Insider Tips - Weekly Stock Market Report - Week July 22, 2024

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Weekly Insider Tips - July 22, 2024

Welcome to another weekly review! The overall market, despite recent corrections, remains in a generally positive state. Four green lights are present, but increasing volatility is noted. "Triple Witching Friday" is identified as a key factor causing significant fluctuations due to the expiration of options. The Nasdaq Composite Index shows a gap down followed by three days of decline, though volume remains low, suggesting no significant trend reversal. Similarly, the S&P 500 and Dow Jones have experienced declines from recent highs, raising concerns but not indicating a major downturn.

Market Trends

All four major indexes, including the New York Stock Exchange, are showing downward trends, which could signify a minor correction rather than a market crash. It is emphasized that predicting the market is less important than playing the probabilities, and current market conditions still call for a bullish approach. The volatility index (VIX) has spiked, indicating heightened market anxiety.

Individual Stocks

Apple: Despite a recent gap down, Apple remains above its 50-day and 21-day moving averages. The low volume of the correction suggests it might bounce back.
Tesla: Tesla is experiencing a pullback but remains in a breakout phase. The upcoming earnings report could impact its stock price significantly.
Nvidia: After hitting a high, Nvidia is undergoing a healthy correction with profit-taking. The stock's gap down is consistent with the overall market trend.
Microsoft: The recent outage caused by CrowdStrike impacting Microsoft's Azure cloud services has led to several days of decline. The stock is at its 50-day moving average, making the next few days critical.
Amazon: Amazon's performance has been disappointing, with six out of the last seven days showing declines. Despite a successful Prime Day, the stock is below its 50-day moving average, raising concerns about further drops.

Key Takeaways

Volatility and Corrections: The market is experiencing volatility due to events like Triple Witching Friday and minor corrections across major indexes.
Individual Stock Analysis: Key stocks such as Apple, Tesla, Nvidia, Microsoft, and Amazon are showing varied performances, with some facing potential risks.
Market Sentiment: The rise in the VIX suggests increased market anxiety, but the overall trend remains cautiously optimistic.
Trading Strategy: Sticking to trading strategies and being patient with market movements is advised, emphasizing the importance of probabilities over predictions.

Conclusion

This market update provides a comprehensive overview of current market conditions, highlighting both the opportunities and risks present. While the market shows signs of volatility and minor corrections, the overall trend remains positive. Key stocks are undergoing natural pullbacks, and adherence to trading strategies and patience is advised.

Current Market Condition:

For another week in a row, despite recent corrections, the market remains in a green condition, indicating overall growth and positivity. However, increased volatility and minor pullbacks suggest caution is still warranted.

Stock Updates

Towards the end of last week, there were computer glitches across the U.S and many other countries...I am not sure if you heard about it or what was behind it, but check out my latest video here.

Podcast this Week:

In this episode of the Wealth Architect podcast, Mark discusses the concept of highly sensitive persons (HSPs) with Hannah Brooks, an HSP love and marriage coach. They explore how HSPs have finely tuned nervous systems, making them deeply affected by stimuli and emotions. Tune-in here to watch the full episode.