Insider Tips - Weekly Stock Market Report - Week November 11, 2024

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Weekly Insider Tips - November 11, 2024

This past week was remarkable for trading, presenting major gains for anyone positioned well in a bullish market. The markets saw high-volume gap-ups and new highs, with stocks like Tesla, Amazon, and MicroStrategy leading the charge. With momentum favoring growth, especially after the election, traders who stayed on the sidelines missed significant gains. Overall, my outlook remains optimistic, supported by a green market signal and a historical uptrend reminiscent of post-election 2016. Given these trends, this is an ideal moment to capitalize on opportunities.

Technical Analysis

This week’s trading activity showed strong bullish signals, particularly in the NASDAQ and the S&P 500, which hit new highs. We observed gap-ups on high volume, indicating strong buying energy. The Dow Jones mirrored this sentiment, jumping significantly on post-election day trading, reinforcing the market’s confidence. Historically, these patterns of sustained uptrends following election results—like those seen in 2016—suggest that we could see continued growth if the current sentiment persists.

Market Trends

We’ve entered a “green market” phase, with all four indicators showing bullish signs. The CBOE Volatility Index (VIX) also reflected reduced fear, gapping down after election results and dropping below the 200-day moving average, signaling stability. Historically, when the market turns green, there's an 80% chance of upward momentum. This trend suggests it's advantageous to be in the market and aligned with its positive movement.

Individual Stocks

Apple: Although stable, Apple’s relative strength has slipped, with other stocks outpacing it. Its recent offerings lack the excitement of past innovations, which reflects in its current stock performance.
Tesla: Tesla experienced a breakout, rising about 21% from its recent low. The potential inclusion of Elon Musk in government decisions could be favorable, possibly reversing previous regulatory challenges.
NVIDIA: This stock is showing gains, though concerns remain about lower volume, which could lead to quick sell-offs.
Amazon: Amazon hit a breakout point at $200 and is riding high on post-election energy.
MicroStrategy: Strong performance driven by its Bitcoin holdings, with the stock’s incredible rise from $20 to $260 within a year.
Other Tech Stocks: Microsoft and Google showed slower growth, hovering near their moving averages. Meta has shown gradual growth but lacks a breakout catalyst.

Key Takeaways

Green Market Advantage: With the green light signal on, the market shows clear bullish potential. History supports the trend, suggesting this momentum could carry well into the coming months.
Election Impact: Election-related optimism has strengthened market trends, echoing 2016’s post-election bullish phase. If the current administration favors deregulation, it could boost growth further.
Sector Performance: Tech and growth stocks like Tesla, NVIDIA, and Amazon are outperforming, while more conservative plays, like bonds and CDs, lag.
Volatility and Risk: With the VIX decreasing, the market feels less volatile. However, traders should remain vigilant, especially with stocks that have risen on low volume, as these could experience faster corrections.

Conclusion

In conclusion, this week reinforced the benefits of staying invested during a green market phase, especially following a key election period. Traders positioned in high-growth stocks benefited significantly, with additional gains possible if bullish trends persist. Although every market carries risks, being aligned with positive momentum can increase the likelihood of gains.

Current Market Condition:

We're currently in a strong green market phase, with all four indicators signaling bullish momentum. Historically, when the market turns green, there’s about an 80% chance it will trend upward. This optimistic stance is further supported by a drop in the CBOE Volatility Index (VIX) below the 200-day moving average, indicating lower fear and greater market stability. This trend suggests now is a good time to participate actively in the market, as the upward momentum is likely to continue, especially in the wake of recent election results echoing a similar post-election rally seen in 2016.

Stock Tip of the Week:

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Podcast this Week:

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