Insider Tips - Weekly Stock Market Report - Week June 3, 2024

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Hello and welcome to this week's edition of our market newsletter. As we wrapped up a short trading week, it's crucial to stay informed and prepared in these volatile times. This week, the markets have shown a clear downward trend, with all primary indicators flashing red. Whether you're a long-term investor or actively trading, it's essential to understand the current market dynamics and adjust your strategies accordingly.

In this edition, we'll delve into the technical analysis of major indices like the NASDAQ, S&P 500, and Dow Jones, all of which are nearing critical support levels. We'll also provide insights into the performance of key stocks such as Apple, NVIDIA, and Amazon, offering guidance on potential opportunities and risks.

Stay tuned for an in-depth analysis, key takeaways, and actionable insights to help you navigate the market. Let's dive in and ensure you're well-equipped to make informed decisions in these challenging times.

Technical Analysis

Market Trends:

Overall Market: The market is predominantly red, with all primary indicators showing a downward trend. Investors should be cautious, holding no more than 20% in equities unless they are long-term investors.
NASDAQ: Heading towards its 50-day moving average, indicating potential further declines.
S&P 500: Approaching its 50-day moving average, likely to reach this level by Monday or Tuesday.
Dow Jones: Trading below its 50-day moving average for most of the month, recently filling a gap from a previous rise.
New York Stock Exchange (NYSE): Currently under the 50-day moving average, showing signs of testing this level but likely to face more downward pressure.
VIX (Volatility Index): Increasing towards its 50-day moving average, reflecting growing market concern.

Individual Stock Analysis

Apple (AAPL):

Holding steady around the $190 area, despite market conditions.
Nearing a potential golden cross, suggesting possible upward momentum in the coming weeks.

NVIDIA (NVDA):

Recently broke out on earnings but is now facing a pullback.
Potential correction down to $960, with further possible declines.

Super Micro Computer (SMCI):

Broke an uptrend and is likely to test support around $671.
Showing a pattern of trading between $700 and $1200.

Amazon (AMZN):

Selling off under the 50-day moving average, with potential to touch lower gaps.
No major news events expected, but continued caution is advised.

ServiceNow (NOW):

Facing significant declines with recent gaps down on high volume.
Likely to test support around $608.

ON Semiconductor (ON):

Underperforming throughout the year, with potential to test lower gaps around $62.
Appeared on the short list, indicating potential for short selling opportunities.

AMD (AMD):

Recently bounced off lows and is testing the 50-day moving average.
Requires a green market to see a stronger recovery.

Meta (META):

In trouble with gaps likely to get filled, targeting around $400.
Potential to test the 200-day moving average.

JP Morgan (JPM):

Banking sector vulnerable to Fed rate changes.
Current market sentiment suggests cautious outlook despite potential Fed actions.

Key Takeaways

Market Sentiment: Predominantly cautious with all major indices and sectors showing signs of downward pressure.
Individual Stocks: Several key stocks are underperforming, with potential short-term opportunities in short selling.
Fed Actions: Market heavily influenced by potential Federal Reserve rate changes, impacting banking stocks significantly.

Summary

This week has been challenging for the markets, showing widespread declines across major indices and key stocks. Investors are advised to adopt a cautious approach, minimizing exposure to equities. Technical indicators suggest further potential declines, with the NASDAQ, S&P 500, and Dow Jones all trending towards their 50-day moving averages. Individual stocks like Apple, NVIDIA, Amazon, and Meta show varied performance, with some potential for short-term gains in specific scenarios. Overall, staying informed and cautious is crucial in navigating the current market conditions.

Current Market Condition:

Market is RED: Exercise caution. Respect a cash position. protect to the downside. Consider short selling but be sure you know what you are doing. RED: 0% to 20%;

When markets turn Red, like we just did, you should be protecting your portfolio - all things being equal. Markets can move down twice as quickly as they moved up. But there are always opportunities.

SHORT ALERTS:

If you like to play the short side (know what you are doing)...here are some names to research that just appeared on my Short SetUps screen.

Podcast Episode this Week:

In today's episode, I'm thrilled to welcome a remarkable guest, an old friend and a new friend of the show. She's a financial coach, keynote speaker, and the author of the bestselling book Simple Wealth. Her groundbreaking work in personal finance has been featured in Forbes, Business Insider, Yahoo Finance, Femme Founder, and more. Her mission is to empower professionals and entrepreneurs to create personal wealth and design a better world for everyone. Tune-in to the full episode!

Insider Tips - Weekly Stock Market Report - Week June 3, 2024

Individual Stock Analysis

Key Takeaways

Summary

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