Insider Tips - Weekly Stock Market Report - Week April 23, 2024
Weekly Stock Market Update:
Welcome to our newsletter recap of this week's market activity, featuring insights and analysis from the recent weekly stock market update.
Market Trends and Insights
The past week has seen a continuation of bearish sentiment in the market, with key indices such as the NASDAQ and S&P 500 showing signs of weakness. This downturn has been attributed to concerns over Fed policies and inflationary pressures. As the Fed engages in activities similar to quantitative easing under different labels, investors are advised to consider hard assets like gold, Bitcoin, and real estate as hedges against inflation.
Index Performance
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NASDAQ Leading the Decline: The NASDAQ has been a leading indicator of market downturns, reflecting broader weakness in technology stocks. The S&P 500 and Dow Jones have also dipped below critical moving averages, signaling potential further downside.
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CBOE Volatility Index (VIX): The VIX has spiked significantly, indicating increased market volatility and potential uncertainty ahead. This uptick suggests a cautious outlook among traders.
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Dow Jones Transport Average: Transport indices often provide insights into broader economic trends. A strong transport average can signal positive sentiment, while weakness may indicate a slowdown in economic activity.
Stock Analysis
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Apple (AAPL): Apple has shown weakness, hitting new lows amidst overall market turmoil. The stock's performance has been lackluster in recent months.
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Tesla (TSLA): Tesla continues to face volatility ahead of earnings, with mixed sentiments around future growth prospects such as Robo Taxi initiatives.
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NVIDIA (NVDA): Despite a slight pullback, NVIDIA remains resilient as a strong AI play. Technical levels indicate potential support zones amid market turbulence.
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Super Micro Computer Inc. (SMCI): SMCI has experienced notable profit-taking but remains positioned to capitalize on the AI sector's growth.
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Amazon (AMZN): Amazon has held up relatively well, testing key support levels. Its robust chart and strong relative strength suggest it could lead a market recovery.
Trading Strategies
In a challenging market environment, it's crucial for investors to adhere to disciplined trading plans. Implementing stop-loss strategies, protecting profits, and maintaining flexibility are essential practices during a bearish phase.
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Thank you for staying informed with our weekly updates. Remember, the markets are cyclical, and prudent strategies can help navigate through downturns effectively. Until next time, happy trading and stay safe!
Fed watch:
The “experts“ have been telling us that they expect six cuts to interest rates this year. Now the so-called experts have revised this to one or two cuts this year. The federal reserve has painted itself into a corner, and there is no easy exit. The politicians in Washington are adding trillions of dollars of spending every year. In fact, a growing deficit of $1 trillion is being added to our existing debt every 100 days.
Further, if the Fed has to keep interest rates high, they are basically charging themselves higher interest in order to finance all that extra spending. But if a lower rates and “print more money” they will also continue to create even more inflation. There are no easy answers but know, we are in a very inflationary environment. Inflationary environments mean that you should be in hard assets like gold, real estate, stocks, and maybe even bitcoin. Just keep on executing your strategy and understand that the inflationary environment is here to stay.
Market Conditions:
We are in a red market. In a red market, it is wise to be moved to cash, or protected to the downside if possible. of course, red markets are the times that create opportunities for when the green markets show back up.
You could consider a 0% to 20% invested position to protect against the higher probability of a further downside move.
Podcast Episode this Week:
Mark Yegge and Dana Samuelson discussed the recent surge in gold prices, attributing it to a combination of factors such as falling treasury yields, a weakening dollar, and international conflicts. They also discussed the potential influence of the "wealth effect" from the rise in Bitcoin prices. The conversation provided a comprehensive analysis of the recent developments in the gold market and the factors shaping its current trajectory.
The discussion also covered the impact of nation states hoarding gold, particularly in response to the de-dollarization movement, and the changing dynamics in the world's financial systems. They emphasized the role of gold as a hedge against the devaluation of currencies and discussed the correlation between gold prices and U.S. debt, expressing concerns about the growing national debt and its potential implications for the economy. The speakers also explored the potential solutions to the complex economic and monetary challenges from both political and human perspectives, advocating for safeguarding against government fiscal irresponsibility through investments in tangible assets like precious metals and real estate. See the full podcast here
Stocks in Distribution:
Stocks in distribution are those facing sustained selling pressure and downward price trends due to heightened selling activity. Monitoring distribution patterns is crucial for investors to assess market sentiment and adjust their investment strategies accordingly. Among the stocks currently experiencing distribution:
Worst Performing Industry Group:
Investors are closely monitoring the performance of various industry groups amidst market turbulence and shifting economic landscapes. Certain sectors have faced significant challenges, resulting in notable declines in their industry groups. Understanding these trends is crucial for assessing market conditions and identifying potential investment opportunities. Let's explore the current landscape of industry groups that are facing substantial headwinds and experiencing considerable downturns. Here is that list:
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