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Soon after surging more than 50% in the last three months alone, Immunovant (IMVT), has put together a seemingly straight forward setup for us to take a look at. This setup isn’t quite like the rest of the setups we find in our Daily Smart Reports, but this one still offers a lot of intriguing risk vs reward.
Normally, when biotech companies experience such a move, there is some pullback as investors and traders try to decide on the price of the stock. If the move was news driven, these gains could be short lived. However, we have our levels to watch, so whatever story price begins to tell us, that will be the lead for our trade.
As for our levels, we have a major support level around 32.5 where price has already tried to test several times and failed to go lower. That’s good news in the short term as this could still act as support and supply us with a bounce level to watch.
To the upside, we do have some resistance that it will take some significant volume to get through. the 37.5 mark is the one you want to keep your eyes on for an uptrend entry. If either of these levels were to break with price holding above or below the corresponding level, that is the side of the trade you want to be on.
This is the type of trade where patience comes in to play more than most other trades. A trade like this will have traders thinking they know what will happen next instead of letting price dictate the trade for them. Don’t get sucked in to chasing a breakout or breakdown. Be patient, see how price action is responding to levels, then from a cool and calm state of mind, make your trade with your risk management already worked out.
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Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

This year is drawing to a close, make sure you’re turning the corner on your trading to position yourself to win all 2024. Sign up today! Until then…
Good Luck With Your Trading!
Christian Tharp, CMT

What may seem confusing to some is actually quite simple when you think about it and give it some practice, finding support and resistance levels. And what’s better is it is easy enough for anyone to do it before they sign off for the night or even the morning of before the market opens.
Finding support and resistance levels is what we do here in these videos each and everyday, so at the very least, if you’re not using these videos to make a trade, you can use these videos to practice how to find these key levels.
First, as we look at the chart for KKR (KKR), the stock on watch today, you’ll notice one of many things. The first thing you need to consider is the timeframe you’re looking for these levels on. For myself and for many successful traders, we look at the higher timeframes. You can go to the weekly and monthly to get a better sense of where we are in an overall trend, however, when looking for key levels to trade, I typically zoom in just a bit to the daily.
Remember, if you can barely see the levels, chances are the market can’t either and that level won’t be effective for your trade. So, when we look for these levels, we are usually using the daily time frame.
From there, we look for price points where price has reacted to many times in the past. For KKR, that price you can see pretty easily at around 58, that is where we draw a line in order to help us map out the stock’s price chart. Then, you have to consider where price is in relation to that price or your line in order to see if it is now support or resistance.
If price is holding above this line, it is considered support. If it is trading below it you know it is now resistance. Take into account our system, calls at support and puts at resistance and you have just added one more critical piece to the puzzle.
That’s because when price is falling toward a key level, the highest probability trade is a bounce, if it fails, we quickly exit the trade. The opposite is true when a resistance level approaches.
With respect to the current Daily Smart Report trade we are looking at below, 58 is currently acting as support… until its not. That means, once it fails, it then becomes a resistance level that we can pay close attention to in order to see if price will then reject off it after an attempt to break the level to the upside. These levels give us important spots to pay extra attention to so we have the market mapped out.
Seeing as how KKR’s price closed right at this level, a break of this level could imply lower prices if it cannot lose back above this level with some meaningful buying volume. Those looking for the market to head lower should also keep this trade on their watchlist as this week of trading draws to a close.
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Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

This year is drawing to a close, make sure you’re turning the corner on your trading to position yourself to win all 2024. Sign up today! Until then…
Good Luck With Your Trading!
Christian Tharp, CMT

