Stock For Breakfast 10-9-23

The Market 📈

The brutal war unfolding in Israel and the official declaration of war against Hamas the precedence on the charts over technical setups. Our prayers go out to the innocent women and children.

The stock market put on quite a performance on Friday but we spent quite a bit of time on our Saturday game planning meeting showing why it was a short covering rally and not technically a bullish event. 

Many inexperienced traders miss this distinction because they aren’t trained yet to  notice the difference between a bullish rally and short sellers exiting their positions.

The reason short covering unfolds quickly is because the bears panic at the first sign of support holding, and they scramble by buying back stock causing that fast rally. 

We set up this possibility multiple times in our game plan last week simply by knowing the average true move of the S&P 500 which pretty much stopped exactly where the data said it would. 

This isn’t predicting it’s being prepared and knowing your numbers.

This applies to both the market but especially any new stock you’re thinking about buying, because it’s critical to know the average true move so that you always start new trades at the optimal entry. 

TRADING LESSON

Although not a trade yet, #ETSY is showing classic signs of smart money accumulation as the stock price churns on above average volume. This will be fun to watch over the coming weeks.

On the surface level we see bearish order flow, but one bullish energy candlesticks validates the slow accumulation of stock by the institutions.

Discover the Power of Order Flow Stacking & The Profit Maximizer for larger gains.

Order flow stacking is different because it uncovers the stocks where institutions are putting their own capital.

Institutions can be defined as hedge funds, pension funds with billions of dollars to allocate and teams of research analysts who finds investment ideas.

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Stocks For Breakfast 🥞

Good morning and welcome to your daily dose of Stocks For Breakfast where we serve up the most enticing news from the financial markets, freshly brewed and perfectly balanced to kickstart your day.

As we sip our morning coffee today, we find ourselves navigating through a stormy financial landscape, where the winds of conflict in the Middle East are sending investors scurrying towards safe-haven assets. As Reuters reports, futures are down as the tumultuous geopolitical climate sparks a run on these assets, causing a ripple effect that’s being felt across the globe.

Our prayers go out to the innocent in this conflict.

Adding a dash of uncertainty to our financial brew, Yahoo Finance tells us that U.S stocks are slipping as oil prices surge. The black gold’s sudden rise is a stark reminder of how interconnected our world is, and how a disturbance in one region can send shock waves through our portfolios.

Yet, amidst the turbulence, some companies continue to shine. The Wall Street Journal brings us a fascinating piece on Apple’s lucrative deal with Google, a relationship that may soon face challenges. Will this tech giant be able to keep its easy Google money, or will it have to dig deeper into its innovation well?

Meanwhile, Seeking Alpha raises a toast to Costco, a company that continues to defy market trends despite its rich valuation. We delve into why this retail behemoth can keep beating the market, serving as a beacon of resilience in these uncertain times.

Finally, we take a detour from the hustle and bustle of the market to explore the realm of personal financial growth. TraderFeed provides  us with insights on how to achieve the financial goals we set, reminding us that success in the financial market is as much a personal journey as it is a global one.

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