This Is Where You'll Find Your Next Profits

Letter from the publisher - August 1, 2021

This Is Where You'll Find Your Next Profits Author: Corey Snyder, Publisher "They got some money out there, they're givin' it away." - Tom Waits Last month, a sub-headline made its way through my newsfeed that said, "Russell 2000 on track for steepest loss since October." And so the charting began… Speculative investors enjoy trading the nanos, micros, and small caps, but only when they do as they're told. That hasn't been the case since the beginning of the year… In fact, it's been quite the contrary, save for a few parabolic stretches in companies with revolting fundamentals. Those are the ones you take for a day trade and cut out the red meat... But most small companies have charts that are mirror images of one another and they've been ugly for a while. However, it looks like it could be time for the RUT to get unstuck. Breathing Room No one will watch an index or stock run continuously for months on end without taking at least some profits - these are usually the early birds. Think about it… What's the point of getting in before everyone if you never take the worm? We've witnessed this in the broader market, particularly in this most recent flood of earnings reports which is still underway… If you've watched the price action after they're released, both large and mid caps have been selling off and, quite frankly, they need some rest. And when it comes time to turn things around for the giants, the market will let you know… In the meantime, the money will flow somewhere because investors aren't ready to hang it up just yet - at least, not completely. And from what I can tell, that somewhere is likely to be the small caps as investors look to find the next profitable trade... One More Dip? Looking at the daily (or weekly) chart of the Russell 2000 Index, the small caps have been treading water since February… Range-bound… Sorry, position traders. It's not exactly working against the trend, so you can't call it a bull flag, but RUT certainly looks like an ascending triangle. Arguably my favorite pattern, these can be a thing of beauty. I'll explain... Here's where we are on the daily chart of the Russell 2000. Across the top in solid white, the RUT remains flat while the bottom candles have slowly, but steadily pushed upwards, refusing to put in lower lows aside from the brief moment on July 19th where traders warmed up the AED… This was a day that put the speculative trade in a precarious position and many investors received a message from those who went short: "Welcome to Stop Loss City." However, the index recovered rather quickly, rejecting the 200-day simple moving average by 30 points… Looking closer, the last dip put RUT into oversold territory on the RSI, albeit slightly, and still above ~2070 support. But as good as this all sounds, the small caps owe the trend one more dip… say, below the 2200 level or so… A subsequent recovery back above both the 2265 line and the 50-day simple moving average tells me we'll see the bulls throw a rager... Now, this doesn't mean any company around a $2 billion market cap or under is a go. Not at all. Instead, it would be a good time to look at the innocently-beaten companies that have been derailed from the upside they were headed towards… You just have to find them first... ...And soon. Keep moving, The yearly market cycle can make trading simple... If you understand how to take advantage of it... Options Coach Chris Hood and Brian Jones break down what happens with the "seasons" and how to grab bigger profits. Click here now to watch Episode 32: "Choose the Right Options Strategy for the Right Makret" of Hood Talk with Your Personal Options Coach Chris Hood. FINAL PRINTS: The Major Indices Wrap-Up Index S&P 500 Dow Jones NASDAQ Russell 2000 Weekly +/- -16.53 -126.08 -164.31 +16.60 % Change -0.37% -0.36% -1.11% +0.75% Close 4,395.26 34,935.47 14,672.68 2,226.25 % YTD +17.02% +14.14% +13.85% +12.73% MARKET WHISPERS: The Weekend Scoop No Taxation Without Appresentation - On Friday afternoon, Elon Musk found himself in the middle of a "twitstorm," denying rumors that he attempted to forcefully