Jesse Livermore Was Right

Jesse Livermore was right. He called it “The Daily Dope.”After 100+ years of stock market action, the basics remain the same. Read and trade what you see and the news will report it after the fact.

Don’t worry about “why” it’s happening, just trade it. Yesterday we mentioned the market internals weakened, and the upside need to reset.

Today we woke up to Fitch downgrading long-term U.S. rating. The signs were there as new highs to new lows decreased but my new favorite swing trade internal is my proprietary 20 day highs versus 20 day lows differential.

It’s been rock-solid as a tool for holding winners and spotting when buyers start to lighten up on the gas.

It’s not a hit the bid moment (sell the winners) but something that should get you to sit up in your chair. Kind of like the car in front of you hitting their brakes but you’re still doing 65.

This is why we have the profit maximizer. Don’t be afraid. Be prepared.

 

Fitch Downgrades U.S. Long-Term Rating to AA+ From AAA

“In Fitch’s view, there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025,” the ratings agency said.

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AMD Reports Second Quarter 2023 Financial Results

“We made strong progress meeting key hardware and software milestones to address the growing customer pull for our data center AI solutions and are on-track to launch and ramp production of MI300 accelerators in the fourth quarter.”

“We are pleased with our second quarter execution,” said AMD EVP, CFO and Treasurer Jean Hu. “Looking to the third quarter, we expect our Data Center and Client segment revenues to each grow by a double-digit percentage sequentially…”

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Starbucks Rings Up Record Sales as Consumers Splurge on Complex Coffee Drinks

Investors are parsing Starbucks’s earnings for signs about how consumers are spending for discretionary items such as lattes and iced coffee. 

U.S. consumer spending has cooled but remains stronger than many economists had expected, pushing off earlier projections of a downturn starting in the middle of this year.

The company in the past year has reported strong sales in the U.S. even as it has raised the prices of its drinks in response to rising labor, coffee and ingredient costs. 

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