The trade we have on watch today comes from a stock and pattern we don’t talk much about. However, the pattern being put in by United Rentals (URI) is one every trader should know for there own sake. But first, let’s familiarize ourselves with the context in which we are seeing it.
After briefly making a new 52-week high of just over 490, URI came crashing back down toward the 400 level, but not before starting to form our inverse head and shoulders pattern along the way. Currently, the stock is making its way back 455, a key level if the stock can get a close above, from the low of right around 415.
This inverse head and shoulders is bullish reversal pattern that signals the stock is definitely on the move after pivoting off 415 or so and bouncing upward to current prices. If we can get that close above 455, then odds are the we get a run higher.
However, the overall market will have a say in all this. If the broader market decides to hold steady or take off higher, the probability of this stock making another move higher are greatly increased. If the market begins to collapse, then this stock will likely follow suit.
This pattern, or any for that matter, are not guarantees of the move they imply, but there are clues traders can use to help them plan their next trade. When these patterns are so easily spotted, it’s highly likely that we aren’t the only ones that can see this pattern form, which bodes well for us and the implied move we are expecting to see.
Now, there are such things as false breakouts and breakdowns that we want to be careful of. One rule of thumb I have begun to teach my students is if you’re certain of a move coming, just wait until the next candle closes. Many times have I entered a trade based on my certainty of the coming move only to be stopped out by the very next candle.
The key lesson to learn here is patience, or as I like to call it PAYtience. Fortunes have been made on little else than a trade being able to control his or her emotions and impulses in waiting for the opportune time to make their move. Make sure you practice controlling yourself. Conquer yourself, conquer the market.
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Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

This year is drawing to a close, make sure you’re turning the corner on your trading to position yourself to win all 2024. Sign up today! Until then…
Good Luck With Your Trading!
Christian Tharp, CMT

As we have discussed time and time again throughout past issues of our Daily Smart Report, when support is broken it often turns into a resistance level. The same is true when resistance is broken, it then becomes support. The trade we have on watch today should illustrate this point perfectly.
Apple (AAPL) has been working overtime on taking the market lower since collapsing after notching nearly $200 a couple months back. Fast forward to now and AAPL is looking at numbers in the 170s and could be headed lower with a break of a key support level at around 172.
As you can see on the chart, this level has acted as support in the past couple weeks several times. However, after being broken, we now look at this level as becoming a resistance level, which will most likely act as a deterrent from the price going much higher.
As we have seen in some of our past trade ideas, most notably, our trade breakdown on UPS, we may see price push back up to this level as a retest to go higher only to reject and take another spill lower. The highest probability trade from our standpoint would be to wait for this retest of 172 if we get a bounce to look for entering our puts position.
But, one could see what has been happening most of last week and the bleed over of those falling stock prices into this week as a sign that the market doesn’t have much bounce left in its step here. If continued weakness is the case, then AAPL may not retest this level at all.
For those who are looking to postion themselves in puts early, you can take a much smaller position size if you think there will be weakness, which will leave you room to add to your full position size when and if this retest happens. This will ensure you don’t miss the move, however, you must know your level where the trade becomes invalid.
Be sure to keep this trade on your watchlist should the market decide to spill over more as there seems to be a clear character change taking place.
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If you like The Profit Machine (TPM), then you will really like my Wednesday Profit Room trading service. Same high-quality options action, as well as more world-class trading education. As I say, the more screen time and education you expose yourself to, the better. Give it a try for one month here and if you don’t find even more value, cancel anytime. Your success as a trader is on the other side of hard work and education, will you be willing to put in the work with me as your guide? Give it a try today!
Good Luck With Your Trading!
Christian Tharp, CMT

