The BIGGEST Week for $SPY Earnings

Good morning RIGD

Let’s begin with an ancient Japanese prayer passed down in our family from generation to generation.

"In tranquil repose, we bind our resolve and tether our spirits. With humility, we beseech the kami, as the tumultuous sea of the market once again prepares to surge. Guide us through these waves, we pray."

Amen brethren. Amen.

This is THE BIGGEST week for $SPY Earnings

More companies report this week than last with $XLV (healthcare) leading followed by $XLI (industrial).

Earnings = events

Events = volatility

Volatility = number go up or number go down

Number go up or down = tradeable

Tradeable = RIGD will pin tops and bottoms

On Thursday after the close we also have the mother of all earnings reports… $AAPL.

Apple the biggest most important stonk in the entire market is at all-time highs amidst a number of things that don’t make a whole lot of sense.

1.) No AI Hype ???

The flip from bear to bull market has been tech / artificial intelligence driven.

Meanwhile Apple has largely avoided the term preferring to use “machine driven learning”.

2.) EPS Estimates down and to the right

Red line = earnings per share estimates

White line = stonk price

A long time ago, we sat down in a chair for five minutes and attempted to read that red investor book, the same one you probably have on your shelf. We couldn’t understand it and would probably bet since you’re reading this newsletter you haven’t finished your copy either. It does signal intelligence on zoom calls though which is nice.

So the biggest company in the world is at all-time highs even though its earnings per share (net profit / common shares outstanding) is going down.

Earnings aren’t growing… but the stonk price does not care.

Consensus estimate for sales comes in at 81.26b

Which is good enough for year over year growth of -2.05%.

3.) It’s bad out there in electronics land

Global shipments of smartphones are expected to decline 3.2% in 2023. This number was revised downward from a 1.1% decline in February. [idc]

"We now expect the foundry industry to decline mid-teens and our full year 2023 revenue to decline around 10% in U.S. dollar term" - Apple supplier $TSMC

Samsung posted a 95% plunge in profit in the second quarter. They said overall mobile phone market demand declined from the first quarter due to continued macroeconomic challenges such as inflation. [cnbc]

Will it matter?

Probably not.

Perhaps traditional methods of valuation, charting and trading no longer work (the stonk market is rigd) and one should use other tools (like RIGD).

Apple Options for the Week

This is dumb to look at now because the lizard always wait until the last moment to setup, but we’ll do it anyway.

Currently the options market is pricing in a 3.0% move which would send Apple past $200 to a new all-time high or to $190 a price not seen since two weeks ago.

Highest Open Interest (number of open contracts) is in the 200c and 180p.

Given IV is at 30% you need ~4% move your way to pull in a 100% return if you buy calls.

The 180p is definitely a yolo with optionsprofitcalculator showing your probability of profit at 0%.

Hard to imagine what Apple falling 8% in a week would do to the market.

Then again one of our favorite furu’s to fade just tweeted this.

Apple is definitely going down.

Note: it probably won’t $AAPL is programmed up only and it’s much better to just play $SPY with IV at 9%, cheaper contracts and better returns (or losses).

Gearing up for the RIGD AI Beta Launch!

The hype train has intensified to maximum levels as we prepare to open the beta on Wednesday August 1.

We’re preparing an improved beta guide to go along… so whether you signed up or not if you have any questions hit reply and we’ll get them included.

If you missed last week (we posted banger after banger after banger) you can catch up with the links below.

THE BEST DAY IN RIGD AI HISTORY (1000% MAX GAIN)

414.70% RETURN ON 9 $SPY BOMBS (IF YOU BOUGHT AND DID NOTHING)

TECHNICAL BREAKDOWN ON USING RIGD AI TO TRADE FRIDAY’S QQQ ACTION

^ this post is a really good explainer on how to use RIGD AI signals.

Let’s all have a great week and remember to always…

STAY FROSTY!

thanks for reading THE REPORT by RIGD AI

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