Straight to your inbox from Keith himself!

*Trusted by tens of thousands of savvy investors and traders around the world every day

☕ If you thought AI was working before, wait till you see what happens next!

Jul 31, 2024

Good morning! 👋

There are two kinds of investors and traders in the world today:

Those who react to headlines and who inevitably find themselves on the short end of the stick because they worry about what ‘might’ happen; and,
Those who have a plan and consistently focus on what’s ‘likely’ to happen.

Three guesses who got caught offsides this morning and is wondering “now what.”

The first two don’t count.

Here’s my playbook.

1 – What to expect from the Fed

...

Sorry, couldn’t resist. 🤦‍♂️

MyPOV: The Fed has already caused the next 3 financial crises. You can spend all day guessing about what Team Powell might do or focus on what the world’s CEO’s are likely to do... make money, innovate, build the future. Rates are for traders. Results are for investors.

I stopped by for a wonderful discussion with the super savvy Richard Dean in Dubai last night and thought you may enjoy my take on things. (Watch)

2 – Boeing tries to takeoff (again)

News is out that the company has hired Robert ‘Kelly” Ortberg as the next CEO. (Read)

Shares are up $2.69 to $189.55 as I type.

Pass.

Ortberg is a good choice but he’s going to have to make some radical changes to unwind decades of sloppy decision making, management and toxic culture. Fixing that will take time.

Meanwhile, I still won’t touch the stock and won’t fly on a Boeing aircraft if I can avoid it.

Maybe a buy under $150... and even then, while holding my nose.

You?

3 – No, Microsoft didn’t warn

I told you two things yesterday ahead of earnings.

First, that traders were looking for an excuse to “clean out the weak money.”

Second, that they’d try to break $420, at which point I suggested you spring in to action if that came to pass.

I hope you have.

I did.

Now, let’s see if my trade idea is good for a quick 20% and a speedy exit. 🤷

Keith’s Investing Tip: I believe every investor should learn to trade around core positions if for no other reason than doing so increases your knowledge and awareness of how the markets work. Making a little extra money when you get it right isn’t too shabby either!

Btw and in case you're interested, I am going to be sharing one of my favorite indicators – the RSI – and how to use it for just such occasions in the August OBA which drops Friday. My research has also led me to a unique choice that could be perfect a perfect way to harness volatility into US Presidential Elections – so I’ll be sharing that, too.

As for Microsoft, the company didn’t “warn” about AI, journalists made that up

4 – AMD

5 – Small caps over?

One of the most profound and potentially profitable lessons I have learned during my career is that it’s almost always better to do what Wall Street does, not what it says.

Think about it.

Wall Street talked up a storm about the need to “broaden” the rally into small caps, undoubtedly buying the entire time they did so. Then, Johnny Q. Public caught on and did.

This morning’s price action and the recent look at IWM, a popular ETF choice, suggests the “rotation” may be coming to an end.

Tread lightly.