I warned you THIS would happen…
TLDRThe speaker discusses the recent performance of major tech companies, including Google, Microsoft, and Meta, highlighting their earnings reports and the potential for future growth, particularly in cloud services. They also delve into the importance of understanding the bigger picture for informed investing. The session includes a training announcement for European and British attendees, an update on the Russell 2000 stock benchmark, and a detailed analysis of various stocks and market trends. The speaker shares their trading strategies, emphasizing the use of support and resistance levels, and the significance of options trading and earnings seasons. They also touch upon the concept of buyback stocks and their potential for higher returns. Throughout the transcript, the speaker provides insights into market psychology, the use of technical analysis tools, and the importance of having clear trading rules to maintain calm in the face of market volatility.
Takeaways
- 📈 Google's earnings were strong with significant growth in search advertising (up 14%), YouTube (up 21%), Google Play (up 18%), and particularly in cloud services (up 28%).
- 🔍 Microsoft also reported positive earnings with growth across sectors including server, office, gaming, and Windows, and an improved gross profit margin.
- 🚀 Amazon's stock was up, likely due to positive indications for cloud business similar to Google's cloud success.
- 🤖 Tesla's stock was down, but the reasons were not specified in the transcript.
- 📊 NVIDIA and Apple stocks were in the green, while Meta (formerly Facebook) reported a 27% increase in revenue and had impressive user growth.
- 🌟 The speaker highlighted the importance of understanding the bigger picture in investing and offered a training session for an international audience.
- 💡 An update on the Russell 2000 stock benchmark was provided, allowing investors to filter and sort companies based on various financial metrics.
- 📉 The speaker discussed the concept of support and resistance levels in stock trading, using examples from the S&P, NASDAQ, and individual stocks like Tesla and PayPal.
- 💡 The speaker mentioned the use of options trading and provided a personal example of a profitable trade made on Meta's stock.
- 📚 A new indicator tool combining various technical analysis components was teased for an upcoming release, aiming to simplify trading decisions.
- 🐾 The speaker humorously engaged with the audience about personal topics and shared opinions on trading methodologies, emphasizing the importance of having clear rules for trading.
Q & A
What did the speaker predict about the BuyBacks and the actions of Microsoft?
-The speaker predicted that BuyBacks would come and save the market, and that Microsoft would do the right thing, implying that they would perform well in the market.
What is the significance of the training session scheduled for Saturday at 4:00 a.m. Eastern Time?
-The training session is significant because it is designed to accommodate Europeans and Brits who had previously requested a training time that suits them. It will also be accessible to those in Asia and aims to teach the whole trading system.
What was the performance of Google's earnings in the discussed period?
-Google's earnings showed strong performance with search advertising up 14%, YouTube up 21%, Google Play up 18%, and the cloud sector showing a significant growth of 28%.
How did Microsoft's performance affect the market sentiment?
-Microsoft's performance was very positive, with everything from server to office, gaming, and Windows showing an upward trend. This improved their margins and contributed to a positive market sentiment.
What was the speaker's view on Tesla's stock performance?
-The speaker mentioned that Tesla's stock was a little down but did not provide a specific reason for the drop in the stock price during the discussion.
What is the importance of the Russell 2000 stock benchmark provided by the speaker?
-The Russell 2000 stock benchmark is important as it allows investors to filter and sort through every Russell 2000 stock to identify companies with the best margins and profits, providing serious value for investment decisions.
What was the speaker's strategy for trading during the earnings season?
-The speaker's strategy involved setting up trades and automating all the exit rules. He also mentioned making quick trades during the earnings season when opportunities present themselves, such as the trade on Meta that resulted in a $950 profit.
Why did the speaker suggest focusing on BuyBack stocks for investment?
-The speaker suggested focusing on BuyBack stocks because they tend to be good ones, and historically, stocks that perform BuyBacks have shown a significant difference in returns compared to just the S&P average.
What is the speaker's opinion on using Fibonacci and Elliot wave theories in trading?
-The speaker expressed skepticism about Elliot wave theory, stating it didn't add much value in his experience. While he acknowledged Fibonacci's mathematical basis and its aesthetic value in design, he mentioned he has moved away from using it in trading.
How did the speaker describe the importance of having rules in trading?
-The speaker emphasized that having rules is crucial for making money in trading. He suggested that if one has rules and sticks to them, they can stay calm and make profitable decisions.
What was the speaker's approach to trading during the earnings season for stocks like Intel?
