Insider Tips - Weekly Stock Market Report - Week February 3, 2025
Weekly Insider Tips - February 3, 2025
This week, the market is showing strong bullish signals, with four green lights indicating a favorable environment for stock investments. The major indices, including the NASDAQ, S&P 500, and Dow, are pushing toward or hitting all-time highs. The volatility index is down, suggesting that investor panic has subsided. Gold has reached new highs, but with weak volume, while treasuries remain a poor investment, reflecting expectations of rate cuts. Several individual stocks, including Apple, Tesla, and Microsoft, have seen mixed movements, while Nvidia faces competition that has shaken its dominance. Meanwhile, MicroStrategy remains a compelling play for Bitcoin exposure. The key takeaway is that while the market is bullish for now, it's important to maintain an income strategy through covered calls to maximize returns.
Market Trends & Technical Analysis:
The market is currently in a bullish phase, as indicated by four green lights on the primary trend indicators. Historically, 70% of a stock’s movement is tied to overall market direction, reinforcing the idea that a rising market increases the probability of gains. The NASDAQ continues filling gaps and is pushing toward new highs, while the S&P 500 and Dow are also near record levels. The New York Stock Exchange is slightly lagging but remains close to its peak.
Volatility, as measured by the VIX, spiked earlier in the week due to geopolitical tensions but has since settled back down. This suggests that investor fears have eased, allowing the market to maintain upward momentum. Gold has been performing well, hitting new highs, although the low trading volume indicates a lack of conviction behind the move. Treasuries, on the other hand, continue their long-term decline, signaling that the market anticipates lower interest rates ahead.
Individual Stock Performance:
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Apple (AAPL): After a strong pre-earnings run, Apple is hovering around its 50-day moving average. It may test key levels at $196 and $200, depending on overall market conditions.
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Tesla (TSLA): Despite weak earnings, Tesla remains strong and exhibits high relative strength. It continues to trade above its 50-day moving average, suggesting confidence in its long-term growth story.
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Salesforce (CRM): A solid uptrend continues, with the stock above its 50-day moving average. The setup resembles a "cup with handle" formation, with a potential breakout around $367.
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Amazon (AMZN): Trading at all-time highs ahead of earnings, likely benefiting from a strong holiday shopping season.
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Nvidia (NVDA): Facing competitive pressures after the emergence of Deep Seek’s AI technology, the stock took a significant hit. The high-volume selloff suggests traders are concerned, with a potential drop to $100 if market sentiment worsens.
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MicroStrategy (MSTR): Despite market chatter about a $1,000 target, MSTR remains range-bound. Selling covered calls provides a way to generate consistent income while waiting for a potential breakout.
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Microsoft (MSFT): Dragged down by AI competition concerns, MSFT is currently below its 50- and 200-day moving averages, indicating weakness.
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Alphabet (GOOGL): Strong AI innovation is driving the stock to all-time highs, with new products like Gemini and Notebook LLM boosting investor confidence.
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Netflix (NFLX): Stellar earnings growth (100%+ in recent quarters) is fueling a breakout above $1,000, with continued momentum driven by strong subscriber numbers.
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Palantir (PLTR): Up nearly 300% in the past year, but caution is warranted as earnings approach. The stock is at risk of a pullback due to its extended valuation.
Key Takeaways:
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The market remains bullish, with strong index performance and declining volatility.
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Gold is rising but lacks conviction, while treasuries continue to struggle.
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Individual stocks present mixed opportunities, with some facing challenges (NVDA, MSFT) while others continue their uptrends (AMZN, NFLX, GOOGL).
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Selling covered calls remains a viable strategy, particularly for stocks in consolidation phases like MSTR.
Conclusion:
The current market environment is favorable for investors, with a strong upward trend across major indices. However, risks remain, especially for stocks facing competitive pressures. Investors should take advantage of bullish conditions while implementing strategies like covered calls to generate income and hedge against potential downturns. As always, staying adaptable and monitoring key levels will be critical to navigating the weeks ahead.
Current Market Condition:
The market is currently in a green phase, meaning there is a strong tailwind for stocks, making it an opportune time to be invested. Short-term primary trends indicate favorable conditions, with major indexes like the NASDAQ, S&P 500, and Dow approaching or hitting all-time highs. Historically, 70% of a stock’s movement is influenced by overall market direction, so taking advantage of this momentum increases the odds of success. While no guarantee exists, the prevailing trend suggests continued strength for the next few weeks. However, investors should remain cautious and monitor signs of a market shift to protect gains when the green phase ends.
Stock Tip of the Week:
Hey everyone! In today’s video, I break down a great trade I made on MicroStrategy (MSTR). π The stock dropped, and I took the opportunity to harvest my profits—then immediately planted another seed for the next move. π±π° This is how you keep your money working for you in the markets. Check it out now! π
Hey everyone! If you’ve been following my recent Tesla (TSLA) trade, you won’t want to miss this. I made a mistake—a big one—but guess what? I’m still walking away with a BIG profit! π°π Sometimes, even when you mess up, smart options trading can save the day. Check out the full breakdown in my latest video!
Hey everyone! In today’s video, we’re breaking down a wild trading question—when a stock goes up, am I actually losing money or did I just make $23,000 overnight? π€―π Some might think I’m crazy, but the numbers don’t lie! Watch now to see how this trade played out.
Podcast Episode this Week:
Today, we’re diving deep into the power of the mind with a special guest, Nicholas Spohn, Director of Transformation at Ministry of the Mind and a master hypnotherapist.
We’ll uncover how your subconscious mind shapes your habits, decisions, and even your financial success. We’ll also explore why wealth isn’t just about money—it’s about health, relationships, and purpose. Nicholas shares powerful insights on hypnotherapy, belief transformation, and how letting go of unnecessary burdens can unlock a more fulfilling life.
You won’t want to miss this eye-opening conversation! Let’s get started. π"
