Insider Tips - Weekly Stock Market Report - Week February 24, 2025

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Weekly Insider Tips - February 24, 2025

The market has been green for over a month, and I hope you’ve been taking advantage of it while the odds were in our favor. However, things are starting to shift, and I’m seeing signs that indicate caution. While we still have three green lights, they are tenuous at best, and I would treat this market more like a yellow light—proceed with caution. Momentum has turned red, and I don’t see strong catalysts to drive the market higher. Many major indices are showing signs of weakness, and profit-taking is keeping them from making new highs. Certain stocks, like Apple, show relative strength, but others, including MicroStrategy, Tesla, and Microsoft, are struggling. The gold market is showing unusual activity, and the housing sector appears to be weakening. Given these conditions, I suggest playing defense and potentially selling in-the-money calls as we anticipate a potential shift toward a red market.

Technical Analysis

NASDAQ: Making lower swing points and struggling to push higher.
S&P 500: Made a new high but lacked strength.
Dow Jones: Testing the 50-day moving average, looking weak.
NYSE: Showing signs of weakness as well.
VIX (Volatility Index): Currently at the mean, indicating no major panic yet, but that could change with increased selling.

Market Trends

The overall market appears to be losing momentum, with more signs pointing to downside risks.
Profit-taking is limiting upward moves.
The gold market is experiencing some unusual movement, with the U.S. reportedly flying gold from England to Fort Knox, indicating a possible shift in sentiment toward safe-haven assets.
The housing market is in a downtrend, forming a dreaded H pattern, signaling potential economic slowdowns.

Individual Stock Analysis

Apple (AAPL): Showing strength, moving above its 50-day moving average, potentially targeting $260.
MicroStrategy (MSTR): Struggling below its 50-day moving average, tied to Bitcoin, which remains range-bound.
Tesla (TSLA): Forming a dreaded H pattern, with weak momentum and potential downside toward $300.
Amazon (AMZN): Declining below its 50-day moving average, signaling weakness.
Microsoft (MSFT): Stuck in a choppy range for six months with no clear breakout.
NVIDIA (NVDA): Struggling to make new highs as early investors take profits.
Alphabet (GOOGL): Highly volatile, with large swings making it difficult to hold.
Meta (META): Recently strong but now testing its 21-day moving average.
Netflix (NFLX): Raising prices but facing competition, making its future uncertain.
Target (TGT): Declining due to shareholder concerns over its DEI initiatives.
Palantir (PLTR): Could fall to $85 or lower as investors take profits.
UnitedHealth Group (UNH): Under scrutiny for overbilling, forming a dreaded H pattern, with further downside risk below $400 and $320.

Key Takeaways

The market’s green run is showing signs of fatigue.
Momentum is turning bearish, and many major indices are struggling.
Gold is seeing unusual movements, indicating possible flight to safety.
Housing is showing weakness, which could impact jobs and broader economic conditions.
Defensive positioning is advisable—selling in-the-money calls could be a strategic move in this environment.

Conclusion

After a month-long green run, the market is now showing signs of slowing down. While some stocks remain strong, many key names are struggling or losing momentum. There are no clear catalysts to drive markets higher unless the Fed intervenes unexpectedly. Given these factors, caution is warranted, and defensive strategies should be considered. The next few days will likely determine whether we officially transition to a red market, but for now, it’s best to proceed carefully and prepare for potential downside risk.

Current Market Condition:

The market is still showing three green lights, but they are weak, making this more of a yellow-light market where caution is necessary. Momentum has already turned red, and major indices are struggling to make new highs. The NASDAQ is forming lower swing points, the S&P 500’s recent high lacked strength, and the Dow Jones is testing its 50-day moving average. The NYSE is also showing weakness, indicating that the market is leaning toward the downside. Profit-taking is preventing further upward movement, and without a strong catalyst, such as an emergency Fed rate cut, there’s little reason to expect a significant push higher. While volatility remains neutral, the current conditions suggest playing defense and preparing for potential declines.

Stock Tip of the Week:

How to Make $7,000 While MicroStrategy Stays Quiet

The market is shifting, and while some stocks are struggling, there are still ways to generate income. In this week’s video, I break down how MicroStrategy (MSTR) may be quiet, but that doesn’t mean you have to sit on the sidelines. I’ll show you a simple options strategy that could bring in $7,000 while you wait. Don’t miss it!

Palantir Is Dropping—Here’s How to Play It

Palantir (PLTR) is sliding on volume, and the charts are signaling what could come next. In this week’s video, I break down the key levels to watch and the best strategy to profit from the move. Don’t miss it!

Is It Time to Sell Your Apple Stock?

Apple (AAPL) has had a strong run, but is it time to take profits and move on? In this week’s video, I break down the key signals to watch and the best move to make right now. Don’t miss it!