Insider Tips - Weekly Stock Market Report - Week October 14, 2024
Weekly Insider Tips - October 14, 2024
Welcome to the Weekly Market Report. We’re in a green market, and while Tesla might not be performing as well, the overall market is trending up. I've just wrapped up a mastermind session and will be sharing insights from the slides we discussed. The NASDAQ is lagging compared to the other major indexes, but the market is generally on a strong uptrend. While there’s some fear as seen in the rising volatility index, we need to play the trends and not try to predict crashes. I’ll cover some individual stocks and technical analysis, touching on the broader market trends, interest rates, and why it's crucial to have a system in place for cash flow regardless of market conditions. Let’s dive in!
Technical Analysis & Market Trends: The market is currently showing strong signs of growth, with four green lights across most major indexes, signaling a continued uptrend. We’ve seen significant movement in the S&P 500, Dow Jones, and NYSE, all reaching all-time highs, while the NASDAQ remains a bit of a laggard. The NASDAQ has been struggling to break past 18,327, and though it’s moving up slowly, it lacks volume and needs additional momentum from major players like Apple and Tesla to propel further.
On the volatility side, the VIX has risen above its 50-day moving average, indicating that there’s some fear and caution in the market. At a reading of 20-21, this suggests that the market is jittery, and while it's trending upward, it’s also vulnerable to sudden pullbacks. However, historically, markets tend to melt up, and if you can leverage income strategies like selling covered calls or puts, you can buffer the ups and downs.
Individual Stocks:
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Apple (AAPL): Apple is in a consolidation phase between $237 and $196. While it’s above key moving averages, its upward movement lacks volume, possibly due to sellers holding the stock back from its previous high. Apple’s innovation seems to be slowing down, making it feel more like a utility stock rather than a high-growth tech company.
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Tesla (TSLA): Tesla had an underwhelming shareholder event focused on robo-taxis and self-driving technology. While the event showcased impressive future tech, the announcement that much of it won't be realized for another two years led to a sharp drop in Tesla’s stock. As an investor, it’s tough to hear "wait two years," which is why we saw a 20-point drop below Tesla’s 50-day moving average.
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NVIDIA (NVDA): NVIDIA is on an uptrend but in a late-stage base, meaning it’s riskier at this level. The stock has seen massive gains in recent years, and though it’s likely to continue its uptrend, it may face resistance at higher levels like $140.
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JP Morgan (JPM): Surprisingly, JPM is climbing despite falling treasury rates. The financial juggernaut continues to dominate its space, but there’s uncertainty about how long it can keep rising if the bond market remains weak.
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MicroStrategy (MSTR): MicroStrategy has been a standout performer, largely due to CEO Michael Saylor’s bold strategy of borrowing cheap money to buy Bitcoin. This arbitrage play between borrowing costs and Bitcoin's average appreciation has propelled the stock 20x in recent years. Saylor’s strategy appears genius as Bitcoin continues to rise, and the stock has massive potential for those looking to gain exposure to cryptocurrency.
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Amazon (AMZN): Like Apple, Amazon is in a consolidation phase. It has a lot riding on the upcoming holiday season, which could provide the boost it needs to break past resistance levels around $195. However, it still needs a significant increase in volume to push through.
Key Takeaways:
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Follow Market Trends: With the market currently in a green phase, it's critical to take advantage of this momentum. Historically, markets go up more often than they crash, and by using strategies like covered calls, you can generate income and cushion against volatility.
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Volatility and Fear: The rising VIX suggests there’s fear in the market, and while we're currently green, there’s always the potential for sudden pullbacks. That said, it's important to stick to the system and trade based on current trends rather than attempting to predict crashes.
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Interest Rates & The Fed: Despite the Federal Reserve lowering interest rates, the market seems to distrust the Fed’s ability to maintain low rates long-term. Treasury bonds have been declining as inflation fears persist, leading to concerns about the broader debt situation in the U.S.
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Bitcoin & Cryptocurrency: MicroStrategy’s strategy of leveraging cheap debt to buy Bitcoin has proven immensely successful, positioning the company to potentially ride even higher with the continued rise of cryptocurrency. In contrast, Coinbase is struggling to gain traction, showing a short-term downtrend and facing challenges in its core business model.
Conclusion & Summary: We’re in a green market, and though fear is creeping in, the overall trend is still upward. Major indexes like the S&P, Dow, and NYSE are at all-time highs, while NASDAQ is catching up. Individual stocks like Tesla, Apple, and Amazon show mixed signals, with Tesla's delay in technology and Apple’s lack of innovation standing out. Meanwhile, companies like MicroStrategy are innovating through financial engineering, leveraging the growth of Bitcoin to drive stock performance. As always, following the trend is key, and ensuring consistent cash flow through systems like covered calls can help mitigate risk during uncertain times.
Current Market Condition:
The market is currently green market. Despite widespread concerns about a potential crash, the market is trending upwards, with several major indices like the S&P 500, Dow, and NYSE hitting all-time highs. This consistent upward momentum suggests it's a great time to stay invested and take advantage of the growth, especially with strategies like selling covered calls to generate income. While the NASDAQ is lagging slightly, it's expected to catch up as broader market strength continues. Overall, the market's green status signals a favorable environment for investors.
Stock Tip of the Week:
Want to retire with an $11k monthly salary from Microsoft? Learn how in this video! Find out how you can build your career and financial security with Microsoft.
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Podcast this Week:
Today, I'm joined by the brilliant Cary Artac, a seasoned expert in technical stock analysis. Together, we explore the intricate world of stocks, breaking down the technicals and uncovering valuable insights you won't want to miss. This episode is packed with fascinating discussion—so let’s jump right in!
