$SPY $QQQ $IWM ( INDEX ROTATION ) TECH ON SELL

Summary

In this market analysis video, the host discusses the bullish setup as of July 14th, noting the positive market conditions with a focus on higher highs and lows. They highlight the RSI's proximity to the top range, indicating potential pullback opportunities for buyers. The video delves into technical analysis, including support and resistance levels, and discusses market rotation, particularly the shift of funds from technology to cyclical stocks and heavily shorted materials. The host also emphasizes the importance of education in trading and offers their classes for a deeper understanding of market dynamics.

Takeaways

• 📈 The current market conditions are set up for bullishness, with indicators such as MACD, cloud conditions, and volumes all showing bullish signals.
• 📊 The RSI is close to the top range, suggesting that the market is near its peak and any pullback could be an opportunity for buyers to enter.
• 🔍 A weak bearish body in the candlestick indicates sellers pushing the market, but overall conditions remain strong bullish for 2024.
• 📉 The 4-hour chart shows smart money around the 5541 area and a bullish divergence, suggesting support and a potential upward trend.
• 📊 The market has been rotating, with money moving out of technology sectors and into heavily shorted stocks, materials, and utilities.
• 💻 Technology stocks like QQQ have shown weakness and bearish candles, indicating potential pullbacks that could be buying opportunities in a bullish market.
• 🚀 Stocks that have been heavily shorted and taken down in price are now bouncing back, presenting potential buy opportunities for investors.
• 📊 On the 1-hour chart, there is a double top and bearish divergence, which is a weak signal amidst an otherwise bullish market.
• 📉 Some stocks, like Snap and Pinterest, are showing bearish signals, with potential support breaks that could lead to further declines.
• 🛍️ The speaker emphasizes the importance of buying at the bottom rather than chasing tops, using examples like MP Material and SQM to illustrate potential long-term gains.
• 🏦 The upcoming week includes earnings reports and events that could impact the market, with a focus on index rotation and the movement of money into cyclical stocks.

Q & A

What is the date mentioned in the transcript for the market analysis?

The date mentioned in the transcript is the 14th of July.

What does the speaker describe as 'one of the bestest conditions' for the market?

The speaker describes the market conditions as bullish with bullish MACD, bullish cloud conditions, and bullish volumes, indicating a positive market setup.

What does the speaker mention about the RSI indicator in the context of the market analysis?

The speaker mentions that the RSI indicator is very close to the top range, suggesting that the market is nearing the top territory, which could indicate potential overbought conditions.

What is the significance of the 'weak about the body' mentioned in the transcript?

The 'weak about the body' refers to a candlestick pattern where sellers have lined up and pushed the price down, indicating potential weakness in the market.

What is the support level mentioned for the market if it pulls back, according to the speaker?

The support level mentioned for the market if it pulls back is 550.

What does the speaker indicate about the market's behavior during earnings season?

The speaker indicates that during earnings season, the market may show signs of weakness but quickly bounce back, suggesting that the bulls are lining up and the market is behaving in a bullish manner.

What is the speaker's view on the rotation of money within the market?

The speaker observes that money is being taken out of the technology sector and being put into heavily shorted stocks, materials, and utilities, indicating a market rotation.

What is the significance of the 'double top' and 'bearish divergence' mentioned on the 1-hour chart?

The 'double top' and 'bearish divergence' on the 1-hour chart suggest a potential bearish trend, where the price has reached a peak twice and is expected to decline, with divergence indicating a weakening of the bullish momentum.

What advice does the speaker give regarding trading during a new week with bank earnings?

The speaker advises to be cautious and gauge the market's behavior at the start of a new week, especially with bank earnings, and to watch for support levels and potential breaks as areas to watch.

What educational resources does the speaker offer for those interested in learning about trading?

The speaker offers various classes, including a supply and demand class, and an alert room for live trading insights, emphasizing the importance of education before trading.

Outlines

00:00

📈 Market Analysis and Bullish Outlook

The script opens with a market analysis for the upcoming week, highlighting a bullish setup with positive indicators such as the bullishness box, MACD, and volumes. The speaker notes the market's pattern of higher highs and lows, suggesting an upward climb. Despite the RSI nearing the top range, indicating potential overbought conditions, the speaker anticipates buying interest on any pullback. A weak body candle is mentioned, signaling seller presence, but overall, the market conditions are described as some of the best in 2024. The speaker then shifts focus to smaller timeframes, specifically the 4-hour chart, where smart money is identified around the 5,541 area, and a bullish divergence is observed, suggesting continued bullish sentiment despite minor weaknesses.