The commodities market looks poised for growth. There is economic uncertainty, rising geopolitical tensions, as well as oil and natural gas prices rising ever higher.
Whether you fancy yourself a commodities investor or not, there is clearly something to investing in some of the most important commodities in the market, even if just used as a vehicle to park some of your money.
However, despite the popularity of commodities like gold, silver, or even oil, there is one commodity we simply cannot live without, water.
Investing in water, or as it has been referred to, blue gold, is an increasingly popular investment option as many become fearful about our ability to make sure mankind has enough to support literally everything we do.
It is often thrown around that without this or that, societies around the world would come to a screeching halt, but when it comes to water, there truly are no bones about it.
Most don’t quite understand how much water we consume on a daily basis, many of us assume it is a never ending resource simply because the planet is over 70% water. Let’s put it into perspective.
In reference to a cup of coffee, which many Americans need to get their day started, it takes about 36 gallons of water to get from the bush to the table. When it comes to the food we eat, like a steak for example, it’s much more costly in terms of the amount of water needed.
Around 4,000 gallons of water to produce the meat we consume, from just one large cow. With all of that, plus the water we use to drink or shower, we consume a ton of water.
Even some of the most well-known and respected investors are sounding the alarm about investing in blue gold. Michael Burry, the famed investor who famously predicted the financial collapse of 2008 is one of those who is positioning himself to take advantage of the possible water crisis.
So, how can we align ourselves with investors such as Michael to invest in the world’s most valuable resource? Easy, when you have a tool such as Magnifi in your investing toolbox. Chat with your AI-powered investing assistant to get started by looking for water-related ETFs.

After showing Magnifi our interest in the water industry, we have three options that stand out among the many others out there.
First up is the Invesco Water Resources ETF (PHO). This ETF gives you access to some of the top names in the industry without the investor having to comb through the many, otherwise lesser-known water stocks in the market, in anticipation of the growing need to both have clean water for the world to drink and also get access to water for the agricultural industry in order to create and maintain the world’s food sources.
Some of the top holdings in this ETF are Ferguson (FERG), Danaher (DHR), and Ecolab (ECL).
The next blue gold ETF you can consider is Global X Clean Water ETF (AQWA). One of this fund’s top holdings actually happens to be a great growth prospect in an otherwise low growth industry. American Water Works (AWK) has a proven track record of slow, but steady growth as it has managed to post double-digit annualized compounded earnings growth for many years.
Investors in AQWA will not only be exposed to companies like AWK, but will also get the added benefit of dividend growth as well.
Finally, we have the First Trust Water ETF (FIW). While many of this fund’s holdings are similar to the previous two, the fees may be structured differently. Let’s compare all three based on this parameter and see which of the three comes out to be the cheapest long-term investment option.

Your best bet for investors who are hyper-conscious of the fees associated with owning an ETF is AQWA with an expense ratio of .50%, which can really add up over the life of your investment.
This is just one of the many metrics Magnifi allows you to compare across investment options. 
With the AI-powered language model, simply tell the app to “Compare the fees of PHO, AQWA, FIW” or any ETF of your choosing and instantly know which fund offers the lowest fees. The same is true when looking to compare fund or stock returns to one another.
Access to this can be yours when you sign up for the All Star Funds VIP newsletter, which comes complete with a FREE trial offer to Magnifi. Give this money saving tool a try today and wonder why you ever invested without it. Sign up today…