-The speaker considered making a contrarian move after Intel's earnings report, suggesting a trade that would profit if the stock price did not go below a certain level. He emphasized that such trades are risky and should be approached with caution.
Outlines
📈 Stock Market Insights and Upcoming Training Session
The speaker discusses the performance of major tech companies like Google, Microsoft, and Amazon, highlighting their earnings reports and the potential for investment. The focus is on understanding the bigger picture in the stock market and making informed decisions. An upcoming training session for European and British investors is announced, where the speaker will teach his trading system and strategies.
💡 Navigating the Market with Support and Resistance Levels
The speaker provides an in-depth analysis of various stocks, including NASDAQ, S&P ETF, and Fundsmith, using technical indicators such as support and resistance levels. He discusses the potential for market movement based on these indicators and shares his insights on how to interpret market trends effectively.
🚀 Google and Meta's Impressive Growth and Dividend Announcement
The speaker highlights Google's (now Meta) significant growth in various sectors like search advertising, YouTube, Google Play, and cloud services. He also mentions Meta's announcement of its first-ever dividend, positioning it alongside other tech giants like Apple and Google as a dividend-paying stock.
📊 Analyzing Institutional Trades and Market Indicators
The speaker delves into institutional trades, the importance of understanding market indicators, and the use of the options watch tool. He discusses the potential impact of large trades on the market and the significance of various trading patterns and indicators in making informed decisions.
🤔 Skepticism Towards Certain Trading Tools and Focus on Fundamentals
The speaker expresses his skepticism towards certain trading tools like Fibonacci and Elliot waves, preferring to focus on market positioning and fundamental data. He shares his experience and preference for stage analysis and the development of a new indicator that simplifies trading signals to a red or green light.
📈 Market Reaction to Economic Data and Successful Trade Recap
The speaker discusses the market's reaction to the release of the Fed's preferred inflation metric, PCE data, and how it was a non-event as expected. He also recaps a successful trade made on Meta, which resulted in a quick profit, emphasizing the importance of taking profits rather than being greedy.
📉 Contrarian Trading Strategies and Market Observations
The speaker shares his thoughts on contrarian trading, especially in the context of a stock like Intel that has seen a significant drop. He also provides a detailed analysis of various stocks, their current market positions, and potential future movements, including resistance and support levels.
📚 Upcoming Live Trading Training and Market Participation Advice
The speaker invites viewers to join a live trading training session, emphasizing the importance of understanding market trends and having a systematic approach to trading. He also discusses his personal trading strategies, including his decision to hold certain positions through earnings, and provides advice on when to enter the market for potential gains.
🏆 Final Thoughts on Market Behavior and Upcoming Events
The speaker wraps up the discussion with final thoughts on the market behavior, touching on various stocks and their potential performance in the upcoming days. He also encourages viewers to attend the live trading training and reminds them to download the Russell 2000 Benchmark for further insights.
Mindmap
Keywords
💡BuyBacks
💡Google and Microsoft Earnings
💡S&P 500 Buyback ETF
💡Support and Resistance
💡Options Watch
💡Meta Supercomputer
💡Falling Knife
💡Contrarian Trade
💡Implied Volatility (IV)
💡Death Cross
💡Live Trading Training
Highlights
The speaker anticipated the success of BuyBacks and the positive actions of Microsoft.
Emphasized the importance of understanding the bigger picture for better-informed investment decisions.
Announced a training session for Europeans and Brits at a friendly time.
Introduced an updated benchmark for the Russell 2000 stock, available for free download.
Google's earnings showed significant growth in search advertising, YouTube, Google Play, and especially Cloud with a 28% increase.
Microsoft's performance was strong across the board with improvements in gross profit margin.
Amazon's stock was up, likely due to positive indications for its Cloud business similar to Google's.
Meta reported a 27% increase in revenue, with app users up 7% year on year.
Discussed the strategy of focusing on buyback stocks for potentially higher returns.
Mentioned the resistance levels for the S&P and NASDAQ, providing insights into market trends.
Shared insights on Tesla's stock performance and how to approach trading around its resistance levels.
Explained the venture capital mindset of Palantir's management and its impact on shareholder focus.
Google announced its first quarterly dividend, joining other tech giants as a dividend-paying stock.
Highlighted the importance of having trading rules and offered a free training session to teach them.
Intel's stock fell after unimpressive earnings, but a contrarian trade was considered based on support levels.
Provided a live example of setting up an options trade during the session, emphasizing risk management.
Discussed the concept of 'Voodoo charting' and its actual impact on trading psychology and market movements.