02/06/2024

Hey Trader,

Happy Taco Tuesday, Dear! I’m back with a few choice tips to spice up your trades this week. Let's dive into the depths of the market, shall we? 

Now, the market’s vibes aren't exactly screaming "trending" from the rooftops at the moment. While I’m still tracking some bullish conditions, I'm not sensing any major build-up towards a breakthrough or a breakdown.

But hold your horses, because there's always something to keep an eye on which could tell us what’s next, and right now, it's all about that green, honey. Yes, I'm talking about the almighty dollar. 💵

Oh, and did I mention our little monthly showdown? Mark Sebastian and I have chosen our stock crushes for February and I’ll tell you which ticker I think will rise to the top this month…

Catch my frenemies analysis between the dollar and the market and which levels to watch for the next big move, my top stock of the month — hint, it’s in the middle of an earnings gap and go, and don’t miss Mark’s big money flow double-feature… all right here…

SPY is still in bullish territory. According to my technicals, I’m looking at a target of $510. There are some breaking points below deck, with 482 as a small support. If we break 470, there will be blood.

The market doesn't seem to be trending one way or another, however. I don’t see much of a build to breakout or breakdown. 

But one thing to watch is the DOLLAR. 💵

The Invesco DB US Dollar Index Bullish Fund (NYSEARCA: UUP) tracks whether or not the dollar is bullish. When it trends up, this means a strong dollar. The market and the dollar are like oil and water. They don't like each other. So if we see a move higher on UUP, that can suggest we're due for a correction in the market.

I love trading with Mark because while we agree on a lot of stock predictions, we have different methods to bring to the table, offering a variety of techniques to our members. Another fun thing we do each month is we each pick a stock we like at the start of the month and see which pick goes higher than the other.

While AKAM has been a fan favorite of mine, my eyes are zoned in on Amazon.com Inc (NASDAQ: AMZN) for February. If you didn't buy before earnings, I'll cry a little for you. But not much, because this earnings gap should continue to GO. I have an upside target of 181.

Keep in mind that when a stock gaps higher, it could take some time for the volume profile to kick in and build support. So you always have a risk of capitulation should the general market take a dive.

Big Money Flow Spotlight: HYG and TLT

By Mark Sebastian

• Big Money Flow kicks in when someone trades a massive volume of options at one time—usually an insider with exclusive information. 

• It's a potent signal for potential stock movements that most people don’t see.

• I'm all about spotting, decoding, and leveraging Big Money Flow for trades and gains. It's a game-changer in predicting stock actions.

The market is sitting on edge.

The markets tried to sell off on Monday but could only end up mustering .32% in the S&P 500…despite the major pain in the bond market.

But the bond market is now at recent lows...a break lower from here and I think the market is set up for some of the wheels to fall off.

I spotted massive put trading in iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA: HYG) when traders bought, Feb, Mar, April and May puts to the tune of over 100k contracts.

I saw an interesting group of in the money puts trading as a proxy for being short the stock in iShares 20 Plus Year Treasury Bond ETF (NASDAQ: TLT).

If the bond market makes one more break lower I think it will take the market with it.

Mark Sebastian and I trade live every single weekday from 3:00 pm ET to the close.

We share our top trades during the wildest trading hour of the day and love when our members say “Show me the MONEY!!” 

Here’s what they’ve said recently…

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See you then!

Always be closing,

Olivia Voz and Mark Sebastian