Yo Pit Crazies,

Walmart Inc. (Ticker: WMT) laid a bit of an egg and said its Q2 profits are down

I don’t think this bodes well for other retailers if the recession-proof retailer is not, well, recession proof.

Even AT&T Corp (Ticker: T) is getting stung by slower bill payments.

Big Tech earnings are this week and it does not look good.

I have a solution for that.

This Is Shaping Up to Be The Biggest Earnings Cycle of the Year

Apple (Ticker: AAPL) and Alphabet Inc. (Ticker: GOOGL) earnings will come out this week, and most of the signals are pointing to weak consumer discretionary spending. 

The iPhone is still a choice as folks can hold their phones an extra year.  Will this be the year folks hold back on spending? We will soon know.

The good news is, this is the perfect setup for my SPYMaster trade system.

I think we will see 3,800 SPX – and just last week I would have guessed 4,000. Poor sales are poor sales, as spending slows down on the consumer front. I have to trade what I see and the news has turned negative.

Only last week WMT was moving up to the mid-130s and Licia Leslie had a great long call trade. That is not the case right now.

I do like the short SPDR S&P 500 Trust ETF (Ticker: SPY) trade going into Wednesday’s FOMC announcement.  I think the rest of earnings will only add fuel to the fire at this point.  A VIX put will make a good hedge.

My SPYMaster trade idea will come out early Wednesday – it’s not too late to join.

To Your Trading Success,

AG