we cross 449-450.

๐Ÿ“‰ Gap 1: $446.50-447.50 ๐Ÿ“‰ Gap 2: $442.50-446.00

๐Ÿ“ขThe Game Plan: Most trends donโ€™t reverse until we see double tops or lower highs, but given the weak close on Friday, we are getting ready for our downside targets to come in. Watch out! With the Fed raising rates on Wednesday, anything can happen.

Top Chart of the Week | PFE๐Ÿ’Š

As the market consolidates, our best charts are taking time to hit profit levels. $AI from two weeks ago is on the verge of cracking $37 and running to our targets.

$ROKU, our play last week, is getting ready to flush to 68-70, but we do have earnings, so watch out for holding past!

Next up, $PFE! We are currently seeing the market favor value stocks again. This is sending $PFE right into the gap, filling with much room to run to the top of the channel๐Ÿ”ฅ 

  • First Target: 38.30 = Gap fill

  • Second Target: 39.00 = Channel resistance

  • Stop Loss: 36.00-36.50 = Previous consolidation range

Should week keep the sizzle stocks?

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