Insider Tips - Weekly Stock Market Report - Week April 7, 2025

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Weekly Insider Tips - April 7, 2025

 
This week’s market action felt like a gut punch — I haven’t seen back-to-back days like this in four years. If you're not generating income from your account, watching your portfolio drop is just brutal. That’s why I focus on creating consistent cash flow regardless of market direction. In this week’s Insider Tips, I broke down the carnage in the broader markets, analyzed key technical patterns like the dreaded H, and looked at stocks like Apple, Tesla, and NVIDIA. Even in this storm, there are smart ways to generate income — like covered calls — and I walk you through exactly how we’re doing it inside the Cash Flow Machine.

 

Technical Analysis & Market Trends
The major indices are flashing warning signals across the board. We're in a confirmed red market with brutal candles on the charts. Support levels that held for months — even years — are getting obliterated. The NASDAQ especially is breaking down with force, slicing through swing points and confirming the dreaded H pattern that I’ve been warning about for weeks. These aren’t just bad days — they’re high-volume breakdowns, which is a strong sign that momentum is heading lower.

The Dow Jones hasn’t quite hit its swing point yet, so there may be more downside pain coming. The New York Stock Exchange Composite had a candle that dwarfed even previous ugly sessions. Bottom line: institutions are selling, and the panic is real. The VIX spiked from the low teens to over 45, confirming this fear.

We’ve now erased nearly a year and nine months of gains in just a couple of weeks. It’s the kind of sell-off that reminds you markets can take away years of progress in just days. But while fear is rising, this could be a setup for a countertrend bounce — especially if we see light-volume tests of these breakdown levels.

Flight to Safety
Treasuries are catching a bid. They’ve been dogs for five years, but now they’re finally showing life as investors flee risk. We could see treasuries climb toward 100, maybe even 104. That’s because as treasuries go up, yields drop — and dropping yields suggest the market is expecting rate cuts. It’s classic flight-to-safety behavior.

Gold is also making new highs. The dollar, meanwhile, is breaking down — down nearly 10% from its highs. This might be strategic from policymakers: a weaker dollar makes U.S. goods cheaper and helps trade balances. Either way, the move to gold and treasuries is a big tell.

Macro View
The market is starting to price in a recession. Layoffs are picking up, especially in the public sector. At the same time, Washington may be signaling a pivot toward austerity. Less spending, more belt-tightening. That means less artificial stimulus and potentially more rate cuts ahead to manage the debt load and help the housing market.

We’re seeing a rotation into traditional defensive areas: healthcare, utilities, consumer staples, hard assets, and cash equivalents. It’s a move away from speculation toward safety and yield.

Individual Stocks

  • Apple (AAPL): Forming a possible bottom. Has done an ABCD pattern twice and hit a key level around $196. If this holds, we may start filling upside gaps. Selling weekly covered calls here yields 3% — that’s 150% annualized cash flow if you rinse and repeat.

  • Tesla (TSLA): Classic descending triangle and possible dreaded H in play. More downside looks possible, but selling options is still wildly profitable — 5.4% weekly income at the money right now. That’s a year’s worth of CD interest in a week.

  • NVIDIA (NVDA): Tagged a support level from last August to the penny — technicals matter! If it breaks this level with volume, the next support is much lower at $756. But we might be setting up for a bounce if volume stays light.

  • Bitcoin (GBTC): In a short-term downtrend but still above its 200-day moving average. No clear trend for now. Same with MicroStrategy — consolidating quietly.

  • Palantir (PLTR): Hit a key level and bounced. Watching for a light-volume test to confirm a bottoming process.

  • Microsoft (MSFT): This one’s in trouble. It’s lost key support and could be headed toward $315 or lower.

  • T-Mobile (TMUS): This stock actually looks strong — a healthy breakout and decent price action amidst market weakness.

Key Takeaways

  • The dreaded H pattern is playing out in the indices and major stocks — a bearish sign.

  • Covered calls are one of the few consistent strategies that still work — you can earn serious income even when stocks drop.

  • Defensive rotation is underway: gold, treasuries, and staples are getting inflows.

  • Macro signals suggest recession expectations, potential rate cuts, and a strategic dollar devaluation.

Conclusion :
This market is no joke — the pain is real, but so are the opportunities if you know where to look. By analyzing patterns and staying nimble, you can avoid panic and stay profitable. The key right now is income — whether through covered calls, smart sector rotation, or flight-to-safety plays like gold and bonds.

Short Summary:
Markets are breaking down fast, confirming bearish technical patterns and signaling recession fears. Defensive assets are gaining, while major stocks test key support levels. Despite the chaos, strategies like covered calls can help you generate income and stay in control. Stay sharp, stay educated, and keep squeezing the juice.

 

Current Market Condition:

This week’s market action has been brutal, with back-to-back days of heavy selling that haven’t been seen in years—what I’d call "shell-shocking." We're officially in a red market, and the charts are showing serious technical damage. Major indices like the NASDAQ have broken through key support levels with high-volume selloffs, forming what I call the “dreaded H” pattern, which typically signals further downside. We’ve seen a breakdown that erased almost two years of gains in just a few weeks. Momentum, moving averages, and sentiment are all pointing lower, and unless we get a meaningful bounce on light volume, more pain could be ahead. This kind of market is dangerous if you're just watching your equity drop, which is why generating cash flow—like with covered calls—is more important than ever.

 

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