When Bad News is Good News

SmartReversals
08-08

Wall Street wrapped up a highly volatile but net-positive week. The market navigated massive tech earnings, fluctuating energy commodities, and a major labor market surprise to push key benchmarks back toward record levels.

The defining economic event occurred on Friday morning when the Bureau of Labor Statistics reported that the U.S. economy unexpectedly lost 23,000 jobs in July, drastically missing expectations of an 83,000 gain. Revisions also shaved another 103,000 jobs off prior months. While this signaled a clear cooling in the labor market under the weight of regional energy strains, equity investors cheered the data. The weak payroll expansion sharply lowered the probability of an upcoming Federal Reserve interest rate hike, causing the 10-year Treasury note yield to slide to 4.63%.

High-Probability Setup Performance

On the corporate side, several bullish events unfolded throughout the week:

  • $Palantir Technologies Inc.(PLTR)$ : Delivered as one of our high-probability bullish setups 🎯, gaining 39% following a strong earnings report detailed in my Monday’s daily note.

  • $SpaceX(SPCX)$ : Advanced 22% during the week. Subscribers were alerted to a breakout earlier 🎯, reinforced in yesterday’s note highlighting its bullish conviction candle. By providing the key bullish-above-level at 111.9 alongside support-and-resistance combinations to navigate the bounce, the stock recovered its central monthly level, marking a structural change.

  • $Tesla Motors(TSLA)$ : Hit our extended target of 328 for a 5.4% gain 🎯.

  • $Meta Platforms, Inc.(META)$ : Bounced as expected, completing a 6.3% move 🎯.

  • $Alphabet(GOOG)$ : Reached its extended target of 381 for a 6.9% gain 🎯 on Tuesday before reversing precisely from that modeled zone.

  • $SPDR Gold ETF(GLD)$ : Remained bullish as anticipated, surpassing its extended target of 388 🎯 to notch a 7.3% weekly gain.

  • $Microsoft(MSFT)$ : Hit our bullish target of 491, securing a 5.8% move 🎯.

  • $Apple(AAPL)$ : Its weak setup did not trigger the expected decline. While the central weekly level (CWL) was not recovered, the setup remains valid as of today.

6 out of 7 setups were accurate, with the average gain at 11%

The Power of Disciplined Technical Analysis

All of the bullish setups proved correct, delivering major gains backed by disciplined, neutral technical analysis and modeled support and resistance levels. Every single price level mentioned above was calculated last Friday in advance for this week, proving once again that institutional algorithms react directly to these zones, see the exact reversal point on GOOG or the weekly close on TSLA.

These levels are modeled every Friday to provide the exact data needed to assess risk and reward before the market opens on Monday. You never have to wait for the opening bell to build your trading plan. You gain precise distances to essential levels and clear setups indicating whether they will act as support or resistance well in advance, empowering you to make informed, calm decisions ahead of Monday morning.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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