05:03

🔄 Stock Rotation and Cyclical Stock Insights

This paragraph delves into stock rotation, noting a shift of funds from technology stocks to heavily shorted stocks in materials and utilities. The speaker identifies specific stocks like Lucid and Qs that have shown significant price jumps, indicative of a market rotation. Stocks that were heavily shorted and are now bouncing back are highlighted as potential buys, with examples such as MP Material, which has experienced a substantial price drop due to inflation and is now showing signs of a good entry point. The speaker advises looking for stocks that have been taken down in price as they present buying opportunities, and also mentions the importance of understanding market dynamics for long-term gains rather than short-term fluctuations.

10:04

📊 Technical Analysis and Market Updates

The speaker provides a technical analysis of various stocks, discussing bearish divergences, double tops, and support levels. They mention specific stocks like City Bank, which shows signs of weakness, and ON Semiconductor, which has broken through sloping resistance and is setting up a bullish pattern. The emphasis is on watching support and resistance levels for potential market movements, and the speaker suggests that a bearish outlook may be premature despite some bearish signals on shorter time frames. The speaker also discusses the importance of index rotation and the impact of earnings season on market behavior, advising viewers to be prepared for market fluctuations and to look for opportunities in both bullish and bearish scenarios.

15:06

📚 Educational Offerings and Market Trading Tips

The final paragraph focuses on the speaker's educational offerings, including a supply and demand class that has been well-received by students. The speaker emphasizes the importance of education in trading, using a personal example of a significant trade that was executed using the principles taught in their class. They encourage viewers to invest in learning rather than losing money to market makers and highlight the value of understanding market setups. The speaker also invites viewers to join their YouTube channel for daily live trading sessions and mentions a WhatsApp group for further engagement. The paragraph concludes with a reminder to share the video and engage with the content, and a promise to provide further updates in upcoming sessions.

Keywords

💡bullish

A market condition where prices are expected to rise. The speaker describes the market as bullish, indicating that indicators like MACD, Cloud conditions, and volumes suggest upward momentum. For example, 'everything looking nice and bullish magd, bullish Cloud conditions are bullish, volumes are bullish everything look is, like nice right'.

💡RSI (Relative Strength Index)

A momentum oscillator that measures the speed and change of price movements. The RSI is used to identify overbought or oversold conditions. The speaker mentions that 'many people look at the RSI look at here so if you, take a look at it here Market is kind of, okay very very close to the top range,' indicating a potential overbought condition.

💡support

A price level where a downtrend can be expected to pause due to a concentration of demand. The speaker identifies support levels, such as 'your support is, 550 this area to look for it if any, Market pulls back'. This is crucial for understanding potential buying points.

💡divergence

A situation where the price of an asset is moving in the opposite direction of an indicator, such as an oscillator. The speaker points out several divergences, indicating potential reversals: 'bullish Market, bullish squeeze divergent, right little divergent right there on a 4-hour chart'.

💡QQQ

An exchange-traded fund that tracks the Nasdaq-100 Index. The speaker discusses the performance and weaknesses of QQQ, noting, 'QQQ got a huge weakness and then we bounce, and rejection again'. This reflects the market's sentiment towards technology stocks.

💡rotation

The movement of money from one sector of the market to another. The speaker observes, 'last five days Market is taking money out of, Technology look at that last five days, money getting out of that'. This indicates a shift in investor focus from technology to other sectors.

💡cyclical stocks

Stocks whose prices are affected by macroeconomic or systematic changes in the overall economy. The speaker highlights their performance: 'iwm all cyclical stocks, folks look at the cyclical stocks all, are trying to going higher'. These stocks are gaining attention due to their recovery potential.

💡shorted stock

A stock that has been sold short, meaning investors are betting that its price will decline. The speaker notes, 'these are all heavily shorted stock they are jumping now', indicating a potential short squeeze where prices rise as short sellers cover their positions.

💡supply and demand zones

Areas on a price chart where buying (demand) or selling (supply) pressure is strong enough to cause a reversal in the price direction. The speaker refers to these zones as crucial for trading decisions: 'supply demand class folks that, class is now recorded available folks'. Understanding these zones helps traders identify entry and exit points.

💡earnings season

The period during which many publicly traded companies release their quarterly earnings reports. The speaker mentions its impact on market conditions: 'earning season, coming you know so maybe you know, what Market is doing folks I think the, market is doing rotation'. This period can cause significant volatility in stock prices.

Highlights

Market conditions are set up for bullishness with various indicators showing positive signs.

RSI is close to the top range, suggesting the market is nearing overbought territory.

