Will Verizon bounce from current oversold extreme?Verizon Communications Inc. - 30d expiry - We look to Buy a break of 32.01 (stop at 30.01)
We are trading at oversold extremes.
This stock has recently been in the news headlines.
In our opinion this stock is undervalued.
A higher correction is expected.
A break of bespoke resistance at 32, and the move higher is already underway.
Our profit targets will be 37.01 and 38.01
Resistance: 32.00 / 33.70 / 35.00
Support: 31.25 / 30.00 / 29.00
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Z-VALUE
CNN: Bulls and bears clash in a brutal battle on Wall Street.The views and feelings, as well as the understanding of the current situation, are so divided among bulls and bears that it is more and more like a political landscape. The stock market rally has sparked a war of controversy of unprecedented magnitude. The bottom line is that AI-related Big Tech shares are indeed growing faster than the rest of the market. If you take a basket of AI-related stocks and compare it to the rest of the SP500, the lines will move in completely opposite directions. And now the difference between them has become simply huge. The accumulated steam must go somewhere. And the most important question is "when will it happen???".
Source: CNN.
Demand for oil will decline.Global oil demand to grow slower than expected due to economic slippage
developed countries, according to a report released today by the International Energy
agencies. By the end of 2023, global demand for black gold is expected to grow by 2.2 million
b/d (about +2% y/y), i.e. 220 thousand b/d less than the previous (June) forecast.
Retail investors did not believe in artificial intelligence.The reason for the revival of the US stock market was the explosion of interest in AI. The market is up nearly 25% since its October low. Most interestingly, retail investors did not show active interest according to sources US retail investors were selling US tech stocks. And even more interesting is that, based on the analysis of historical data, experts draw the following conclusion - the lack of interest of retail investors in new developments is a good sign. Whenever their interest in something new was at a minimum, this "new" had a beneficial effect on the market. That is, we expect further growth.
Reporting is not the end of life. We need to look further.The reporting season for the second quarter begins this week. All investors will want to know about the state of companies and their economies.
Earnings included in the SP500 are projected to decline by approximately 7.6% year-on-year. This will be the third consecutive quarter of decline and the largest decline in earnings reported by the broad-based index after a loss of approximately 32% in the second quarter of 2020.
But investors will be watching even more closely to see what companies forecast for their financials and the economy as a whole. This will be more important than looking back on earnings results to determine whether this year's rally can continue and whether the economy is headed for a downturn.
The S&P 500 is up about 16% for the year, driven by the artificial intelligence hype that propelled tech stocks to sky-high heights and an economy that has remained resilient despite the Federal Reserve's aggressive pace of interest rate hikes.
The economy showed no signs of slowing down this year. Gross domestic product, the broadest measure of economic output, rose at an annualized rate of 2% in the first quarter, compared with a second estimate of 1.3% reported last month.
Some investors say the strength of the economy could begin to wane as the Fed continues to raise interest rates and consumers draw on savings built up in the midst of the pandemic.
Source: CNN
A little bit about the labor market in the USA.The labor market remained resilient despite aggressive
Fed tightening, but job growth was mostly in the service sector
with low wages, which led to a decrease in labor productivity. In the first quarter
US GDP growth was 2%. Forecasters polled by the Philadelphia Fed expect GDP to
will grow by only 1.3%.
Everyone is worried about the prospects for inflation.This week, companies in the US will report on how much profit or loss they have made. Of course, most likely it will be about profit. And these data will tell the experts what dynamics of inflation is expected. Many experts are sure that the received profit is closely connected with the future indicators of inflation.
Inflation is finally coming down. But consumer goods prices continue to rise, and just as fast.
Earlier, the Fed chairman said that wage growth should slow down to reduce inflationary indicators. But at the same time, some experts point to another culprit: corporate profits. The International Monetary Fund also claims that half of inflation is due to corporate profits.
This week will be published two major indicators of inflation in the US - the consumer price index on Wednesday and the producer price index on Thursday. Friday morning earnings reports for the second quarter start with reports from JPMorgan Chase, Wells Fargo, Citi and Blackrock.
Source: CNN
Check out this week's events:11.07 EUR German Consumer Price Index (CPI) (MoM) (June).
