Insider Tips - Weekly Stock Market Report - Week June 17, 2024

#cashflow #cashflowmachine #coveredcall #coveredcalls #markyegge #options #optionstrading #stockmarket #stocktrading #wealtharchitect breakout trading covered calls how to make money in stocks how to make money with options momentum trading options trading passive income reliable income retirement income selling covered calls stock market stock market investing stock trading writing covered calls

Technical Analysis

it has been a mixed market with some indices like the NASDAQ and S&P 500 performing well due to their heavy tech weighting, while others like the Dow Jones Industrial Average and the New York Stock Exchange Composite Index are struggling, being below their 50-day moving averages. The Dow Jones transports index is experiencing a "death cross," indicating potential further declines, while the Volatility Index (VIX) remains low, suggesting an orderly sell-off rather than panic.

Market Trends

Tech Sector: Strong performance with NASDAQ at all-time highs, driven by companies like Apple and NVIDIA. The S&P 500 is also doing well due to its tech weighting.
Oil and Transportation: Both sectors are struggling, with the oil index down to its 200-day moving average and the transportation index showing recessionary signs.
Banking Sector: The NASDAQ Bank Index is down, with concerns over 63 banks in trouble due to low treasury rates.
Safe Haven Assets: The Gold Bugs Index shows weakness, indicating a move out of traditional safe assets.

Individual Stocks

Apple: Recently broke out above $200, driven by a strong performance, and is expected to go higher.
Tesla: Despite good news, the stock hasn't performed well recently. Elon Musk's ambitious plans for Tesla include humanoid robots and extensive satellite networks.
Microsoft: Reached all-time highs with consistent upward movement.
NVIDIA: Recently split 10-for-1 and continues to perform well, though some gaps in its chart suggest caution.
Meta: Shows some upward movement but lacks convincing volume, suggesting potential weakness.
Netflix: Continues to perform well, approaching all-time highs.
JP Morgan Chase and Bank of America: Both are pulling back to their 50-day moving averages amid broader banking sector concerns.
Google (Alphabet): Reaching all-time highs due to its strong position in tech and AI.
Kava Group and Amazon: Both are performing well, with Amazon showing a 25% increase from its breakout.

Key Takeaways

Market Conditions: The market is currently red with significant caution advised.
Sector Performance: Tech stocks are leading the market, while oil and transportation are lagging.
Inflation and Returns: Investors need to seek higher returns to beat inflation, which Yegge estimates at around 11% over the past five years.
Petrodollar Agreement: The end of the Saudi-US petrodollar agreement could have long-term implications for the dollar and treasuries.

Short Summary

This update highlights a split market with tech stocks thriving and other sectors like oil and banking struggling. He emphasizes caution in the current red market, discusses key individual stocks' performances, and stresses the need for higher returns to combat inflation. He also notes significant geopolitical shifts, such as the end of the petrodollar agreement, which could impact global financial stability.

Current Market Condition:

Market is RED: Exercise caution. Respect a cash position. protect to the downside. Consider short selling but be sure you know what you are doing. First thing is that you should be protecting your portfolio. Markets can move down twice as quickly as they moved up.

Podcast Episode this Week:

Mark sits down with Darin Davis, an industry leader and real estate entrepreneur, to discuss the current state and future of real estate investing. Darin, the founder of Club Capital, brings over two decades of expertise, guiding investors through market shifts to achieve exceptional returns. Join us as Darin shares invaluable insights on becoming a savvy passive investor and navigating today's real estate landscape. Tune in for an engaging conversation on cash flow, market trends, and strategic investing.