Insider Tips - Weekly Stock Market Report - Week August 12, 2024
Weekly Insider Tips - August 12, 2024
This week was a tough and historic one in the stock market, marked by significant volatility and unexpected moves. With red signals dominating the market, it's crucial to tread carefully and wait for better opportunities. Despite a few setups, the overall market sentiment is cautious, with key stocks like Apple, NVIDIA, and Tesla showing mixed signals. As always, it’s essential to stay informed, manage risks, and be patient for clearer market trends to emerge.
Technical Analysis: This week saw an unprecedented level of volatility in the market, driven by a combination of inflationary fears, recessionary concerns, and global events, particularly the situation with the Japanese yen. The NASDAQ and S&P 500 both displayed significant gaps, indicating instability and potential downward pressure. The market is currently marked by red signals, which suggests a cautious approach as opportunities are scarce and risk is high. The volatility index saw one of its largest single-day increases in history, jumping from the low 20s to the high 60s, underscoring the uncertainty and rapid shifts in market sentiment.
Market Trends: The broader market trend remains challenging, with significant moves off key support levels, like the 200-day moving average for the NASDAQ. The S&P 500 is also flirting with key technical levels, and there’s a possibility of it testing these lows again. Treasury yields have been volatile, with a notable spike that has spooked investors. This reflects a flight to safety, as investors move away from riskier assets, influenced by global concerns such as the sell-off in Japanese bonds.
Individual Stocks:
- Apple: Despite a gap down below its 50-day moving average, Apple has shown some resilience, managing to recover above this level. With upcoming product releases, Apple may experience a pre-event rally, but it remains a cautious play for now.
- NVIDIA: NVIDIA is in a short-term downtrend within a long-term uptrend. While it has recovered some ground, it remains below the 50-day moving average, signaling caution for potential buyers.
- Eli Lilly: Eli Lilly stands out as a "chugger," consistently moving along its 50-day moving average. The stock bounced perfectly off its 200-day moving average, showing strength and potential for further gains.
- Tesla: Tesla is struggling below its 200-day moving average, with several gaps needing to be filled. The stock’s low volume decline offers a glimmer of hope, but it needs to show more consistent strength above key technical levels.
- JP Morgan Chase: Benefiting from its treasury holdings, JP Morgan Chase is performing well despite the broader market challenges.
- CrowdStrike: CrowdStrike has been hit hard, with its stock plummeting from $400 to $200 in a short period. Despite a minor recovery, the stock remains a risky play, with a dead cat bounce scenario playing out on low volume.
Key Takeaways:
- The market is currently in a precarious position, with significant volatility and mixed signals across major indices and stocks.
- While some individual stocks like Eli Lilly and Apple show potential, others like CrowdStrike and Tesla are struggling to find their footing.
- The overall sentiment remains cautious, with a strong emphasis on risk management and waiting for clearer signals before making any major moves.
Conclusion: This week has been a stark reminder of the unpredictability of the market. With historic volatility and key technical levels being tested, it's essential to approach the market with caution. While there are some opportunities, the overall trend suggests staying patient and focusing on capital preservation. As we move into the next week, the hope is for more stability and clearer trends to guide investment decisions. Stay informed, manage your risk, and be ready to act when the market presents more favorable conditions.
Current Market Condition:
Exercise caution. Respect a cash position. protect to the downside. Consider short selling but be sure you know what you are doing.
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.
The current red market condition indicates a period of significant decline and caution. Major indices like the NASDAQ and S&P 500 are showing weakness, with gaps down and struggles to hold key support levels like the 200-day moving average. Volatility is high, as reflected in a historic spike in the volatility index. This environment suggests limited opportunities, with most stocks under pressure and the overall market sentiment being cautious. Investors are advised to be patient, manage risks carefully, and avoid trying to catch falling stocks during this uncertain time.
Stock Updates:
There are certain stocks to own if Kamala Harris wins. You could also consider writing covered calls for income on them.....Check out the details now!
The market is RED. So when considering a covered call strategy, you should be conservative if you are going to be in the market at all. Eli Lilly just reported great earnings...what should you do..? If you can do this trade over and over for 50 weeks ($500/week hypothetically ) it would return $25K. Take a look!
Podcast this Week:
In this episdoe, Mark dives into a topic that affects everyone: taxes. Joined by Shauna, the "Tax Goddess," Mark explores strategies that can save you money by reducing your tax burden.
Shauna, a two-time published author and founder of Tax Goddess Business Services, shares her expertise on how to leverage the tax code to benefit business owners, investors, and entrepreneurs. With over 65 team members worldwide and having saved clients over a billion dollars, Shauna is ranked in the top 1% of tax strategists in the USA. She discusses her journey into the world of taxes, her unique approaches, and practical tips for maximizing deductions. Tune in to learn how to keep more of your hard-earned money.
