The Daily Spotlight: A Note Regarding Today's Market

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Dear Subscribers,

Today marks a pivotal moment for the financial markets as the Federal Reserve concludes its meeting and delivers their decision on interest rates. The prevailing consensus suggests that the Fed will likely maintain current interest rates, but the uncertainty lies in the accompanying remarks by the Federal Reserve Chairman, Jerome Powell. Historically, Powell's post-meeting statements have triggered substantial volatility in the stock market, leading to significant price swings in both directions.

In light of this impending market turbulence, we advise caution regarding day trading activities today, in light of the Federal Reserve's announcement. While day trading can be a lucrative endeavor, it also carries inherent risks, particularly during events that can swiftly shift market dynamics. As responsible traders, we emphasize the importance of risk management. Sometimes, the wisest choice is to refrain from trading altogether when the market's direction is uncertain. This decision aligns with the adage that "the best trade is no trade" in situations where preserving capital and avoiding unnecessary risks takes precedence. Prudent and calculated trading strategies, as well as disciplined risk management, remain the cornerstone of successful trading endeavors.

If you’d like to follow along with the Fed’s interest rate decision calendar and see what the consensus projections are, you can find that here: https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

With all of that said, here is the list of stocks we’re watching for tomorrow. Proceed with extreme caution and make sure you set your stop losses tight.

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Stock Pick 1: ENOV

ENOV - Enovis Corporation

ENOV is set up well to make a run over the next several trading sessions. Having recently reached the Lux Algo buy zone and making a reversal from oversold territory, ENOV completed a full candle close above the 9 day moving average in yesterday’s trading session. With the MACD showing a bullish crossover, we believe ENOV should see an increase in price over the next several trading sessions.

Stock Pick 2: OPRT

OPRT - Oportun Financial Corporation

We’re finding the OPRT chart at an opportune moment. Recently making a bounce off deep oversold territory, OPRT closed a full candle above the 9 day moving average along with closing the day out above the 200 day moving average. We also see it holding tight into the Lux Algo buy zone, so we’re confident that OPRT can make an upwards move from here.

Stock Pick 3: RPM

RPM - RPM International Inc.

After completing the measured move out of the symmetrical triangle, RPM has found it’s footing above the 200 day moving average. With the RSI starting to heat up and the MACD converging towards a bullish move, RPM is primed for a move to the upside.

Stock Pick 4: AMC

AMC - AMC Entertainment Holdings, Inc.

What better way to take a risk on an already risky day to trade than going long on AMC? Seriously though, with a full candle close above both the 9 day and 50 day moving averages and some room to run before it gets overheated, AMC could make a big move here.

Stock Pick 5: AMZN

AMZN - Amazon . com, Inc

AMZN has broken out of a descending wedge, which is a bullish pattern. Now with consecutive closes above the 9 day moving average, the 20 day exponential moving average and now the 50 day moving average, we’re very bullish on Amazon over the next week and the recent bullish MACD crossover confirms our bias.

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Protect Your Investments with Stop Losses:

One of the fundamental principles of successful trading is risk management, and a crucial tool in your toolkit is the use of stop losses. In the volatile world of the stock market, where prices can fluctuate rapidly, stop losses act as a safety net for your investments. By setting stop losses, you are taking control of your risk, ensuring that even in the event of unexpected downturns, you protect your capital. It's a proactive approach that can help you navigate the ups and downs of the market with confidence, providing peace of mind and enabling you to make more informed, rational decisions. Remember, the key to successful trading is not just about maximizing gains but also safeguarding against losses, and stop losses are a powerful strategy for achieving that balance.

We encourage you to share your thoughts, experiences, and feedback with us. Your insights and questions are always valued.

If you have any questions or need further information about these picks, please don't hesitate to reach out.

Happy trading, and we look forward to sharing more profitable opportunities with you in the days ahead!

Best regards,

Nic

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DISCLAIMER: Important Information Regarding Our Newsletter:

Not Financial Advice: The content provided in this newsletter is for informational purposes only and should not be considered as financial advice. The stocks mentioned here are based on our opinions and research. It is essential to conduct your research and consult with a qualified financial professional before making any investment decisions. 

Risks Involved: Investing in stocks involves substantial risk, and the value of your investments may fluctuate. You could potentially lose a significant portion or all of your invested capital. Please be aware of the risks associated with trading and investing in the stock market.

Not a Registered Investment Advisor: We are not registered investment advisors and are not authorized to provide financial advice. The information shared in this newsletter is intended for educational purposes and should not be interpreted as personalized investment guidance.

Potential Conflicts of Interest: We may or may not own positions in the stocks discussed in this newsletter. Our interests in these stocks could create a conflict of interest that may affect the objectivity of our analysis. We are not obligated to disclose our positions in the mentioned stocks.

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Readers' Responsibility: Readers of this newsletter are responsible for their investment decisions and should perform their due diligence, consider their risk tolerance, and seek professional advice when needed.

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