Insider Tips - Weekly Stock Market Report - Week December 16, 2024
Weekly Insider Tips - December 16, 2024
Welcome to the latest edition of the Insider Tips Newsletter! This week, we’ve seen the market transition from green to yellow and now red, signaling the need for caution and strategic planning. I’ve had a productive mastermind session with my group, discussing ways to navigate this market and generate income even during downturns. We explored bearish market signals, technical patterns like gaps and bearish engulfing candles, and how to capitalize on trends through strategies like selling covered calls. I also touched on specific stocks like Tesla, MicroStrategy, and Amazon, highlighting their recent performance and opportunities for cash flow creation. Additionally, don’t forget—our Income Accelerator live workshop kicks off January 15th, offering an immersive four-week mentorship. Let’s dive into the details!
Detailed Market Breakdown
Technical Analysis and Market Trends
The market started last week in the green but has shifted to red, indicating bearish momentum. Key signals include:
- Bearish Engulfing Candles: Observed on the NASDAQ, these patterns suggest potential selling pressure.
- Gaps in Charts: Both upward and downward gaps on major indices like the NASDAQ, S&P 500, and Dow point to areas that may be tested soon.
- Moving Averages: Many indices, including the NYSE and S&P 500, are trading below their 8-day and 50-day moving averages, confirming a bearish bias.
Sector Analysis
- Pharmaceuticals and Biotech: These sectors have seen significant sell-offs, potentially tied to political uncertainty with Robert F. Kennedy Jr. possibly taking a leadership role in Health and Human Services. Key indices and stocks like Moderna and Pfizer are showing dreaded "H" patterns and bearish trends.
- Housing: The housing index is experiencing notable gap downs, possibly driven by higher interest rate concerns or other macroeconomic factors.
Individual Stocks
- Apple (AAPL): Despite its recent breakout, Apple is likely to consolidate in the red market. Selling covered calls can help generate weekly cash flow while mitigating downside risk.
- Tesla (TSLA): On a strong breakout from $205, Tesla remains a solid performer. Covered calls on Tesla offer substantial premiums, making it an excellent cash-flow generator.
- MicroStrategy (MSTR): A favorite for Bitcoin enthusiasts, this stock has seen a run-up to $540 before consolidating around $400. Selling in-the-money calls here can generate significant weekly income.
- NVIDIA (NVDA): Currently in a downtrend, NVIDIA risks testing its 200-day moving average if it fails to hold key support levels.
- Amazon (AMZN): Riding the wave of holiday shopping, Amazon is on a strong breakout, signaling continued momentum.
Key Takeaways
- Protect Your Portfolio: Use strategies like selling in-the-money calls to hedge during bearish markets.
- Look for Patterns: Monitor technical signals like moving averages, gaps, and bearish engulfing candles for insights.
- Diversify Income Streams: Even in down markets, stocks like Tesla and MicroStrategy can provide consistent cash flow through covered calls.
Conclusion
In a week marked by bearish trends, caution is key. While major indices indicate downward momentum, opportunities to generate income persist through strategies like covered call selling. Stocks like Tesla and Apple remain promising cash flow plays, while the pharmaceutical and housing sectors signal potential risks.
Looking ahead, staying informed and proactive will be critical. If you want to learn how to navigate markets like this, consider joining our Income Accelerator live training in January. Let’s tackle the markets together and create consistent income—regardless of market direction!
Current Market Condition:
This week, the market transitioned from green to yellow and ultimately to red, signaling a need for caution and protection. Momentum indicators turned negative, with moving averages crossing downward, and the charts reflecting bearish patterns. For example, the NASDAQ displayed a bearish engulfing candle, often a precursor to further selling. The S&P 500 and Dow Jones Industrial Average showed signs of rolling over, with gaps in the charts suggesting potential downside targets. Similarly, the New York Stock Exchange index tested key moving averages and hinted at a possible move toward lower levels if support fails. Despite these declines, volatility remains low, indicating a controlled downtrend rather than panic selling. In such markets, strategies like selling calls can provide income and mitigate risk, aligning with the cyclical nature of these market shifts.
Stock Tip of the Week:
MicroStrategy (MSTR) continues to be a standout opportunity in my portfolio, offering a great setup for generating consistent profits. In this week’s video, I break down exactly how I’m capitalizing on its movements and the strategies I’m using to create income—even in a volatile market. Check it out to see what I’m doing now and how you can apply these techniques!
MicroStrategy (MSTR) is on the rise today, and I’ve spotted an incredible covered call opportunity. This setup is paying me $19K in premium for just 10 days! In this video, I’ll walk you through the trade and show how you can generate income like this. Don’t miss it!
We all make mistakes, and this week I made a big one on MicroStrategy—I accidentally bought options instead of selling them! In this video, I break down what happened and how I managed it. Plus, I dive into a live analysis of Delta to uncover key trading insights. Check it out!
Podcast this Week:
Mark Yegge sits down with Evan Robinson, co-founder of Relm AI, to explore how artificial intelligence is revolutionizing the way we search for homes.
With a background in politics and consulting, Evan has a passion for solving big problems—especially making housing more accessible and personalized. Tune in to discover how AI is simplifying the home search process and empowering people to find their dream homes like never before. Let’s dive in!
UPCOMING Live Training with Mark:
Ready to Kickstart Your Income in 2025?
Our Income Accelerator program launches January 15th! This 4-week live mentorship with Wall Street veteran Mark Yegge is designed to teach you how to generate consistent income from the stock market—even in a bear market. With a step-by-step system and exclusive community support, you'll learn to earn 1%-2% weekly or 2%-4% monthly returns.