A weak body candle appeared, indicating sellers are pushing the market but overall conditions remain bullish.

Support levels for the market are identified at 550, a key area to watch for potential pullbacks.

A bullish divergence is observed on the 4-hour chart, suggesting underlying strength despite minor weaknesses.

Technology sector shows signs of weakness with money moving out over the last five days.

QQQ experienced a significant bearish candle, indicating a potential pullback despite overall bullish conditions.

IWM (Russell 2000) is showing a bullish trend, breaking resistance levels not seen in 2 years.

Cyclical stocks and heavily shorted stocks are experiencing a bounce, indicating a shift in market focus.

MP Material is identified as a potential buy due to its significant drop and current divergence.

SQM, a mining company, shows signs of bottoming out, presenting a buying opportunity.

PayPal and Snap are highlighted as technology stocks showing weakness, with potential support breaks.

ON Semiconductor's stock is noted for its attractive setup, breaking sloping resistance and showing bullish signs.

Market rotation is a key theme, with money moving from technology to other sectors like materials and utilities.

The importance of watching support and resistance levels for potential market movements is emphasized.

Banks are starting to show earnings, with City Bank showing signs of weakness but not severe enough for short positions.

The presenter offers educational classes and an alert room for those interested in trading strategies and market insights.

The power of supply and demand analysis is demonstrated through a trade that resulted in significant profits.