This is a big week in the market with yet another FOMC meeting taking place on Wednesday where Fed Chair Powell could announce a pause to rate hikes… or continue the Fed’s hawkish view and look to raise another half a percentage point. One thing is for sure on that front with the slight up tick in inflation over the past month, rate cuts are still a long way off.
After Friday’s trading session, there is still a pretty strong bearish bias gripping the market and with FOMC coming, there could be some consolidation until the Fed makes its next move. For now, we also maintain our bearish bias as there has yet to be a real bullish catalyst that would suggest any more moves higher.
As for the SPX, we are nearing a previous reject level, so be sure to keep that on your radar as we look to start another week of trading. However, despite all the dark clouds hovering over the market currently, we still have some ETF plays we are going to keep on watch. Just remember that FOMC meetings tend to create some volatility in the markets.
For our long plays on watch this week, we have two we are watching closely as the rest of the market signals more weakness brought about the sluggish performance of the tech sector. First, the XLU is on watch as it approaches support around the 64 area.
Seeing as how utilities is an area of the market that performs better during a bearish trend in the overall market, this is more of an ideal play for longs. Following along the same logic and since OPEC+ nations have signaled a prolonged period of production cuts, thus leading to higher oil prices in the near term, we are also keeping a long play on XOP on watch.
If oil continues to be strong, we are looking at the 150 mark on XOP in order to go long once again. As for short plays, our old favorite TLT is showing us some signs once again that prices may be looking to sink a little further. TLT at around its 52-week low of 92.5 to be specific. A break below of this mark is the signal we are looking for to go short.
Again, this week looks to be a pretty eventful week, but remember, only take A+ setups and do not get suckered into to any false breakouts to the upside as the trend is looking to be lower, or at the very least the market may consolidate until Wednesday when we get more direction from the upcoming Fed announcement. Capital preservation is king…
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Looking for more options trading action? Get all that and more when you join The Profit Machine trading community today. There you’ll see exactly how my students and I trade various types of stocks, not just ETFs! The Profit Machine is my premier service where I teach my students how I trade options on wherever opportunity presents itself.
As you learn, you’ll get exclusive access to all my trades with notifications any time one is put on. Now, you can learn how many use this high-income skill to achieve financial freedom all while you make some extra scratch on the side. Join today and as always…
Good Luck With Your Trading!
Christian Tharp, CMT

Block (SQ), formerly known as Square, has had quite a lackluster year with largely sideways trading or continued declines. Most recently, we have seen more declines, falling all the way down to a support level of around 55. On Friday, price finally broke that support level, giving traders signs of a move lower to what could end up being a new 52-week low.
For those looking for short opportunities, it would seem this chart favors the bears, however, those looking to go short here should not jump in with both feet. If the overall market can push a bit, it could take SQ with it to retest that 55 level.
In this scenario, the risk/reward would be a bit greater and probability of a retracement from there would be greater. The key to a trade like this is patience, waiting for the proper time to enter the trade rather than chase a move in one particular direction or another.
Also, postion yourself based on the level of confidence you have in the trade, while leaving yourself room to add should the trade experience some drawdown. An important piece of trading to remember, trade for tomorrow, not just today. This will help you preserve capital and stay in the game longer.
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If you like The Profit Machine (TPM), then you will really like my Wednesday Profit Room trading service. Same high-quality options action, as well as more world-class trading education. As I say, the more screen time and education you expose yourself to, the better. Give it a try for one month here and if you don’t find even more value, cancel anytime. Your success as a trader is on the other side of hard work and education, will you be willing to put in the work with me as your guide? Give it a try today!
Good Luck With Your Trading!
Christian Tharp, CMT

There is one stock that has the market’s full attention, especially with the popularity of AI-based products taking off. Well, how are you going to power all these new AI products? Semiconductors, of course, and there may be no bigger player in the industry than Nvidia (NVDA).
After their monster earnings report they just released, we got a bit of a sell off down to the 450 level. However, price bounced on 450 almost exactly and is now on its way to 500 after breaking through 480, which was the previous level of resistance.
in addition to this bullish move up through resistance, there is a push in momentum for the stock which could propel prices even higher. As the premier stock in the market right now, if NVDA can catch fire here once again, not only will this stock presumably reach higher prices, the market will likely follow its lead.
After the day we had on Tuesday, keep this stock on high alert for a long play. If we were able to get a pullback, that would only affirm a long position on the stock for traders and investors alike. If this trade is too much for you, keep an eye on the rest of the technology sector as well.
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If you like The Profit Machine (TPM), then you will really like my Wednesday Profit Room trading service. Same high-quality options action, as well as more world-class trading education. As I say, the more screen time and education you expose yourself to, the better. Give it a try for one month here and if you don’t find even more value, cancel anytime. Your success as a trader is on the other side of hard work and education, will you be willing to put in the work with me as your guide? Give it a try today!
Good Luck With Your Trading!
Christian Tharp, CMT

