Insider Tips - Weekly Stock Market Report - Week September 30, 2024
Weekly Insider Tips - September 30, 2024
Hello, it's Mark Yegge, and welcome to another weekly stock market update. I'm excited to share the latest trends and analyses with you.
Technical Analysis
We've had four green lights in a row, indicating that the market is currently bullish. The NASDAQ has broken its downtrend from last week and surpassed a significant resistance level, suggesting it may be heading towards the 19,100 level. This uptrend is promising, especially since the NASDAQ has been lagging behind the other major indices.
The S&P 500, Dow Jones Industrial Average, and the New York Stock Exchange Composite are all at all-time highs, each displaying strong uptrending charts and bouncing off their 50-day moving averages. This collective strength across major indices reinforces the bullish sentiment in the market.
The Volatility Index (VIX) is trending downwards, resting near its 200-day moving average, which indicates decreasing market fear and potentially more money flowing into the markets.
Market Trends
Several asset classes are performing exceptionally well:
- Bitcoin has reached an intermediate high of 66,000, reflecting increased interest in cryptocurrencies.
- Gold is at an all-time high, signaling investors' continued faith in precious metals.
- Real Estate remains robust, benefiting from the Fed's actions.
The Federal Reserve's decision to lower interest rates is injecting liquidity into the market, which historically drives asset prices higher. The adage "don't fight the Fed" seems particularly relevant now.
Individual Stocks
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Apple (AAPL): The stock is exhibiting a bullish pattern. After bouncing off the 21-day moving average, it's building momentum to challenge the 232 and 237 resistance levels. My target for Apple is around 254, given its strong chart performance.
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NVIDIA (NVDA): NVIDIA is showing signs of breaking its descending trend line. With decreasing volatility and narrowing trading ranges, it appears poised to reach 131, 136, and potentially 140 in the coming months.
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Tesla (TSLA): Tesla is in a bullish run-up ahead of its October 10th Robo Taxi event. The stock's momentum suggests that investors are optimistic about upcoming announcements.
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Amazon (AMZN): Amazon is bouncing off its 200-day moving average with strength. It looks ready to challenge the 201 level and potentially break out from there.
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JP Morgan (JPM): The stock is forming an ABCD pattern upwards. If it can reach the 225 level with conviction, a move towards 251 seems plausible.
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Alphabet/Google (GOOGL): Contrary to others, Alphabet is forming an ABC pattern downwards. It's likely to face resistance around 170.41. Given competition and antitrust issues, the stock seems less attractive at the moment.
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Marathon Holdings (MARA): As a Bitcoin play, it's in a short-term downtrend and currently in a Death Cross pattern. It's not the ideal choice for exposure to Bitcoin.
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MicroStrategy (MSTR): This is a stronger Bitcoin-related stock. Under Michael Saylor's leadership, the company is performing well and reflects positive Bitcoin market sentiment.
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Taiwan Semiconductor (TSM): After an initial breakout attempt, the stock is consolidating and may be gearing up for a significant move upwards, especially if NVIDIA follows suit.
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Super Micro Computer (SMCI): The stock is exhibiting a dreaded H pattern, breaking down below key support levels. With accounting and legal issues looming, it appears to be a strong short candidate, potentially heading towards 275 and even 200.
Key Takeaways
- Bullish Market: The overall market sentiment is bullish, supported by strong performances in major indices and decreasing volatility.
- Asset Growth: With the Fed lowering rates, liquidity is boosting asset prices across the board.
- Strategic Stock Picks: Focusing on stocks with strong technical patterns like Apple, NVIDIA, Tesla, and Amazon could be advantageous.
- Caution on Certain Stocks: Be wary of stocks like Alphabet and Super Micro Computer due to their bearish patterns and underlying issues.
Conclusion
In this green market environment, it's an opportune time to be invested in assets. The combination of technical indicators and favorable market conditions suggests potential for continued growth. As always, stay informed, manage your risks, and make decisions that align with your investment goals.
Current Market Condition:
We are three weeks into a green market, which suggests there may still be room to run. Historically, a prolonged green period could signal a nearing reversal, but for now, we are in a bullish trend.
Stock Tip of the Week:
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Podcast this Week:
Welcome back to the Wealth Architect Podcast! Today, we're diving into the world of franchising with our guest, Greg Mohr, a franchising expert and author of "Real Freedom: Why Franchises Are Worth Considering."
He also hosts the Franchise Maven Podcast. Franchising is a powerful way to start a business without starting from scratch, and Greg has incredible insights to share. So, let's jump right in and welcome him!
