Insider Tips - Weekly Stock Market Report - Week November 25, 2024
Weekly Insider Tips - November 25, 2024
Hi, it's Mark Yegge, and welcome to this week's Insider Tips. We're in a predominantly green market, with some momentum lost but potentially recovering soon. The market feels optimistic, likely buoyed by the prospect of policy changes following the election. Key indices like the NASDAQ, S&P 500, and Dow are testing important levels, and the New York Stock Exchange is leading—a rarity but exciting. Individual stocks like Apple, Tesla, NVIDIA, and Amazon present varying opportunities, and I emphasize using strategies like covered calls to generate consistent income.
Technical Analysis and Market Trends
The market remains predominantly green, signaling a favorable environment for investors, although some momentum indicators show slight weakening. Key indices are at critical levels:
- NASDAQ: Aiming to breach 19,366 but could fall back to the 50-day moving average if strength falters.
- S&P 500: Near resistance at 6,017 with limited strength heading into the holidays.
- Dow Jones: Targeting 44,486, mirroring the broader trend.
- New York Stock Exchange: Hitting all-time highs, an unusual but welcome leader among indices.
- Volatility Index (VIX): Hovering near its 200-day average, reflecting low fear in the market.
Overall, the market seems buoyed by optimism about economic growth from reduced regulations and energy sector reforms under a new administration.
Key Stock Analysis
-
Apple: Trading around its 200-day moving average. While the stock shows limited movement, selling at-the-money covered calls offers consistent weekly returns (e.g., $1.89 per contract).
-
Tesla: Approaching resistance at $358.64. A breakout here could lead to $400, signaling potential upside amidst Tesla’s consistent innovation.
-
NVIDIA: Consolidating gains around $140 after a volatile year. It remains a long-term growth prospect but lacks immediate breakout energy.
-
MicroStrategy: Highly volatile, recently moving 16% in a day. Offers lucrative opportunities for selling deep-in-the-money covered calls to hedge risk while capitalizing on price swings.
-
Amazon: Testing support around $2,120 but showing little excitement despite upcoming seasonal catalysts like Black Friday.
Sector Highlights
- Banking Index: At all-time highs, reflecting market confidence in financial deregulation.
- Natural Gas Index: Rebounding sharply, up 15% in just a few weeks, benefiting from anticipated energy policy shifts favoring an "all-of-the-above" strategy.
Key Takeaways
- This is a market for disciplined strategies. Using covered calls can generate 1-2% weekly income, translating to annualized returns of 50-100%.
- Market sentiment is generally positive, but uncertainty persists. Investors should stay flexible and hedge smartly, especially in volatile names like MicroStrategy.
- Focus on quality stocks with institutional support and favorable technical setups to maximize gains.
Conclusion
The current market environment is optimistic but demands a strategic approach. Covered call writing remains an excellent tool for income generation in both active and sideways markets. Heading into a short Thanksgiving week, market activity may slow, but it’s an excellent time to reassess strategies and appreciate what truly matters—family and relationships.
Current Market Condition:
The market remains predominantly green, signaling a favorable environment for investors. While one momentum indicator has weakened slightly, the overall sentiment is optimistic, driven by the prospect of economic growth fueled by post-election policy changes. Key indices like the NASDAQ, S&P 500, and Dow are testing important resistance levels, supported by a general trend of reduced market fear, as evidenced by the VIX hovering around its 200-day average. This green market reflects a blend of short-term strength and long-term bullish potential, making it an attractive time for disciplined strategies like covered call writing.
Stock Tip of the Week:
In this video, we dive into what could be the perfect trade on Tesla (TSLA). Over the past three weeks, I've shared strategies on how Tesla can generate consistent income, and this week is no different—except we’re taking it to the next level. With $27,000 in income so far, I’ll break down exactly how this trade is performing and why it’s working so well. Curious how to maximize your Tesla investments? Stick around—we're killing it, and I’ll show you how you can too!
Last week I put our a few very critical videos about Microstrategy. Did you see them? The stock was up and down all week, with very important details about what I think is to come. Here is the latest update from all of those videos last week. You should get caught up!
Podcast this Week:
In this episode we dive deep into the fascinating world of luck, chance, and positive EV with a very special guest, Dr. Michael Orkin.
Dr. Orkin is a Professor Emeritus of Statistics at California State University, East Bay, and a current faculty member at Berkeley City College. He has contributed extensively to the gaming industry, served as a consultant, and delivered acclaimed talks, including at Google Tech Talks. Together, Mark and Dr. Orkin explore how luck and chance shape outcomes in life and finance, while unpacking the mathematical principles that reveal when luck is really on your side. Whether you’re curious about the science of games or how to stack the odds in your favor, this episode has something for everyone. Let’s jump in!
As Thanksgiving approaches, I want to take a moment to reflect on the incredible community we’ve built together. Each week, I have the privilege of sharing insights, strategies, and tips with you, and I’m genuinely grateful for your trust and engagement.
Your commitment to growing your financial knowledge and embracing new opportunities inspires me to keep delivering valuable content. It’s your curiosity and drive that make this newsletter a rewarding journey, and for that, I’m deeply thankful.
This season reminds us to pause, appreciate what we have, and express gratitude to those who make our lives richer. Thank you for being part of this journey with me and for allowing me to be a part of yours.
Wishing you a joyful Thanksgiving filled with love, laughter, and of course, a little financial wisdom!
