Insider Tips - Weekly Stock Market Report - Week December 23, 2024
Weekly Insider Tips - December 23, 2024
This week’s Insider Tips dives into a volatile and red market as we head into the holidays. While it's been a challenging time for stocks across the board, my focus remains on market timing to avoid unnecessary losses and capitalize on income opportunities through selling calls. With indexes like the NASDAQ, S&P 500, and Dow struggling below key moving averages, and specific sectors like biotech and oil showing significant weakness, caution is paramount. Despite the turbulence, standout performers like Apple and Tesla offer steady or high-reward options, and strategies like selling in-the-money calls continue to provide protection and income. Let’s stay vigilant, embrace a long-term perspective, and prepare for a brighter market ahead.
Market Trends and Technical Analysis:
The market remains firmly in red territory, and several key indicators confirm a challenging environment:
- NASDAQ Composite: Approaching its 50-day moving average with temporary dead-cat bounces, indicating continued weakness.
- S&P 500 & Dow Jones Industrial Average: Both broke below their 50-day moving averages, with the Dow experiencing significant sell-offs, including a high-volume drop of 1,100 points earlier this week.
- Dow Jones Transport Index: Reflecting recessionary signals as goods movement slows—a warning sign for the broader economy based on Dow Theory.
- Volatility Index (VIX): Spiked sharply, indicating heightened fear and market instability.
Sector and Stock-Specific Insights:
- Biotech: Forming a bearish "H" pattern, facing pressure from potential regulation concerns tied to RFK Jr.
- Oil: Suffering from price compression as deregulation under the new administration looms, with sharp declines to multi-month lows.
- Technology: The Disk Drive Index and key names like NVIDIA are showing signs of weakness, breaching support levels and signaling a bearish trend.
Individual Stock Highlights:
- Apple (AAPL): Resilient amidst the broader sell-off, maintaining its uptrend and providing reliable income opportunities. Selling at-the-money calls yields steady returns of ~1.25% weekly.
- Tesla (TSLA): A high-volatility play with significant rewards for selling options. While recent gains are under pressure, deep-in-the-money calls have protected portfolios effectively.
- MicroStrategy (MSTR): Exhibiting extreme volatility but offering exceptional premium income, with contracts yielding ~$17,000 for 10 contracts at the money.
- Amazon (AMZN): Continues its breakout trajectory, holding strong above $200 and showing resilience despite broader market trends.
- Alphabet (GOOGL): Correcting after a quantum computing-driven rally, likely to fill its gap before resuming growth.
Key Takeaways:
- Market Timing Matters: Staying out of red markets minimizes losses and preserves capital for future opportunities.
- Income Strategies Work: Selling in-the-money or at-the-money calls provides a reliable way to generate income even during downturns.
- Sector-Specific Caution: Oil, biotech, and technology are showing early signs of longer-term challenges, requiring selective exposure.
- Resilient Stocks: Companies like Apple and Amazon remain strongholds, but patience is critical before adding positions in a weak market.
Conclusion:
This week’s insights reaffirm the importance of caution in a red market. While many sectors and stocks are struggling, income strategies like selling calls offer a path to stability and growth. As we navigate the uncertainty, including factors like inflation, government policies, and administration changes, staying disciplined with a market timing approach will be key. Let’s ride out the storm and position ourselves for opportunities in the next market upswing. Happy holidays!
Current Market Condition:
The market remains deeply in red territory, with major indexes like the NASDAQ, S&P 500, and Dow Jones Industrial Average experiencing extended sell-offs and breaking below critical moving averages. The NASDAQ is nearing its 50-day moving average, while the S&P and Dow have made new lows, reflecting one of the longest streaks of negative performance in 50 years. Temporary dead-cat bounces offer little confidence, and heightened volatility, as shown by the VIX spiking from 12 to nearly 30, underscores significant fear in the market. Key sectors, including biotech and oil, are under pressure, signaling broader economic challenges. In such conditions, caution and market timing are crucial to avoiding unnecessary losses and protecting portfolios.
Stock Tip of the Week:
🚀 Tesla Jumps $20 Today – Here's What I'm Doing! 🚀
In this week's video, I break down Tesla's impressive $20 surge and show you exactly how I'm leveraging this move to generate passive income with options trading. Whether you're a seasoned trader or just curious about the strategies behind consistent income, this one's for you!
📉 Market Crash Alert: Dow Plummets 1,100 Points! Were You Ready? 📉
In today’s video, I dive into the brutal market crash and share insights on how to stay prepared during turbulent times. With the Dow nosediving 1,100 points, it’s more important than ever to have a strategy in place. Don’t miss this breakdown of what happened and how to navigate the chaos.
💰 How MicroStrategy (MSTR) Generated $104K Income in One Month! 💰
In this video, I break down the math behind the trades that brought in $104,000 in income from MicroStrategy (MSTR) over the past month. From strategy to execution, I walk you through the entire series of trades so you can see how it all adds up. Don’t miss this detailed analysis!
Podcast this Week:
Today, we’re thrilled to have Luis A. Belmonte with us. Luis is a real estate developer with over 40 years of experience, specializing in retail, multifamily, and industrial projects across California, Oregon, and Nevada. He’s a founding partner of what’s now Prologis, a U.S. Navy veteran, and the author of Real Estate 101, Street Dog MBA, and Street Dog Negotiator.
Today, he’s here to share his insights on real estate, business, and negotiation. Let’s dive in—
🎄 Wishing You a Season of Gratitude and Abundance 🎄
As the holiday season approaches, I want to take a moment to express my heartfelt gratitude to you. This time of year is a beautiful reminder to embrace abundance—not just in wealth, but in love, joy, and connection with those who matter most.
Whether you’re meticulously planning every detail or just “winging it,” remember the true spirit of the season is about cherishing the moments that bring us closer together. May your days be filled with warmth, laughter, and a renewed sense of purpose as we step into a new year.
Here’s to a holiday season filled with gratitude, abundance, and a little bit of magic. 🎁✨
Happy Holidays! 🎄