Transcripts

welcome to top 20 gu folks today is 14th

July and let's take a look at the market

conditions see what market look like

Sunday right so this upcoming week folks

lot of events and earning are going to

start so before that we need to look

what the market is doing here as you can

see right here this is the one of the

bestest condition is set up right now

means look at the bullishness Box okay

everything looking nice and bullish magd

bullish Cloud conditions are bullish

volumes are bullish everything look is

like nice right so what we did Market

here is look at that higher high higher

low higher high now so we are trying

to climb higher that's what market look

like here so many people say Josh Market

is like look like kind of you know

oscillator above almost close to seven

so when you see RSI you know many people

look at the RSI look at here so if you

take a look at it here Market is kind of

okay very very close to the top range

means we are very close to the top

territory means what does it mean means

now we have a little bullishness

everything looking bullish so anytime

you see that kind of pullback you're

going to see a buyer any kind of

pullback you're going to see a buyer so

what would happen here I just need to

keep in mind weak about the body just

showed up right here so so if you look

at the candle weak about the body showed

up that means the seller lined up and

push it but look at the conditions is

the one of the bestest best condition

you can see in 2024 right now that's

what it shows up all right so we're

going to go and look into the little

smaller time frame see markets What

markets are doing so we need to look

into 4our charts first so any weakness

we need to look for it okay so over here

this is the 4our chart smart money are

sitting around

here right

here around 5 541 area right here but

that's that's two way low because

condition is still bullish qu still

firing 4our charts Market has a

Divergent folks right and still we are

uh looking bullish so your support is

550 this area to look for it if any

Market pulls back okay 550 all right

that's fine right now I don't see let's

see here one more thing bullish Market

bullish squeeze diverent right little

diverent right there on a 4our chart 4

Hour chart is is is it has a lot of

power okay condition bullish diverent

okay that's what it appears they're

going to look into 4our chart here we go

what do I see here double top and

bearish diverent on a 1 hour chart this

is 1 hour chart folks okay and condition

is still bullish so man this is weak

signal folks okay I'm telling you you

know Market got a weakness and

immediately the Bulls lining up this is

how it Market is even the earning season

coming you know so me maybe you know

what Market is doing folks I think the

market is doing rotation so we're going

to look into the rotation I brought some

rotation here so we can look at last

five days see what market doing so last

five days Market is taking money out of

Technology look at that last five days

money getting out of that so if you ask

me you know what let me see the money

coming out of technology means

qqqq qqqqq yep look at that QQ

big powerful look at the QQQ folks got a

weakness right there you see that QQQ

got a huge weakness and then we bounce

and rejection again look at that is this

you will rare find this kind of anywhere

tell me can you see like this

power the huge bearish candle coming on

FK this is this is I'm I'm trying to

give you all the heads up condition is

super bullish look at that but market

price action I say hey I want to go down

that's what the QQQ look like so

whenever you want to pick you want to be

wind direction is South right that's

what you need to pick on a QQQ because

now the conditions are bullish means it

could be a small pullback like this and

then bounce pullback like this could

bounce right because the condition is

solid bullish this is the early early

indication I'm I'm telling you giving

you early indication okay let's look at

the so these are all index rotation I'm

watching okay then let's look at IW

because IW was super bullish right few

days we we looked at iwm look at the

shootout so iwm all cyclical stocks

folks look at the cyclical stocks all

are trying to going higher sloping

support building right here and now

shooting so where are we now 213 that

means iwm almost like a yearly twoe I

never seen lately oh yeah almost look at

that 2022 folks has been 2 years now we

are breaking the resistance right let me

get rid of you this stuff so

2022 we were here at the same price

after before that we were been iwm was

beish spy keep taking alltime High

remember but not the iwm QQ was alltime

high keep creating alltime high but not

the iwm so the baby was sitting down at

the bottom and and the you know spy and

K was flying high so now they're taking

the iwm what does it mean that means

folks we need to go and look at all the

cyclical stock they must be going they

must be uh bouncing let's look into

let's look into

Lucid dir cheap stock right they took it

down to look at that look at the bounce

cyclical stock $2 stock NOW jumping $4

100% jump then let's look at the Qs

remember this battery comp oh look at

that 45 stock is now $8 stock you see

that so these are the jump these are all

heavily shorted stock these are all

heavily shorted stock they are jumping

now all right

then Intel jumping

right so many many stock probably folks

you got to you got to look into it for

example and these are the stocks which I

which I think look at that MP material

MP material look at the heavily shorted

the material due to the inflation they

took it down from $60 to $12 these are a

good buy folks you can understand you

see that market keep creating Divergent

last 3 months 6 months right here now we

are finding the support here if once we

break this resistance going to be

bullish and could be go higher because

now this is the perfect time probability

these are good buy folks MP material wow

look at that look at the volume lining

up this is for the long term not the

option folks okay the option that you

got to figure it out because Market Play

Dirty game go up down up down and then

you got to figure that's why you need to

know little bit uh different different

tricks but stocks yeah beautiful folks

these are the good buy look at the

Double bottom and look at the diversion

also this is like best MP material right

then whatam we call it uh other

sqm the look at this diverent coming in

now this sqm is bottom out look at that

stock it was 115 120 this is battery uh

this is all the mining company right now

look at that down now we are bottoming

out so these are this is how you buy the

material and they probably 8 months 9

months 10 you know maybe year or two

gives you some sort of good return but

this is how you do shopping rather than

chasing anything we buy the shopping at

the bottom not at the top at the at the

top then

PayPal look at that still weakness but

we we still at the support here this is

not I don't see anything here reversal

but yeah this is the support here just

the demand Zone just to give you idea

folks okay so these are the these are

good

stock all right which is probably this

is digital ocean is support here

bouncing probably all right anyway

so and let's take a look

at look at the snap this is all

Technology stock they took it to $790

probably this there's a weakness here

how do I see weakness

here look at that this is 4our chart

double top right there bearish Divergent

once they look at that we already trying

this once you see these support breaks

that's it then baby going to roll

down this is snap just to give you idea

$15 breaks

down

pins then this is also technology talk

right pin look at that already in a bad

territory this we are testing the

support area folks once we take the

support man baby going to roll you know

