Well my promise not to work anymore this week lasted a grand total of one day, notes Jon Markman, editor of Strategic Advantage.

I just wanted to briefly touch base with you about today’s fresh inflation data and recommend a new SA TradeView trade.

Observations: Bears’ short reign of terror ended Wednesday following the release of the July Consumer Price Index report. Inflation at the consumer level was flat month-over-month, and up 8.5% year-over-year, well below the consensus expectation of 9.0%.

The S&P 500 (SPX) opened sharply higher and never looked back, closing at 4,210, a three-month high. The 2.1% rally takes out what had been significant resistance at 4,175.

Bears are now likely to concede an advance to the 200-day moving average at 4,332. I’m not surprised bears are in full retreat. Sentiment turned bullish in mid-July when stocks began to push higher on bad corporate news.

With inflation easing, bulls have the macroeconomic winds at their back. It’s time to go all-in in anticipation of a larger rally.

The benchmark S&P 500 is headed to at least 4,332. The first important support level is 4,175, then 4,060, the 20-day moving average. Buy every pullback.

SA TradeView: With the breakout for the S&P 500 at 4,175 now complete, it is time to move aggressively to the long side on the next brief, shallow pullback.

Set up the following trades in two separate two-times leveraged index ETFs on Thursday:

Set up to buy ProShares Ultra QQQ (QLD) at $54.70 lmt gtc. (Close was $55.36.)

If filled, set a target to sell all at $66.60 and set stop at $50.30 stp, effective anytime.

Set up to buy ProShares Ultra S&P 500 (SSO) at $54.30 lmt gtc. (Close was $55.25.)

If filled, set a target to sell all at $60.10 and set a stop at $51.20 stp, effective anytime.

Thanks for reading and see you again soon.

Learn more about Jon Markman here...