Insider Tips - Weekly Stock Market Report - Week June 24, 2024

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Insider Tips for the week June 24, 2024

Technical Analysis

At the end of last week, the market transitioned to a yellow status, suggesting a possible upward trend. The NASDAQ Composite Index and S&P 500 both hit all-time highs recently, driven largely by tech stocks. Meanwhile, the Dow Jones Industrial Average bounced off its 50-day moving average, signaling potential support at this level. The New York Stock Exchange Composite Index also remains above its 50-day moving average, although it has been flat for the past few weeks.

Market Trends

Tech stocks are leading the market, with significant gains observed in companies like Apple, NVIDIA, and Microsoft. Apple, for instance, has shown a strong breakout, rising to $210 from $199 in a short period. NVIDIA continues its impressive run, having multiplied its value several times since December 2022. The broader market, however, remains mixed, with the Dow and New York Stock Exchange Composite showing less momentum.

Individual Stocks

Apple (AAPL): Exhibiting strong relative strength, Apple's breakout has been characterized by high volume on up days and lower volume on down days, suggesting a bullish trend.
Tesla (TSLA): Despite the company’s positive developments, Tesla's stock has been in a tight pattern for the past six weeks, indicating a potential accumulation phase.
NVIDIA (NVDA): NVIDIA has seen a tremendous rise, with its stock price increasing significantly since late 2022. The stock remains a favorite due to its breakout and sustained upward trend.
Amazon (AMZN): Currently in a consolidation phase, Amazon shows potential for a breakout but needs more volume to drive higher prices.
Microsoft (MSFT): Recently experienced a low volume breakout. While promising, the stock requires a green market to sustain its upward movement.
JP Morgan Chase (JPM): The banking giant had a false breakout and is currently trending towards its 50-day moving average.
Cava Group (CAVA): Demonstrating a strong upward trend, Cava has risen significantly, though it is expected to experience some pullbacks due to profit-taking.

Key Takeaways

Tech Sector Dominance: The tech sector continues to drive market gains, with notable performances from Apple, NVIDIA, and Microsoft.
Market Divergence: While tech stocks are performing well, the broader market remains mixed, with key indices showing varying trends.
Investor Sentiment: Caution prevails among investors, with low trading volumes expected during the summer.
Federal Reserve Influence: The potential for a surprise rate cut from the Fed could impact market direction, especially with the upcoming elections.

Summary

The market turned yellow at the end of last week, showing signs of a potential positive shift. Tech stocks continue to outperform, but the broader market remains mixed. Investor sentiment is cautious, and the Federal Reserve’s actions could significantly influence market trends in the coming weeks.

Current Market Condition:

Market Is Yellow: You should exercise caution as we transition between Green and Red. You can get your watchlist ready; remain in cash; look to cover short positions; protect the downside and generally be ready to execute your trading plan. Ideal shorter-term allocation: 20% to 40% invested.

Stock Tip of the Week:

Is Ross about to make a new breakout? Find out in this video as we explore the potential for growth in Ross stores. Don't miss out on this exciting opportunity!

Podcast Episode this Week:

In this thought-provoking exploration, Mark dives into the concept of vulnerability in leadership, challenging conventional wisdom and shedding light on what truly defines great leadership. Mark critically examines the popular narrative that positions vulnerability as a cornerstone of leadership excellence, offering a nuanced perspective on its significance. Through scrutinizing prominent leaders and dissecting traits associated with vulnerability, he prompts a reevaluation of what constitutes effective leadership. Watch the full episode here.