how much money you could print here look

at the empty pocket man come on this is

like a lottery folks you Market down

dump this baby going to roll if Market

dumps remember that if there's always if

disclaimer due diligent you have to do

before you take any trade folks okay

this is just my technical analysis what

I see here but look at that once the

support that that area is critical

critical then look at that drop because

Market you know Market is all the way

top Market DP dumps watch the pins

you're going to see this going BBE could

roll down right just to give you idea I

we looked at the both bull bullish and

bearish also so so let's look at

the on look at

that this is ON Semiconductor stock look

at that sloping resistant broke building

sloping support man look at the beauty

setup look at the light under of the

tunnel mag and like like like like a

lollipop folks this is like a lollipop

somebody handing over to you that's how

I see it here look at this right these

are this both bulls and bearish stocks I

looked at anyway right now it's uh let's

go back to the Spy so iwm index rotation

folks remember Market maker started

index rotation that's why we looked at

all the other stocks were going good all

right I looked at a few stocks folks you

can look into those stocks if you like

all right so sometime market update

video I might make like this so you

might take advantage out of it all right

then so here let's go back here so this

is double top right here rejection

bearish Divergent uh support your smart

money are sitting right here here this

area folks right so if you want to be

you know if you want to be bearish we

need this to break

5555 1 hour charts let's go to 30 minute

charts all right so same thing 30 minute

chart so folks before we go and dump and

anything happen these are the area to

watch support bounce or support breaks

555 66 this area to watch for tomorrow

or day after tomorrow all right

condition we just started little bearish

this is 30 minute charts okay you

understand that so we just started the

bearish so we might look like could go

and test this bounce rejection maybe go

down in a day or two something or we

could just bounce and continue you know

buyer lines of either one of them but

right this is the area to watch this is

the area where the rejection we had all

right so this is the area we had a

rejection right so if you are a bullish

market tomorrow if you see a bounce and

get a little any bounce is a good shot

probably could could be okay I'm saying

could be a good short side rather than

going the long side for a day or two

let's see whatever it bring because ma

already down here on 30 minutes they

could have a bounce and then create a

downward or could come down and bounce

either one of them and then have a

rejection and go down for Tuesday

Wednesday something we'll see so this is

we always look at the both side of the

coin FKS not the because it's a fresh

week starting remember fresh Week start

so Bank banks are earning Sub in banks

are already making money so if you ask

me Banks like City Bank let's look at

the City Bank see what city oh man look

at the weakness on City

Bank oh wow wow wow wo wo wo wo W

okay divver City Bank One 2 third

diverent going on so City Bank could

test this area but I would not I don't

like to go in short because I don't see

crazy weakness here that's why all right

so anyway right now I'm just just giving

you what I see here

um the don't make a long video folks

that's why all right so anyway keep it

in mind I I see some weakness a little

bit not crazy but conditions are still

strong bullish that's why you can expect

bullishness if that's why brand new week

starts we need to gauge the market see

how it does and then we will update you

okay so right here this is your support

to watch this is your resistance to

watch and if this support breaks right

here these are the area to watch for

upcoming days folks okay and also the

rotation which is as you can see right

here mostly so you look for what kind of

stock you're trading last last week

Market trying to take the money out of

the technology and trying to put money

into the whatever the heavily shorted

stock in 2023 2024 materials utility

that's where the monies are going you

see that they just started folks I

showed you look at the lucid and Qs and

all these rions and look at that you

will see the money rotation going on

heavily shorted stocks right now they're

buying you see that look at the ran just

to just just all the short stock look

into it folks that's where the money are

right now whichever stock they took it

down that's where they are right now

buying back okay they do get a once in a

year they get opportunity to buy right

and that would be the one so that's why

iwm is also popping all right those who

are new to the community folks I always

post the market update video join

YouTube I go also live every day morning

9:30 to 400 p.m. live I trade my share I

mean I share my trades in the morning

9:30 to 4 p.m join on YouTube type it in

top trading age also folks I go live

right here this is the 7 hours right

here okay then uh there's a WhatsApp

group folks there's announcement I have

is SPX right those who are uh in SX

class those who wants to join SPX room

and class right here so those who wants

to people are asking me Jos can I join

your SPX alert room I would highly

highly recommend take at least one class

this is the class which I created we had

all almost 30 students folks so if you

want to join you can take this class is

very very important okay you can go for

this one is just th000 bux FX but you

can go for that one and if you want to

join the alert room alert room is there

this $1,000 but alert room will be from

the date you start okay so we have you

can if you join from Monday 15th it will

last in 15th 14th August right that's

how it works basically so you can take

the alert room also right here these are

the classes I offer folks so at least

educate properly and go with the uh with

whatever you like folks technical

fundamental technical intraday today we

had a supply demand class folks that

class is now recorded available folks

okay you can take this is the most

important class folks you can take

opinion from the people who took the

supply demand class right what kind of

value I'm providing in this class it's

very very important folks one trade you

know what what we do folks like one look

at the Friday folks look at the Friday

what did I do you know you can can you

imagine this trade what I how I printed

this $80,000 right in this trade this

trade is not a easy one folks but you

know the setup you know Market knows

that what I mean how the market is

behaving and I announced I thought look

at the rejection right

here this is a support Market broke

right boom and then bounce and this

bounce is your Supply right there

rejection where is your

next area is right here is your target

area look at the dump boom boom boom

boom I exited way way early but imagine

folks look at that how much Market went

down if I would have hold on to could

have would have should have would have

been the different story that 80,000 I

exited around 42 somewhere around here I

exited but imagine from here top to here

one trade but that's the that's that's

the power of Supply demand class but you

need to learn when the setups are where

where the setups are and that's what I

teach you in depth right so take those

classes folks whichever you like and

that rather than giving money to Market

maker people are calling me I give $1

million to Market maker I give a $9,000

to Market maker Instead try the

education learn something folks that's

what I would say all right now folks

don't forget to share this video If you

think you like the content what I what I

provided please share with others also

and don't forget to click the like

button and uh see you guys tomorrow

morning 9:30 thanks