11.07 USD Short-term forecast of the situation on the energy markets from the EIA.
12.07 NZD Interest rate decision 12.07. 15:30 USD Base index. Consumer Prices (CPI) (MoM) (June) .
12.07 USD Consumer Price Index (CPI) (MoM) (June).
12.07 USD Consumer Price Index (CPI) (YoY) (June).
12.07 CAD Interest Rate Decision .
12.07 USD Crude oil reserves.
13.07 GBP GDP (MoM) (May) .
13.07 USD The number of initial applications for unemployment benefits.
13.07 USD Producer Price Index (PPI) (MoM) (June).
The money will get even faster.The Federal Reserve is unveiling its new "FedNow" system - it will allow banks to send domestic payments instantly. Even at midnight Saturday and even on a holiday. Now all payments are processed in old systems and their processing takes several hours or even days. With the new, everything will become much faster. But, as always, there is one "BUT!" - If you provide full access to individuals, they will be able to withdraw and cash out any amount in a short time. That could prove a problem for smaller banks. Therefore, most likely the system will work in full access only between banks and enterprises. And individuals will have full access only to repay loans/mortgage debts.
Source: CNN
MKTX - The OpportunityWhat a magnificent company.
Total debt sits at around 80mil$ with net income of 250mil$ at a profit margin of 35% in 2022. Before 2019, their debt was 0$. This leaves them with highest debt to equity of 0.13 in 2019.
Profit margins range from 34% to 44% several years back. This metric is great in itself but adding consistent, rising revenue makes it stellar.
The company always has cash on hand. Free cash flow closely matches net earnings, consistently, year over year. In 2022 it was 290mil$, of which their total debt represented only 28%. Exceptional.
Now, great financial health, impressive earning power, rising revenue, equity and sales lead us to the opening line of this text. But let's look further.
At the current price of 250$ per share, using the earnings based valuation, a conservative estimate would indicate that the company is trading somewhere around 80% of its intrinsic value.
Acquiring 1$ of this kind of company at 80¢ is worth consideration, at least.
Have A Great Day.
CNN: "Job market reports are encouraging".The decrease in the number of jobs created in June compared to May data gave a slight hope for inflation easing. Job growth in June was a third less than in May. A slowdown in job growth is not necessarily a bad thing. Perhaps this will lead to the achievement of the inflation target.
Source: CNN
The Fed and the Interest Rate - The story continues.The Fed still believes that inflation will continue to rise. They have already scheduled a rate hike at the end of July. But the release of employment reports in June made the timing of the increase unclear. The Fed is aiming to cut inflation, which is now above its target. Officials are indeed worried that inflation may rise despite favorable labor market conditions.
Source: CNN
The chip war begins.In the world with semiconductors, there was no particular expanse anyway. And now, against the backdrop of heightened tensions between China and the United States over restrictions imposed by China today on foreign exports of raw materials such as gallium and germanium, chip prices will rise even more. This means it is necessary to buy shares of semiconductor manufacturers. I didn't mess anything up?
CNN: "Does the Fed have the labor market all wrong?"The labor market just won't quit, but this could be another case of "good news is bad news" for the Federal Reserve.
The US unemployment rate has been at or below 4% for the past year and a half, and the economy has gained an average of 314,000 jobs each month this year through May.
People who need jobs are getting them, and those with jobs are getting paid more. Business and consumer sentiment remain resilient and spending and investment are also proving to be relatively robust. Gross domestic product, the broadest measure of economic output, grew by 2% in the first quarter.
But while job growth is a sign of a healthy economy, Fed Chair Jerome Powell has said that he wants to see more slack in the labor market in order to bring inflation down. If there are too few people chasing too many jobs, he says, wages will rise and add to upward pressure on prices.
What's happening: This week, a slew of new unemployment data is expected to show that US hiring finally slowed in June. Economists forecast that the US added 223,000 jobs last month, way down from the 339,000 added in May.
But here's the thing: those forecasts have been way off. They projected sharp drops in hiring for April and May; instead there was increased employment.
And so in order to get unemployment back to where it thinks it should be (5%), the Fed keeps pushing interest rates higher.
But some economists are starting to wonder if it will ever get there.
For decades, economists have said that the natural rate of unemployment — in a healthy, stable economy — was 5%. But in April, the unemployment rate reached 3.4%, with the 12-month average of unemployment reaching a record low of 3.6%.
"Growth and unemployment rates at these levels are not only a sign of an extraordinary recovery from the previous recession, but also are a sign that this is not your parents' labor market," said RSM US chief economist Joe Brusuelas. "Today, we think the natural rate of unemployment is closer to 4%, which reflects a mixture of efficiency gains driven by technology and demographic factors that dampen overall unemployment."
The efficiency of searching for jobs online and a newfound ability to work at home means that there's less friction in finding employment than ever before, he said. That may permanently lower unemployment rates. Plus, the mass retirement of baby boomers, slowing of immigration rates and long-term health impacts of Covid have also permanently altered the labor market.