To many, the past week may not have felt all that positive what with the seemingly range bound market and Jerome Powell’s Jackson Hole speech laying out more rate hikes ahead as the Fed struggles to win the battle over inflation. However, the S&P 500 eked out a win as it finished the week in the green.
Led by the usual suspects, tech, discretionary, and services, the market seems to be rebounding back from the declines we have been seeing throughout the past couple weeks. Names like Tesla (TSLA) showed some promise after holding a pretty key zone of support, as well as Nvidia (NVDA), which reported blockbuster earnings thanks to the continued hype surrounding AI.
As for the week ahead, we would want to see these same sectors push higher if the market climb is to continue. After Nvidia’s earnings the market did take a bit of a spill, however, Friday gave us some hope as we got a bit of a turn around. This should help to give us some positive momentum as we make our way into the fresh trading week ahead.
As you look across all the major indexes, they seem to be telling a similar story, reversal. Keep an eye on these key sectors to see what the week could hold for us. If they lose strength, the lower we go, but if there is strength in these sectors, look for the market to push higher once again.
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Looking for more options trading action? Get all that and more when you join The Profit Machine trading community today. There you’ll see exactly how my students and I trade various types of stocks, not just ETFs! The Profit Machine is my premier service where I teach my students how I trade options on wherever opportunity presents itself.
As you learn, you’ll get exclusive access to all my trades with notifications any time one is put on. Now, you can learn how many use this high-income skill to achieve financial freedom all while you make some extra scratch on the side. Join today and as always…
Good Luck With Your Trading!
Christian Tharp, CMT

Our goal each day is to bring you possible trade setups for two major reasons. The first is to put out some free education to traders who are looking for more screen time and who want examples of what to look for when combing the market for possible trades.
The other reason is to provide a viable trade you can put on to gain more confidence and experience in the market. Today, we have another one of these opportunities to bring you both thanks to Bank of America (BAC).
Financials have had somewhat of a whacky year so far. They found some solid footing after the episode where some major banks went under, causing some consolidation in the space. One could also argue that event sent the rest of the market on its way, as well. However, it hasn’t all been a move higher and higher, as you will see.
For BAC, the ride higher has been a bit bumpy. As you can see on the chart, the stock has put in a solid line of support, which has been respected very well. This opens the door to our next trade. As the market continues to pullback, yesterday being a glaring exception, BAC has approached this trendline of support.
The trade here is another one that will require some patience, as well as discipline. These trade breakdowns are never a green light to just go and take the trade. It is merely to put it on your radar, so you can keep a close eye on how the trade develops.
For this trade, we are looking for yet another bounce off this trendline to take a long position on BAC. If the market can once again find its footing, this should set us up nicely for this bullish play. Again, like our trade fro yesterday, we need price and volume to confirm this at our key level. We do this by gauging how both react when we get toward this key level of support.
If we get a sign of reversal at the support trendline, then we can test calls with a stop just below the trendline, in case the trade tucks tail and runs in the opposite direction. If we get a flush of price at this level, then we know the trade has become invalid and we can either move on to the next trade or see if we get a reversal somewhere below this support level.
Either way, this is a great setup to get a little more market experience, so we are that much more prepared for the next trade that crosses our screens. Any instance where you can work on improving your risk management and trading psychology is great experience you can use to get better as a trader. Keep this trade on your radar to practice both.
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If you like The Profit Machine (TPM), then you will really like my Wednesday Profit Room trading service. Same high-quality options action, as well as more world-class trading education. As I say, the more screen time and education you expose yourself to, the better. Give it a try for one month here and if you don’t find even more value, cancel anytime.
Your success as a trader is on the other side of hard work and education, will you be willing to put in the work with me as you guide? Give it a try today!
Good Luck With Your Trading!
Christian Tharp, CMT