Insider Tips - Weekly Stock Market Report - Week October 7, 2024
Weekly Insider Tips - October 7, 2024
In this week's stock market update, I share insights on current market trends, where we’re in a green market, and how my mastermind group and I are making some money. Despite the market feeling a bit extended, there are still opportunities to capitalize on.
I review key indicators, such as the major indexes and VIX, as well as individual stocks like Apple, NVIDIA, Tesla, and others. I also discuss how selling options can generate cash flow, particularly in stocks like Apple and NVIDIA. Finally, I highlight notable trends, including upcoming Tesla events and breakout stocks like Collegium Pharmaceuticals.
Technical Analysis: We’re currently in a green market, which is exciting for investors. I use the SPY as a market timing indicator, and this week we have four green lights, meaning the market is generally moving upward. Momentum briefly slipped into the red a couple of days ago but has since recovered. As we know, about 70% of a stock’s movement is influenced by the overall market direction, so this is a crucial period for making investment decisions.
Looking at the major indexes, the NASDAQ remains the weakest performer, having dropped this week. It’s trying to recover but has a long way to go before reaching its all-time high of 18,071. Other indexes like the Dow, S&P, and NYSE are hovering near their all-time highs and, if the NASDAQ catches up, could push higher too. Despite minor drops this week, the market remains resilient with minimal selling pressure, even in the NASDAQ. The VIX spiked this week but is still within a manageable range (under 29), so there’s no immediate reason for concern.
Market Trends: The broader market continues to benefit from liquidity injections by the Federal Reserve, which is pushing asset prices up. The indexes are close to their highs, and once the NASDAQ rebounds, we may see a collective surge in the overall market. However, keep an eye on the VIX, as it could spike higher if selling pressure increases significantly.
Individual Stocks:
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Apple: Currently stuck in a consolidation phase, Apple isn’t doing anything dramatic. For investors, this may seem stagnant, but if you’re selling covered calls, it’s an opportunity to generate consistent income. It’s hovering above the 50-day moving average, which is a positive sign.
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NVIDIA: NVIDIA has shown a contraction in volatility, suggesting it may soon experience upward momentum. However, it’s in a later-stage base, meaning that there’s some risk of a correction as early sellers are taking profits. Be cautious but ready for potential upside.
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Tesla: Tesla recently released delivery numbers slightly below expectations, but it’s still the top-selling car manufacturer globally with the Model Y. Upcoming events, such as the RoboTaxi reveal, will add excitement to the stock. Volatility is high, offering great income potential through option selling.
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Amazon: Similar to Apple and NVIDIA, Amazon is in a consolidation phase above the 50-day moving average. It’s stable and presents a good income opportunity for those selling options.
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JP Morgan: After hitting an all-time high, JP Morgan is now correcting around $200. It’s a solid stock but not currently offering explosive growth. However, it may benefit from future rate cuts or liquidity injections.
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MicroStrategy: MicroStrategy remains an interesting play due to its heavy exposure to Bitcoin. Michael Saylor’s financial engineering strategy using arbitrage between debasing fiat currency and Bitcoin’s rise is groundbreaking and could be a significant case study in the future.
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Coinbase & Marathon Digital (MARA): Unlike MicroStrategy, both Coinbase and Marathon Digital are struggling, with Coinbase in a downtrend and facing a death cross. These stocks are tied to Bitcoin’s volatility and haven’t fared well recently.
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Collegium Pharmaceuticals: This stock has been a standout, breaking out this week. If you’re looking for fresh opportunities, this might be a good one to consider, especially for those who like to catch stocks early in their breakout phase.
Key Takeaways:
- The overall market remains strong with minimal selling pressure.
- The NASDAQ is lagging, but if it recovers, other indexes could reach new highs.
- Volatility in stocks like Tesla and NVIDIA creates income opportunities for option sellers.
- Apple, Amazon, and JP Morgan are stable but offer little explosive growth in the short term.
- MicroStrategy stands out as a unique Bitcoin play, while Coinbase and Marathon Digital are struggling.
- Collegium Pharmaceuticals is a new breakout opportunity worth watching.
Conclusion: The stock market remains resilient in its green phase, though the NASDAQ is lagging. Selling options on key stocks continues to be a solid strategy, allowing investors to generate consistent income even during consolidations. Stocks like Tesla and Collegium Pharmaceuticals offer exciting opportunities in the near term. Keeping an eye on broader market trends and key indicators like the VIX will help navigate any upcoming volatility.
Current Market Condition:
We're currently in a green market, offering a strong environment for making gains. Major indexes like the Dow, S&P, and NYSE are near their all-time highs, with minimal selling pressure. While the NASDAQ is lagging slightly, it’s poised for potential recovery, which could push the broader market higher. With four green lights in our momentum indicators, now is an ideal time to capitalize on the market's upward momentum. This is a great opportunity to generate consistent income through strategies like selling options on stable stocks such as Apple and NVIDIA.
Stock Tip of the Week:
In this video, I going into the simple steps that you can follow and start to earn $10K a month in revenue. Obviously, you need a full system! Check out my video here.
Tesla Covered Call Income Is Insane Right Now. In this video I walk you through this trade where you can earn $8k income plus just over $18k in profit! Check it out here.
Podcast this Week:
Welcome back. Today we have a seasoned guest back with us, as she has so much more to share about money. We dive into the interesting world of Live Trusts, Wills, and generational wealth. This is a super interesting episode you won't want to miss! Welcome back Whitney Elkins-Hutten!