Why it matters: These changes have led many economists to say that the labor market doesn't matter anymore, said Kathryn Rooney Vera, chief market strategist at StoneX. The gig economy, generational differences, and baby boomer retirement make this " unlike anything we've seen," she said. "You have so much Fed tightening, and the most forecast recession in my lifetime, but consumers have not tightened their belts at all whatsoever."
People clearly feel good right now, said Vera, and when people feel good their habits of consumption don't change.
In an economy where consumer spending accounts for about 70% of America's gross domestic product, you would have to have big negative detractors from the rest of the economy to really cause a recession.
"The economic expansion will just not die despite the twin inflation and interest rate shocks over the past two years," said Brusuelas. Perhaps it's time to accept that this is the new normal.
Coming up: The May Job Openings and Labor Turnover Survey (JOLTS) and jobless claims are due out on Thursday and Government unemployment numbers for June come on Friday morning.
Source: CNN Business
Can FTT trash turn into phoenix and give 1500%? 🦄 In 2022, one of the most significant events that turn crypto markets is the collapse of FTX exchange.
However, native token of this exchange is still traded on some other exchanges.
It may seem funny, but probably this trash wrapper can be resurrected and give fantastic profit. Why? 🤨
In recent months, several news have come out that the company is returning part of assets to its investors.
And this is really surprising, because according to bankruptcy article, under which this company went, they may not do this.
The strange thing is that in 9 months native FTT token has not yet been delisted from many crypto exchanges.
Why trade token of an exchange that has not existed for 9 months? 🤔
In a couple of minutes you will understand everything.
The fact is that FTX owes more than $ 3 billion to its largest creditors.
Of these, it owes almost $1.5 billion to the 10 largest funds.
In total, FTX can have over 10,000 creditors!
All of them are interested in returning this debt.
Such large funds and exchanges once invested in FTX: Binance, Sequoia, Multicoin and Kraken Ventures, etc.
And such big players dont like to lose money.
And recently there was news that FTX may restart in soon future 🎪
Yes, I understand that all this sounds extremely unconvincing and I myself did not believe in it until I saw it ...
🤯 Look at this chart 👆
After exchange went bankrupt - trading volumes of the native BYBIT:FTTUSDT token increased significantly.
There were no such volumes even during existence of exchange!
Moreover, such volumes are not on one, but on all exchanges where this token is traded.
Some big players is collect coins from market very cheap.
Probably in future there will be news that the exchange is restarting and under this news people will massively run to buy coins, inflating the price, and those who bought them in advance (at current prices) will sell them to market, thereby having an incredible profit 💸
If you believe that such a scenario is possible, its logical to buy quite a few coins in order to increase capital.
When buying from current prices ($ 1.6), the coin can give up to +1500% when the scenario is implemented.
When buying a coin from the lower limit ($0.8) - the transaction can bring up to 3000%!
🪄 That is, $100 can turn into $1500 ✨
What about risk?
The exchange has already gone bankrupt, what could be worse? 🤠
But remember that this is an extremely risky transaction and you can lose all invested funds, so no “meatballs”, only money that is not afraid to lose.
If you are interested analysis of other assets - please write about it in comments. Also, don't forget to subscribe to my channels to stay up to date with profitable ideas 🦄
Should you buy Yes Bank?I recently overheard a couple of guys discussing investments and stocks at the gym, and one of them told the other to buy "Yes Bank" as it is apparently at a good valuation right now.
My take on it?
Maybe. Maybe it is available at a so called "discount". But it had also gone down from 400 to 5. Almost 98.5% down from all time highs. Which means it has a lot of investors who are trapped and are just waiting in a little bit of price appreciation and they WILL sell it away. Multiple resistance zones since it has fallen down SO MUCH.
Don't we have better stocks out there in the market, with better probability setups? Don't we have better stocks out there, with stronger momentum potential and very less resistances?
YES WE DO. Then why take a beaten down stock?
Beats me.
APPLE ATH Fueled by Quintet PowerhousesHow did APPLE make a new ATH?
In the fiscal year of 2022, Apple Inc. amassed a staggering revenue close to $400 billion. The tech behemoth’s financial forecast predicts an even more dazzling $450 billion by 2023. What’s at the nucleus of this financial prowess? Here’s a dissection of the five products and services that are the linchpins in Apple's revenue generation.
1. iPhone: The Standard-Bearer
Since its inception in 2007, the iPhone has been the lodestar in Apple's stellar performance, consistently accounting for over half of the company’s revenue. There was a lull in the iPhone's sales during 2015-2020, but the fiscal years of 2021 and 2022 witnessed a robust resurgence. Could it be the worldwide lockdowns that reignited consumers' affinity for this beloved gadget? One wonders.
