TOMORROW Will Be The Biggest Day Of The Week

Summary

The market experienced a significant upswing with 81% of the S&P 500 closing in the green, setting new all-time highs. The excitement builds with the anticipation of crucial inflation data release, which could impact market sentiment. Costco's membership fee increase and its stock movement in after-hours trading are highlighted. The video discusses potential market reactions to various inflation outcomes, as predicted by JP Morgan, and emphasizes the importance of disciplined trading habits amidst the market's current bullish trend.

Takeaways

• 📈 The S&P 500 reached a new all-time high with 81% of its components closing in the green, indicating a broad market rally.
• 🛒 Costco is increasing its membership fee for the first time since 2017, which could impact its stock movement in after-hours trading.
• 📊 Tomorrow is expected to be a significant day with the release of crucial inflation data, which could influence market sentiment and direction.
• 💹 The market's performance is closely tied to inflation concerns, with the upcoming report potentially affecting the ongoing bullish trend.
• 📊 JP Morgan's predictions suggest market reactions based on different possible outcomes of the inflation data, highlighting the importance of the report.
• 📈 Seasonality charts show that the first half of July is historically a strong period for the stock market, which aligns with the current market movement.
• 🚀 Tech and healthcare stocks, along with oil and uranium stocks, experienced significant gains, contributing to the overall market upswing.
• ⏰ The release of the inflation report an hour before the market opens may cause a quick shift in market sentiment, emphasizing the need for traders to be prepared.
• 🛑 A reminder for traders to practice smart, disciplined trading habits and risk management to safeguard against potential market volatility.
• 🛍️ Earnings season is starting with reports from Pepsi and Delta Airlines, which could affect the market, especially the travel sector.
• 💼 News about a potential ban on stock trading by members of Congress has emerged, raising questions about the implications for market fairness and transparency.

Q & A

What was the market's performance on the day the video was recorded?

The market performed exceptionally well, with 81% of the S&P 500 closing up in the green, marking another all-time high for the S&P 500.

What is the significance of the inflation data release mentioned in the script?

The inflation data release is significant because it is one of the most important economic indicators that can influence the stock market. It is expected to impact market sentiment and potentially shift momentum.

What was the expected inflation rate on a year-over-year basis according to the script?

The expected inflation rate on a year-over-year basis was around 3.1%.

What is the potential market reaction if the month-over-month inflation data comes in below 0.1% according to JP Morgan's predictions?

If the month-over-month inflation data comes in below 0.1%, JP Morgan predicts a market rise by 1 to 1.75%.

What does the script suggest about the market's reaction to the inflation report before its release?

The script suggests that traders were not very scared of the inflation report before its release, as the market continued to rise almost 1% on the Spy, indicating a bullish sentiment.

What is the significance of the seasonality chart mentioned in the script?

The seasonality chart is significant as it shows that the first half of July is historically the strongest two-week period of the entire year for the stock market, and the market has been aligning with this historical expectation.

What was the recent action taken by Costco as mentioned in the script?

Costco increased its membership fee for the first time since 2017, moving from $60 a year to $65 a year for basic memberships and from $120 to $130 for higher-tier plans.

What is the potential implication of the proposed ban on stock trading by members of Congress?

The proposed ban could potentially limit the ability of members of Congress and their families to buy and sell stocks, which might be an attempt to address public skepticism about conflicts of interest in investment returns.

What is the importance of earnings season for the stock market?

Earnings season is important as it provides insights into the financial health of companies, which can significantly influence stock prices and market trends.

What is the strategy suggested for trading in the current market conditions as per the script?

The strategy suggested is to trade in a smart, disciplined way with healthy trading habits and proper risk management. It emphasizes the importance of having a plan for every trade and respecting stop losses.