Summary
Highlights
The speaker predicts stagflation with rising inflation and a weakening labor market. Despite this, big tech earnings are expected to drive stock pops, followed by sell-offs due to 'distribution' as big investors take profits, sensing a lack of sustained upward momentum given current lofty prices.
The speaker promotes the 'Stocks with Josh' Discord community, highlighting successful live trading sessions and expanded teaching sessions. He expresses belief in a continued bull market for 2026, driven by AI, noting that the current bull run is only 88% up with more room to grow compared to typical 200% gains over five years.
Analyzing weekly SPY charts, the speaker observes strong buying volume during recent market dips, suggesting institutional investors are buying. This volume story leads to a prediction of the markets potentially rising to 680 next week, buoyed by positive big tech earnings.
Despite the short-term bullish outlook for SPY, the weekly MACD indicates a potential cross down, suggesting a loss of momentum. The speaker anticipates a rally to 680 after strong earnings, followed by a rejection and a move down to the 640 level due to stealth selling into strength by smart money.
For Tesla, the speaker expects a rally to 480-500 after next week's earnings, based on current bullish volume. However, he predicts a subsequent re-test of the 411-396 support zone due to profit-taking. If this zone holds, Tesla could reach $540 or higher in the next 3-6 months.
Concluding, the speaker acknowledges the reality of stagflation and a weakening economy, citing evidence of local economic hardship. He anticipates increased market volatility and future corrections due to bad news, which will create good buying opportunities for long-term investors, reaffirming a short-term bullish stance on big tech earnings.