Moreover, Apple's unceasing innovation has been a catalyst in this resurgence. The company has been adept at understanding and adapting to market trends, releasing newer models with advanced features such as enhanced camera capabilities, cutting-edge processors, and improved battery life. The introduction of 5G technology in the iPhone 12 and subsequent models further bolstered its appeal. With the ever-evolving landscape of consumer preferences, Apple's commitment to innovation ensures that the iPhone continues to hold its enviable position in the market.
2. Services: A Diverse Armamentarium
Apple's services segment is a multi-pronged affair. The App Store and Apple Music are the twin pillars, but AppleCare, Apple Pay, Apple TV+, Apple Card, and iCloud storage are significant contributors as well. It's been an upward trajectory for this segment since 2013, with no signs of abating.
Additionally, the expansion of Apple's services is emblematic of the company's strategic diversification. As the digital landscape evolves, Apple has astutely tapped into the growing demand for integrated services. Its focus on user privacy and seamless integration across devices has been a strong value proposition. For instance, Apple TV+ enters a competitive streaming market but with original content and collaborations with high-profile creators. Apple’s services segment not only supplements its revenue but also enhances customer retention and creates a more entrenched ecosystem, encouraging users to invest more within the Apple universe.
3. Mac: The Unwavering Pillar
The allure of personal computers has attenuated globally, and Mac's revenue plateaued between 2011 and 2020. However, the Mac remains integral to Apple’s ecosystem, not least because of its role in keeping users within Apple's interconnected iOS operating system.
In recent times, Apple has sought to reinvigorate the Mac lineup through innovation and integration. The introduction of Apple's own M1 chip, as opposed to relying on Intel's processors, marked a significant turning point. The M1 chip has been lauded for its performance and energy efficiency, giving the Mac a competitive edge. Furthermore, the seamless integration between the Mac and other Apple devices through features like Handoff, Universal Clipboard, and Sidecar has reinforced the appeal of owning a Mac as part of the larger Apple ecosystem. This ongoing revitalization suggests that Apple is far from considering the Mac as a legacy product, and is instead positioning it for a renewed period of relevance and growth.
4. iPad: Upon their debut, iPads were an instant sensation, raking in an impressive $19 billion in the first year. There was a zenith in 2014, after which sales experienced a decline. Currently, iPad sales hover in the range of $20-30 billion, cementing their place in Apple’s revenue mix.
5. Wearables & Accessories:
The Rising Contenders Under this category, one finds an array of products including Beats headphones, AirPods, and the Apple Watch. This segment has been climbing the ladder of success since 2015. Notably, AirPods are estimated to constitute a quarter of the revenue in this category.
Apple's foray into the wearables and accessories market is indicative of its visionary approach to emerging consumer trends. The health and fitness boom, for instance, has been adeptly capitalized on through the Apple Watch, which offers features like heart rate monitoring, exercise tracking, and ECG. AirPods, on the other hand, have become something of a cultural phenomenon, merging high-quality audio with sleek design. These products are not just revenue generators; they are an extension of Apple's ecosystem, promoting brand loyalty and customer engagement. By continuously innovating and expanding in this sector, Apple ensures it remains not just a heavyweight in consumer electronics but a trendsetter in lifestyle technologies.
Conclusion: Apple's ascent to become the first company to reach $1 trillion and subsequently $2 trillion in market capitalization is hardly fortuitous. The aforementioned quintet of products and services is the bedrock of its supremacy. With consumers' unabated ardor for Apple’s innovations and the brand loyalty it commands, NASDAQ:AAPL remains a formidable player in the stock market. Is Apple part of your investment portfolio?
Continue to short gold and expand profitsThe trading signal for shorting gold announced today has successfully reached our take-profit position of 1924 and achieved good returns. The trading signal is as follows:
Xauusd:@1930-1932Sell, TP:1924
On Monday today, gold went up from 1920 to rectify, the highest reached around 1933, and then fell back sharply again, so far it has continued to maintain at 1933-1920 to rectify. Therefore, the gold empty order plan we implemented is also perfectly profitable.
Gold has rebounded to around 1928 from 1921-22, and the current trend of gold is a bit like a head and shoulders pattern.
The vicinity of 1928-1930 happens to be the shoulder position of this 15-minute trend. Next, if it stabilizes at 1928-1930, it is very likely that it will come down again and touch the bottom at 1922-1920.
Therefore, my suggestion for the next operation is to focus on around 1928. If you can't continue to go up, you can enter the market and short.
The lower target first looks at 1922-1920, followed by the 1910 low. For more trading signals and trading plans, you can follow the bottom of the article to view the details!