Insider Tips - Weekly Stock Market Report - Week August 26, 2024

Weekly Insider Tips - August 26, 2024

This week, the markets have bounced back after a tough period, returning to a strong, green performance. The New York Stock Exchange hit an all-time high, while other indices like the NASDAQ, S&P 500, and Dow Jones are showing mixed signals but generally moving upward. Despite some market volatility, certain stocks like Apple and Netflix are showing potential for gains, while others like Amazon and NVIDIA need careful watching due to their unpredictable behavior. Remember, it's crucial to stay updated and look beyond the headlines to truly understand market dynamics.

Technical Analysis: Over the past week, we've seen a significant recovery in the stock market, especially after the prior week's downturn, which had many investors worried. The New York Stock Exchange (NYSE) reached an all-time high of 19,000, and we’ve observed six consecutive days of green in the market. This suggests a strong bullish trend. The NASDAQ, however, hasn't performed as well and is currently just above its 50-day moving average, indicating potential vulnerability. It has experienced a 61% Fibonacci retracement up to 18,000 but remains one of the weaker indices. Meanwhile, the S&P 500 has shown strength, bouncing above its 50-day moving average, and the Dow Jones is nearing its all-time high, signaling a broader market recovery.

Market Trends: Despite the recent volatility, several trends are becoming evident. There is a divergence between indices like the NYSE and the NASDAQ, but this could be temporary. The VIX, which spiked recently, has settled back down to its mean of 16, suggesting a balanced outlook among investors—neither overly bullish nor bearish. Additionally, the housing market defies negative news narratives, with the housing index at its all-time high, contradicting claims of a crash in places like Florida and Texas. This indicates strong underlying fundamentals, possibly bolstered by the Fed's announcement to move toward lowering rates, which should encourage more home buying and economic activity.

Individual Stocks:

Apple (AAPL): Apple is showing strength with a relative strength index (RSI) of 86. It has corrected down to 196 but quickly rebounded above its 50-day moving average. With the upcoming release of the iPhone 16, which includes new AI features, Apple is positioned for a potential rally to $250 if it breaks the $237 high on strong volume.
NVIDIA (NVDA): NVIDIA is in a third-stage base, often a signal of selling pressure, yet it remains a stock to watch due to its cutting-edge AI and graphics technologies. With an upcoming earnings report, NVIDIA could experience significant volatility, potentially moving up or down by 10-11%, making it a risky play in the short term.
Tesla (TSLA): Tesla has been volatile, fluctuating between $210 and $228 this week. It's currently hovering above its 50-day moving average, and investors should watch for the upcoming RoboTaxi announcement in October, which could be a catalyst for movement.
Amazon (AMZN): Amazon is showing weakness, trading below its 50-day moving average. While it filled a small gap, it hasn’t demonstrated the strength needed for a buy signal. Long-term investors might hold, but short-term traders should be cautious.
Super Micro Computer (SMCI): SMCI has been in a short-term downtrend but remains in a long-term uptrend, hovering around $600. There are no clear signals to buy or sell, suggesting it may be better to wait for a stronger trend.
Netflix (NFLX): Netflix has returned to its all-time high after a significant drop and recovery. As the market leader in streaming, Netflix faces little competition. This unique position suggests further potential upside, especially if the company raises prices again, which the market might accept given the lack of alternatives.

Key Takeaways:

The stock market has bounced back strongly from a recent downturn, with indices like the NYSE hitting all-time highs.
Divergences among major indices suggest potential future convergence, which could either continue the upward trend or signal a pullback.
Certain stocks, like Apple and Netflix, show promising setups, while others like Amazon and NVIDIA warrant caution.
The housing market remains robust, defying negative news predictions, and could be bolstered further by potential Fed rate cuts.

Conclusion: In conclusion, the market is currently in a recovery phase, with strong performance in some sectors and caution needed in others. As always, it's crucial to stay informed and make investment decisions based on comprehensive analysis rather than headlines. The coming weeks could provide further clarity on the market’s direction, so keep an eye on technical indicators and upcoming economic news. See you next week for another update!

Current Market Condition:

For the second week in a row, the stock market has continued its upward momentum, with a strong green performance across multiple sectors. Investors are feeling optimistic as economic indicators show signs of resilience, driving confidence in the market's ability to sustain growth. Key sectors like technology, consumer goods, and energy are leading the charge, reflecting a broad-based rally that suggests more gains could be on the horizon. Keep an eye on this trend as we navigate through the rest of the month!

Stock Tip of the Week:

Is Costco ready to break out again? Find out if you should write covered calls on this stock in this informative video. Don't miss out on potential profits! Check out the full video here.

Podcast this Week:

In this episode of the Wealth Architect Podcast, Mark Yegge sits down with Thomas Blockburger, the co-founder of Paradigm Shift Financial. Thomas brings a fresh perspective to financial planning, emphasizing the importance of understanding your true purpose for money. Together, they dive into the psychology of money, exploring why many people chase wealth but still feel unfulfilled. Watch it now!

Insider Tips - Weekly Stock Market Report - Week August 26, 2024

Weekly Insider Tips - August 26, 2024

Current Market Condition:

Stock Tip of the Week:

Podcast this Week:

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