Don’t Fight The Bull Train | Daily Dose Of Stocks

Daily Dose Of Stocks | Don’t Fight The Bull Train | 08-29-23

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Market Briefing/Lesson:

As expected, the market traded higher into the 4530s. We traded in a range of 4500-4530, which usually means we await news.

Remember this!

• Trading isn’t about significant gains. It’s about leaving with more than you came with.

• As soon as you start thinking every trade is a home run, you start to hold on to trades too long.

For example,

Many people don’t day trade full-time, so if you make 60k a year with a salary job, making an extra $700 a month puts you at $68,400. (Above 10% added revenue on the year.)

It’s about accumulation, whether 5%, 10%, or 50%.

Notable News & Economic Insights: (GREAT TO KNOW!)

ADP data shows some cooling in the labor market in August

• Private employers added 177,000 jobs in August, compared with 371,000 in July, human resources company ADP said on Wednesday. That's below the 200,000 new jobs that economists had expected ADP to report this month, according to financial data firm FactSet.

Explanation:

1. Diminished Hiring Pace: A notable decrease in the number of jobs added from one month to the next indicates that businesses are hiring slower. This deceleration might arise from various factors, such as diminished demand for goods and services, uncertainty regarding the economic outlook, or disruptions in supply chains.

2. Influence on Confidence: When the growth of job opportunities experiences a slowdown, it can signal reduced consumer spending and decreased business investment. Consumers could adopt a more cautious approach to their expenditures, while businesses might postpone hiring or expansion initiatives due to an environment of diminished economic optimism.

3. Shift in Economic Momentum: Swift expansion in job opportunities often corresponds to a robust and thriving economy. Conversely, a deceleration in job growth suggests that the economy's momentum might be subsiding, possibly reducing overall economic activity.

4. Labor Market Dynamics: A cooling job market can contribute to reducing competition among employers for workers. This scenario has the potential to constrain wage growth and mitigate the upward pressure on salaries as the availability of employment opportunities becomes scarcer.

5. Impact on Monetary Policy: Both central banks and policymakers vigilantly monitor employment-related data to inform their decisions on monetary policy. A slowdown in job growth could influence choices related to sustaining or adjusting interest rates to stimulate economic activity.

6. Leading Sign of Trends: Employment-related data, especially statistics concerning job creation, are often regarded as early indicators of economic health. A decline in job growth could provide a preliminary insight into the possibility of weaker financial performance in other sectors, such as consumer spending and business investment.

Ask Me Anything: Click, ask, and get a response.

Upcoming News:

• Initial jobless claims tomorrow at 8:30 am

  • can move the market.

• Assets and Liabilities of Commercial Banks in the U.S. September 1st

Winning Trade Ideas from Elite Insiders Daily Road Map & Stock Market Alerts

SWS provided this chart last night in the chat as the predicted move, and we were able to capitalize on the action.

• Bought Calls for 4.65 and sold at 9.00 ($465 turned into $900 per contract)

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Added more bearish swing position with $SPY puts expiring in October and mid-September.

• The upside has become limited, and the downside has more range. This doesn’t mean we do not go up for longer, but it can be wise to take partial profits and add hedges when the market is bullish short term but may look different a week or two out from today.

• Check back at yesterday’s blog to see winning trades from Monday.

Stocks On Radar:

$TSLA, $NFLX, /ES- Mini (details are below)

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