take over Apple (AAPL) before stirring up some controversy of his own on the social media platform. Referring to the current Epic Games vs. Apple lawsuit, Musk tweeted that Apple's fees were a "de facto global tax on the internet" and that "Epic is right." Within minutes, Epic Games CEO Tim Sweeney joined Musk on Twitter, stating "Apple must be stopped." Elon, about that Apple acquisition... Textbook Move - There's the "Uber of …" and the "Amazon of …," but how about the "Disney+ of textbooks"? That's what Pearson (PSO) is aiming to do according to CEO Andy Bird and he has the resume to make it happen as he previously worked with Disney (DIS) to change its digital footprint. The Pearson+ app (how original) is launching to support its unlimited digital textbook subscription business for $14.99 monthly or $9.99 per book for four months. College kids read? Almost at Word Count - The alma maters of federal lawmakers should be proud after it was announced on Sunday that U.S. senators are close to finishing their writing assignment. According to reports, the long-awaited infrastructure bill is set to be voted on this week with expectations that it will be passed after several final edits are made to the text. Let's just hope they don't turn it in with Comic Sans font. HIT OR MISS: Who's on Deck for Earnings Monday, August 2nd - HSBC Holdings (HSBC), Italian Unibanco Banco Holding (ITUB), Global Payments (GPN), NXP Semiconductors (NXP), Ferrari (RACE), Simon Property Group (SPG), SBA Communications Corp. (SBAC), Pioneer Natural Resources Co. (PXD), American Water Works (AWK), Williams Companies (WMB), Arista Networks (ANET), Realty Income Corp. (O), ZoomInfo (ZI), Take-Two Interactive (TTWO) Tuesday, August 3rd - Alibaba Group (BABA), Eli Lilly and Co. (LLY), Amgen Inc. (AMGN), Sony Group Corp. (SONY), Fidelity National Information Svcs. (FIS), BP (BP), ConocoPhillips (COP), Mitsubishi UFJ Financial Grp. (MUFG), Activision Blizzard (ATVI), Eaton Corp. (ETN), Stellantis (STLA), Public Storage (PSA), Monster Beverage Corp. (MNST), Marriott International (MAR), L3Harris Technologies (LHX), Match Group (MTCH), ENI (E), Prudential Financial (PRU), DuPont de Nemours, Inc. (DD), Microchip Technology Inc. (MCHP), KKR & Co. Inc. (KKR), Transdigm Group Inc. (TDG), Cummins, Inc. (CMI), Zimmer Biomet Holdings (ZBH), Phillips 66 (PSX), AMTEK, Inc. (AME), Public Service Enterprise Group Inc. (PEG), Occidental Petroleum Corp. (OXY), Energy Transfer (ET) Wednesday, August 4th - CVS Health Corp. (CVS), Booking Holdings (BKNG), Uber Technologies (UBER), General Motors Co. (GM), Emerson Electric Co. (EMR), Roku, Inc. (ROKU), Honda Motor Company (HMC), MetLife (MET), Trane Technologies (TT), Kraft Heinz Co. (KHC), Sumitomo Mitsui Financial Group (SMFG), Exelon Corp. (EXC), EOG Resources (EOG), Allstate Corp. (ALL), Electronic Arts (EA), Manulife Financial Corp. (MFC), Marathon Petroleum Corp. (MPC), Waste Connections, Inc. (WCN), ANSYS, Inc. (ANSS), McKesson Corp. (MCK), Sun Life Financial (SLF), HubSpot (HUBS) Thursday, August 5th - Toyota Motor Corp. (TM), Novo Nordisk (NVO), Moderna (MRNA), Square, Inc. (SQ), Zoetis, Inc. (ZTS), Duke Energy Corp. (DUK), Cigna Corp. (CI), Becton, Dickinson and Co. (BDX), Illumina, Inc. (ILMN), Regeneron Pharmaceuticals (REGN), Thomson Reuters (TRI), ING Group (ING), Aptiv (APTV), BCE Inc. (BCE), American International Group (AIG), Sempra (SRE), ResMed, Inc. (RMD), Cloudflare (NET), Datadog (DDOG) Friday, August 6th - Dominion Energy (D), Liberty Broadband Corp. (LBRDK), Magna International (MGA), Ventas Inc. (VTR), DISH Network (DISH), DraftKings, Inc. (DKNG), Nuance Communications, Inc. (NUAN), Icahn Enterprises (IEP), Lear Corp. (LEA), Norwegian Cruise Line Holdings (NCLH), Canopy Growth Corp. (CGC), Stericycle (SRCL), Denali Therapeutics (DNLI), MGM Growth Properties (MGP), NeoGenomics (NEO) Enjoying Dawn Report? Learn something, made some money? SHARE YOUR STORY WITH US OR TELL US HOW TO SERVE YOU BETTER. Let us know at info@rogueinvesting.com Copyright © 2020 Rogue Investing. All Rights Reserved. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. 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