Insider Tips - Weekly Stock Market Report - Week May 26, 2025

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Weekly Insider Tips - May 26, 2025

This week, I’m turning cautious — the market has shifted from green to yellow, signaling it’s time to pump the brakes a bit. We’ve had a strong few weeks, but now we’re seeing some red creeping into the charts. Gaps are opening, momentum is slowing, and some key indicators suggest we may be due for a pullback. I walk through the major indices and highlight stocks like Apple, Tesla, NVIDIA, Palantir, and MicroStrategy — explaining what I’m seeing on the charts and why I’m urging caution going into the holiday weekend. It’s not a time to panic, just a time to protect gains and watch key levels.

Market Trends & Technical Analysis

The tone of the market has shifted. After three to four weeks of strong performance — everything looked green and bullish — we’ve now moved into a cautionary "yellow light" phase. Charts across the board are beginning to flatten or roll over, showing more red and less momentum. It’s not the end of the world, but it’s a clear sign of profit-taking and increased seller control.

NASDAQ:
Several gaps are present on the chart, and while we had strong moves up, we’re now seeing rollovers. The index hasn't been able to break all-time highs and appears headed toward support levels or to fill previous gaps. I emphasize my belief in gap theory — gaps tend to get filled, and that’s what we might be seeing here.
S&P 500:
The index is forming what looks like an upside-down U (or "N" pattern), leaving behind gaps likely to be filled. This weakening structure suggests it may want to tag lower moving averages like the 50-day.
Dow Jones:
It broke above the 200-day moving average briefly but couldn’t hold it, falling back toward the 50-day. The chart is showing weakness, and though a full retest of the bottom isn’t imminent, it’s not off the table. We need to react, not predict, based on probabilities and what price action is telling us.
New York Composite:
It bounced off the 200-day moving average precisely, suggesting some strength. But to sustain it, we’ll need follow-through with volume — especially hard with the selling pressure we’re seeing. There’s also a potential for a Golden Cross (50-day crossing above the 200-day), but it’s too early to call.
VIX (Volatility Index):
The VIX bounced off its 200-day MA and is now above it — a sign of heightened fear and risk-off behavior among investors. That adds to the yellow light narrative.

Individual Stocks Analysis

Apple (AAPL):
Apple’s chart is unhealthy, forming the "dreaded H" pattern. If it breaks 193.25, the next support is around 169.21. The recent political news about U.S. tariffs on foreign manufacturing puts pressure on Apple, especially given its overseas production intentions. The risk here is both technical and geopolitical.
Tesla (TSLA):
Surprisingly resilient. Despite broad market weakness, Tesla’s holding up well, thanks in part to buzz around the upcoming robo-taxi announcement. It’s bounced from $48 to over $300. It’s not a screaming buy or sell — more of a “hold” for now, as it needs more volume to confirm conviction.
NVIDIA (NVDA):
NVIDIA continues to look solid with good momentum after a strong move last week. Yes, it has gaps too — but the consolidation looks healthy. As always, it’s likely to mirror the broader movement of the NASDAQ.
Palantir (PLTR):
One of my favorites at the moment. It’s right at a breakout point — a classic cup-and-handle setup. The official breakout level is 12.541. While breakouts don’t always hold, this one looks promising and I’ve taken a sizable position here.
MicroStrategy (MSTR):
This one’s puzzling. Bitcoin hit $111,000 (a new high), yet MicroStrategy was down $30. Likely just profit-taking, not structural issues. There’s a gap down on the chart, but overall, the chart has been excellent over the past few weeks. With MicroStrategy’s deep Bitcoin exposure, they could end up owning 5% of the world’s supply. Long-term bullish.

Key Takeaways

The market has shifted from bullish (green) to cautionary (yellow) — momentum is slowing, and gaps are opening on the downside.
Charts across the major indices (NASDAQ, S&P, Dow, NYSE) suggest pullbacks toward support or moving averages like the 50-day are highly probable.
The VIX has popped, signaling a move toward risk-off positioning by traders.
Apple faces geopolitical headwinds and chart weakness, while Tesla and NVIDIA look more stable but need confirmation.
Palantir is in a breakout zone — one to watch closely.
MicroStrategy is under pressure despite Bitcoin strength, possibly due to profit-taking.

✅ Conclusion

Right now, the message is simple: be cautious. We’ve had a great few weeks, but signs are pointing to a cooling-off period. Gaps in the charts, a rising VIX, and some key levels under pressure mean it's time to lock in gains, avoid risky trades, and wait for clearer signals. Use the yellow light as a cue to protect capital and stay nimble — there will always be another opportunity.

Current Market Condition:

In this week’s Insider Tips, I’m shifting my market outlook from green to yellow, signaling a need for caution. After several strong weeks of gains, momentum is starting to shift as sellers begin to take control and some profit-taking emerges. The overall tone of the market isn’t necessarily bearish, but it's no longer as bullish as it was. I’m seeing red creep into the charts, indicating possible short-term pullbacks. This yellow signal doesn’t mean panic—it simply means it’s time to be more careful, protect your gains, and pay closer attention to technical indicators as the market finds its next direction.

Stock Tip of the Week:

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